Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 14, 2020 | Jun. 29, 2019 | |
Cover Page | |||
Entity Central Index Key | 0001000228 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-28 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity Registrant Name | HENRY SCHEIN INC | ||
Entity File Number | 0-27078 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 11-3136595 | ||
Entity Address, Address Line One | 135 Duryea Road | ||
Entity Address, City or Town | Melville | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11747 | ||
City Area Code | 631 | ||
Local Phone Number | 843-5500 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | HSIC | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,236,712,000 | ||
Entity Common Stock, Shares Outstanding | 143,390,505 | ||
Entity Voluntary Filers | No | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year (December 28, 2019) are incorporated by reference in Part III hereof. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 106,097 | $ 56,885 |
Accounts receivable, net of reserves of $60,002 and $53,121 | 1,246,246 | 1,168,776 |
Inventories, net | 1,428,799 | 1,415,512 |
Prepaid expenses and other | 445,360 | 451,033 |
Assets of discontinued operations | 0 | 1,083,014 |
Total current assets | 3,226,502 | 4,175,220 |
Property and equipment, net | 329,645 | 314,221 |
Operating lease right-of-use assets | 231,662 | 0 |
Goodwill | 2,462,495 | 2,081,029 |
Other intangibles, net | 572,878 | 376,031 |
Investments and other | 327,919 | 420,367 |
Total assets of discontinued operations | 0 | 1,133,659 |
Total assets | 7,151,101 | 8,500,527 |
Current liabilities: | ||
Accounts payable | 880,266 | 785,756 |
Bank credit lines | 23,975 | 951,458 |
Current maturities of long-term debt | 109,849 | 8,280 |
Operating lease liabilities | 65,349 | 0 |
Liabilities of discontinued operations | 0 | 577,607 |
Accrued expenses: | ||
Payroll and related | 265,206 | 242,876 |
Taxes | 165,171 | 154,613 |
Other | 528,553 | 498,237 |
Total current liabilities | 2,038,369 | 3,218,827 |
Long-term debt | 622,908 | 980,344 |
Deferred income taxes | 64,989 | 27,218 |
Operating lease liabilities | 176,267 | 0 |
Other liabilities | 331,173 | 357,741 |
Liabilities of discontinued operations | 0 | 62,453 |
Total liabilities | 3,233,706 | 4,646,583 |
Redeemable noncontrolling interests | 287,258 | 219,724 |
Redeemable noncontrolling interests from discontinued operations | 0 | 92,432 |
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, 143,353,459 outstanding on December 28, 2019 and 151,401,668 outstanding on December 29, 2018 | 1,434 | 1,514 |
Additional paid-in capital | 47,768 | 0 |
Retained earnings | 3,116,215 | 3,208,589 |
Accumulated other comprehensive loss | (167,373) | (248,771) |
Total Henry Schein, Inc. stockholders' equity | 2,998,044 | 2,961,332 |
Noncontrolling interests | 632,093 | 580,456 |
Total stockholders' equity | 3,630,137 | 3,541,788 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 7,151,101 | $ 8,500,527 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Accounts receivable, reserves (in dollars) | $ 60,002 | $ 53,121 |
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 | 480,000,000 |
Common stock, shares outstanding (in shares) | 143,353,459 | 151,401,668 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 9,985,803 | $ 9,417,603 | $ 8,883,438 |
Cost of sales | 6,894,917 | 6,506,856 | 6,136,776 |
Gross profit | 3,090,886 | 2,910,747 | 2,746,662 |
Operating expenses: | |||
Selling, general and administrative | 2,357,920 | 2,217,273 | 2,071,576 |
Litigation settlements | 0 | 38,488 | 5,325 |
Restructuring costs | 14,705 | 54,367 | 0 |
Operating income | 718,261 | 600,619 | 669,761 |
Other income (expense): | |||
Interest income | 15,757 | 15,491 | 12,438 |
Interest expense | (50,792) | (76,016) | (51,066) |
Other, net | (2,919) | (3,258) | (1,339) |
Income from continuing operations before taxes and equity in earnings of affiliates and noncontrolling interest | 680,307 | 536,836 | 629,794 |
Income taxes | (159,515) | (107,432) | (308,975) |
Equity in earnings of affiliates | 17,900 | 21,037 | 15,293 |
Net gain (loss) on sale of equity investments | 186,769 | 0 | (17,636) |
Income from continuing operations | 725,461 | 450,441 | 318,476 |
Income (loss) from discontinued operations | (6,323) | 111,685 | 140,817 |
Net income | 719,138 | 562,126 | 459,293 |
Less: Net income attributable to noncontrolling interests | (24,770) | (19,724) | (25,304) |
Less: Net (income) loss attributable to noncontrolling interests from discontinued operations | (366) | 6,521 | 27,690 |
Net income attributable to Henry Schein, Inc. | 694,734 | 535,881 | 406,299 |
Continuing Operations | 700,691 | 430,717 | 293,172 |
Discontinued operations | (5,957) | 105,164 | 113,127 |
Net income attributable to Henry Schein, Inc. | $ 694,734 | $ 535,881 | $ 406,299 |
Earnings per share from continuing operations attributable to Henry Schein, Inc.: | |||
Basic (in dollars per share) | $ 4.74 | $ 2.82 | $ 1.87 |
Diluted (in dollars per share) | 4.69 | 2.80 | 1.85 |
Earnings (loss) per share from discontinued operations attributable to Henry Schein, Inc.: | |||
Basic (in dollars per share) | (0.04) | 0.69 | 0.72 |
Diluted (in dollars per share) | (0.04) | 0.68 | 0.72 |
Earnings per share attributable to Henry Schein, Inc.: | |||
Basic (in dollars per share) | 4.70 | 3.51 | 2.59 |
Diluted (in dollars per share) | $ 4.65 | $ 3.49 | $ 2.57 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 147,817 | 152,656 | 156,787 |
Diluted (in shares) | 149,257 | 153,707 | 158,208 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 719,138 | $ 562,126 | $ 459,293 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | (4,070) | (136,356) | 191,886 |
Unrealized gain (loss) from foreign currency hedging activities | (3,876) | 626 | (729) |
Unrealized investment gain (loss) | 12 | (3) | (3) |
Pension adjustment gain (loss) | (5,924) | 3,033 | 3,933 |
Other comprehensive income (loss), net of tax | (13,858) | (132,700) | 195,087 |
Comprehensive income | 705,280 | 429,426 | 654,380 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | (24,404) | (26,245) | (52,994) |
Foreign currency translation (gain) loss | 1,848 | 13,996 | (8,113) |
Comprehensive income attributable to noncontrolling interests | (22,556) | (12,249) | (61,107) |
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 682,724 | $ 417,177 | $ 593,273 |
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. 31, 2016 | $ 2,800,804 | $ 1,588 | $ 126,742 | $ 2,981,777 | $ (317,041) | $ 7,738 |
Beginning 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, Value | 5,266 | $ 2 | 5,264 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, shares | 197,434,000 | |||||
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 | (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 | |||||
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, Value | 3,076 | $ 1 | 3,075 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, 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 | (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 |
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | 704,666 | 0 | 0 | 694,734 | 0 | 9,932 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | (2,327) | 0 | 0 | 0 | (2,222) | (105) |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | (3,876) | 0 | 0 | 0 | (3,876) | 0 |
Unrealized investment gain (loss), net of tax impact | 12 | 0 | 0 | 0 | 12 | 0 |
Pension adjustment gain (loss), net of tax impact | (5,924) | 0 | 0 | 0 | (5,924) | 0 |
Dividends paid | (535) | 0 | 0 | 0 | 0 | (535) |
Other adjustments | (3) | 0 | (3) | 0 | 0 | 0 |
Change in fair value of redeemable securities | 7,300 | 0 | 7,300 | 0 | 0 | 0 |
Initial noncontrolling interests and adjustments related to business acquisitions | 42,345 | 0 | 0 | 0 | 0 | 42,345 |
Adjustment for Animal Health Spin-off, Value | 1 | $ 1 | 0 | 0 | 0 | 0 |
Adjustment to stock for Spin-off transaction, Shares | 87,629,000 | |||||
Repurchase and retirement of common stock - Value | (525,000) | $ (82) | (79,785) | (445,133) | 0 | 0 |
Repurchase and retirement of common stock - Shares | (8,173,912) | |||||
Stock issued upon exercise of stock options, Value | 34 | $ 0 | 34 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, shares | 2,526 | |||||
Stock-based compensation expense - Value | (45,245) | $ (2) | (45,243) | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 215,408 | |||||
Shares withheld for payroll taxes - Value | (10,845) | $ (1) | (10,844) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (179,860) | |||||
Settlement of stock-based compensation awards | 160 | $ 0 | 160 | 0 | 0 | 0 |
Settlement of stock-based compensation awards, shares | 0 | |||||
Share Sale related to Animal Health business | 361,090 | $ 0 | 361,090 | 0 | 0 | 0 |
Deferred tax benefit arising from acquisition of noncontrolling interest in partnership | (523,720) | 0 | (73,970) | (543,158) | 93,408 | 0 |
Transfer of charges in excess of captial | 0 | 0 | (201,457) | 201,457 | 0 | 0 |
Ending Balance at Dec. 28, 2019 | $ 3,630,137 | $ 1,434 | 47,768 | 3,116,215 | (167,373) | 632,093 |
Ending Balance (in shares) at Dec. 28, 2019 | 143,353,459 | 143,353,459 | ||||
Cumulative impact of adopting new accounting standards | $ (274) | $ 0 | $ 0 | $ (274) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gain (loss) from foreign currency hedging activities, (tax benefit) tax | $ 1,035,000 | $ (396,000) | $ 786,000 |
Unrealized investment gain (loss), tax benefit (tax) | 2,000 | 0 | (1,000) |
Pension adjustment gain (loss), tax benefit (tax) | (1,806,000) | (1,179,000) | 314,000 |
Stock issued upon exercise of stock options, tax benefit | 0 | 0 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income attributable to redeemable noncontrolling interests | 21,848,000 | 52,203,000 | |
Foreign currency translation (gain) loss | 2,335,000 | 11,330,000 | (4,530,000) |
Continuing Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income attributable to redeemable noncontrolling interests | 14,838,000 | ||
Foreign currency translation (gain) loss | 2,335,000 | $ 13,031,000 | $ (7,461,000) |
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net income attributable to redeemable noncontrolling interests | (366,000) | ||
Foreign currency translation (gain) loss | $ (592,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 719,138 | $ 562,126 | $ 459,293 |
Income (loss) from discontinued operations | (6,323) | 111,685 | 140,817 |
Income from continuing operations | 725,461 | 450,441 | 318,476 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 184,942 | 143,630 | 133,855 |
Net gain (loss) on sale of equity investments | (250,167) | 0 | 17,636 |
Stock-based compensation expense | 44,920 | 32,621 | 36,845 |
Provision for losses on trade and other accounts receivable | 12,612 | 14,384 | 7,915 |
Benefit from deferred income taxes | (4,057) | (36,007) | (1,773) |
Equity in earnings of affiliates | (17,900) | (21,037) | (15,293) |
Distributions from equity affiliates | 71,469 | 20,386 | 20,895 |
Changes in unrecognized tax benefits | 1,941 | (1,169) | (2,208) |
Provision for (benefit from) transitional tax | 0 | (10,000) | 140,000 |
Other | 5,684 | 369 | 9,850 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (72,689) | (127,201) | (128,498) |
Inventories | 14,702 | (41,042) | (143,155) |
Other current assets | (57,291) | (165,645) | (101,024) |
Accounts payable and accrued expenses | 160,851 | 191,225 | 81,514 |
Net cash provided by operating activities from continuing operations | 820,478 | 450,955 | 375,035 |
Net cash provided by (used in) operating activities from discontinued operations | (166,391) | 233,751 | 170,480 |
Net cash provided by operating activities | 654,087 | 684,706 | 545,515 |
Cash flows from investing activities: | |||
Purchases of fixed assets | (76,219) | (71,283) | (62,404) |
Payments related to equity investments and business acquisitions, net of cash acquired | (655,879) | (53,240) | (181,415) |
Proceeds from sale of equity investment | 307,251 | 1,000 | 34,048 |
Repayments from (borrowings for) loan to affiliate | 16,713 | (25,700) | 6,700 |
Other | (14,175) | (15,101) | (9,670) |
Net cash used in investing activities from continuing operations | (422,309) | (164,324) | (212,741) |
Net cash used in investing activities from discontinued operations | (2,064) | (28,630) | (129,535) |
Net cash used in investing activities | (424,373) | (192,954) | (342,276) |
Cash flows from financing activities: | |||
Net change in bank borrowings | (927,912) | 210,741 | 302,941 |
Proceeds from issuance of long-term debt | 741 | 115,000 | 200,440 |
Principal payments for long-term debt | (260,944) | (24,735) | (59,288) |
Debt issuance costs | (391) | (501) | (1,892) |
Proceeds from issuance of stock upon exercise of stock options | 34 | 3,076 | 5,266 |
Payments for repurchases of common stock | (525,000) | (200,000) | (450,000) |
Payments for taxes related to shares withheld for employee taxes | (10,814) | (18,023) | (44,832) |
Distribution received related to Animal Health Spin-off | 1,120,000 | 0 | 0 |
Proceeds related to Animal Health Share Sale | 361,090 | 0 | 0 |
Proceeds from (distributions to) noncontrolling stockholders | 51,498 | (7,351) | (8,673) |
Acquisitions of noncontrolling interests in subsidiaries | (2,358) | (287,635) | (11,532) |
Payments to Henry Schein Animal Health Business | (169,295) | (192,745) | (6,374) |
Net cash provided by financing activities from continuing operations | (363,351) | (402,173) | (73,944) |
Net cash provided by (used in) financing activities from discontinued operations | 147,371 | (201,603) | (38,607) |
Net cash used in financing activities | (215,980) | (603,776) | (112,551) |
Effect of exchange rate changes on cash and cash equivalents-continuing operations | 14,394 | 14,425 | 26,985 |
Effect of exchange rate changes on cash and cash equivalents-discontinued operations | (2,240) | 3,150 | (5,396) |
Net change in cash and cash equivalents from continuing operations | 49,212 | (101,117) | 115,335 |
Net change in cash and cash equivalents from discontinued operations | (23,324) | 6,668 | (3,058) |
Net change in cash and cash equivalents | 51,776 | (188,898) | 224,554 |
Cash and cash equivalents, beginning of period | 56,885 | 158,002 | 42,667 |
Cash and cash equivalents, end of period | $ 106,097 | $ 56,885 | $ 158,002 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 –Significant Accounting Policies Nature of Operations We distribute 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, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Singapore, 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 8 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 performance 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 transferred 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 28, 2019 and December 29, 2018, trade accounts receivable that can only be used to settle obligations of this VIE were $ 127 million and $ 422 million, respectively, and the liabilities of the VIE where the creditors have recourse to us were $ 100 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 during the reporting period. Actual results could differ from those estimates. Fiscal Year We report our results of operations and cash flows on a 52- 53 week basis ending on the last Saturday of December. The years ended December 28, 2019, December 29, 2018 and December 30, 2017 consisted of 52 weeks. Revenue Recognition On December 31, 2017, we adopted Accounting Standards Codification (“ASC”) 606 (“Topic 606”) using the modified retrospective prior period amounts are not adjusted Our revenue recognition accounting policies applied prior to adoption of Topic 606 are outlined in 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 and medical consumable products, equipment (Health care 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 estimating 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 which 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 equipment 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 instances 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 over 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 revenue 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 accounted 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 installation 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 techniques 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 selling 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 17 for additional disclosures of disaggregated net sales and Note 18 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 accounts 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 historical data, experience, customer types, credit worthiness and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other 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 the 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-current contract assets are included in Investments and other within our consolidated balance sheet. Current and non-current contract asset balances as of December 28, 2019 and December 29, 2018 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. Current 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 29, 2018, the current portion of contract liabilities of $ 65.3 million was reported in Accrued expenses: Other, and $ 5.0 million related to non-current contract liabilities were reported in Other liabilities. During the year ended December 28, 2019, we recognized substantially all of the current contract liability amounts that were previously deferred at December 29, 2018. At December 28, 2019, the current and non-current portion of contract liabilities were $ 70.8 million and $ 6.2 million, respectively. Deferred Commissions Sales commissions earned by our sales force 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 apply 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 liability 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 goods 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 $ 29.5 million and $ 41.1 million, primarily related to payments for inventory, were classified as accounts payable as of December 28, 2019 and December 29, 2018. 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 trends. 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 $ 73.8 million, $ 70.6 million and $ 65.0 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. Advertising and Promotional Costs We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $ 25.2 million, $ 12.9 million and $ 0.8 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. 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 3 - Property and Equipment, Net for estimated useful lives). Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for our use and software developed by a supplier for our proprietary use are capitalized. Costs incurred for our own personnel who are directly associated with software development are capitalized. Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on 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 14–Income Taxes. We file a consolidated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries. Foreign Currency Translation 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 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, as well as our net investments in foreign subsidiaries. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers and foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges. Foreign currency forward agreements related to forecasted inventory purchase commitments with foreign suppliers and foreign currency swaps related to foreign currency denominated debt are designated as cash flow hedges. For derivatives that are designated and qualify as cash flow hedges, the changes in the fair value of the derivative is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item. Foreign currency forward contracts related to our euro-denominated foreign operations are designated as net investment hedges. For derivatives that are designated and qualify as net investment hedges, the changes in the fair value of the derivative is recorded in the foreign currency translation gain (loss) component of Accumulated other comprehensive income in stockholders’ equity until the net investment is sold or substantially liquidated. 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 We account for business acquisitions and combinations under the acquisition method of accounting, where 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, non-compete agreements and product development), 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 certain financial targets are met. While we use our best estimates and assumptions to accurately value those assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill within our consolidated balance sheets. At the end of the measurement period or final determination of the values of such assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, there were no material adjustments recorded in our consolidated statement of income relating to changes in subsequent adjustments or estimated contingent purchase price liabilities. Redeemable Noncontrolling Interests Some minority stockholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted. Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. Noncontrolling Interests Noncontrolling interests represent our less than 50% ownership interest in an acquired subsidiary. Our net income is reduced by the portion of the subsidiaries net income that is attributable to noncontrolling interests. Goodwill Goodwill is 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 and medical) and technology and value-added services. Goodwill was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017 we tested goodwill for impairment 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 units using a discounted cash flow methodology. If step one results in the carrying value of the reporting unit exceeding the fair value of such reporting unit, we would then proceed to step two which would require us to calculate the amount of impairment loss, if any, that we would record for such 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 cash flow methodology includes estimates of future revenue based upon budget projections and growth rates, which take into account estimated inflation rates. We also develop estimates for future levels of gross profits and operating profits and projected capital expenditures. Our methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that we use in our discounted cash flow methodology involve many assumptions by management that are based upon future growth projections. Some factors 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 is impaired, we record an impairment charge in our consolidated statements of income. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, the results of our goodwill 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 relationships and intellectual property. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. Cost of Sales The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges. Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. As a result of different practices of categorizing costs associated with distribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 72.3 million, $ 69.6 million and $ 67.5 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. 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). Leases We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use (“ROU”) assets, Operating lease liabilities, and Non-current operating lease liabilities in our consolidated balance sheet. Finance leases are included in Property and equipment, Current maturities of long-term debt, and Long-term debt in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. When readily determinable, we use the implicit rate. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases finance leases are included in “Selling, general and administrative” and “Interest expense”, respectively within our Consolidated Statement of Income. Leases with a lease term of 12 months or less are not capitalized. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price. Recently Issued Accounting Standards 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 beginning after December 15, 2019. This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance of this ASU is effective. Based upon the level and makeup of our financial asset portfolio, past loan loss activity and current known activity regarding our outstanding loans, we do not expect that this ASU will have a material impact on 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 from 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 the 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 is 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 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations | |
Discontinued Operations | Note 2 – Discontinued Operations Animal Health Spin-off On February 7, 2019 (the “Distribution Date”), we completed the separation (the “Separation”) and subsequent merger (“Merger”) of our animal health business (the “Henry Schein Animal Health Business”) with Direct Vet Marketing, Inc. (d/b/a Vets First Choice, “Vets First Choice”). This was accomplished by a series of transactions among us, Vets First Choice, Covetrus, Inc. (f/k/a HS Spinco, Inc. “Covetrus”), a wholly owned subsidiary of ours prior to the Distribution Date, and HS Merger Sub, Inc., a wholly owned subsidiary of Covetrus (“Merger Sub”). In connection with the Separation, we contributed, assigned and transferred to Covetrus certain applicable assets, liabilities and capital stock or other ownership interests relating to the Henry Schein Animal Health Business. On the Distribution Date, we received a tax-free distribution of $ 1,120 million from Covetrus pursuant to certain debt financing incurred by Covetrus. On the Distribution Date and prior to the Animal Health Spin-off, Covetrus issued shares of Covetrus common stock to certain institutional accredited investors (the “Share Sale Investors”) for $ 361.1 million (the “Share Sale”). The proceeds of the Share Sale were paid to Covetrus and distributed to us. Subsequent to the Share Sale, we distributed, on a pro rata basis, all of the shares of the common stock of Covetrus held by us to our stockholders of record as of the close of business on January 17, 2019 (the “Animal Health Spin-off”). After the Share Sale and Animal Health Spin-off, Merger Sub consummated the Merger whereby it merged with and into Vets First Choice, with Vets First Choice surviving the Merger as a wholly owned subsidiary of Covetrus. Immediately following the consummation of the Merger, on a fully diluted basis, (i) approximately 63% of the shares of Covetrus common stock were (a) owned by our stockholders and the Share Sale Investors, and (b) held by certain employees of the Henry Schein Animal Health Business (in the form of certain equity awards), and (ii) approximately 37% of the shares of Covetrus common stock were (a) owned by stockholders of Vets First Choice immediately prior to the Merger, and (b) held by certain employees of Vets First Choice (in the form of certain equity awards). After the Separation and the Merger, we no longer beneficially owned any shares of Covetrus common stock and, following the Distribution Date, will not consolidate the financial results of Covetrus for the purpose of our financial reporting. Following the Separation and the Merger, Covetrus was an independent, publicly traded company on the Nasdaq Global Select Market. In connection with the completion of the Animal Health Spin-off, we entered into a transition services agreement with Covetrus under which we have agreed to provide certain transition services for up to twenty-four months in areas such as information technology, finance and accounting, human resources, supply chain, and real estate and facility services. As a result of the Separation, the financial position and results of operations of the Henry Schein Animal Health Business are presented as discontinued operations and have been excluded from continuing operations and segment results for all periods presented. The accompanying Notes to the Consolidated Financial Statements have been revised to reflect the effect of the Separation and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation as an adjustment to the balances at December 28, 2019. Summarized financial information for our discontinued operations is as follows: Year Ended December 28, December 29, December 30, 2019 2018 2017 Net sales $ 319,522 $ 3,784,392 $ 3,578,105 Cost of goods sold 260,097 3,100,055 2,925,664 Gross profit 59,425 684,337 652,441 Selling, general and administrative 68,919 531,905 462,835 Operating income (loss) ( 9,494) 152,432 189,606 Income tax expense (benefit) ( 2,181) 48,060 53,532 Income (loss) from discontinued operations ( 6,323) 111,685 140,817 Net (income) loss attributable to noncontrolling interests 366 ( 6,521) ( 27,690) Net income (loss) from discontinued operations attributable to Henry Schein, Inc. ( 5,957) 105,164 113,127 The financial information above represents activity of the discontinued operations during the year through the Distribution Date. The loss from discontinued operations for the year ended December 28, 2019 was primarily attributable to the inclusion of the transaction costs directly related to the Animal Health Spin-off. See Note 23-Related Party Transactions for additional information. The following are the amounts of assets and liabilities that were transferred to Covetrus as of February 7, 2019 and December 29, 2018. February 7, December 29, 2019 2018 Cash and cash equivalents $ 6,815 $ 23,324 Accounts receivable, net 432,812 434,935 Inventories, net 536,637 555,230 Prepaid expenses and other 120,546 69,525 Total current assets of discontinued operations 1,096,810 1,083,014 Property and equipment, net 69,790 68,177 Operating lease right-of-use asset, net 57,012 - Goodwill 742,931 739,266 Other intangibles, net 205,793 208,213 Investments and other 120,518 118,003 Total long-term assets of discontinued operations 1,196,044 1,133,659 Total assets of discontinued operations $ 2,292,854 $ 2,216,673 Accounts payable $ 316,162 $ 441,453 Current maturities of long-term debt 657 675 Operating lease liabilities 18,951 - Accrued expenses: Payroll and related 36,847 36,888 Taxes 24,060 17,552 Other 80,400 81,039 Total current liabilities of discontinued operations 477,077 577,607 Long-term debt 1,176,105 23,529 Deferred income taxes 17,019 4,352 Operating lease liabilities 38,668 - Other liabilities 29,209 34,572 Total long-term liabilities of discontinued operations 1,261,001 62,453 Total liabilities of discontinued operations $ 1,738,078 $ 640,060 Redeemable noncontrolling interests $ 28,270 $ 92,432 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 3 – Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed primarily under the straight-line method over the estimated useful life. 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 28, December 29, 2019 2018 Land $ 18,030 $ 17,985 Buildings and permanent improvements 121,823 127,012 Leasehold improvements 104,089 103,929 Machinery and warehouse equipment 124,640 108,249 Furniture, fixtures and other 99,083 120,693 Computer equipment and software 330,926 427,237 798,591 905,105 Less accumulated depreciation ( 468,946) ( 590,884) Property and equipment, net $ 329,645 $ 314,221 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 28, 2019, December 29, 2018 and December 30, 2017 was $ 64.4 million, $ 58.1 million and $ 54.7 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions | |
Related Party Transactions | Note 23 – Related Party Transactions In connection with the completion of the Animal Health Spin-off during our fiscal year 2019, we entered into a transition services agreement with Covetrus under which we have agreed to provide certain transition services for up to twenty-four months in areas such as information technology, finance and accounting, human resources, supply chain, and real estate and facility services. During 2019, we recorded approximately $ 17.5 million of fees for these services. In connection with the completion of the Animal Health Spin-off (see Note 2 for additional details), we entered into a transition services agreement with Covetrus, pursuant to which Covetrus purchases certain products from us. During the year ended December 28, 2019, net sales to Covetrus were approximately $ 81.3 million. Sales to Covetrus under the transition services agreement are expected to continue through August 2020. At December 28, 2019 we had $ 4.5 million of receivables due from Covetrus and $ 0.1 million payable to Covetrus under this transition services agreement. In connection with the formation of Henry Schein One, LLC, our joint venture with Internet Brands, which was formed on July 1, 2018, we entered into a ten-year royalty agreement with Internet Brands whereby we will pay Internet Brands approximately $ 31.0 million annually for the use of their intellectual property. 31 million and $ 15.5 million, respectively in connection with costs related to this royalty agreement. As of December 28, 2019 and December 29, 2018, Henry Schein One, LLC had a net receivable balance due from Internet Brands of $ 9.4 million and $ 2.4 million, respectively, comprised of amounts related to the royalty agreement and other management fees. During our normal course of business, we have interests in entities that we account for under the equity accounting method. During our fiscal years ended 2019, 2018 and 2017, we recorded net sales of $ 87.7 million, $ 27.0 million, and $ 23.4 million, respectively, to such entities. During our fiscal years ended 2019, 2018 and 2017, we purchased $ 18.1 million, $ 10.8 million, and $ 8.8 million, respectively, from such entities. At December 28, 2019 and December 29, 2018, we had in aggregate $ 60.7 million and $ 61.4 million, due from our equity affiliates, and $ 5.3 million and $ 1.0 million due to our equity affiliates, respectively. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | Note 4 – Goodwill and Other Intangibles, Net The changes in the carrying amount of goodwill for the years ended December 28, 2019 and December 29, 2018 were as follows: Health Care Distribution Technology and Value-Added Services Total Balance as of December 30, 2017 $ 1,431,680 $ 121,902 $ 1,553,582 Adjustments to goodwill: Acquisitions 38,848 530,064 568,912 Foreign currency translation ( 37,116) ( 4,349) ( 41,465) Balance as of December 29, 2018 1,433,412 647,617 2,081,029 Adjustments to goodwill: Acquisitions 50,276 338,352 388,628 Foreign currency translation ( 6,969) ( 193) ( 7,162) Balance as of December 28, 2019 $ 1,476,719 $ 985,776 $ 2,462,495 Other intangible assets consisted of the following: December 28, 2019 December 29, 2018 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 34,553 $ ( 9,327) $ 25,226 $ 34,667 $ ( 6,834) $ 27,833 Trademarks / trade names - definite lived 99,314 ( 44,134) 55,180 72,462 ( 36,165) 36,297 Customer relationships and lists 715,630 ( 274,330) 441,300 479,542 ( 216,007) 263,535 Product Development 85,211 ( 42,326) 42,885 73,294 ( 34,689) 38,605 Other 26,237 ( 17,950) 8,287 34,620 ( 24,859) 9,761 Total $ 960,945 $ ( 388,067) $ 572,878 $ 694,585 $ ( 318,554) $ 376,031 Non-compete agreements represent amounts paid primarily to key employees and prior owners of acquired businesses, as well as certain sales persons, in exchange for placing restrictions on their ability to pose a competitive risk to us. Such amounts are amortized, on a straight-line basis over the respective non-compete period, which generally commences upon termination of employment or separation from us. The weighted-average non-compete period for agreements currently being amortized was approximately 4.9 years as of December 28, 2019. 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 8.0 years as of December 28, 2019. Customer relationships and customer lists are definite-lived intangible assets that are amortized on a straight-line basis over a weighted-average period of approximately 10.0 years as of December 28, 2019. Product development is a definite-lived intangible asset that is amortized on a straight-line basis over a weighted-average period of approximately 8.6 years as of December 28, 2019. Amortization expense related to definite-lived intangible assets for the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $ 108.3 million, $ 75.3 million and $ 70.3 million. The annual amortization expense expected to be recorded for existing intangibles assets for the years 2020 through 2024 is $ 102.7 million, $ 95.6 million, $ 81.4 million, $ 73.7 million and $ 59.3 million. |
Investments and Other
Investments and Other | 12 Months Ended |
Dec. 28, 2019 | |
Investments And Other [Abstract] | |
Investments and Other | Note 5 – Investments and Other Investments and other consisted of the following: December 28, December 29, 2019 2018 Investment in unconsolidated affiliates $ 164,659 $ 260,954 Non-current deferred foreign, state and local income taxes 23,625 12,196 Notes receivable (1) 43,544 66,047 Capitalized costs for internally generated software for resale 42,445 37,659 Distribution rights and exclusivity agreements, net of amortization 4 582 Security deposits 534 - Acquisition-related indemnification 38,464 28,283 Other long-term assets 14,644 14,646 Total $ 327,919 $ 420,367 (1) Long-term notes receivable carry interest rates ranging from 1.0% to 11.5% and are due in varying installments through February 01, 2025. Amortization expense related to other long-term assets for the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was $ 12.3 million, $ 10.2 million and $ 8.8 million. |
Debt
Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt [Abstract] | |
Debt | Note 6 – Debt Bank Credit Lines Bank credit lines consisted of the following: December 28, December 29, 2019 2018 Revolving credit agreement $ - $ 175,000 Other short-term bank credit lines 23,975 376,458 Committed loan associated with Animal Health spin-off - 400,000 Total $ 23,975 $ 951,458 Revolving Credit Agreement On April 18, 2017, we entered into a $ 750 million revolving credit agreement (the “Credit Agreement”), which matures in April 2022 . 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. We expect that the LIBOR rate will be discontinued at some point during 2021. We expect to work with our lenders to identify a suitable replacement rate and amend our debt agreements to reflect this new reference rate accordingly. We do not believe that the discontinuation of LIBOR as a reference rate in our debt agreements will have a material adverse effect on our financial position or materially affect our interest expense. Additionally, the Credit Agreement provides, among other things, that we are required to maintain maximum leverage ratios, and contains customary representations, warranties and affirmative covenants. The Credit Agreement also contains customary negative covenants, subject to negotiated exceptions on liens, indebtedness, significant corporate changes (including mergers), dispositions and certain restrictive agreements. As of December 28, 2019 and December 29, 2018, the borrowings on this revolving credit facility were $ 0.0 million and $ 175.0 million, respectively. As of December 28, 2019 and December 29, 2018, there were $ 9.6 million and $ 11.2 million of letters of credit, respectively, provided to third parties under the credit facility. Other Short-Term Credit Lines As of December 28, 2019 and December 29, 2018, we had various other short-term bank credit lines available, of which $ 24.0 million and $ 376.5 million, respectively, were outstanding. At December 28, 2019 and December 29, 2018, borrowings under all of our credit lines had a weighted average interest rate of 3.45% and 3.30%, respectively. Committed Loan Associated with Animal Health Spin-off On May 21, 2018, we obtained a $ 400 million committed loan which matured on the earlier of (i) March 31, 2019 and (ii) the consummation of the Animal Health Spin-off. 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 that 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, 2019, we re-paid the balance of this loan. Long-term debt Long-term debt consisted of the following: December 28, December 29, 2019 2018 Private placement facilities $ 621,274 $ 628,189 U.S. trade accounts receivable securitization 100,000 350,000 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2024 at interest rates ranging from 2.56% to 10.5% at December 28, 2019 and ranging from 2.61% to 4.17% at December 29, 2018 6,089 6,491 Finance lease obligations (see Note 7) 5,394 3,944 Total 732,757 988,624 Less current maturities ( 109,849) ( 8,280) Total long-term debt $ 622,908 $ 980,344 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 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 private placement facilities to, among other things, (i) permit the consummation of the Animal Health 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 things, that we maintain certain maximum leverage ratios, and contain restrictions relating to subsidiary indebtedness, liens, affiliate transactions, disposal of assets and certain changes in ownership. These facilities 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 28, 2019 are presented in the following table (in thousands): 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) 21,429 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 ( 155) $ 621,274 (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 350 million, and was previously scheduled to expire on April 29, 2020, has been extended to April 29, 2022. As of December 28, 2019 and December 29, 2018, the borrowings outstanding under this securitization facility were $ 100 million and $ 350 million, respectively. At December 28, 2019, the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate of 1.90% plus 0.75%, for a combined rate of 2.65%. At December 29, 2018, the interest rate on borrowings 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%. 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 28, 2019, the aggregate amounts of long-term debt, including finance lease obligations and net of deferred debt issuance costs of $ 155, maturing in each of the next five years and thereafter are as follows: 2020 $ 109,849 2021 108,842 2022 110,504 2023 1,529 2024 101,112 Thereafter 300,921 Total $ 732,757 |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Leases | Note 7 – Leases Leases We have operating and finance leases for corporate offices, office space, distribution and other facilities, vehicles and certain equipment. Our leases have remaining terms of less than one 16 years, some of which may include options to extend the leases for up to 10 years. The components of lease expense were as follows: Year Ended December 28, 2019 Operating lease cost (1) $ 88,246 Finance lease cost: Amortization of right-of-use assets $ 1,154 Interest on lease liabilities 131 Total finance lease cost $ 1,285 (1) Includes variable lease expenses. Supplemental balance sheet information related to leases is as follows: December 28, 2019 Operating Leases: Operating lease right-of-use assets $ 231,662 Current operating lease liabilities 65,349 Non-current operating lease liabilities 176,267 Total operating lease liabilities $ 241,616 Finance Leases: Property and equipment, at cost $ 10,268 Accumulated depreciation ( 4,581) Property and equipment, net of accumulated depreciation $ 5,687 Current maturities of long-term debt $ 1,736 Long-term debt 3,658 Total finance lease liabilities $ 5,394 Weighted Average Remaining Lease Term in Years: Operating leases 5.5 Finance leases 5.0 Weighted Average Discount Rate: Operating leases 3.4 % Finance leases 2.2 % Supplemental cash flow information related to leases is as follows: December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 79,699 Operating cash flows for finance leases 99 Financing cash flows for finance leases 1,413 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 297,800 Finance leases 2,940 (1) Includes leases that commenced during the year ended December 28, 2019, as well as balances related to leases in existence as of the date of the adoption of Topic 842. As of December 28, 2019 we have additional operating leases with total lease payments of $ 9.0 million for buildings and vehicles that have not yet commenced. These operating leases will commence during 2020 with lease terms of two 10 years. As previously disclosed in our December 29, 2018 Form 10-K and under the previous lease accounting standard, future minimum lease payments under non-cancelable operating leases and capital leases as of December 29, 2018 were as follows (in thousands): Operating Capital Leases Leases 2019 $ 62,535 $ 976 2020 47,686 801 2021 34,633 501 2022 25,626 305 2023 19,560 283 Thereafter 62,918 1,430 Total minimum lease payments $ 252,958 4,296 Less: imputed interest (Capital leases only) ( 352) Total present value of minimum lease payments $ 3,944 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 12 Months Ended |
Dec. 28, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Noncontrolling Interests | Note 8 – Redeemable Noncontrolling Interests Some minority stockholders 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 28, 2019, December 29, 2018 and December 30, 2017 are presented in the following table: December 28, December 29, December 30, 2019 2018 2017 Balance, beginning of period $ 219,724 $ 465,585 $ 285,567 Decrease in redeemable noncontrolling interests due to redemptions ( 2,270) ( 287,767) ( 22,294) Increase in redeemable noncontrolling interests due to business acquisitions 74,865 4,655 72,291 Net income attributable to redeemable noncontrolling interests 14,838 15,327 24,513 Dividends declared ( 10,264) ( 8,206) ( 7,680) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests ( 2,335) ( 11,330) 4,530 Change in fair value of redeemable securities ( 7,300) 41,460 108,658 Balance, end of period $ 287,258 $ 219,724 $ 465,585 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 28, 2019 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Comprehensive Income | Note 9 – 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 Accumulated other comprehensive income, net of applicable taxes as of: December 28, December 29, December 30, 2019 2018 2017 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ ( 20,338) $ ( 18,595) $ ( 5,564) Attributable to noncontrolling interests: Foreign currency translation adjustment $ ( 531) $ ( 426) $ 539 Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ ( 143,172) $ ( 234,799) $ ( 112,439) Unrealized loss from foreign currency hedging activities ( 4,032) ( 156) ( 782) Unrealized investment gain (loss ) 6 ( 6) ( 3) Pension adjustment loss ( 20,175) ( 13,810) ( 16,843) Accumulated other comprehensive loss $ ( 167,373) $ ( 248,771) $ ( 130,067) Total Accumulated other comprehensive loss $ ( 188,242) $ ( 267,792) $ ( 135,092) The following table summarizes the components of comprehensive income, net of applicable taxes as follows: December 28, December 29, December 30, 2019 2018 2017 Net income $ 719,138 $ 562,126 $ 459,293 Foreign currency translation gain (loss) ( 4,070) ( 136,356) 191,886 Tax effect - - - Foreign currency translation gain (loss) ( 4,070) ( 136,356) 191,886 Unrealized gain (loss) from foreign currency hedging activities ( 4,911) 1,022 ( 1,515) Tax effect 1,035 ( 396) 786 Unrealized gain (loss) from foreign currency hedging activities ( 3,876) 626 ( 729) Unrealized investment gain (loss) 14 ( 3) ( 4) Tax effect ( 2) - 1 Unrealized investment gain (loss) 12 ( 3) ( 3) Pension adjustment gain (loss) ( 7,730) 4,212 4,247 Tax effect 1,806 ( 1,179) ( 314) Pension adjustment gain (loss) ( 5,924) 3,033 3,933 Comprehensive income $ 705,280 $ 429,426 $ 654,380 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 28, 2019, December 29, 2018 and December 30, 2017 was impacted by changes in foreign currency exchange rates of the Euro, Brazilian Real, British Pound and Australian Dollar. The following table summarizes our total comprehensive income, net of applicable taxes as follows: December 28, December 29, December 30, 2019 2018 2017 Comprehensive income attributable to Henry Schein, Inc. $ 682,724 $ 417,177 $ 593,273 Comprehensive income attributable to noncontrolling interests 9,827 3,432 1,443 Comprehensive income attributable to Redeemable noncontrolling interests 12,729 8,817 59,664 Comprehensive income $ 705,280 $ 429,426 $ 654,380 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements Fair value is defined 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. The hierarchy for determining that distinguishes between (1) market participant assumptions 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). The 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 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 prices 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 liabilities 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— Inputs 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 values. 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 based on the interest rates in the applicable markets. Debt The fair value of our debt (including bank credit lines) is classified as Level 3 within the fair value hierarchy as of December 28, 2019 and December 29, 2018 was estimated at $ 756.7 million and $ 1,940.1 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 certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers and foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges. 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 comparable transactions and are classified within Level 2 of the fair value hierarchy. Redeemable noncontrolling interests The values for Redeemable noncontrolling interests are classified within Level 3 of the fair value hierarchy and are based on recent transactions and/or implied multiples of earnings. The details of the changes in Redeemable noncontrolling interests are presented in Note 8. 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 28, 2019 and December 29, 2018: December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 567 $ - $ 567 Total assets $ - $ 567 $ - $ 567 Liabilities: Derivative contracts $ - $ 5,795 $ - $ 5,795 Total liabilities $ - $ 5,795 $ - $ 5,795 Redeemable noncontrolling interests $ - $ - $ 287,258 $ 287,258 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 $ - $ - $ 219,724 $ 219,724 |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 12 Months Ended |
Dec. 28, 2019 | |
Business Acquisitions and Divestitures [Abstract] | |
Business Acquisitions and Divestitures | Note 11 – Business Acquisitions and Divestitures The operating results of all acquisitions are reflected in our financial statements from their respective acquisition dates. We completed acquisitions during the year ended December 28, 2019, which were immaterial to our financial statements individually. In the aggregate, these transactions resulted in consideration of $ 652.9 million in 2019 related to business combinations, for net assets amounting to $ 19.7 million. As of December 28, 2019, we had recorded $ 310.4 million identifiable intangibles, $ 395.3 million of goodwill and $ 72.5 million of non-controlling interest, related to these acquisitions. Henry Schein One, LLC 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 and 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 within 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%. Internet 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 Brands. A Monte Carlo simulation was utilized to value the additional contingent interests that are subject to operating targets. Key assumptions that were applied to derive the fair value of the contingent interests include an assumed equity value of Henry Schein One, LLC at its inception date, a risk-free interest rate based on U.S. treasury yields, an assumed future dividend yield, a risk-adjusted discount rate applied to projected future cash flows, an assumed equity volatility based on historical stock price returns of a group of guideline companies, and an estimated correlation of annual cash flow returns to equity returns. As a result of the transaction with Internet Brands, we recorded $ 550.9 million of noncontrolling interest within stockholders’ equity as of December 28, 2019. Senior management from Henry Schein and Internet Brands serve on the board 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 28, 2019, the goodwill associated with this transaction is $ 533.9 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 interests 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. 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 28, 2019, December 29, 2018 and December 30, 2017, there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated contingent purchase price liabilities. Divestitures of Investments During the fourth quarter of 2019, we sold an equity investment in Hu-Friedy Mfg. Co., LLC, a manufacturer of dental instruments and infection prevention solutions. Our investment was non-controlling, we were not involved in running the business and had no representation on the board of directors. During the fourth quarter of 2019, we also sold certain other equity investments. In the aggregate, the sales of these investments resulted in a pre-tax gain of approximately $ 250.2 million, net of taxes of approximately $ 63.4 million. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, we recognized approximately $ 6.0 million, $ 10.4 million and $ 6.4 million of equity in earnings from these affiliates. During 2017 we sold our equity ownership in E4D Technologies resulting in a loss of approximately $ 17.6 million. There was no tax benefit recognized related to this loss. Acquisition Costs During the years ended December 28, 2019, December 29, 2018 and December 30, 2017 we incurred $ 4.5 million, $ 7.3 million and $ 5.3 million in acquisition costs from continuing operations. In February 2019, we completed the Animal Health Spin-off. During the years ended December 28, 2019 and December 29, 2018, we incurred $ 23.6 million and $ 38.9 million in transaction costs associated with this transaction. We expect to incur additional spin-off related transaction costs during 2020 related to required tax and other matters. All transaction costs related to the Animal Health Spin-off have been included in results from discontinued operations. |
Plans of Restructuring
Plans of Restructuring | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Plans of Restructuring | Note 12 – Plans of Restructuring On July 9, 2018, we committed to an initiative to rationalize our operations and provide expense efficiencies. These actions allowed us to execute on our plan to reduce our cost structure and fund new initiatives that drive growth under our 2018 to 2020 strategic plan. This initiative has resulted in the elimination of approximately 4% of our workforce and the closing of certain facilities. During the years ended December 28, 2019 and December 29, 2018, we recorded restructuring charges of $ 14.7 million and $ 54.4 million, respectively. The costs associated with these restructurings are included in a separate line item, “Restructuring costs” within our consolidated statements of income. On November 20, 2019, we committed to the contemplated initiative, intended to mitigate stranded costs associated with the Animal Health Spin-off as well as to rationalize operations and provide expense efficiencies. These activities are expected to be completed by the end of 2020. We are currently unable in good faith to make a determination of an estimate of the amount or range of amounts expected to be incurred in connection with these activities, both with respect to each major type of cost associated therewith and with respect to the total cost, or an estimate of the amount or range of amounts that will result in future cash expenditures. We will disclose this information after we determine such estimates or range of estimates. The following table shows the amounts expensed and paid for restructuring costs that were incurred during our 2019, 2018 and 2017 fiscal years and the remaining accrued balance of restructuring costs as of December 28, 2019, which is included in Accrued expenses: Other and Other liabilities within our consolidated balance sheet: Facility Severance Closing Costs Costs Other Total Balance, December 31, 2016 $ 20,447 $ 2,130 $ 73 $ 22,650 Provision - - - - Payments and other adjustments ( 17,360) ( 815) ( 49) ( 18,224) Balance, December 30, 2017 $ 3,087 $ 1,315 $ 24 $ 4,426 Provision 50,197 3,153 1,017 54,367 Payments and other adjustments ( 23,320) ( 2,865) ( 883) ( 27,068) Balance, December 29, 2018 $ 29,964 $ 1,603 $ 158 $ 31,725 Provision 13,741 937 27 14,705 Payments and other adjustments ( 30,794) ( 1,714) ( 112) ( 32,620) Balance, December 28, 2019 $ 12,911 $ 826 $ 73 $ 13,810 The following table shows, by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during our 2019, 2018 and 2017 fiscal years and the remaining accrued balance of restructuring costs as of December 28, 2019: Technology and Health Care Value-Added Distribution Services Total Balance, December 31, 2016 $ 22,505 $ 145 $ 22,650 Provision - - - Payments and other adjustments ( 18,079) ( 145) ( 18,224) Balance, December 30, 2017 $ 4,426 $ - $ 4,426 Provision 50,824 3,543 54,367 Payments and other adjustments ( 24,959) ( 2,109) ( 27,068) Balance, December 29, 2018 $ 30,291 $ 1,434 $ 31,725 Provision 13,935 770 14,705 Payments and other adjustments ( 30,853) ( 1,767) ( 32,620) Balance, December 28, 2019 $ 13,373 $ 437 $ 13,810 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 – 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 they have a dilutive effect. A reconciliation of shares used in calculating earnings per basic and diluted share follows: Years Ended December 28, December 29, December 30, 2019 2018 2017 Basic 147,817 152,656 156,787 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,440 1,051 1,421 Diluted 149,257 153,707 158,208 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 – Income Taxes Years ended December 28, December 29, December 30, 2019 2018 2017 Domestic $ 507,003 $ 405,289 $ 526,586 Foreign 173,304 131,547 103,208 Total $ 680,307 $ 536,836 $ 629,794 The provisions for income taxes were as follows: Years ended December 28, December 29, December 30, 2019 2018 2017 Current income tax expense: U.S. Federal $ 93,418 $ 71,854 $ 247,254 State and local 28,150 22,533 19,489 Foreign 42,004 38,433 41,043 Total current 163,572 132,820 307,786 Deferred income tax expense (benefit): U.S. Federal 5,633 206 12,927 State and local 1,597 ( 1,622) 1,621 Foreign ( 11,287) ( 23,972) ( 13,359) Total deferred ( 4,057) ( 25,388) 1,189 Total provision $ 159,515 $ 107,432 $ 308,975 The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows: Years Ended December 28, December 29, 2019 2018 Deferred income tax asset: Investment in partnerships $ 1,420 $ 4,150 Net operating losses and other carryforwards 43,663 43,754 Inventory, premium coupon redemptions and accounts receivable valuation allowances 23,808 25,008 Stock-based compensation 14,075 14,880 Uniform capitalization adjustment to inventories 7,259 8,189 Other asset 35,419 38,806 Total deferred income tax asset 125,644 134,787 Valuation allowance for deferred tax assets (1) ( 20,699) ( 22,403) Net deferred income tax asset 104,945 112,384 Deferred income tax liability Intangibles amortization ( 135,754) ( 103,309) Property and equipment ( 10,555) ( 13,075) Total deferred tax liability ( 146,309) ( 116,384) Net deferred income tax asset (liability) $ ( 41,364) $ ( 4,000) (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.” The assessment of the amount of value assigned to our deferred tax assets under the applicable accounting rules is judgmental. We are required to consider all available positive and negative evidence in evaluating the likelihood that we will be able to realize the benefit of our deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and the results of recent operations. Since this evaluation requires consideration of events that may occur some years into the future, there is an element of judgment involved. Realization of our deferred tax assets is dependent on generating sufficient taxable income in future periods. We believe that it is more 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 valuation allowance accordingly. As of December 28, 2019, we had foreign net operating loss carryforwards of $ 2.0 million, which can be utilized against future foreign income through December 31, 2026 . Additionally, as of December 28, 2019, there were foreign net operating loss carryforwards of $ 144.9 million that have an indefinite life. As of December 28, 2019, the company had post-apportionment state net operating loss carryforwards of $ 14.3 million, which can be utilized against future state income through December 31, 2039 . Additionally, as of December 28, 2019, there were post-apportionment state operating loss carryforwards of $ 21.1 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 28, December 29, December 30, 2019 2018 2017 Income tax provision at federal statutory rate $ 142,865 $ 112,735 $ 220,427 State income tax provision, net of federal income tax effect 16,539 15,872 10,320 Foreign income tax benefit ( 4,580) ( 2,558) ( 19,486) Pass-through noncontrolling interest ( 3,931) ( 2,700) ( 1,465) Valuation allowance ( 79) 2,017 1,629 Unrecognized tax benefits and audit settlements 3,671 2,126 4,196 Interest expense related to loans ( 5,498) ( 11,700) ( 18,492) Excess tax benefits related to stock compensation ( 86) ( 1,008) ( 16,964) 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") 3,917 7,599 - 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 (credit) related to reorganization of legal entities completed in preparation for the Animal Health spin-off ( 1,333) 3,135 - Other 8,030 3,528 ( 14,143) Total income tax provision $ 159,515 $ 107,432 $ 308,975 For the year ended December 28, 2019, our effective tax rate was 23.4% compared to 20.0% for the prior year period. In 2019, our effective tax rate was primarily impacted by state and foreign income taxes and interest expense. In 2018, our effective tax rate was primarily impacted by a reduction in the estimate of our transition tax associated with 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 adoption 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 Tax 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 eight years. 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 taxes due to the lower enacted federal income tax rate of 21%. We completed our analysis in the year ended December 29, 2018 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 taxes to reflect the new tax rate. 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 26.4% as compared to our actual effective tax rate of 49.1%. Within our consolidated balance sheets, transition tax of $ 9.9 million was included in “Accrued taxes” for 2019 and 2018, and $ 94.9 million and $ 104.2 million were included in “Other liabilities” for 2019 and 2018, respectively. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income (“GILTI”), 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. We recorded a current tax expense for the GILTI provision of $ 7.6 million and $ 3.9 million for 2018 and 2019, respectively. 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 to such earnings is not practicable. ASC 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 examination 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 examination 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 are included in “Other liabilities” within our consolidated balance sheets as of December 28, 2019 was approximately $ 109.1 million, of which $ 91.2 million would affect the effective tax rate if recognized. It is possible that the amount of unrecognized tax benefits may change in the next 12 months, which may result in a material impact on our consolidated statement of income. 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. All tax returns audited by the IRS are officially closed through 2011. We are currently under audit for the years 2012 and 2013. In the quarter ended December 28, 2019, we reached a settlement with the U.S. Competent Authority to resolve certain transfer pricing issues related to 2012 and 2013. For all remaining outstanding issues for 2012 and 2013, we have provided all necessary documentation to the Appellate Division to date and are waiting for responses. We are also in negotiations with the Advanced Pricing Division to reach an agreement on an appropriate transfer pricing methodology. As part of this process, we have submitted documentation with the objective to reach a resolution for 2014-2021 in order to mitigate future transfer pricing audit adjustments. It is possible that the resolution with the IRS may have a material impact on our consolidated financial statements. The total amounts of interest and penalties are classified as a component of the provision for income taxes. The amount of tax interest expense (credits) was approximately $ 2.2 million, $ 3.6 and $( 2.9) in 2019, 2018 and 2017, respectively. The total amount of accrued interest is included in “Other liabilities”, and was approximately $ 18.0 million as of December 28, 2019 and $ 15.6 million as of December 29, 2018. No penalties were accrued for the periods presented. The following table provides a reconciliation of unrecognized tax benefits: December 28, December 29, December 30, 2019 2018 2017 Balance, beginning of period $ 77,800 $ 83,200 $ 82,200 Additions based on current year tax positions 4,900 5,000 8,500 Additions based on prior year tax positions 17,300 9,400 5,400 Reductions based on prior year tax positions ( 1,000) ( 1,600) ( 800) Reductions resulting from settlements with taxing authorities ( 4,200) ( 1,600) ( 10,500) Reductions resulting from lapse in statutes of limitations ( 3,700) ( 16,600) ( 1,600) Balance, end of period $ 91,100 $ 77,800 $ 83,200 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 28, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Note 15 – 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 do 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 instruments, 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 investment 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. For the years ended December 28, 2019 and December 29, 2018 one customer accounted for slightly more than 1% of our net sales from continuing operations. With respect to our sources of supply, our top 10 health care distribution suppliers from continuing operations and our single largest supplier from continuing operations accounted for approximately 31% and 6%, respectively, of our aggregate purchases in 2019 and approximately 31% and 6%, respectively, of our aggregate purchases in 2018. Our long-term notes receivable primarily represent strategic 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 commercial 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. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 16 – Derivatives and Hedging Activities We are exposed to market risks as well as changes in foreign currency exchange rates as measured against the U.S. dollar and each other, and changes to the credit risk of the derivative counterparties. 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 and are entered into for the sole purpose of hedging an existing or anticipated currency exposure. We do not enter into such contracts for speculative purposes and we manage our credit risks by diversifying our counterparties, maintaining a strong balance sheet and having multiple sources of capital. During 2019 we entered into foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges. These net investment hedges offset the change in the U.S dollar value of our investment in certain euro-functional currency subsidiaries due to fluctuating foreign exchange rates. Gains and losses related to these net investment hedges are recorded in Accumulated other comprehensive loss within our Consolidated Balance Sheet. Amounts excluded from the assessment of hedge effectiveness are included in interest expense within our Consolidated Statement of Income. The aggregate notional value of this net investment hedge, which matures on November 16, 2023, is € 200 million. During December 28, 2019 we recognized approximately $0.6 million of interest savings as a result of this net investment hedge. 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., generally 18 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer | Note 17 – Revenue from Contracts 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 28, 2019 North America International Global Revenues: Health care distribution Dental $ 3,911,746 2,504,119 6,415,865 Medical 2,894,137 79,449 2,973,586 Total health care distribution 6,805,883 2,583,568 9,389,451 Technology and value-added services 445,317 69,768 515,085 Total excluding Corporate TSA revenues (1) 7,251,200 2,653,336 9,904,536 Corporate TSA revenues (1) 4,098 77,169 81,267 Total revenues $ 7,255,298 $ 2,730,505 $ 9,985,803 Year Ended December 29, 2018 North America International Global Revenues: Health care distribution Dental $ 3,866,171 2,481,827 6,347,998 Medical 2,581,696 79,470 2,661,166 Total health care distribution 6,447,867 2,561,297 9,009,164 Technology and value-added services 344,168 64,271 408,439 Total excluding Corporate TSA revenues (1) 6,792,035 2,625,568 9,417,603 Corporate TSA revenues (1) - - - Total revenues $ 6,792,035 $ 2,625,568 $ 9,417,603 (1) Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Note 18 – 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 and medical operating segments. This segment distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. Our global dental group serves office-based dental practitioners, dental laboratories, schools and other institutions. Our global medical group serves office-based medical practitioners, ambulatory surgery centers, other alternate-care settings and other institutions. Our global dental and medical groups serve practitioners in 31 countries worldwide. Our global technology and value-added services group provides software, technology and other value-added services to health care practitioners. Our technology group offerings include practice management software systems for dental and medical practitioners. Our value-added practice solutions include financial services on a non-recourse basis, e-services, practice technology, network and hardware services, as well as continuing education services for practitioners. The following tables present information about our reportable and operating segments: Years Ended December 28, December 29, December 30, 2019 2018 2017 Net Sales: Health care distribution (1) Dental $ 6,415,865 $ 6,347,998 $ 6,047,811 Medical 2,973,586 2,661,166 2,497,994 Total health care distribution 9,389,451 9,009,164 8,545,805 Technology and value-added services (2) 515,085 408,439 337,633 Total excluding Corporate TSA revenues 9,904,536 9,417,603 8,883,438 Corporate TSA revenues (3) 81,267 - - Total $ 9,985,803 $ 9,417,603 $ 8,883,438 (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. (3) Corporate TSA revenues represents sales of certain products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. Years ended December 28, December 29, December 30, 2019 2018 2017 Operating Income: Health care distribution $ 591,404 $ 490,988 $ 561,888 Technology and value-added services 126,857 109,631 107,873 Total $ 718,261 $ 600,619 $ 669,761 Income before taxes and equity in earnings of affiliates: Health care distribution $ 553,181 $ 429,429 $ 526,255 Technology and value-added services 127,126 107,407 103,539 Total $ 680,307 $ 536,836 $ 629,794 Depreciation and Amortization: Health care distribution $ 146,960 $ 122,767 $ 116,260 Technology and value-added services 37,982 20,863 17,595 Total $ 184,942 $ 143,630 $ 133,855 Income Tax Expense: Health care distribution $ 129,381 $ 53,660 $ 271,920 Technology and value-added services 30,134 53,772 37,055 Total $ 159,515 $ 107,432 $ 308,975 Interest Income: Health care distribution $ 15,352 $ 15,106 $ 12,236 Technology and value-added services 405 385 202 Total $ 15,757 $ 15,491 $ 12,438 Interest Expense: Health care distribution $ 50,666 $ 76,006 $ 51,039 Technology and value-added services 126 10 27 Total $ 50,792 $ 76,016 $ 51,066 Purchases of Fixed Assets: Health care distribution $ 69,095 $ 68,577 $ 59,865 Technology and value-added services 7,124 2,706 2,539 Total $ 76,219 $ 71,283 $ 62,404 As of December 28, December 29, December 30, 2019 2018 2017 Total Assets: Health care distribution $ 5,822,057 $ 5,289,348 $ 5,336,320 Technology and value-added services 1,329,044 994,506 334,977 Discontinued operations - 2,216,673 2,192,698 Total $ 7,151,101 $ 8,500,527 $ 7,863,995 The following table presents information about our operations by geographic area as of and for the three years ended December 28, 2019. 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 % of consolidated net sales. There were no material amounts of sales or transfers among geographic areas and there were no material amounts of export sales. 2019 2018 2017 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 6,876,194 $ 2,400,733 $ 6,411,558 $ 1,855,788 $ 6,039,613 $ 1,208,351 Other 3,109,609 1,195,947 3,006,045 915,493 2,843,825 1,072,849 Consolidated total $ 9,985,803 $ 3,596,680 $ 9,417,603 $ 2,771,281 $ 8,883,438 $ 2,281,200 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | Note 19 – Employee Benefit Plans Stock-based Compensation Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $ 44.9 million ($ 34.4 million after-tax), $ 32.6 million ($ 25.3 million after-tax) and $ 36.8 million ($ 20.6 million after-tax) for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. Our accompanying consolidated statements 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 benefits associated with tax deductions in excess of recognized compensation as a cash inflow from financing activities for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. Stock-based compensation represents the cost related to stock-based awards granted to employees and non-employee directors. We measure stock-based compensation at the grant date, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period. Our stock-based compensation expense is reflected in selling, general and administrative expenses in our consolidated statements of income. Stock-based awards are provided to certain employees and non-employee directors under the terms of our 2013 Stock Incentive Plan, as amended, and our 2015 Non-Employee Director Stock Incentive Plan (together, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors. Prior to March 2009, awards under the Plans principally included a combination of at-the-money stock options and restricted stock/units. Since March 2009, equity-based awards have been granted solely in the form of restricted stock/units, with the exception of providing stock options to employees pursuant to certain pre-existing contractual obligations. As of December 28, 2019, there were 65,242 shares authorized and 6,113 shares available to be granted under the 2013 Stock Incentive Plan and 1,892 shares authorized and 294 shares available to be granted under the 2015 Non-Employee Director Stock Incentive Plan. Grants of restricted stock/units are stock-based awards granted to recipients with specified vesting provisions. In the case of restricted stock, common stock is delivered on the date of grant, subject to vesting conditions. In the case of restricted stock units, common stock is generally delivered on or following satisfaction of vesting conditions. We issue restricted stock/units that vest solely based on the recipient’s continued service over time (primarily four-year cliff vesting, except for grants made under the 2015 Non-Employee Director Stock Incentive Plan, which are primarily 12-month cliff vesting) and restricted stock/units that vest based on our achieving specified performance measurements and the recipient’s continued service over time (primarily three-year cliff vesting). With respect to time-based restricted stock/units, we estimate the fair value on the date of grant based on our closing stock price. With respect to performance-based restricted stock/units, the number of shares that ultimately vest and are received by the recipient is based upon our performance as measured against specified targets over a specified period, as determined by the Compensation Committee of the Board of Directors. Although there is no guarantee that performance targets will be achieved, we estimate the fair value of performance-based restricted stock/units based on our closing stock price at time of grant. The Plans provide for adjustments to the performance-based restricted stock/units targets for significant events, including, without limitation, 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, certain foreign exchange fluctuations, certain litigation related costs, and material changes in income tax rates. 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 ultimate 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. As a result of the Separation, the number of our unvested equity-based awards from previous grants to our remaining employees under our Long-term Incentive Program was increased in accordance with the provisions in the Plans. This was based on a factor of approximately 1.2633 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 which 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 expense 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 income statement if there were no accumulated excess tax benefits. Stock-based compensation grants for the three years ended December 28, 2019 consisted of restricted stock/unit grants. Certain stock-based compensation granted may require us to settle in the form of a cash payment. During the year ended December 28, 2019, we recorded a liability of $ 0.6 million relating to the grant date fair value of stock-based compensation to be settled in cash. The weighted-average grant date fair value of stock-based awards granted before forfeitures was $ 56.83, $ 71.38 and $ 85.43 per share during the years ended December 28, 2019, December 29, 2018 and December 30, 2017. Total unrecognized compensation cost related to non-vested awards as of December 28, 2019 was $ 84.8 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 28, December 29, December 30, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 3 $ 13.63 155 $ 29.65 353 $ 28.59 Granted - - - - - - Exercised ( 3) 13.63 ( 152) 29.81 ( 198) 27.76 Forfeited - - - - - - Outstanding at end of year - $ - 3 $ 17.22 155 $ 29.65 Options exercisable at end of year - $ - 3 $ 17.22 155 $ 29.65 The following table represents the intrinsic values of: As of December 28, December 29, December 30, 2019 2018 2017 Stock options outstanding $ - $ 121 $ 6,256 Stock options exercisable - 121 6,256 The total cash received as a result of stock option exercises for the years ended December 28, 2019, December 29, 2018 and December 30, 2017 was approximately $ 0.0 million, $ 3.1 million and $ 5.3 million. In connection with these exercises, we did t realize any tax benefits for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. We settle employee stock option exercises with newly issued common shares. The total intrinsic value per share of restricted stock/units that vested was $ 64.31, $ 76.48 and $ 83.16 during the years ended December 28, 2019, December 29, 2018 and December 30, 2017. The following table summarizes the status of our non-vested restricted stock/units for the year ended December 28, 2019: Time-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,513 $ 57.94 Granted 452 59.56 Vested ( 339) 55.62 Forfeited ( 208) 60.35 Outstanding at end of period 1,418 $ 58.72 $ 66.58 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,163 $ 40.26 Granted 642 59.72 Vested ( 189) 66.41 Forfeited ( 157) 61.33 Outstanding at end of period 1,459 $ 61.41 $ 66.58 401(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 allocated entirely to the participants’ investment elections on file, subject to a 20% allocation limit to the Henry Schein Stock Fund. Forfeitures 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 28, 2019, December 29, 2018 and December 30, 2017 amounted to $ 36.8 million, $ 35.8 million and $ 33.5 million, respectively. Supplemental Executive Retirement Plan We offer an unfunded, non-qualified supplemental 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 the years ended December 28, 2019, December 29, 2018 and December 30, 2017 amounted to $ 2.1 million, $( 0.4 )million and $ 0.6 million, respectively. Deferred Compensation Plan During 2011, we began to offer a deferred compensation plan to a select group of 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 (credited) to operations during the years ended December 28, 2019, December 29, 2018 and December 30, 2017 were approximately $ 8.3 million, $( 2.3) million and $ 5.0 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 20 – Commitments and Contingencies 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 28, 2019 were: 2020 $ 403,241 2021 208,200 2022 110,800 2023 - 2024 - Thereafter - Total minimum inventory purchase commitment payments $ 722,241 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 2020 through 2024 and thereafter of approximately $ 16.8 million, $ 6.3 million, $ 4.5 million, $ 0.9 million, $ 0.9 million, and $1.7 million, respectively. We also have lifetime consulting agreements that provide for current compensation of $ 0.4 million per year, increasing $ 25 every fifth year with the next increase in 2022. In addition, some agreements have provisions for additional incentives and compensation. Litigation 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 Technologies, 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 Act, 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, adding Patterson Companies, Inc. (“Patterson”) and Benco Dental Supply Co. (“Benco”) as defendants, and alleging that Henry Schein, Patterson, Benco and Burkhart Dental Supply 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 seeks damages in an amount to be proved at trial, to 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 named 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 District Court’s order denying the motions to compel arbitration. 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 proceedings consistent with the Supreme Court’s opinion. On April 2, 2019, the District Court stayed the proceeding in the trial court pending resolution by the Fifth Circuit. The Fifth Circuit heard oral argument on May 1, 2019 on whether the case should be arbitrated. The Fifth Circuit issued its opinion on August 14, 2019 affirming the District Court’s order denying defendants’ motions to compel arbitration. Defendants filed a petition for rehearing en banc before the Fifth Circuit. The Fifth Circuit denied that petition. On October 1, 2019, the District Court set the case for trial on February 3, 2020, which was subsequently moved to January 29, 2020. On January 24, 2020 the Supreme Court granted our motion to stay the District Court proceedings, pending the disposition of our petition for writ of certiorari, which was filed on January 31, 2020. 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 online 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 restraint 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 abetting. 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’ motion to dismiss. On January 19, 2018, IQ Dental appealed the District Court’s order. On May 10, 2019, the U.S. Court of Appeals for the Second Circuit affirmed in part and reversed in part the District Court’s dismissal of the complaint, holding that IQ Dental lacks antitrust standing to challenge the alleged boycott of SourceOne and state dental associations, but that it has standing to challenge injury related to the alleged direct boycott of its business. On June 29, 2019, the Second Circuit denied IQ Dental’s petition for rehearing or rehearing en banc. On January 8, 2020, Henry Schein and IQ Dental entered into a settlement agreement, pursuant to which Henry Schein paid an amount which is not material. Henry Schein was dismissed from the case on January 16, 2020. 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 alleged, 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. The FTC alleged that defendants conspired in violation of Section 5 of the FTC Act. The complaint sought equitable relief only and does not seek monetary damages. We denied the allegation that we conspired to refuse to provide discounts to or otherwise serve dental buying groups. A hearing before an administrative law judge began on October 16, 2018 and the hearing record was closed on February 21, 2019. On October 7, 2019, the administrative law judge issued his Initial Decision, finding in relevant part that the “evidence fails to prove a conspiracy involving Schein,” and dismissing the complaint as to Henry Schein. The Initial Decision became the decision of the FTC on November 7, 2019 and is not subject to further appeal. On March 7, 2018, 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 Court 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 the issues in the In re Dental Supplies Antitrust Litigation which Henry Schein settled and which the court dismissed in June 2019, as described in our prior filings with the SEC, 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 behalf 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 excellent 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 complaint 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 Exchange Act and Rule 10b-5 and Section 20(a) of the Exchange Act. On September 27, 2019, the court issued a decision partially granting and partially denying defendants’ motion to dismiss the securities action. The court dismissed all claims against Messrs. Bergman and Paladino as well as the Section 10(b) claim against Henry Schein to the extent that that claim relied on the Company’s financial results and margins to allege a material misstatement or omission. The court also dismissed the Section 10(b) claim against Henry Schein to the extent that it relied on the Company’s August 8, 2017 disclosure to allege loss causation. The court otherwise denied the motion as to Henry Schein and Mr. Sullivan. Henry Schein and Mr. Sullivan moved for partial reconsideration of the court’s decision. Pursuant to all parties’ request, the court temporarily took the motion off the calendar after it was fully briefed. The parties have agreed to a resolution of this matter, subject to various conditions, including the drafting and execution of a definitive settlement agreement and court approval. The contemplated settlement, if finally approved, would have no earnings impact to the Company as all payments would be covered by insurance. Henry Schein had previously received a request under 8 Del. C. § 220 to inspect corporate books and records relating to the issues raised 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. District 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 Distributor Co-Conspirators. The complaint alleges that the defendants entered into a vertical conspiracy to force health care 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 named plaintiffs seek to represent three separate classes consisting of all health care 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 relief, 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-Surgical, Inc. as a 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 Court’s decision to the Seventh Circuit Court of Appeals. The parties argued the appeal on September 27, 2019 and are currently awaiting the Seventh Circuit’s ruling. On May 29, 2018, an amended complaint was filed in the MultiDistrict Litigation (“MDL”) proceeding In Re National Prescription Opiate Litigation (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 Ohio, adding Henry Schein, Inc., Henry Schein Medical Systems, Inc. and others as defendants. Summit County alleges 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. On October 29, 2019, the Company was dismissed with prejudice from this lawsuit. Henry Schein, working with Summit County, donated $ 1 million to a foundation dedicated to making grants to programs within Summit County focused on (i) educating the community on alternative pain management treatment techniques and/or avoiding addiction; (ii) supporting research into alternative pain management techniques and protocols; (iii) enabling professionals to obtain the necessary certification for a Medication Assisted Treatment (MAT) Waiver; and (iv) advancing programs and services to Summit County to deliver results and solutions to the opiate and addiction crises. Henry Schein paid $ 250,000 of Summit County’s expenses. In addition to the County of Summit Action, Henry Schein and/or one or more of its affiliated companies have currently been named as a defendant in multiple lawsuits (currently less than one-hundred and twenty-five ( 125)), which allege claims similar to those alleged in the County of Summit Action. At this time, the only case set for trial is the action filed by Tuscon Medical Center, which is currently scheduled for a 30-day trial beginning on March 16, 2021. These actions consist 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. Of Henry Schein’s 2018 revenue of $ 9.4 billion from continuing operations, sales of opioids represented less than one-tenth of 1 percent On January 29, 2019, a purported class action complaint was filed by R. Lawrence Hatchett, 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 laboratories 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 reimbursing 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 violations 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. On February 13, 2020, the court granted our motion to dismiss for lack of standing, and dismissed the action with prejudice. On September 30, 2019, City of Hollywood Police Officers Retirement System, 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., Covetrus, Inc., and Benjamin Shaw and Christine Komola (Covetrus’s then Chief Executive Officer and Chief Financial Officer, respectively) in the U.S. District Court for the Eastern District of New York, Case No. 2:19-cv-05530-FB-RLM. The complaint seeks to certify a class consisting of all persons and entities who, subject to certain exclusions, purchased or otherwise acquired Covetrus common stock from February 8, 2019 through August 12, 2019. The case relates to the Animal Health Spin-off and Merger of the Henry Schein Animal Health Business with Vets First Choice in February 2019 . The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 and asserts that defendants’ statements in the offering documents and after the transaction were materially false and misleading because they purportedly overstated Covetrus’s capabilities as to inventory management and supply-chain services, understated the costs of integrating the Henry Schein Animal Health Business and Vets First Choice, understated Covetrus’s separation costs from Henry Schein, and understated the impact on earnings from online competition and alternative distribution channels and from the loss of an allegedly large customer in North America just before the Separation and Merger. The complaint seeks unspecified monetary damages and a jury trial. Pursuant to the provisions of the PSLRA, the court appointed lead plaintiff and lead counsel on December 23, 2019. We intend to defend ourselves vigorously against this action. On November 15, 2019, Frank Finazzo filed a putative shareholder derivative action on behalf of Henry Schein, Inc. against various present and former directors and officers of Henry Schein in the U.S. District Court for the Eastern District of New York, Case No. 1:19-cv-6485-LDH-JO. The named defendants in the action are Stanley M. Bergman, Steven Paladino, Timothy J. Sullivan, Barry J. Alperin, Lawrence S. Bacow, Gerald A. Benjamin, James P. Breslawski, Paul Brons, Shira Goodman, Joseph L. Herring, Donald J. Kabat, Kurt Kuehn, Philip A. Laskawy, Anne H. Margulies, Karyn Mashima, Norman S. Matthews, Mark E. Mlotek, Carol Raphael, E. Dianne Rekow, Bradley T. Sheares, and Louis W. Sullivan, with Henry Schein named as a nominal defendant. The Complaint asserts claims under the federal securities laws and state law relating to the allegations in the antitrust actions, the In re Henry Schein, Inc. Securities Litigation , and the City of Hollywood securities class action described above. Finazzo case filed another, virtually identical putative shareholder derivative action on behalf of Henry Schein against the same defendants, asserting the same claims and seeking the same relief. That case, captioned Mark Sloan v. Stanley M. Bergman, et al. , is also pending in the U.S. District Court for the Eastern District of New York, Case No. 1:20-cv-0076. On January 24, 2020, the court consolidated the Finazzo and Sloan cases under the new caption In re Henry Schein, Inc. Derivative Litigation, No. 1:19-cv-06485-LDH-JO, and appointed the counsel in these cases as co-lead counsel for the consolidated action. The parties have agreed to a resolution of this matter subject to various conditions, including the drafting and execution of a definitive settlement agreement and court approval. The contemplated settlement, if finally approved, would involve the adoption of certain procedures but would not involve the payment of any money except a fee to the plaintiffs’ attorneys that is immaterial. 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 opinion 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 28, 2019, 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. |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Information (Unaudited) | Note 21 – Quarterly Information (Unaudited) The following tables present certain quarterly financial data: Quarters ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 Net sales $ 2,360,268 $ 2,447,827 $ 2,508,767 $ 2,668,941 Gross profit 751,690 767,431 761,167 810,598 Restructuring costs (credits) (1) 4,641 11,925 ( 802) ( 1,059) Operating income 172,441 162,288 187,198 196,334 Net gain on sale of equity investments (2) - - - 186,769 Net income from continuing operations 123,640 121,417 143,212 337,192 Amounts attributable to Henry Schein, Inc. from continuing operations: Net income 118,413 116,753 134,916 330,609 Earnings per share attributable to Henry Schein, Inc. from continuing operations: Basic $ 0.79 $ 0.79 $ 0.92 $ 2.27 Diluted 0.78 0.78 0.91 2.25 Quarters ended March 31, June 30, September 29, December 29, 2018 2018 2018 2018 Net sales $ 2,273,450 $ 2,316,032 $ 2,355,565 $ 2,472,556 Gross profit 719,129 718,328 722,359 750,931 Litigation settlements - - 38,488 - Restructuring costs (1) 2,675 8,497 8,551 34,644 Operating income 162,240 157,108 123,269 158,002 Net income from continuing operations 114,717 114,591 96,247 124,886 Amounts attributable to Henry Schein, Inc. from continuing operations: Net income 111,534 110,636 90,770 117,777 Earnings per share attributable to Henry Schein, Inc. from continuing operations: Basic $ 0.73 $ 0.72 $ 0.60 $ 0.78 Diluted 0.72 0.72 0.59 0.77 (1) See Note 12 - "Plans of Restructuring" for details of the restructuring costs incurred during our 2019 and 2018 fiscal years. (2) See Note 11 - "Business Acquisitions and Divestitures" for details of the net gain on sale of equity investments. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 22 – Supplemental Cash Flow Information Cash paid for interest and income taxes was: Years ended December 28, December 29, December 30, 2019 2018 2017 Interest $ 54,685 $ 69,371 $ 46,985 Income taxes 177,277 236,479 214,135 There was approximately $ 0.0 million, $ 0.0 million and $ 0.3 million of debt assumed as a part of the acquisitions for the years ended December 28, 2019, December 29, 2018 and December 30, 2017, respectively. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, we had $( 4.9) million, $ 1.0 million and $( 1.5) million of non-cash net unrealized gains (losses) related to foreign currency hedging activities, respectively. During the year ended December 30, 2017, as part of business acquisitions, we increased our ownership interests in subsidiaries through non-cash transactions of $ 16.8 million. During the third quarter of 2018, we formed Henry Schein One, LLC with Internet Brands through a non-cash transaction resulting in approximately $ 390.3 million of noncontrolling interest representing Internet Brands’ current 26% minority interest and $ 160.6 million of deferred additional ownership interests of Internet Brands in Henry Schein One, representing up to an additional 9.2% ownership interests at December 28, 2019, a portion of which is contingent upon the achievement of certain operating targets (See Note 11). |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 28, 2019 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands) Additions (Reductions) Charged Balance at Charged to (credited) to Balance at beginning of statement of other end of Description period income (1) accounts (2) Deductions (3) period Year ended December 28, 2019: Allowance for doubtful accounts and other $ 53,121 $ 12,612 $ 134 $ ( 5,865) $ 60,002 Year ended December 29, 2018: Allowance for doubtful accounts and other $ 46,261 $ 14,384 $ ( 1,158) $ ( 6,366) $ 53,121 Year ended December 30, 2017: Allowance for doubtful accounts and other $ 33,150 $ 7,915 $ 11,341 $ ( 6,145) $ 46,261 (1) Represents amounts charged to bad debt expense. (2) Amounts charged (credited) 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
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 8 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 performance 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 transferred 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 28, 2019 and December 29, 2018, trade accounts receivable that can only be used to settle obligations of this VIE were $ 127 million and $ 422 million, respectively, and the liabilities of the VIE where the creditors have recourse to us were $ 100 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 during the reporting period. Actual results could differ from those estimates. |
Fiscal Year | Fiscal Year We report our results of operations and cash flows on a 52- 53 week basis ending on the last Saturday of December. The years ended December 28, 2019, December 29, 2018 and December 30, 2017 consisted of 52 weeks. |
Revenue Recognition | Revenue Recognition On December 31, 2017, we adopted Accounting Standards Codification (“ASC”) 606 (“Topic 606”) using the modified retrospective prior period amounts are not adjusted Our revenue recognition accounting policies applied prior to adoption of Topic 606 are outlined in 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 and medical consumable products, equipment (Health care 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 estimating 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 which 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 equipment 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 instances 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 over 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 revenue 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 accounted 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 installation 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 techniques 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 selling 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 17 for additional disclosures of disaggregated net sales and Note 18 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 accounts 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 historical data, experience, customer types, credit worthiness and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other 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 the 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-current contract assets are included in Investments and other within our consolidated balance sheet. Current and non-current contract asset balances as of December 28, 2019 and December 29, 2018 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. Current 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 29, 2018, the current portion of contract liabilities of $ 65.3 million was reported in Accrued expenses: Other, and $ 5.0 million related to non-current contract liabilities were reported in Other liabilities. During the year ended December 28, 2019, we recognized substantially all of the current contract liability amounts that were previously deferred at December 29, 2018. At December 28, 2019, the current and non-current portion of contract liabilities were $ 70.8 million and $ 6.2 million, respectively. Deferred Commissions Sales commissions earned by our sales force 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 apply 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 liability 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 goods 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 $ 73.8 million, $ 70.6 million and $ 65.0 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. 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 $ 29.5 million and $ 41.1 million, primarily related to payments for inventory, were classified as accounts payable as of December 28, 2019 and December 29, 2018. |
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 trends. 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 $ 25.2 million, $ 12.9 million and $ 0.8 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. |
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 3 - Property and Equipment, Net for estimated useful lives). Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for our use and software developed by a supplier for our proprietary use are capitalized. Costs incurred for our own personnel who are directly associated with software development are capitalized. |
Income Taxes | Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on 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 14–Income Taxes. We file a consolidated 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 Tax 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 eight years. 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 taxes due to the lower enacted federal income tax rate of 21%. We completed our analysis in the year ended December 29, 2018 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 taxes to reflect the new tax rate. 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 26.4% as compared to our actual effective tax rate of 49.1%. Within our consolidated balance sheets, transition tax of $ 9.9 million was included in “Accrued taxes” for 2019 and 2018, and $ 94.9 million and $ 104.2 million were included in “Other liabilities” for 2019 and 2018, respectively. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income (“GILTI”), 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. We recorded a current tax expense for the GILTI provision of $ 7.6 million and $ 3.9 million for 2018 and 2019, respectively. |
Foreign Currency Translation and Transactions | Foreign Currency Translation 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 Derivative 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, as well as our net investments in foreign subsidiaries. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers and foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges. Foreign currency forward agreements related to forecasted inventory purchase commitments with foreign suppliers and foreign currency swaps related to foreign currency denominated debt are designated as cash flow hedges. For derivatives that are designated and qualify as cash flow hedges, the changes in the fair value of the derivative is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item. Foreign currency forward contracts related to our euro-denominated foreign operations are designated as net investment hedges. For derivatives that are designated and qualify as net investment hedges, the changes in the fair value of the derivative is recorded in the foreign currency translation gain (loss) component of Accumulated other comprehensive income in stockholders’ equity until the net investment is sold or substantially liquidated. 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 We account for business acquisitions and combinations under the acquisition method of accounting, where 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, non-compete agreements and product development), 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 certain financial targets are met. While we use our best estimates and assumptions to accurately value those assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill within our consolidated balance sheets. At the end of the measurement period or final determination of the values of such assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, there were no material adjustments recorded in our consolidated statement of income relating to changes in subsequent adjustments or estimated contingent purchase price liabilities. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Some minority stockholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted. Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. Noncontrolling Interests Noncontrolling interests represent our less than 50% ownership interest in an acquired subsidiary. 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 Goodwill is 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 and medical) and technology and value-added services. Goodwill was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017 we tested goodwill for impairment 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 units using a discounted cash flow methodology. If step one results in the carrying value of the reporting unit exceeding the fair value of such reporting unit, we would then proceed to step two which would require us to calculate the amount of impairment loss, if any, that we would record for such 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 cash flow methodology includes estimates of future revenue based upon budget projections and growth rates, which take into account estimated inflation rates. We also develop estimates for future levels of gross profits and operating profits and projected capital expenditures. Our methodology also includes the use of estimated discount rates based upon industry and competitor analysis as well as other factors. The estimates that we use in our discounted cash flow methodology involve many assumptions by management that are based upon future growth projections. Some factors 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 is impaired, we record an impairment charge in our consolidated statements of income. For the years ended December 28, 2019, December 29, 2018 and December 30, 2017, the results of our goodwill 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 relationships and intellectual property. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value. |
Cost of Sales | Cost of Sales The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges. Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. As a result of different practices of categorizing costs associated with distribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution network costs were $ 72.3 million, $ 69.6 million and $ 67.5 million for the years ended December 28, 2019, December 29, 2018 and December 30, 2017. |
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). |
Leases | Leases We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Operating lease right-of-use (“ROU”) assets, Operating lease liabilities, and Non-current operating lease liabilities in our consolidated balance sheet. Finance leases are included in Property and equipment, Current maturities of long-term debt, and Long-term debt in our consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. When readily determinable, we use the implicit rate. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases finance leases are included in “Selling, general and administrative” and “Interest expense”, respectively within our Consolidated Statement of Income. Leases with a lease term of 12 months or less are not capitalized. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price. |
Short-term Leases | Leases with a lease term of 12 months or less are not capitalized. |
Separation of Lease and Nonlease Components | We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price. |
Accounting Pronouncements Adopted | Recently Issued Accounting Standards 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 beginning after December 15, 2019. This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance of this ASU is effective. Based upon the level and makeup of our financial asset portfolio, past loan loss activity and current known activity regarding our outstanding loans, we do not expect that this ASU will have a material impact on 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 from 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 the 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 is 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 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations | |
Summarized financial information for discontinued operations | Summarized financial information for our discontinued operations is as follows: Year Ended December 28, December 29, December 30, 2019 2018 2017 Net sales $ 319,522 $ 3,784,392 $ 3,578,105 Cost of goods sold 260,097 3,100,055 2,925,664 Gross profit 59,425 684,337 652,441 Selling, general and administrative 68,919 531,905 462,835 Operating income (loss) ( 9,494) 152,432 189,606 Income tax expense (benefit) ( 2,181) 48,060 53,532 Income (loss) from discontinued operations ( 6,323) 111,685 140,817 Net (income) loss attributable to noncontrolling interests 366 ( 6,521) ( 27,690) Net income (loss) from discontinued operations attributable to Henry Schein, Inc. ( 5,957) 105,164 113,127 The following are the amounts of assets and liabilities that were transferred to Covetrus as of February 7, 2019 and December 29, 2018. February 7, December 29, 2019 2018 Cash and cash equivalents $ 6,815 $ 23,324 Accounts receivable, net 432,812 434,935 Inventories, net 536,637 555,230 Prepaid expenses and other 120,546 69,525 Total current assets of discontinued operations 1,096,810 1,083,014 Property and equipment, net 69,790 68,177 Operating lease right-of-use asset, net 57,012 - Goodwill 742,931 739,266 Other intangibles, net 205,793 208,213 Investments and other 120,518 118,003 Total long-term assets of discontinued operations 1,196,044 1,133,659 Total assets of discontinued operations $ 2,292,854 $ 2,216,673 Accounts payable $ 316,162 $ 441,453 Current maturities of long-term debt 657 675 Operating lease liabilities 18,951 - Accrued expenses: Payroll and related 36,847 36,888 Taxes 24,060 17,552 Other 80,400 81,039 Total current liabilities of discontinued operations 477,077 577,607 Long-term debt 1,176,105 23,529 Deferred income taxes 17,019 4,352 Operating lease liabilities 38,668 - Other liabilities 29,209 34,572 Total long-term liabilities of discontinued operations 1,261,001 62,453 Total liabilities of discontinued operations $ 1,738,078 $ 640,060 Redeemable noncontrolling interests $ 28,270 $ 92,432 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, including related estimated useful lives | December 28, December 29, 2019 2018 Land $ 18,030 $ 17,985 Buildings and permanent improvements 121,823 127,012 Leasehold improvements 104,089 103,929 Machinery and warehouse equipment 124,640 108,249 Furniture, fixtures and other 99,083 120,693 Computer equipment and software 330,926 427,237 798,591 905,105 Less accumulated depreciation ( 468,946) ( 590,884) Property and equipment, net $ 329,645 $ 314,221 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. 28, 2019 | |
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 30, 2017 $ 1,431,680 $ 121,902 $ 1,553,582 Adjustments to goodwill: Acquisitions 38,848 530,064 568,912 Foreign currency translation ( 37,116) ( 4,349) ( 41,465) Balance as of December 29, 2018 1,433,412 647,617 2,081,029 Adjustments to goodwill: Acquisitions 50,276 338,352 388,628 Foreign currency translation ( 6,969) ( 193) ( 7,162) Balance as of December 28, 2019 $ 1,476,719 $ 985,776 $ 2,462,495 |
Other intangible assets - finite-lived | December 28, 2019 December 29, 2018 Accumulated Accumulated Cost Amortization Net Cost Amortization Net Non-compete agreements $ 34,553 $ ( 9,327) $ 25,226 $ 34,667 $ ( 6,834) $ 27,833 Trademarks / trade names - definite lived 99,314 ( 44,134) 55,180 72,462 ( 36,165) 36,297 Customer relationships and lists 715,630 ( 274,330) 441,300 479,542 ( 216,007) 263,535 Product Development 85,211 ( 42,326) 42,885 73,294 ( 34,689) 38,605 Other 26,237 ( 17,950) 8,287 34,620 ( 24,859) 9,761 Total $ 960,945 $ ( 388,067) $ 572,878 $ 694,585 $ ( 318,554) $ 376,031 |
Investments and Other (Tables)
Investments and Other (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Investments And Other [Abstract] | |
Investments and other | December 28, December 29, 2019 2018 Investment in unconsolidated affiliates $ 164,659 $ 260,954 Non-current deferred foreign, state and local income taxes 23,625 12,196 Notes receivable (1) 43,544 66,047 Capitalized costs for internally generated software for resale 42,445 37,659 Distribution rights and exclusivity agreements, net of amortization 4 582 Security deposits 534 - Acquisition-related indemnification 38,464 28,283 Other long-term assets 14,644 14,646 Total $ 327,919 $ 420,367 (1) Long-term notes receivable carry interest rates ranging from 1.0% to 11.5% and are due in varying installments through February 01, 2025. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt [Abstract] | |
Bank credit lines | December 28, December 29, 2019 2018 Revolving credit agreement $ - $ 175,000 Other short-term bank credit lines 23,975 376,458 Committed loan associated with Animal Health spin-off - 400,000 Total $ 23,975 $ 951,458 |
Schedule of long-term debt | December 28, December 29, 2019 2018 Private placement facilities $ 621,274 $ 628,189 U.S. trade accounts receivable securitization 100,000 350,000 Various collateralized and uncollateralized loans payable with interest, in varying installments through 2024 at interest rates ranging from 2.56% to 10.5% at December 28, 2019 and ranging from 2.61% to 4.17% at December 29, 2018 6,089 6,491 Finance lease obligations (see Note 7) 5,394 3,944 Total 732,757 988,624 Less current maturities ( 109,849) ( 8,280) Total long-term debt $ 622,908 $ 980,344 |
Private placement 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) 21,429 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 ( 155) $ 621,274 (1) Annual repayments of approximately $ 7.1 million for this borrowing commenced on January 20, 2016. |
Schedule of long-term debt maturities | 2020 $ 109,849 2021 108,842 2022 110,504 2023 1,529 2024 101,112 Thereafter 300,921 Total $ 732,757 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Components of lease expense, supplemental cash flow, and supplemental balance sheet information | Year Ended December 28, 2019 Operating lease cost (1) $ 88,246 Finance lease cost: Amortization of right-of-use assets $ 1,154 Interest on lease liabilities 131 Total finance lease cost $ 1,285 (1) Includes variable lease expenses. |
Maturities of operating lease liabilities | Supplemental balance sheet information related to leases is as follows: December 28, 2019 Operating Leases: Operating lease right-of-use assets $ 231,662 Current operating lease liabilities 65,349 Non-current operating lease liabilities 176,267 Total operating lease liabilities $ 241,616 Finance Leases: Property and equipment, at cost $ 10,268 Accumulated depreciation ( 4,581) Property and equipment, net of accumulated depreciation $ 5,687 Current maturities of long-term debt $ 1,736 Long-term debt 3,658 Total finance lease liabilities $ 5,394 Weighted Average Remaining Lease Term in Years: Operating leases 5.5 Finance leases 5.0 Weighted Average Discount Rate: Operating leases 3.4 % Finance leases 2.2 % |
Maturities of finance lease liabilities | Supplemental cash flow information related to leases is as follows: December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 79,699 Operating cash flows for finance leases 99 Financing cash flows for finance leases 1,413 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 297,800 Finance leases 2,940 (1) Includes leases that commenced during the year ended December 28, 2019, as well as balances related to leases in existence as of the date of the adoption of Topic 842. |
Future minimum lease payments of operating leases under the previous lease accounting standard | Maturities of lease liabilities are as follows: December 28, 2019 Operating Finance Leases Leases 2020 $ 70,986 $ 1,853 2021 56,557 1,529 2022 40,601 646 2023 27,021 304 2024 18,944 283 Thereafter 51,762 1,117 Total future lease payments 265,871 5,732 Less: imputed interest ( 24,255) ( 338) Total $ 241,616 $ 5,394 |
Future minimum lease payments of finance leases under the previous lease accounting standard | Operating Capital Leases Leases 2019 $ 62,535 $ 976 2020 47,686 801 2021 34,633 501 2022 25,626 305 2023 19,560 283 Thereafter 62,918 1,430 Total minimum lease payments $ 252,958 4,296 Less: imputed interest (Capital leases only) ( 352) Total present value of minimum lease payments $ 3,944 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Change in fair value of redeemable noncontrolling interests | December 28, December 29, December 30, 2019 2018 2017 Balance, beginning of period $ 219,724 $ 465,585 $ 285,567 Decrease in redeemable noncontrolling interests due to redemptions ( 2,270) ( 287,767) ( 22,294) Increase in redeemable noncontrolling interests due to business acquisitions 74,865 4,655 72,291 Net income attributable to redeemable noncontrolling interests 14,838 15,327 24,513 Dividends declared ( 10,264) ( 8,206) ( 7,680) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests ( 2,335) ( 11,330) 4,530 Change in fair value of redeemable securities ( 7,300) 41,460 108,658 Balance, end of period $ 287,258 $ 219,724 $ 465,585 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | |
Accumulated other comprehensive income, net of applicable taxes | December 28, December 29, December 30, 2019 2018 2017 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ ( 20,338) $ ( 18,595) $ ( 5,564) Attributable to noncontrolling interests: Foreign currency translation adjustment $ ( 531) $ ( 426) $ 539 Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ ( 143,172) $ ( 234,799) $ ( 112,439) Unrealized loss from foreign currency hedging activities ( 4,032) ( 156) ( 782) Unrealized investment gain (loss ) 6 ( 6) ( 3) Pension adjustment loss ( 20,175) ( 13,810) ( 16,843) Accumulated other comprehensive loss $ ( 167,373) $ ( 248,771) $ ( 130,067) Total Accumulated other comprehensive loss $ ( 188,242) $ ( 267,792) $ ( 135,092) |
Components of comprehensive income, net of applicable taxes | December 28, December 29, December 30, 2019 2018 2017 Net income $ 719,138 $ 562,126 $ 459,293 Foreign currency translation gain (loss) ( 4,070) ( 136,356) 191,886 Tax effect - - - Foreign currency translation gain (loss) ( 4,070) ( 136,356) 191,886 Unrealized gain (loss) from foreign currency hedging activities ( 4,911) 1,022 ( 1,515) Tax effect 1,035 ( 396) 786 Unrealized gain (loss) from foreign currency hedging activities ( 3,876) 626 ( 729) Unrealized investment gain (loss) 14 ( 3) ( 4) Tax effect ( 2) - 1 Unrealized investment gain (loss) 12 ( 3) ( 3) Pension adjustment gain (loss) ( 7,730) 4,212 4,247 Tax effect 1,806 ( 1,179) ( 314) Pension adjustment gain (loss) ( 5,924) 3,033 3,933 Comprehensive income $ 705,280 $ 429,426 $ 654,380 |
Total comprehensive income, net of applicable taxes | December 28, December 29, December 30, 2019 2018 2017 Comprehensive income attributable to Henry Schein, Inc. $ 682,724 $ 417,177 $ 593,273 Comprehensive income attributable to noncontrolling interests 9,827 3,432 1,443 Comprehensive income attributable to Redeemable noncontrolling interests 12,729 8,817 59,664 Comprehensive income $ 705,280 $ 429,426 $ 654,380 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Measurements [Abstract] | |
Fair value - assets and liabilities measured and recognized on a recurring basis | December 28, 2019 Level 1 Level 2 Level 3 Total Assets: Derivative contracts $ - $ 567 $ - $ 567 Total assets $ - $ 567 $ - $ 567 Liabilities: Derivative contracts $ - $ 5,795 $ - $ 5,795 Total liabilities $ - $ 5,795 $ - $ 5,795 Redeemable noncontrolling interests $ - $ - $ 287,258 $ 287,258 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 $ - $ - $ 219,724 $ 219,724 |
Plans of Restructuring (Tables)
Plans of Restructuring (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve by type of cost | Facility Severance Closing Costs Costs Other Total Balance, December 31, 2016 $ 20,447 $ 2,130 $ 73 $ 22,650 Provision - - - - Payments and other adjustments ( 17,360) ( 815) ( 49) ( 18,224) Balance, December 30, 2017 $ 3,087 $ 1,315 $ 24 $ 4,426 Provision 50,197 3,153 1,017 54,367 Payments and other adjustments ( 23,320) ( 2,865) ( 883) ( 27,068) Balance, December 29, 2018 $ 29,964 $ 1,603 $ 158 $ 31,725 Provision 13,741 937 27 14,705 Payments and other adjustments ( 30,794) ( 1,714) ( 112) ( 32,620) Balance, December 28, 2019 $ 12,911 $ 826 $ 73 $ 13,810 |
Schedule of restructuring reserve by segment | Technology and Health Care Value-Added Distribution Services Total Balance, December 31, 2016 $ 22,505 $ 145 $ 22,650 Provision - - - Payments and other adjustments ( 18,079) ( 145) ( 18,224) Balance, December 30, 2017 $ 4,426 $ - $ 4,426 Provision 50,824 3,543 54,367 Payments and other adjustments ( 24,959) ( 2,109) ( 27,068) Balance, December 29, 2018 $ 30,291 $ 1,434 $ 31,725 Provision 13,935 770 14,705 Payments and other adjustments ( 30,853) ( 1,767) ( 32,620) Balance, December 28, 2019 $ 13,373 $ 437 $ 13,810 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted shares used to calculate earnings per share | Years Ended December 28, December 29, December 30, 2019 2018 2017 Basic 147,817 152,656 156,787 Effect of dilutive securities: Stock options, restricted stock and restricted stock units 1,440 1,051 1,421 Diluted 149,257 153,707 158,208 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Taxes [Abstract] | |
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment | Years ended December 28, December 29, December 30, 2019 2018 2017 Domestic $ 507,003 $ 405,289 $ 526,586 Foreign 173,304 131,547 103,208 Total $ 680,307 $ 536,836 $ 629,794 |
Provision for income taxes attributable to continuing operations | The provisions for income taxes were as follows: Years ended December 28, December 29, December 30, 2019 2018 2017 Current income tax expense: U.S. Federal $ 93,418 $ 71,854 $ 247,254 State and local 28,150 22,533 19,489 Foreign 42,004 38,433 41,043 Total current 163,572 132,820 307,786 Deferred income tax expense (benefit): U.S. Federal 5,633 206 12,927 State and local 1,597 ( 1,622) 1,621 Foreign ( 11,287) ( 23,972) ( 13,359) Total deferred ( 4,057) ( 25,388) 1,189 Total provision $ 159,515 $ 107,432 $ 308,975 |
Tax effects of temporary differences to deferred income tax asset (liability) | The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows: Years Ended December 28, December 29, 2019 2018 Deferred income tax asset: Investment in partnerships $ 1,420 $ 4,150 Net operating losses and other carryforwards 43,663 43,754 Inventory, premium coupon redemptions and accounts receivable valuation allowances 23,808 25,008 Stock-based compensation 14,075 14,880 Uniform capitalization adjustment to inventories 7,259 8,189 Other asset 35,419 38,806 Total deferred income tax asset 125,644 134,787 Valuation allowance for deferred tax assets (1) ( 20,699) ( 22,403) Net deferred income tax asset 104,945 112,384 Deferred income tax liability Intangibles amortization ( 135,754) ( 103,309) Property and equipment ( 10,555) ( 13,075) Total deferred tax liability ( 146,309) ( 116,384) Net deferred income tax asset (liability) $ ( 41,364) $ ( 4,000) (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.” |
Reconciliation of income tax provision at federal statutory rate to total income tax provision | Years ended December 28, December 29, December 30, 2019 2018 2017 Income tax provision at federal statutory rate $ 142,865 $ 112,735 $ 220,427 State income tax provision, net of federal income tax effect 16,539 15,872 10,320 Foreign income tax benefit ( 4,580) ( 2,558) ( 19,486) Pass-through noncontrolling interest ( 3,931) ( 2,700) ( 1,465) Valuation allowance ( 79) 2,017 1,629 Unrecognized tax benefits and audit settlements 3,671 2,126 4,196 Interest expense related to loans ( 5,498) ( 11,700) ( 18,492) Excess tax benefits related to stock compensation ( 86) ( 1,008) ( 16,964) 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") 3,917 7,599 - 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 (credit) related to reorganization of legal entities completed in preparation for the Animal Health spin-off ( 1,333) 3,135 - Other 8,030 3,528 ( 14,143) Total income tax provision $ 159,515 $ 107,432 $ 308,975 |
Reconciliation of unrecognized tax benefits excluding the effect of deferred taxes | December 28, December 29, December 30, 2019 2018 2017 Balance, beginning of period $ 77,800 $ 83,200 $ 82,200 Additions based on current year tax positions 4,900 5,000 8,500 Additions based on prior year tax positions 17,300 9,400 5,400 Reductions based on prior year tax positions ( 1,000) ( 1,600) ( 800) Reductions resulting from settlements with taxing authorities ( 4,200) ( 1,600) ( 10,500) Reductions resulting from lapse in statutes of limitations ( 3,700) ( 16,600) ( 1,600) Balance, end of period $ 91,100 $ 77,800 $ 83,200 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Disaggregation of Revenue | Year Ended December 28, 2019 North America International Global Revenues: Health care distribution Dental $ 3,911,746 2,504,119 6,415,865 Medical 2,894,137 79,449 2,973,586 Total health care distribution 6,805,883 2,583,568 9,389,451 Technology and value-added services 445,317 69,768 515,085 Total excluding Corporate TSA revenues (1) 7,251,200 2,653,336 9,904,536 Corporate TSA revenues (1) 4,098 77,169 81,267 Total revenues $ 7,255,298 $ 2,730,505 $ 9,985,803 Year Ended December 29, 2018 North America International Global Revenues: Health care distribution Dental $ 3,866,171 2,481,827 6,347,998 Medical 2,581,696 79,470 2,661,166 Total health care distribution 6,447,867 2,561,297 9,009,164 Technology and value-added services 344,168 64,271 408,439 Total excluding Corporate TSA revenues (1) 6,792,035 2,625,568 9,417,603 Corporate TSA revenues (1) - - - Total revenues $ 6,792,035 $ 2,625,568 $ 9,417,603 (1) Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Business segment information | Years Ended December 28, December 29, December 30, 2019 2018 2017 Net Sales: Health care distribution (1) Dental $ 6,415,865 $ 6,347,998 $ 6,047,811 Medical 2,973,586 2,661,166 2,497,994 Total health care distribution 9,389,451 9,009,164 8,545,805 Technology and value-added services (2) 515,085 408,439 337,633 Total excluding Corporate TSA revenues 9,904,536 9,417,603 8,883,438 Corporate TSA revenues (3) 81,267 - - Total $ 9,985,803 $ 9,417,603 $ 8,883,438 (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. (3) Corporate TSA revenues represents sales of certain products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. Years ended December 28, December 29, December 30, 2019 2018 2017 Operating Income: Health care distribution $ 591,404 $ 490,988 $ 561,888 Technology and value-added services 126,857 109,631 107,873 Total $ 718,261 $ 600,619 $ 669,761 Income before taxes and equity in earnings of affiliates: Health care distribution $ 553,181 $ 429,429 $ 526,255 Technology and value-added services 127,126 107,407 103,539 Total $ 680,307 $ 536,836 $ 629,794 Depreciation and Amortization: Health care distribution $ 146,960 $ 122,767 $ 116,260 Technology and value-added services 37,982 20,863 17,595 Total $ 184,942 $ 143,630 $ 133,855 Income Tax Expense: Health care distribution $ 129,381 $ 53,660 $ 271,920 Technology and value-added services 30,134 53,772 37,055 Total $ 159,515 $ 107,432 $ 308,975 Interest Income: Health care distribution $ 15,352 $ 15,106 $ 12,236 Technology and value-added services 405 385 202 Total $ 15,757 $ 15,491 $ 12,438 Interest Expense: Health care distribution $ 50,666 $ 76,006 $ 51,039 Technology and value-added services 126 10 27 Total $ 50,792 $ 76,016 $ 51,066 Purchases of Fixed Assets: Health care distribution $ 69,095 $ 68,577 $ 59,865 Technology and value-added services 7,124 2,706 2,539 Total $ 76,219 $ 71,283 $ 62,404 As of December 28, December 29, December 30, 2019 2018 2017 Total Assets: Health care distribution $ 5,822,057 $ 5,289,348 $ 5,336,320 Technology and value-added services 1,329,044 994,506 334,977 Discontinued operations - 2,216,673 2,192,698 Total $ 7,151,101 $ 8,500,527 $ 7,863,995 |
Operations by geographic area | 2019 2018 2017 Net Sales Long-Lived Assets Net Sales Long-Lived Assets Net Sales Long-Lived Assets United States $ 6,876,194 $ 2,400,733 $ 6,411,558 $ 1,855,788 $ 6,039,613 $ 1,208,351 Other 3,109,609 1,195,947 3,006,045 915,493 2,843,825 1,072,849 Consolidated total $ 9,985,803 $ 3,596,680 $ 9,417,603 $ 2,771,281 $ 8,883,438 $ 2,281,200 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Compensation Related Costs [Abstract] | |
Summary of the stock option activity under the plans | Years Ended December 28, December 29, December 30, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of year 3 $ 13.63 155 $ 29.65 353 $ 28.59 Granted - - - - - - Exercised ( 3) 13.63 ( 152) 29.81 ( 198) 27.76 Forfeited - - - - - - Outstanding at end of year - $ - 3 $ 17.22 155 $ 29.65 Options exercisable at end of year - $ - 3 $ 17.22 155 $ 29.65 |
Intrinsic values | As of December 28, December 29, December 30, 2019 2018 2017 Stock options outstanding $ - $ 121 $ 6,256 Stock options exercisable - 121 6,256 |
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 1,513 $ 57.94 Granted 452 59.56 Vested ( 339) 55.62 Forfeited ( 208) 60.35 Outstanding at end of period 1,418 $ 58.72 $ 66.58 Performance-Based Restricted Stock/Units Weighted Average Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,163 $ 40.26 Granted 642 59.72 Vested ( 189) 66.41 Forfeited ( 157) 61.33 Outstanding at end of period 1,459 $ 61.41 $ 66.58 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments | 2020 $ 403,241 2021 208,200 2022 110,800 2023 - 2024 - Thereafter - Total minimum inventory purchase commitment payments $ 722,241 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial information (unaudited) | Quarters ended March 30, June 29, September 28, December 28, 2019 2019 2019 2019 Net sales $ 2,360,268 $ 2,447,827 $ 2,508,767 $ 2,668,941 Gross profit 751,690 767,431 761,167 810,598 Restructuring costs (credits) (1) 4,641 11,925 ( 802) ( 1,059) Operating income 172,441 162,288 187,198 196,334 Net gain on sale of equity investments (2) - - - 186,769 Net income from continuing operations 123,640 121,417 143,212 337,192 Amounts attributable to Henry Schein, Inc. from continuing operations: Net income 118,413 116,753 134,916 330,609 Earnings per share attributable to Henry Schein, Inc. from continuing operations: Basic $ 0.79 $ 0.79 $ 0.92 $ 2.27 Diluted 0.78 0.78 0.91 2.25 Quarters ended March 31, June 30, September 29, December 29, 2018 2018 2018 2018 Net sales $ 2,273,450 $ 2,316,032 $ 2,355,565 $ 2,472,556 Gross profit 719,129 718,328 722,359 750,931 Litigation settlements - - 38,488 - Restructuring costs (1) 2,675 8,497 8,551 34,644 Operating income 162,240 157,108 123,269 158,002 Net income from continuing operations 114,717 114,591 96,247 124,886 Amounts attributable to Henry Schein, Inc. from continuing operations: Net income 111,534 110,636 90,770 117,777 Earnings per share attributable to Henry Schein, Inc. from continuing operations: Basic $ 0.73 $ 0.72 $ 0.60 $ 0.78 Diluted 0.72 0.72 0.59 0.77 (1) See Note 12 - "Plans of Restructuring" for details of the restructuring costs incurred during our 2019 and 2018 fiscal years. (2) See Note 11 - "Business Acquisitions and Divestitures" for details of the net gain on sale of equity investments. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash paid for interest and income taxes | Years ended December 28, December 29, December 30, 2019 2018 2017 Interest $ 54,685 $ 69,371 $ 46,985 Income taxes 177,277 236,479 214,135 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating Leases | |||
Lessee, Operating Lease, Option to Extend | Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 231,662,000 | $ 0 | |
Operating lease liabilities | $ 241,616,000 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal year duration | 364 days | 364 days | 364 days |
Outstanding checks in excess of funds on deposit classified as accounts payable | $ 29,500,000 | $ 41,100,000 | |
Costs of goods sold | 6,894,917,000 | 6,506,856,000 | $ 6,136,776,000 |
Advertising and promotional costs | 25,200,000 | 12,900,000 | 800,000 |
Goodwill impairment loss | 0 | 0 | 0 |
Total distribution network costs | 72,300,000 | 69,600,000 | 67,500,000 |
Income taxes | (159,515,000) | (107,432,000) | (308,975,000) |
Contract with Customer, Liability, Current | 70,800,000 | 65,300,000 | |
Contract with Customer, Liability, Noncurrent | 6,200,000 | 5,000,000 | |
Direct shipping and handling costs [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Costs of goods sold | 73,800,000 | 70,600,000 | $ 65,000,000 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Variable Interest Entity, Consolidated, Assets, Pledged | 127,000,000 | 422,000,000 | |
Variable Interest Entity, Consolidated, Liabilities, Recourse | $ 100,000,000 | $ 350,000,000 | |
Minimum [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal year duration | 364 days | ||
Percentage ownership of subsidiaries included in consolidated tax return | 80.00% | 80.00% | 80.00% |
Maximum [Member] | |||
Operating Leases | |||
Lessee, Operating Lease, Option to Extend | may include options to extend the leases for up to 10 years | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fiscal year duration | 371 days | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List] | Modified Retrospective | ||
Operating lease right-of-use assets | $ 259,900,000 | ||
Operating lease liabilities | $ 267,300,000 | ||
Decrease in prepaid rent | $ 1,100,000 | ||
Decrease in deferred rent liabilities | $ 8,500,000 | ||
Lease, Practical Expedients, Package [true false] | true | ||
Accounting Standards Update 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Not Restated [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Fixed List] | Modified Retrospective | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Dec. 31, 2017 | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | ||
Accounting Standards Update 2017-12 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Discontinued Operations - Summa
Discontinued Operations - Summarized financial information for our discontinued operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Feb. 07, 2019 | Dec. 31, 2016 | |
Summarized financial information for our discontinued operations | |||||
Costs of goods sold | $ 6,894,917 | $ 6,506,856 | $ 6,136,776 | ||
Selling, general and administrative | 2,357,920 | 2,217,273 | 2,071,576 | ||
Income (loss) from discontinued operations | (6,323) | 111,685 | 140,817 | ||
Net (income) loss attributable to noncontrolling interests | 366 | (6,521) | (27,690) | ||
Net income (loss) from discontinued operations atrributable to Henry Schein, Inc. | (5,957) | 105,164 | 113,127 | ||
Assets transferred | |||||
Total current assets of discontinued operations | 0 | 1,083,014 | |||
Operating lease right-of-use assets | 231,662 | 0 | |||
Investments and other | 327,919 | 420,367 | |||
Total long-term assets of discontinued operations | 0 | 1,133,659 | |||
Liabilities transferred | |||||
Current maturities of long-term debt | 109,849 | 8,280 | |||
Operating lease liabilities | 65,349 | 0 | |||
Accrued expenses: | |||||
Total current liabilities of discontinued operations | 0 | 577,607 | |||
Long-term debt | 622,908 | 980,344 | |||
Operating lease liabilities | 176,267 | 0 | |||
Total long-term liabilities of discontinued operations | 0 | 62,453 | |||
Redeemable noncontrolling interests | 287,258 | 219,724 | 465,585 | $ 285,567 | |
Henry Schein Animal Health Business [Member] | |||||
Summarized financial information for our discontinued operations | |||||
Net sales | 319,522 | 3,784,392 | 3,578,105 | ||
Costs of goods sold | 260,097 | 3,100,055 | 2,925,664 | ||
Gross Profit | 59,425 | 684,337 | 652,441 | ||
Selling, general and administrative | 68,919 | 531,905 | 462,835 | ||
Operating income (loss) | (9,494) | 152,432 | 189,606 | ||
Income tax expense (benefit) | (2,181) | 48,060 | 53,532 | ||
Income (loss) from discontinued operations | (6,323) | 111,685 | 140,817 | ||
Net (income) loss attributable to noncontrolling interests | 366 | (6,521) | (27,690) | ||
Net income (loss) from discontinued operations atrributable to Henry Schein, Inc. | (5,957) | 105,164 | $ 113,127 | ||
Assets transferred | |||||
Cash and cash equivalents | 23,324 | $ 6,815 | |||
Accounts receivable, net | 434,935 | 432,812 | |||
Inventories, net | 555,230 | 536,637 | |||
Prepaid expenses and other | 69,525 | 120,546 | |||
Total current assets of discontinued operations | 1,083,014 | 1,096,810 | |||
Property and equipment, net | 68,177 | 69,790 | |||
Operating lease right-of-use assets | 0 | 57,012 | |||
Goodwill | 739,266 | 742,931 | |||
Other intangibles, net | 208,213 | 205,793 | |||
Investments and other | 118,003 | 120,518 | |||
Total long-term assets of discontinued operations | 1,133,659 | 1,196,044 | |||
Total assets of discontinued operations | 2,216,673 | 2,292,854 | |||
Liabilities transferred | |||||
Accounts payable | 441,453 | 316,162 | |||
Current maturities of long-term debt | 675 | 657 | |||
Operating lease liabilities | 0 | 18,951 | |||
Accrued expenses: | |||||
Payroll and related | 36,888 | 36,847 | |||
Taxes | 17,552 | 24,060 | |||
Other | 81,039 | 80,400 | |||
Total current liabilities of discontinued operations | 577,607 | 477,077 | |||
Long-term debt | 23,529 | 1,176,105 | |||
Deferred income taxes | 4,352 | 17,019 | |||
Operating lease liabilities | 0 | 38,668 | |||
Other liabilities | 34,572 | 29,209 | |||
Total long-term liabilities of discontinued operations | 62,453 | 1,261,001 | |||
Total liabilities of discontinued operations | 640,060 | 1,738,078 | |||
Redeemable noncontrolling interests | $ 0 | $ 92,432 | $ 28,270 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | Feb. 07, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Distribution received related to Animal Health Spin-off | $ 1,120,000 | $ 0 | $ 0 | |
Proceeds related to Animal Health Share Sale | $ 361,090 | $ 0 | $ 0 | |
Henry Schein Animal Health Business [Member] | Covetrus, Inc. [Member] | Henry Schein stockholders and the Share Sale Investors [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 37.00% | |||
Henry Schein Animal Health Business [Member] | Covetrus, Inc. [Member] | Vets First Corp [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Distribution received related to Animal Health Spin-off | $ 1,120,000 | |||
Proceeds related to Animal Health Share Sale | $ 361,100 | |||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 798,591 | $ 905,105 | |
Less accumulated depreciation and amortization | (468,946) | (590,884) | |
Property and equipment, net | 329,645 | 314,221 | |
Property and equipment related depreciation expense | 64,400 | 58,100 | $ 54,700 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 18,030 | 17,985 | |
Buildings and permanent improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 121,823 | 127,012 | |
Property and equipment, average useful life (in years) | 40 years | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 104,089 | 103,929 | |
Machinery and warehouse equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 124,640 | 108,249 | |
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 | $ 99,083 | 120,693 | |
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 | $ 330,926 | $ 427,237 | |
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. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,081,029 | $ 1,553,582 |
Adjustments to goodwill: Acquisitions | 388,628 | 568,912 |
Adjustments to goodwill: Foreign currency translation | (7,162) | (41,465) |
Ending balance | 2,462,495 | 2,081,029 |
Health Care Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,433,412 | 1,431,680 |
Adjustments to goodwill: Acquisitions | 50,276 | 38,848 |
Adjustments to goodwill: Foreign currency translation | (6,969) | (37,116) |
Ending balance | 1,476,719 | 1,433,412 |
Technology and Value-Added Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 647,617 | 121,902 |
Adjustments to goodwill: Acquisitions | 338,352 | 530,064 |
Adjustments to goodwill: Foreign currency translation | (193) | (4,349) |
Ending balance | $ 985,776 | $ 647,617 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles, Net - Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Other intangible assets cost | $ 960,945 | $ 694,585 |
Other intangible assets net | 572,878 | 376,031 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Accumulated amortization | (388,067) | (318,554) |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 34,553 | 34,667 |
Accumulated amortization | (9,327) | (6,834) |
Net | $ 25,226 | 27,833 |
Non-compete agreements [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 4 years 10 months 24 days | |
Trademarks and tradenames [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 99,314 | 72,462 |
Accumulated amortization | (44,134) | (36,165) |
Net | $ 55,180 | 36,297 |
Trademarks and tradenames [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 8 years | |
Customer relationships and lists [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 715,630 | 479,542 |
Accumulated amortization | (274,330) | (216,007) |
Net | $ 441,300 | 263,535 |
Customer relationships and lists [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 10 years | |
Product development [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 85,211 | 73,294 |
Accumulated amortization | (42,326) | (34,689) |
Net | $ 42,885 | 38,605 |
Product development [Member] | Weighted average [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Average useful life (in years) | 8 years 7 months 6 days | |
Other intangibles assets [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 26,237 | 34,620 |
Accumulated amortization | (17,950) | (24,859) |
Net | $ 8,287 | $ 9,761 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles, Net - Amortization (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to definite-lived intangible assets | $ 108.3 | $ 75.3 | $ 70.3 |
Annual amortization expense expected for 2019 | 102.7 | ||
Annual amortization expense expected for 2020 | 95.6 | ||
Annual amortization expense expected for 2021 | 81.4 | ||
Annual amortization expense expected for 2022 | 73.7 | ||
Annual amortization expense expected for 2023 | $ 59.3 |
Investments and Other (Details)
Investments and Other (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||
Investments And Other [Abstract] | ||||
Investments in unconsolidated affiliates | $ 164,659 | $ 260,954 | ||
Non-current deferred foreign, state and local income taxes | 23,625 | 12,196 | ||
Notes receivable | [1] | 43,544 | 66,047 | |
Capitalized costs for internally generated software for resale | 42,445 | 37,659 | ||
Distribution rights and exclusivity agreements, net of amortization | 4 | 582 | ||
Security deposits | 534 | 0 | ||
Acquisition related indemnification | 38,464 | 28,283 | ||
Other long-term assets | 14,644 | 14,646 | ||
Total | 327,919 | 420,367 | ||
Amortization of other long-term assets | $ 12,300 | $ 10,200 | $ 8,800 | |
[1] | Long-term notes receivable carry interest rates ranging from 1.0% to 11.5% and are due in varying installments through February 01, 2025. |
Investments and Other - Long-te
Investments and Other - Long-term notes receivable (Details) - Financing Receivable [Member] | 12 Months Ended |
Dec. 28, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Latest maturity date of varying installments of long-term notes receivable | Feb. 1, 2025 |
Minimum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Long-term notes receivable interest rate (as a percent) | 100.00% |
Maximum [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Long-term notes receivable interest rate (as a percent) | 1150.00% |
Debt - Bank Credit Lines (Detai
Debt - Bank Credit Lines (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 23,975 | $ 951,458 |
Revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank credit lines | 0 | 175,000 |
Other short-term bank credit lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank credit lines | 23,975 | 376,458 |
Committed Loan Associated with Animal Health Spin-off [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 0 | $ 400,000 |
Debt - Revolving Credit Agreeme
Debt - Revolving Credit Agreement and Other Short-Term Credit Lines - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 23,975,000 | $ 951,458,000 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 0 | 175,000,000 |
Revolving credit facility maturing in April 2022 [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Initiation Date | Apr. 18, 2017 | |
Extinguishment Of Line of Credit | $ 750,000,000 | |
Bank credit lines | 0 | 175,000,000 |
Outstanding letters of credit provided to third parties | $ 9,600,000 | 11,200,000 |
Revolving credit facility maturing in April 2022 [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility expiration date | Apr. 1, 2022 | |
Revolving credit facility maturing in April 2022 [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility expiration date | Apr. 30, 2022 | |
Other short-term bank credit lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 23,975,000 | $ 376,458,000 |
Weighted average interest rate on borrowings under credit lines at period end (as a percent) | 3.45% | 3.30% |
Debt - Committed Loan Associate
Debt - Committed Loan Associated with Animal Health Spin-off - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 28, 2019 | |
Line of Credit Facility [Line Items] | ||
Short-term borrowings | $ 951,458 | $ 23,975 |
Committed Loan Associated with Animal Health Spin-off [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term borrowings | 400,000 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 400,000 | |
Equity Method Investment Aggregate Cost | $ 365,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.38% | |
Repayments of Lines of Credit | $ 400,000 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Total Long-term debt | $ 732,757 | $ 988,624 |
Less current maturities | (109,849) | (8,280) |
Long-term debt | 622,908 | 980,344 |
Finance lease obligations (See Note 7) | 5,394 | 3,944 |
Private Placement Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | 621,274 | 628,189 |
U.S. trade accounts receivable securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | 100,000 | 350,000 |
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-term debt | $ 6,089 | $ 6,491 |
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 | 2.56% | 2.61% |
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 | 10.50% | 4.17% |
Debt - Private Placement Facili
Debt - Private Placement Facilities - Narrative (Details) - Private placement facilities [Member] - USD ($) | Sep. 15, 2017 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Debt Instrument Maximum Borrowing Capacity | $ 1,000,000,000 | |
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 | Sep. 15, 2017 | Jan. 20, 2016 | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | |||||
Less: Deferred debt issuance costs | $ (155) | ||||
Long-term Debt and finance Lease Obligations, Including Current Maturities | 732,757 | $ 988,624 | |||
Private placement facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Less: Deferred debt issuance costs | (155) | ||||
Long-term Debt and finance Lease Obligations, Including Current Maturities | $ 621,274 | $ 628,189 | |||
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 | Jan. 20, 2012 | ||||
Long-term Debt, Gross | [1] | $ 21,429 | |||
Borrowing Rate | 3.09% | ||||
Debt Instrument, Maturity Date | 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] | |||||
Debt Instrument, Issuance Date | Jan. 2, 2018 | ||||
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 - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jul. 06, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | |||
Long-term Debt and finance Lease Obligations, Including Current Maturities | $ 732,757,000 | $ 988,624,000 | |
U.S. trade accounts receivable securitization [Member] | |||
Debt Instrument [Line Items] | |||
Pricing commitment period | 3 years | ||
Debt Instrument, Maturity Date | Apr. 29, 2020 | Apr. 29, 2022 | |
Debt Instrument Maximum Borrowing Capacity | $ 350,000,000 | ||
Long-term Debt and finance Lease Obligations, Including Current Maturities | $ 100,000,000 | $ 350,000,000 | |
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] | |||
Debt instrument, variable rate basis at period end | 1.90% | 2.66% | |
Debt instrument, basis spread on variable rate | 0.75% | 0.75% | |
Debt instrument, interest rate at period end | 2.65% | 3.41% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Maturities of Long-term Debt [Abstract] | ||
2019 | $ 109,849 | |
2020 | 108,842 | |
2021 | 110,504 | |
2022 | 1,529 | |
2023 | 101,112 | |
Thereafter | 300,921 | |
Total Long-term debt | 732,757 | $ 988,624 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | 155 | |
Private Placement Facilities [Member] | ||
Maturities of Long-term Debt [Abstract] | ||
Total Long-term debt | 621,274 | $ 628,189 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Gross | $ 155 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Description | We have operating and finance leases for corporate offices, office space, distribution and other facilities, vehicles and certain equipment. |
Lessee, Operating Lease, Option to Extend | Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. |
Lessee, Operating Lease, Lease Not yet Commenced, Description | buildings and vehicles |
Operating lease assets, Lease not yet commenced | $ 9 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee operating lease, remaining lease term | 1 year |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 2 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee operating lease, remaining lease term | 16 years |
Lessee, Operating Lease, Option to Extend | may include options to extend the leases for up to 10 years |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Leases - Components of lease ex
Leases - Components of lease expense (Details) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019USD ($) | ||
Leases | ||
Operating lease cost | $ 88,246 | [1] |
Finance lease cost: | ||
Amortization of right-of-use assets | 1,154 | |
Interest on lease liabilities | 131 | |
Finance lease cost | $ 1,285 | |
[1] | Includes variable lease expenses. |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019USD ($) | ||
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows for operating leases | $ 79,699 | |
Operating cash flows for finance leases | 99 | |
Financing cash flows for finance leases | 1,413 | |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 297,800 | [1] |
Finance leases | $ 2,940 | |
[1] | Includes leases that commenced during the year ended December 28, 2019, as well as balances related to leases in existence as of the date of the adoption of Topic 842. |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Operating Leases | ||
Operating lease right-of-use assets | $ 231,662 | $ 0 |
Current operating lease liabilities | 65,349 | 0 |
Non-current operating lease liabilities | 176,267 | 0 |
Total operating lease liabilities | 241,616 | |
Finance leases | ||
Property and equipment, at cost | 10,268 | |
Accumulated depreciation | (4,581) | |
Finance Leases | 5,687 | |
Finance Lease, Liability, Current | 1,736 | |
Finance Lease, Liability, Noncurrent | 3,658 | |
Total finance lease liabilities | $ 5,394 | $ 3,944 |
Operating Lease, Weighted Average Remaining Lease Term, in years | 5 years 6 months | |
Finance Lease, Weighted Average Remaining Lease Term, in years | 5 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | |
Finance Lease, Weighted Average Discount Rate, Percent | 2.20% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 70,986 |
2021 | 56,557 |
2022 | 40,601 |
2023 | 27,021 |
2024 | 18,944 |
Thereafter | 51,762 |
Total future lease payments | 265,871 |
Finance Leases | |
2020 | 1,853 |
2021 | 1,529 |
2022 | 646 |
2023 | 304 |
2024 | 283 |
Thereafter | 1,117 |
Total future lease payments | $ 5,732 |
Leases - Present value of lease
Leases - Present value of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Present value of lease liabilities - Operating Leases | ||
Total future lease payments | $ 265,871 | |
Less imputed interest | (24,255) | |
Total operating lease liabilities | 241,616 | |
Present value of lease liabilities - Finance Leases | ||
Total future lease payments | 5,732 | |
Less imputed interest | (338) | |
Total finance lease liabilities | $ 5,394 | $ 3,944 |
Leases - Future minimum lease p
Leases - Future minimum lease payments under non-cancelable operating leases and capital leases (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases, Future Minimum Payments Due [Abstract] | |
2019 | $ 62,535 |
2020 | 47,686 |
2021 | 34,633 |
2022 | 25,626 |
2023 | 19,560 |
Thereafter | 62,918 |
Total minimum lease payments | 252,958 |
Capital Leases, Future Minimum Payments Due [Abstract] | |
2019 | 976 |
2020 | 801 |
2021 | 501 |
2022 | 305 |
2023 | 283 |
Thereafter | 1,430 |
Total minimum lease payments | 4,296 |
Less imputed interest | (352) |
Total present value of minimum lease payments | $ 3,944 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Components of the change in the redeemable noncontrolling interests [Abstract] | |||
Balance, beginning of period | $ 219,724 | $ 465,585 | $ 285,567 |
Decrease in redeemable noncontrolling interests due to redemptions | (2,270) | (287,767) | (22,294) |
Increase in redeemable noncontrolling interests due to business acquisitions | 74,865 | 4,655 | 72,291 |
Net income attributable to redeemable noncontrolling interests | 14,838 | 15,327 | 24,513 |
Dividends declared | (10,264) | (8,206) | (7,680) |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | (2,335) | (11,330) | 4,530 |
Change in fair value of redeemable securities | (7,300) | 41,460 | 108,658 |
Balance, end of period | $ 287,258 | $ 219,724 | $ 465,585 |
Comprehensive Income - Accumula
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Attributable to Redeemable noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | $ (20,338) | $ (18,595) | $ (20,338) | $ (18,595) | $ (5,564) | ||||||
Attributable to noncontrolling interests: | |||||||||||
Foreign currency translation adjustment | (531) | (426) | (531) | (426) | 539 | ||||||
Attributable to Henry Schein, Inc.: | |||||||||||
Foreign currency translation gain (loss) | (143,172) | (234,799) | (143,172) | (234,799) | (112,439) | ||||||
Unrealized gain (loss) from foreign currency hedging activities | (4,032) | (156) | (4,032) | (156) | (782) | ||||||
Unrealized investment gain (loss) | 6 | (6) | 6 | (6) | (3) | ||||||
Pension adjustment gain (loss) | (20,175) | (13,810) | (20,175) | (13,810) | (16,843) | ||||||
Accumulated other comprehensive income (loss) | (167,373) | (248,771) | (167,373) | (248,771) | (130,067) | ||||||
Total Accumulated other comprehensive income (loss) | (188,242) | (267,792) | (188,242) | (267,792) | (135,092) | ||||||
Components of comprehensive income [Abstract] | |||||||||||
Net income | $ 337,192 | $ 143,212 | $ 121,417 | $ 123,640 | $ 124,886 | $ 96,247 | $ 114,591 | $ 114,717 | 719,138 | 562,126 | 459,293 |
Foreign currency translation gain (loss) | (4,070) | (136,356) | 191,886 | ||||||||
Tax effect | 0 | 0 | 0 | ||||||||
Foreign currency translation gain (loss) | (4,070) | (136,356) | 191,886 | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | (4,911) | 1,022 | (1,515) | ||||||||
Tax effect | 1,035 | (396) | 786 | ||||||||
Unrealized gain (loss) from foreign currency hedging activities | (3,876) | 626 | (729) | ||||||||
Unrealized investment gain (loss) | 14 | (3) | (4) | ||||||||
Tax effect | (2) | 0 | 1 | ||||||||
Unrealized investment gain (loss) | 12 | (3) | (3) | ||||||||
Pension adjustment gain (loss) | (7,730) | 4,212 | 4,247 | ||||||||
Tax effect | 1,806 | 1,179 | (314) | ||||||||
Pension adjustment gain (loss) | (5,924) | 3,033 | 3,933 | ||||||||
Comprehensive income | $ 705,280 | $ 429,426 | $ 654,380 |
Comprehensive Income - Foreign
Comprehensive Income - Foreign Currency Translation Gain (Loss) Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation gain (loss) | $ (4,070) | $ (136,356) | $ 191,886 |
Comprehensive Income - Total Co
Comprehensive Income - Total Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Comprehensive Income Net Of Applicable Taxes [Abstract] | |||
Comprehensive income (loss) attributable to Henry Schein, Inc. | $ 682,724 | $ 417,177 | $ 593,273 |
Comprehensive income (loss) attributable to noncontrolling interests | 9,827 | 3,432 | 1,443 |
Comprehensive income (loss) attributable to Redeemable noncontrolling interests | 12,729 | 8,817 | 59,664 |
Comprehensive income (loss) | $ 705,280 | $ 429,426 | $ 654,380 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | $ 287,258 | $ 219,724 | $ 465,585 | $ 285,567 |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of debt | 756,700 | 1,940,100 | ||
Fair value, measurements, recurring [Member] | ||||
Assets [Abstract] | ||||
Derivative contracts - assets | 567 | 12,533 | ||
Total assets | 567 | 12,533 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 5,795 | 1,708 | ||
Total liabilities | 5,795 | 1,708 | ||
Attributable To Redeemable Noncontrolling Interests [Abstract] | ||||
Redeemable noncontrolling interests | 287,258 | 219,724 | ||
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 | 567 | 12,533 | ||
Total assets | 567 | 12,533 | ||
Liabilities [Abstract] | ||||
Derivative contracts - liabilities | 5,795 | 1,708 | ||
Total liabilities | 5,795 | 1,708 | ||
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 | $ 287,258 | $ 219,724 |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Net sales | $ 2,668,941,000 | $ 2,508,767,000 | $ 2,447,827,000 | $ 2,360,268,000 | $ 2,472,556,000 | $ 2,355,565,000 | $ 2,316,032,000 | $ 2,273,450,000 | $ 9,985,803,000 | $ 9,417,603,000 | $ 8,883,438,000 |
Business acquisition allocated, goodwill | 2,462,495,000 | 2,081,029,000 | 2,462,495,000 | 2,081,029,000 | 1,553,582,000 | ||||||
Net gain (loss) on sale of equity investments | (186,769,000) | $ 0 | $ 0 | $ 0 | (186,769,000) | 0 | 17,636,000 | ||||
Income Tax Expense (Benefit) | 159,515,000 | 107,432,000 | 308,975,000 | ||||||||
Equity in earnings of affiliates | (17,900,000) | (21,037,000) | (15,293,000) | ||||||||
Business Acquisition, Transaction Costs | 4,500,000 | 7,300,000 | 4,500,000 | 7,300,000 | 5,300,000 | ||||||
Proceeds from sale of equity investment | 307,251,000 | 1,000,000 | 34,048,000 | ||||||||
Hu-Friedy Mfg. Co., LLC [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net gain (loss) on sale of equity investments | (250,200,000) | ||||||||||
Income Tax Expense (Benefit) | 63,400,000 | ||||||||||
Equity in earnings of affiliates | (6,000,000) | (10,400,000) | (6,400,000) | ||||||||
E4D Technologies [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net gain (loss) on sale of equity investments | 17,600,000 | ||||||||||
Income Tax Expense (Benefit) | 0 | ||||||||||
Animal Health [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Acquisition, Transaction Costs | 23,600,000 | 38,900,000 | 23,600,000 | 38,900,000 | |||||||
Technology and Value-Added Services [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Net sales | 515,085,000 | 408,439,000 | 337,633,000 | ||||||||
Business acquisition allocated, goodwill | $ 985,776,000 | $ 647,617,000 | 985,776,000 | 647,617,000 | 121,902,000 | ||||||
Income Tax Expense (Benefit) | 30,134,000 | $ 53,772,000 | $ 37,055,000 | ||||||||
Internet Brands Inc [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Noncontrolling Interest, Increase from Business Combination | $ 550,900,000 | ||||||||||
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 | $ 533,900,000 | $ 533,900,000 | |||||||||
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] | |||||||||||
Noncontrolling Interest, Increase from Business Combination | $ 72,500,000 | ||||||||||
Net assets | $ 19,700,000 | 19,700,000 | |||||||||
Business acquisition allocated, goodwill | 395,300,000 | 395,300,000 | |||||||||
Intangible Assets | $ 310,400,000 | 310,400,000 | |||||||||
Payments to Acquire Businesses | $ 652,900,000 |
Plans of Restructuring (Narrati
Plans of Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Charges, pre-tax | $ (1,059) | $ (802) | $ 11,925 | $ 4,641 | $ 34,644 | $ 8,551 | $ 8,497 | $ 2,675 | $ 14,705 | $ 54,367 | $ 0 |
Employee severance pay and benefits [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Charges, pre-tax | 13,741 | 50,197 | 0 | ||||||||
Facility Closing [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring Charges, pre-tax | $ 937 | $ 3,153 | $ 0 | ||||||||
Strategic Plan, 2018 to 2020 [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | 4.00% |
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. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | $ 31,725 | $ 4,426 | $ 31,725 | $ 4,426 | $ 22,650 | ||||||
Provision | $ (1,059) | $ (802) | $ 11,925 | 4,641 | $ 34,644 | $ 8,551 | $ 8,497 | 2,675 | 14,705 | 54,367 | 0 |
Payments and other adjustments | (32,620) | (27,068) | (18,224) | ||||||||
Restructuring Reserve, ending balance | 13,810 | 31,725 | 13,810 | 31,725 | 4,426 | ||||||
Health Care Distribution [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 30,291 | 4,426 | 30,291 | 4,426 | 22,505 | ||||||
Provision | 13,935 | 50,824 | 0 | ||||||||
Payments and other adjustments | (30,853) | (24,959) | (18,079) | ||||||||
Restructuring Reserve, ending balance | 13,373 | 30,291 | 13,373 | 30,291 | 4,426 | ||||||
Technology and Value-Added Services [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 1,434 | 0 | 1,434 | 0 | 145 | ||||||
Provision | 770 | 3,543 | 0 | ||||||||
Payments and other adjustments | (1,767) | (2,109) | (145) | ||||||||
Restructuring Reserve, ending balance | 437 | 1,434 | 437 | 1,434 | 0 | ||||||
Severance costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 29,964 | 3,087 | 29,964 | 3,087 | 20,447 | ||||||
Provision | 13,741 | 50,197 | 0 | ||||||||
Payments and other adjustments | (30,794) | (23,320) | (17,360) | ||||||||
Restructuring Reserve, ending balance | 12,911 | 29,964 | 12,911 | 29,964 | 3,087 | ||||||
Facility closing costs [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | 1,603 | 1,315 | 1,603 | 1,315 | 2,130 | ||||||
Provision | 937 | 3,153 | 0 | ||||||||
Payments and other adjustments | (1,714) | (2,865) | (815) | ||||||||
Restructuring Reserve, ending balance | 826 | 1,603 | 826 | 1,603 | 1,315 | ||||||
Other [Member] | |||||||||||
Restructuring Reserve [Roll Forward] | |||||||||||
Restructuring Reserve, beginning balance | $ 158 | $ 24 | 158 | 24 | 73 | ||||||
Provision | 27 | 1,017 | 0 | ||||||||
Payments and other adjustments | (112) | (883) | (49) | ||||||||
Restructuring Reserve, ending balance | $ 73 | $ 158 | $ 73 | $ 158 | $ 24 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 147,817 | 152,656 | 156,787 |
Effect of dilutive securities: | |||
Stock options, restricted stock and restricted stock units (in shares) | 1,440 | 1,051 | 1,421 |
Diluted (in shares) | 149,257 | 153,707 | 158,208 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income before equity method investments, income taxes and loss on sale of equity investment [Abstract] | |||
Domestic | $ 507,003 | $ 405,289 | $ 526,586 |
Foreign | 173,304 | 131,547 | 103,208 |
Income from continuing operations before taxes and equity in earnings of affiliates and noncontrolling interest | $ 680,307 | $ 536,836 | $ 629,794 |
Income Taxes - Provisions for i
Income Taxes - Provisions for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current income tax expense: | |||
U.S. Federal | $ 93,418 | $ 71,854 | $ 247,254 |
State and local | 28,150 | 22,533 | 19,489 |
Foreign | 42,004 | 38,433 | 41,043 |
Total current | 163,572 | 132,820 | 307,786 |
Deferred income tax expense (benefit): | |||
U.S. Federal | 5,633 | 206 | 12,927 |
State and local | 1,597 | (1,622) | 1,621 |
Foreign | (11,287) | (23,972) | (13,359) |
Total deferred | (4,057) | (25,388) | 1,189 |
Total income tax provision | $ 159,515 | $ 107,432 | $ 308,975 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Asset (Liabilty) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | ||
Deferred income tax asset: | ||||
Investment in partnerships | $ 1,420 | $ 4,150 | ||
Net operating losses and other carryforwards | 43,663 | 43,754 | ||
Inventory, premium coupon redemptions and accounts receivable valuation allowances | 23,808 | 25,008 | ||
Stock-based compensation | 7,259 | 8,189 | ||
Uniform capitalization adjustment to inventories | 14,075 | 14,880 | ||
Other asset | 35,419 | 38,806 | ||
Total deferred income tax asset | 125,644 | 134,787 | ||
Valuation allowance for non-current deferred tax assets | [1] | (20,699) | (22,403) | |
Net deferred income tax asset | 104,945 | 112,384 | ||
Deferred income tax liability | ||||
Intangibles amortization | (135,754) | (103,309) | ||
Property and equipment | (10,555) | (13,075) | ||
Total deferred tax liability | (146,309) | (116,384) | ||
Net deferred income tax asset (liability) | $ (41,364,000) | $ (4,000) | [2] | |
[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. 28, 2019USD ($) | |
Foreign tax authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards subject to amortization | $ 2 |
Net operating loss carryforwards not subject to expiration | $ 144.9 |
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 | $ 14.3 |
Net operating loss carryforwards not subject to expiration | $ 21.1 |
Net operating loss carryforwards, year of expiration | Dec. 31, 2039 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at federal statutory rate | $ 142,865 | $ 112,735 | $ 220,427 |
State income tax provision, net of federal income tax effect | 16,539 | 15,872 | 10,320 |
Foreign income tax provision | (4,580) | (2,558) | (19,486) |
Pass through noncontrolling interest | (3,931) | (2,700) | (1,465) |
Valuation allowance | (79) | 2,017 | 1,629 |
Unrecognized tax benefits and audit settlements | 3,671 | 2,126 | 4,196 |
Interest expense related to loans | (5,498) | (11,700) | (18,492) |
Excess tax benefits related to stock compensation | (86) | (1,008) | (16,964) |
Transition tax on deemed repatriation of foreign earnings | 0 | (10,000) | 140,000 |
Revaluation of deferred tax assets and liabilities | 0 | (1,676) | 2,953 |
Tax on global intangible low-taxed income ("GILTI") | 3,917 | 7,599 | 0 |
Tax benefit related to legal entity reorganization outside the U.S. | 0 | (13,852) | 0 |
Tax charge related to reorganization of legal entities related to forming Henry Schein One | 0 | 3,914 | 0 |
Tax charge related to reorganization of legal entities completed in preparation for the Animal Health spin-off | (1,333) | 3,135 | 0 |
Other | 8,030 | 3,528 | (14,143) |
Total income tax provision | $ 159,515 | $ 107,432 | $ 308,975 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of period | $ 77,800 | $ 83,200 | $ 82,200 |
Additions based on current year tax positions | 4,900 | 5,000 | 8,500 |
Additions based on prior year tax positions | 17,300 | 9,400 | 5,400 |
Reductions based on prior year tax positions | (1,000) | (1,600) | (800) |
Reductions resulting from settlements with taxing authorities | (4,200) | (1,600) | (10,500) |
Reductions resulting from lapse in statutes of limitations | (3,700) | (16,600) | (1,600) |
Balance, end of period | $ 91,100 | $ 77,800 | $ 83,200 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Abstract] | |||
Effective tax rate (in hundredths) | 23.40% | 20.00% | 49.10% |
Effective tax rate without the effect of income tax expense (as a percent) | 26.40% | ||
Effect of Tax Cuts and Jobs Act [Abstract] | |||
Tax on global intangible low-taxed income ("GILTI") | $ 3,917,000 | $ 7,599,000 | $ 0 |
Revaluation of deferred tax assets and liabilities | 0 | (1,676,000) | 2,953,000 |
Provision for (benefit from) transitional tax | 0 | (10,000,000) | 140,000,000 |
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current | $ 9,900,000 | 94,900,000 | 104,200,000 |
Tax Cuts and Jobs Act, Accounting Complete [true false] | true | ||
Tax Cuts and Jobs Act, Accounting Complete, Date | Dec. 29, 2018 | ||
Unrecognized tax benefits | $ 109,100,000 | ||
Unrecognized tax benefits that would affect the effective tax rate if recognized | 91,200,000 | ||
Total interest | 18,000,000 | 15,600,000 | |
Total penalties | 0 | 0 | 0 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination [Line Items] | |||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 2,200,000 | $ 3,600,000 | $ (2,900,000) |
Concentrations of Risk (Details
Concentrations of Risk (Details) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
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) | 31.00% | 31.00% |
Supplier concentration risk [Member] | Purchases [Member] | Single largest supplier [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage (as a percent) | 6.00% | 6.00% |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Details) € in Millions | 12 Months Ended |
Dec. 28, 2019EUR (€) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum duration of foreign currency forward contracts | 18 months |
Net Investment Hedging [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | € 200 |
Derivative, Maturity Dates | Nov. 16, 2023 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Net sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | ||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | $ 2,668,941 | $ 2,508,767 | $ 2,447,827 | $ 2,360,268 | $ 2,472,556 | $ 2,355,565 | $ 2,316,032 | $ 2,273,450 | $ 9,985,803 | $ 9,417,603 | $ 8,883,438 | |||
North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 7,255,298 | 6,792,035 | ||||||||||||
International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 2,730,505 | 2,625,568 | ||||||||||||
Total excluding Corporate TSA revenues | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 9,904,536 | [1] | 9,417,603 | [1] | 8,883,438 | |||||||||
Total excluding Corporate TSA revenues | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | [1] | 7,251,200 | 6,792,035 | |||||||||||
Total excluding Corporate TSA revenues | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | [1] | 2,653,336 | 2,625,568 | |||||||||||
Healthcare Distribution [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 9,389,451 | 9,009,164 | 8,545,805 | |||||||||||
Healthcare Distribution [Member] | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 6,805,883 | 6,447,867 | ||||||||||||
Healthcare Distribution [Member] | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 2,583,568 | 2,561,297 | ||||||||||||
Healthcare Distribution [Member] | Dental [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 6,415,865 | 6,347,998 | 6,047,811 | |||||||||||
Healthcare Distribution [Member] | Dental [Member] | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 3,911,746 | 3,866,171 | ||||||||||||
Healthcare Distribution [Member] | Dental [Member] | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 2,504,119 | 2,481,827 | ||||||||||||
Healthcare Distribution [Member] | Medical [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 2,973,586 | 2,661,166 | 2,497,994 | |||||||||||
Healthcare Distribution [Member] | Medical [Member] | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 2,894,137 | 2,581,696 | ||||||||||||
Healthcare Distribution [Member] | Medical [Member] | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 79,449 | 79,470 | ||||||||||||
Technology and Value-Added Services [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 515,085 | 408,439 | 337,633 | |||||||||||
Technology and Value-Added Services [Member] | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 445,317 | 344,168 | ||||||||||||
Technology and Value-Added Services [Member] | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 69,768 | 64,271 | ||||||||||||
Corporate TSA [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | 81,267 | 0 | $ 0 | |||||||||||
Corporate TSA [Member] | Animal Health [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | [1] | 81,267 | 0 | |||||||||||
Corporate TSA [Member] | Animal Health [Member] | North America [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | [1] | 4,098 | 0 | |||||||||||
Corporate TSA [Member] | Animal Health [Member] | International [Member] | ||||||||||||||
Disaggregation of Revenue [Abstract] | ||||||||||||||
Net sales | [1] | $ 77,169 | $ 0 | |||||||||||
[1] | (1) Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. |
Segment and Geographic Data (De
Segment and Geographic Data (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 28, 2019USD ($)countries | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)numbercountries | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of reportable segments | number | 2 | |||||||||||||
Number of countries served globally | countries | 31 | 31 | ||||||||||||
Net sales | $ 2,668,941 | $ 2,508,767 | $ 2,447,827 | $ 2,360,268 | $ 2,472,556 | $ 2,355,565 | $ 2,316,032 | $ 2,273,450 | $ 9,985,803 | $ 9,417,603 | $ 8,883,438 | |||
Operating income | 196,334 | $ 187,198 | $ 162,288 | $ 172,441 | 158,002 | $ 123,269 | $ 157,108 | $ 162,240 | 718,261 | 600,619 | 669,761 | |||
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment | 680,307 | 536,836 | 629,794 | |||||||||||
Depreciation and amortization | 184,942 | 143,630 | 133,855 | |||||||||||
Income taxes | 159,515 | 107,432 | 308,975 | |||||||||||
Interest income | 15,757 | 15,491 | 12,438 | |||||||||||
Interest expense | 50,792 | 76,016 | 51,066 | |||||||||||
Purchases of fixed assets | 76,219 | 71,283 | 62,404 | |||||||||||
Total assets | 7,151,101 | 8,500,527 | 7,151,101 | 8,500,527 | 7,863,995 | |||||||||
Discontinued operations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total assets | 0 | 2,216,673 | 0 | 2,216,673 | 2,192,698 | |||||||||
Total excluding Corporate TSA revenues | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 9,904,536 | [1] | 9,417,603 | [1] | 8,883,438 | |||||||||
Health Care Distribution [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 9,389,451 | 9,009,164 | 8,545,805 | |||||||||||
Operating income | 591,404 | 490,988 | 561,888 | |||||||||||
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment | 553,181 | 429,429 | 526,255 | |||||||||||
Depreciation and amortization | 146,960 | 122,767 | 116,260 | |||||||||||
Income taxes | 129,381 | 53,660 | 271,920 | |||||||||||
Interest income | 15,352 | 15,106 | 12,236 | |||||||||||
Interest expense | 50,666 | 76,006 | 51,039 | |||||||||||
Purchases of fixed assets | 69,095 | 68,577 | 59,865 | |||||||||||
Total assets | 5,822,057 | 5,289,348 | 5,822,057 | 5,289,348 | 5,336,320 | |||||||||
Health Care Distribution [Member] | Dental [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 6,415,865 | 6,347,998 | 6,047,811 | |||||||||||
Health Care Distribution [Member] | Medical [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,973,586 | 2,661,166 | 2,497,994 | |||||||||||
Technology and Value-Added Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 515,085 | 408,439 | 337,633 | |||||||||||
Operating income | 126,857 | 109,631 | 107,873 | |||||||||||
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment | 127,126 | 107,407 | 103,539 | |||||||||||
Depreciation and amortization | 37,982 | 20,863 | 17,595 | |||||||||||
Income taxes | 30,134 | 53,772 | 37,055 | |||||||||||
Interest income | 405 | 385 | 202 | |||||||||||
Interest expense | 126 | 10 | 27 | |||||||||||
Purchases of fixed assets | 7,124 | 2,706 | 2,539 | |||||||||||
Total assets | $ 1,329,044 | $ 994,506 | 1,329,044 | 994,506 | 334,977 | |||||||||
Corporate TSA [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 81,267 | 0 | $ 0 | |||||||||||
Corporate TSA [Member] | Animal Health [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | [1] | $ 81,267 | $ 0 | |||||||||||
[1] | (1) Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020. |
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. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | $ 2,668,941 | $ 2,508,767 | $ 2,447,827 | $ 2,360,268 | $ 2,472,556 | $ 2,355,565 | $ 2,316,032 | $ 2,273,450 | $ 9,985,803 | $ 9,417,603 | $ 8,883,438 | |
Long-Lived Assets | 3,596,680 | 2,771,281 | 3,596,680 | 2,771,281 | $ 2,281,200 | |||||||
United States [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 6,876,194 | 6,411,558 | $ 6,039,613 | |||||||||
Long-Lived Assets | 2,400,733 | 1,855,788 | $ 2,400,733 | $ 1,855,788 | 1,208,351 | |||||||
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 | $ 3,109,609 | $ 3,006,045 | $ 2,843,825 | |||||||||
Long-Lived Assets | $ 1,195,947 | $ 915,493 | $ 1,195,947 | $ 915,493 | $ 1,072,849 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax share-based compensation expense | $ 44,900,000 | $ 32,600,000 | $ 36,800,000 |
After-tax share-based compensation expense | 34,400,000 | 25,300,000 | $ 20,600,000 |
Excess tax benefits | 0 | $ 0 | |
Liability for cash settlement stock-based compensation awards | $ 600,000 | ||
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) | $ 56.83 | $ 71.38 | $ 85.43 |
Total unrecognized compensation cost related to non-vested awards | $ 84,800,000 | ||
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 | $ 34,000 | $ 3,076,000 | $ 5,266,000 |
Stock option exercises tax benefits | 0 | $ 0 | |
Long-term Incentive Program [Member] | Henry Schein Animal Health Business [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total cash received as a result of stock options exercises | $ 0 | ||
Long-term Incentive Program [Member] | Restricted stock/units [Member] | Henry Schein Animal Health Business [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 1.2633 | ||
Decrease in price per share | $ (1.2633) |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | 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) | 3 | 155 | 353 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (3) | (152) | (198) | |
Forfeited (in shares) | 0 | 0 | 0 | |
Outstanding at end of period (in shares) | 0 | 3 | 155 | |
Ending balance, options exercisable (in shares) | 0 | 3 | 155 | |
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) | $ 17.22 | $ 29.65 | $ 28.59 | |
Granted (in dollars per share) | 0 | 0 | ||
Exercised (in dollars per share) | 29.81 | 27.76 | ||
Forfeited (in dollars per share) | 0 | 0 | ||
Outstanding at end of period (in dollars per share) | 17.22 | 29.65 | ||
Ending balance, options exercisable (in dollars per share) | $ 17.22 | 29.65 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Stock option outstanding aggregate intrinsic value as of period end | $ 0 | $ 121 | $ 6,256 | |
Stock option exercisable aggregate intrinsic value as of period end | $ 0 | $ 121 | $ 6,256 | |
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) | $ 64.31 | $ 76.48 | $ 83.16 | |
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) | 1,513 | |||
Granted (in shares) | 452 | |||
Vested (in shares) | (339) | |||
Forfeited (in shares) | (208) | |||
Ending balance outstanding (in shares) | 1,418 | 1,513 | ||
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) | $ 57.94 | |||
Granted (in dollars per share) | 59.56 | |||
Vested (in dollars per share) | 55.62 | |||
Forfeited (in dollars per share) | 60.35 | |||
Ending balance outstanding (in dollars per share) | 58.72 | $ 57.94 | ||
Intrinsic value (in dollars per share) | $ 66.58 | |||
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) | 1,163 | |||
Granted (in shares) | 642 | |||
Vested (in shares) | (189) | |||
Forfeited (in shares) | (157) | |||
Ending balance outstanding (in shares) | 1,459 | 1,163 | ||
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) | $ 40.26 | |||
Granted (in dollars per share) | 59.72 | |||
Vested (in dollars per share) | 66.41 | |||
Forfeited (in dollars per share) | 61.33 | |||
Ending balance outstanding (in dollars per share) | 61.41 | $ 40.26 | ||
Intrinsic value (in dollars per share) | 66.58 | |||
Long-term Incentive Program [Member] | Employee and director stock options [Member] | Henry Schein Animal Health Business [Member] | ||||
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) | 13.63 | |||
Granted (in dollars per share) | 0 | |||
Exercised (in dollars per share) | 13.63 | |||
Forfeited (in dollars per share) | 0 | |||
Outstanding at end of period (in dollars per share) | 0 | $ 13.63 | ||
Ending balance, options exercisable (in dollars per share) | $ 0 | |||
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) | 65,242 | |||
Shares available to be granted (in shares) | 6,113 | |||
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) | 1,892 | |||
Shares available to be granted (in shares) | 294 | |||
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
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 | $ 8.3 | $ (2.3) | $ 5 |
Qualified 401K plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Amounts charged (credited) to operations | $ (36.8) | (35.8) | (33.5) |
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 | $ (2.1) | $ (0.4) | $ (0.6) |
Commitments and Contingencies -
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligation (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Unrecorded Unconditional Purchase Obligation [Abstract] | |
2019 | $ 403,241 |
2020 | 208,200 |
2021 | 110,800 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum inventory purchase commitment payments | $ 722,241 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Employment, consulting and non-compete agreements [Member] | |
Other Commitment, Fiscal Year Maturity [Abstract] | |
2019 | $ 16,800 |
2020 | 6,300 |
2021 | 4,500 |
2022 | 900 |
2023 | 900 |
Life-time consulting agreement [Member] | |
Other Commitment, Fiscal Year Maturity [Abstract] | |
Current compensation paid under lifetime consulting agreement | 400 |
Amount of increase effective every fifth year on lifetime consulting agreement | $ 25 |
Commitments and Contingencies_3
Commitments and Contingencies - Litigation (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019USD ($)claims | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)claims | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||
Litigation settlements | $ 0 | $ 38,488,000 | $ 0 | $ 0 | $ 0 | $ 38,488,000 | $ 5,325,000 | ||||
Net sales | $ 2,668,941,000 | $ 2,508,767,000 | $ 2,447,827,000 | $ 2,360,268,000 | $ 2,472,556,000 | $ 2,355,565,000 | $ 2,316,032,000 | $ 2,273,450,000 | $ 9,985,803,000 | $ 9,417,603,000 | $ 8,883,438,000 |
Loss Contingency, Management's Assessment and Process | As of December 28, 2019, 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. | ||||||||||
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 | August 1, 2017 | ||||||||||
Loss Contingency, Name of Defendant | adding Patterson Companies, Inc. (“Patterson”) and Benco Dental Supply Co. (“Benco”) as defendants | ||||||||||
Loss Contingency, Name of Plaintiff | Archer | ||||||||||
Loss Contingency, Allegations | alleging that Henry Schein, Patterson, Benco and Burkhart Dental Supply 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 Plaintiff | Archer | ||||||||||
Loss Contingency, Allegations | add additional allegations that it believes support its claims. The named parties and causes of action are the same as the August 1, 2017 amended complaint. | ||||||||||
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 | against 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 alleged, 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 | against 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 In re Dental Supplies Antitrust Litigation which Henry Schein settled and which the court dismissed in June 2019, as described in our prior filings with the SEC, 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., et al., Case No. 3:18-cv-010509, was filed in the U.S. District 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 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 health care 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 | Summit County alleges 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. On October 29, 2019, the Company was dismissed with prejudice from this lawsuit. Henry Schein, working with Summit County, donated $1 million to a foundation dedicated to making grants to programs within Summit County focused on (i) educating the community on alternative pain management treatment techniques and/or avoiding addiction; (ii) supporting research into alternative pain management techniques and protocols; (iii) enabling professionals to obtain the necessary certification for a Medication Assisted Treatment (MAT) Waiver; and (iv) advancing programs and services to Summit County to deliver results and solutions to the opiate and addiction crises. Henry Schein paid $250,000 of Summit County’s expenses. | ||||||||||
Donation amount to Pain Management Education Foundation | $ 1,000,000 | ||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 250,000 | ||||||||||
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 County of Summit Action. | ||||||||||
Actions consolidated in the MultiDistrict Litigation [Member] | Maximum [Member] | |||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||
Loss Contingency, Pending Claims, Number | claims | 125 | 125 | |||||||||
Maximum sales of opioids in North America during the year, percentage | 0.10% | ||||||||||
Actions consolidated in the MultiDistrict Litigation [Member] | Continuing Operations [Member] | |||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||
Net sales | $ 9,400,000,000 | ||||||||||
R. Lawrence Hatchett, M.D. against 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 | 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 the alleged conspiracy overcharged Illinois 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 class. | ||||||||||
City of Hollywood Police Officers Retirement System V. Henry Schein, Inc., Covetrus, Inc., and Benjamin Shaw and Christine Komola [Member] | |||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||
Loss Contingency, Lawsuit Filing Date | September 30, 2019 | ||||||||||
Loss Contingency, Name of Defendant | Henry Schein, Inc., Covetrus, Inc., and Benjamin Shaw and Christine Komola | ||||||||||
Loss Contingency, Name of Plaintiff | City of Hollywood Police Officers Retirement System, individually and on behalf of all others similarly situated | ||||||||||
Loss Contingency, Allegations | . The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5 and asserts that defendants’ statements in the offering documents and after the transaction were materially false and misleading because they purportedly overstated Covetrus’s capabilities as to inventory management and supply-chain services, understated the costs of integrating the Henry Schein Animal Health Business and Vets First Choice, understated Covetrus’s separation costs from Henry Schein, and understated the impact on earnings from online competition and alternative distribution channels and from the loss of an allegedly large customer in North America just before the Separation and Merger. | ||||||||||
Frank Finazzo against various present and former directors and officers of Henry Schein [Member] | |||||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | |||||||||||
Loss Contingency, Lawsuit Filing Date | November 15, 2019 | ||||||||||
Loss Contingency, Name of Defendant | The named defendants in the action are Stanley M. Bergman, Steven Paladino, Timothy J. Sullivan, Barry J. Alperin, Lawrence S. Bacow, Gerald A. Benjamin, James P. Breslawski, Paul Brons, Shira Goodman, Joseph L. Herring, Donald J. Kabat, Kurt Kuehn, Philip A. Laskawy, Anne H. Margulies, Karyn Mashima, Norman S. Matthews, Mark E. Mlotek, Carol Raphael, E. Dianne Rekow, Bradley T. Sheares, and Louis W. Sullivan, with Henry Schein named as a nominal defendant. | ||||||||||
Loss Contingency, Name of Plaintiff | Frank Finazzo | ||||||||||
Loss Contingency, Allegations | The Complaint asserts claims under the federal securities laws and state law relating to the allegations in the antitrust actions, the In re Henry Schein, Inc. Securities Litigation, and the City of Hollywood securities class action described above. |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 2,668,941 | $ 2,508,767 | $ 2,447,827 | $ 2,360,268 | $ 2,472,556 | $ 2,355,565 | $ 2,316,032 | $ 2,273,450 | $ 9,985,803 | $ 9,417,603 | $ 8,883,438 |
Gross profit | 810,598 | 761,167 | 767,431 | 751,690 | 750,931 | 722,359 | 718,328 | 719,129 | 3,090,886 | 2,910,747 | 2,746,662 |
Litigation settlements | 0 | 38,488 | 0 | 0 | 0 | 38,488 | 5,325 | ||||
Restructuring costs | (1,059) | (802) | 11,925 | 4,641 | 34,644 | 8,551 | 8,497 | 2,675 | 14,705 | 54,367 | 0 |
Operating income | 196,334 | 187,198 | 162,288 | 172,441 | 158,002 | 123,269 | 157,108 | 162,240 | 718,261 | 600,619 | 669,761 |
Net gain (loss) on sale of equity investments | 186,769 | 0 | 0 | 0 | 186,769 | 0 | (17,636) | ||||
Net income | 337,192 | 143,212 | 121,417 | 123,640 | 124,886 | 96,247 | 114,591 | 114,717 | 719,138 | 562,126 | 459,293 |
Amounts attributable to Henry Schein, Inc.: | |||||||||||
Net income | $ 330,609 | $ 134,916 | $ 116,753 | $ 118,413 | $ 117,777 | $ 90,770 | $ 110,636 | $ 111,534 | $ 694,734 | $ 535,881 | $ 406,299 |
Earnings per share attributable to Henry Schein, Inc.: | |||||||||||
Basic (in dollars per share) | $ 2.27 | $ 0.92 | $ 0.79 | $ 0.79 | $ 0.78 | $ 0.60 | $ 0.72 | $ 0.73 | $ 4.70 | $ 3.51 | $ 2.59 |
Diluted (in dollars per share) | $ 2.25 | $ 0.91 | $ 0.78 | $ 0.78 | $ 0.77 | $ 0.59 | $ 0.72 | $ 0.72 | $ 4.65 | $ 3.49 | $ 2.57 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 29, 2018 | Sep. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||||
Interest | $ 54,685,000 | $ 69,371,000 | $ 46,985,000 | ||
Income taxes | 177,277,000 | 236,479,000 | 214,135,000 | ||
Unrealized gain (loss) from foreign currency hedging activities | (4,911,000) | 1,022,000 | (1,515,000) | ||
Debt assumed as part of acquisitions | $ 0 | 0 | $ 300,000 | ||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Business Acquisition, non-cash transaction | $ 16,800,000 | ||||
Henry Schein One, LLC. [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Deferred additional ownership interest | $ 160,600,000 | ||||
Henry Schein One, LLC. [Member] | Internet Brands Inc [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
Business Acquisition, non-cash transaction | $ 390,300,000 | ||||
Internet Brands Inc [Member] | Henry Schein One, LLC. [Member] | Internet Brands Inc [Member] | |||||
Noncash or Part Noncash Acquisitions [Line Items] | |||||
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] | |||||
Noncash or Part Noncash Acquisition, Interest Acquired | 9.20% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Covetrus, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | In connection with the completion of the Animal Health Spin-off during our fiscal year 2019, we entered into a transition services agreement with Covetrus under which we have agreed to provide certain transition services for up to twenty-four months in areas such as information technology, finance and accounting, human resources, supply chain, and real estate and facility services. | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 17.5 | ||
Revenue from Related Parties | 81.3 | ||
Due from Related Parties | 4.5 | ||
Due to Related Parties | $ 0.1 | ||
Internet Brands Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | In connection with the formation of Henry Schein One, LLC, our joint venture with Internet Brands, which was formed on July 1, 2018, we entered into a ten-year royalty agreement with Internet Brands whereby we will pay Internet Brands approximately $31.0 million annually for the use of their intellectual property. | ||
Related Party Transaction, Amounts of Transaction | $ 31 | $ 15.5 | |
Related Party Transaction, Due from (to) Related Party | 9.4 | 2.4 | |
Internet Brands Inc [Member] | Scenario, Plan [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 31 | ||
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Description of Transaction | During our normal course of business, we have interests in entities that we account for under the equity accounting method. | ||
Related Party Transaction, Amounts of Transaction | $ 87.7 | 27 | $ 23.4 |
Related Party Transaction, Purchases from Related Party | 18.1 | 10.8 | $ 8.8 |
Due from Related Parties | 60.7 | 61.4 | |
Due to Related Parties | $ 5.3 | $ 1 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 53,121 | $ 46,261 | $ 33,150 |
Charged to statement of income | 12,612 | 14,384 | 7,915 |
Charged to other accounts | 134 | (1,158) | 11,341 |
Deductions | (5,865) | (6,366) | (6,145) |
Balance at end of period | $ 60,002 | $ 53,121 | $ 46,261 |