Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 01, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001000228 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
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 $.01 per share | |
Trading Symbol | HSIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 131,003,202 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 126 | $ 117 |
Accounts receivable, net of allowances for credit losses of $65 and $65 | 1,470 | 1,442 |
Inventories, net | 1,918 | 1,963 |
Prepaid expenses and other | 438 | 466 |
Total current assets | 3,952 | 3,988 |
Property and equipment, net | 396 | 383 |
Operating lease right-of-use assets | 280 | 284 |
Goodwill | 2,917 | 2,893 |
Other intangibles, net | 548 | 587 |
Investments and other | 479 | 472 |
Total assets | 8,572 | 8,607 |
Current liabilities: | ||
Accounts payable | 855 | 1,004 |
Bank credit lines | 236 | 103 |
Current maturities of long-term debt | 55 | 6 |
Operating lease liabilities | 73 | 73 |
Accrued expenses: | ||
Payroll and related | 231 | 314 |
Taxes | 156 | 132 |
Other | 566 | 592 |
Total current liabilities | 2,172 | 2,224 |
Long-term debt | 1,021 | 1,040 |
Deferred income taxes | 40 | 36 |
Operating lease liabilities | 274 | 275 |
Other liabilities | 368 | 361 |
Total liabilities | 3,875 | 3,936 |
Redeemable noncontrolling interests | 570 | 576 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $0.01 par value, 480,000,000 shares authorized, 131,196,783 outstanding on April 01, 2023 and 131,792,817 outstanding on December 31, 2022 | 1 | 1 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 3,684 | 3,678 |
Accumulated other comprehensive loss | (213) | (233) |
Total Henry Schein, Inc. stockholders' equity | 3,472 | 3,446 |
Noncontrolling interests | 655 | 649 |
Total stockholders' equity | 4,127 | 4,095 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 8,572 | $ 8,607 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Accounts receivable, allowances for credit losses (in dollars) | $ 65 | $ 65 |
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) | 131,196,783 | 131,792,817 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||
Net sales | $ 3,060,000,000 | $ 3,179,000,000 |
Cost of sales | 2,094,000,000 | 2,206,000,000 |
Gross profit | 966,000,000 | 973,000,000 |
Operating expenses: | ||
Selling, general and administrative | 717,000,000 | 682,000,000 |
Depreciation and amortization | 44,000,000 | 47,000,000 |
Restructuring costs | 30,000,000 | 0 |
Operating income | 175,000,000 | 244,000,000 |
Other income (expense): | ||
Interest income | 3,000,000 | 2,000,000 |
Interest expense | (14,000,000) | (7,000,000) |
Other, net | (1,000,000) | 0 |
Income before taxes, equity in earnings of affiliates and noncontrolling interests | 163,000,000 | 239,000,000 |
Income taxes | (39,000,000) | (57,000,000) |
Equity in earnings of affiliates | 4,000,000 | 4,000,000 |
Net income | 128,000,000 | 186,000,000 |
Less: Net income attributable to noncontrolling interests | (7,000,000) | (5,000,000) |
Net income attributable to Henry Schein, Inc. | $ 121,000,000 | $ 181,000,000 |
Earnings per share attributable to Henry Schein, Inc.: | ||
Basic (in dollars per share) | $ 0.92 | $ 1.31 |
Diluted (in dollars per share) | $ 0.91 | $ 1.30 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 131,365,789 | 137,296,581 |
Diluted (in shares) | 133,039,886 | 139,237,472 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 128 | $ 186 |
Other comprehensive income, net of tax: | ||
Foreign currency translation gain | 25 | 3 |
Unrealized gain (loss) from foreign currency hedging activities | (3) | 1 |
Other comprehensive income, net of tax | 22 | 4 |
Comprehensive income | 150 | 190 |
Less: Comprehensive income attributable to noncontrolling interests: | ||
Net income | (7) | (5) |
Foreign currency translation gain | (2) | (1) |
Comprehensive income attributable to noncontrolling interests | (9) | (6) |
Comprehensive income attributable to Henry Schein, Inc. | $ 141 | $ 184 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock $.01 Par Value [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 25, 2021 | $ 4,063 | $ 1 | $ 0 | $ 3,595 | $ (171) | $ 638 |
Beginning Balance, shares (in shares) at Dec. 25, 2021 | 137,145,558 | |||||
Net income (excluding amounts attributable to redeemable noncontrolling interests) | 182 | $ 0 | 0 | 181 | 0 | 1 |
Foreign currency translation loss (excluding loss amounts attributable to redeemable noncontrolling interests) | 2 | 0 | 0 | 0 | 2 | 0 |
Unrealized gain from foreign currency hedging activities, net of tax | 1 | 0 | 0 | 0 | 1 | 0 |
Purchase of noncontrolling interests | (7) | 0 | 0 | 0 | 0 | (7) |
Change in fair value of redeemable securities | (3) | 0 | (3) | 0 | 0 | 0 |
Stock-based compensation expense - Value | 12 | $ 0 | 12 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 876,161 | |||||
Stock issued upon exercise of stock options - Value | 2 | $ 0 | 2 | 0 | 0 | 0 |
Stock issued upon exercise of stock options - Shares | 26,233 | |||||
Shares withheld for payroll taxes - Value | (28) | $ 0 | (28) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (336,331) | |||||
Settlement of stock-based compensation awards - Value | 0 | $ 0 | 0 | 0 | 0 | 0 |
Settlement of stock-based compensation awards - Shares | (2,812) | |||||
Transfer of charges in excess of capital | 0 | $ 0 | 17 | (17) | 0 | 0 |
Ending Balance at Mar. 26, 2022 | 4,224 | $ 1 | 0 | 3,759 | (168) | 632 |
Ending Balance, shares (in shares) at Mar. 26, 2022 | 137,708,809 | |||||
Beginning Balance at Dec. 31, 2022 | $ 4,095 | $ 1 | 0 | 3,678 | (233) | 649 |
Beginning Balance, shares (in shares) at Dec. 31, 2022 | 131,792,817 | 131,792,817 | ||||
Net income (excluding amounts attributable to redeemable noncontrolling interests) | $ 124 | $ 0 | 0 | 121 | 0 | 3 |
Foreign currency translation loss (excluding loss amounts attributable to redeemable noncontrolling interests) | 23 | 0 | 0 | 0 | 23 | 0 |
Unrealized gain from foreign currency hedging activities, net of tax | (3) | 0 | 0 | 0 | (3) | 0 |
Change in fair value of redeemable securities | 3 | 0 | 3 | 0 | 0 | 0 |
Initial noncontrolling interests and adjustments related to business acquisitions | 3 | 0 | 0 | 0 | 0 | 3 |
Repurchases and retirement of common stock - Value | (100) | $ 0 | (13) | (87) | 0 | 0 |
Repurchases and retirement of common stock - Shares | (1,223,919) | |||||
Stock-based compensation expense - Value | 10 | $ 0 | 10 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 1,016,300 | |||||
Stock issued upon exercise of stock options - Value | $ 1 | $ 0 | 1 | 0 | 0 | 0 |
Stock issued upon exercise of stock options - Shares | 10,897 | 10,779 | ||||
Shares withheld for payroll taxes - Value | $ (29) | $ 0 | (29) | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | (399,194) | |||||
Transfer of charges in excess of capital | 0 | $ 0 | 28 | (28) | 0 | 0 |
Ending Balance at Apr. 01, 2023 | $ 4,127 | $ 1 | $ 0 | $ 3,684 | $ (213) | $ 655 |
Ending Balance, shares (in shares) at Apr. 01, 2023 | 131,196,783 | 131,196,783 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Net income attributable to redeemable noncontrolling interests | $ 4 | $ 4 | $ 21 |
Foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | 2 | 1 | $ (6) |
Unrealized gain from foreign currency hedging activities, tax | $ (1) | $ 1 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 128 | $ 186 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 52 | 55 |
Non-cash restructuring charges | 7 | 0 |
Stock-based compensation expense | 10 | 12 |
Provision for losses on trade and other accounts receivable | 1 | 1 |
Provision for (benefit from) deferred income taxes | 2 | (3) |
Equity in earnings of affiliates | (4) | (4) |
Distributions from equity affiliates | 2 | 4 |
Changes in unrecognized tax benefits | 1 | 4 |
Other | (1) | (7) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (20) | 16 |
Inventories | 63 | (9) |
Other current assets | 29 | 26 |
Accounts payable and accrued expenses | (243) | (188) |
Net cash provided by operating activities | 27 | 93 |
Cash flows from investing activities: | ||
Purchases of fixed assets | (31) | (19) |
Payments related to equity investments and business acquisitions, net of cash acquired | (1) | (5) |
Proceeds from loan to affiliate | 2 | 4 |
Other | (9) | (7) |
Net cash used in investing activities | (39) | (27) |
Cash flows from financing activities: | ||
Net change in bank borrowings | 132 | 30 |
Proceeds from issuance of long-term debt | 31 | 0 |
Principal payments for long-term debt | (1) | (53) |
Proceeds from issuance of stock upon exercise of stock options | 1 | 2 |
Payments for repurchases and retirement of common stock | (100) | 0 |
Payments for taxes related to shares withheld for employee taxes | (30) | (26) |
Distributions to noncontrolling shareholders | (4) | (5) |
Acquisitions of noncontrolling interests in subsidiaries | (8) | (10) |
Net cash provided by (used in) financing activities | 21 | (62) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 4 |
Net change in cash and cash equivalents | 9 | 8 |
Cash and cash equivalents, beginning of period | 117 | 118 |
Cash and cash equivalents, end of period | $ 126 | $ 126 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2023 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation Our condensed consolidated financial statements include the accounts of Henry controlled subsidiaries (“we”, “us” or “our”). consolidation. financial decisions are accounted for under the equity method. to conform to the current have a material impact on our condensed consolidated financial condition, Our accompanying unaudited condensed consolidated financial statements accounting principles generally accepted in the United States with the instructions to Form 10-Q and Article 10 of Regulation S-X. information and footnote disclosures required by U.S. GAAP for complete The unaudited interim condensed consolidated financial statements should be consolidated financial statements and notes to the consolidated financial on Form 10-K for the year ended December 31, 2022 and with the information available filings with the Securities and Exchange Commission. reflect all adjustments considered necessary for a fair presentation of financial position for the interim periods presented. The preparation of financial statements in conformity with accounting principles States requires us to make estimates and assumptions that affect the reported amounts of assets disclosure of contingent assets and liabilities at the date of the financial revenues and expenses during the reporting period. operations for the three months ended April 1, 2023 are not necessarily any other interim period or for the year ending December 30, 2023. We consolidate the results of operations and financial position of a trade accounts receivable securitization which we consider a Variable Interest Entity (“VIE”) because we are the primary beneficiary, and we have the power to direct activities that most significantly affect the economic performance and have majority of the losses or benefits. collateral to the related debt. April 1, 2023 and December 31, 2022, certain trade accounts receivable that of this VIE were $ 555 327 have recourse to us were $ 420 255 Our condensed consolidated financial statements reflect estimates and other things, our goodwill, long-lived asset and definite-lived intangible investment valuation; assessment of the annual effective tax rate; valuation of tax contingencies; the allowance for doubtful accounts; hedging activity; compensation cost for certain share-based performance awards and cash bonus assumptions. material adverse effect on our business, results of operations and cash flows and may effect on our financial condition and liquidity. estimated at this time |
Critical Accounting Policies, A
Critical Accounting Policies, Accounting Pronouncements Adopted and Recently Issued Accounting Standards | 3 Months Ended |
Apr. 01, 2023 | |
Critical Accounting Policies, Accounting Pronouncements Adopted and Recently Issued Accounting Standards [Abstract] | |
Critical Accounting Policies, Accounting Pronouncements Adopted and Recently Issued Accounting Standards | Note 2 – Critical Accounting Policies, Accounting Pronouncements Adopted Standards Critical Accounting Policies There have been no material changes in our critical accounting policies 2023, as compared to the critical accounting policies described in Item the year ended December 31, 2022. Recently Issued Accounting Standards In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic Program Obligations,” which will increase transparency of supplier finance such programs in connection with the purchase of goods and services to disclose information about such programs. including interim periods within those fiscal years, except for amended for fiscal years beginning after December 15, 2023. have a material impact on our condensed consolidated financial statements. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which extends the period of application of temporary optional expedients from December 21, 2022 to December 31, 2024. material impact on our condensed consolidated financial statements. |
Net Sales from Contracts with C
Net Sales from Contracts with Customers | 3 Months Ended |
Apr. 01, 2023 | |
Net Sales from Contracts with Customers [Abstract] | |
Net sales from Contracts with Customers | Note 3 – Net Sales from Contracts with Customers Net sales are recognized in accordance with policies disclosed in Item the year ended December 31, 2022. Disaggregation of Net Sales The following table disaggregates our net sales by reportable segment and geographic Three Months Ended April 1, 2023 North America International Global Net sales: Health care distribution Dental $ 1,144 $ 754 $ 1,898 Medical 951 20 971 Total health care distribution 2,095 774 2,869 Technology 166 25 191 Total net sales $ 2,261 $ 799 $ 3,060 Three Months Ended March 26, 2022 North America International Global Net sales: Health care distribution Dental $ 1,105 $ 723 $ 1,828 Medical 1,150 22 1,172 Total health care distribution 2,255 745 3,000 Technology 156 23 179 Total net sales $ 2,411 $ 768 $ 3,179 Deferred Revenue During the three months ended April 1, 2023, we recognized in net sales 35 previously deferred at December 31, 2022. 86 million was reported in accrued expenses: other, and $ 8 reported in other liabilities. 85 million and $ 9 |
Segment Data
Segment Data | 3 Months Ended |
Apr. 01, 2023 | |
Segment Data [Abstract] | |
Segment Data | Note 4 Segment Data We conduct our business through two value-added services. dental businesses serve office-based dental practitioners, dental laboratories, schools, government institutions. medical technicians, dialysis centers, home health, federal and state governments group practices and integrated delivery networks, among other providers dental and medical groups serve practitioners in 32 The health care distribution reportable segment aggregates our global dental segment distributes consumable products, dental specialty products, small equipment, equipment repair services, branded and generic pharmaceuticals, tests, infection-control products, personal protective equipment (“PPE”) Our global technology and value-added services reportable segment provides added services to health care practitioners. systems for dental and medical practitioners. education, revenue cycle management and financial services on a non-recourse technology, network and hardware services, as well as continuing education services for practitioners. The following tables present information about our reportable and operating Three Months Ended April 1, March 26, 2023 2022 Net Sales: Health care distribution (1) Dental $ 1,898 $ 1,828 Medical 971 1,172 Total health care distribution 2,869 3,000 Technology (2) 191 179 Total $ 3,060 $ 3,179 Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, dental specialty products (including implant, orthodontic and endodontic products), diagnostic tests, infection-control products, PPE products and vitamins. (2) Consists of practice management software and other value-added products, which are distributed primarily to health care providers, practice consultancy, education, revenue cycle management and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. Three Months Ended April 1, March 26, 2023 2022 Operating Income: Health care distribution $ 145 $ 211 Technology 30 33 Total $ 175 $ 244 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Apr. 01, 2023 | |
Business Acquisitions [Abstract] | |
Business Acquisitions | Note 5 Business Acquisitions In connection with our business acquisitions, the major classes of allocate acquisition consideration to, excluding goodwill, include relationships and lists, trademarks and trade names, product development and accounts receivable. and assumptions derived from analysis of market conditions, including rates (which are based on historical trends and assessment of financial projections), projected cash flows. conditions. While we use our best estimates and assumptions to accurately value assets acquisition date as well as contingent consideration, where applicable, subject to refinement. we may record adjustments to the assets acquired and liabilities assumed within our condensed consolidated balance sheets. the values of such assets acquired or liabilities assumed, whichever recognized in our condensed consolidated statements of operations. The accounting for certain of our acquisitions during the year ended December several areas, including but not limited to pending assessments of intangible assets and liabilities. adjustments recorded in our condensed consolidated statements of income assets acquired, liabilities assumed and contingent consideration 2023 Acquisitions During the three months ended April 1, 2023, we acquired the majority distribution segment. financial statements. The following table aggregates assets acquired for the acquisition during the three months ended April 2023 Acquisition consideration: Cash $ 8 Deferred consideration 1 Noncontrolling interests 2 Total consideration $ 11 Intangible assets $ 2 Total identifiable 2 Goodwill 9 Total net assets acquired $ 11 The acquired goodwill is deductible for tax purposes. During the three months ended April 1, 2023 the identifiable intangible relationships and lists of $ 1 1 these intangible assets are 2 years 5 years , respectively. Acquisition Costs During the three months ended April 1, 2023 and March 26, 2022 we 7 1 respectively, in acquisition costs. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 6 – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or transaction between market participants at the measurement date. (1) market participant assumptions developed based on market data obtained 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 in active markets for identical assets or liabilities (Level 1) and the lowest priority The three levels of the fair value hierarchy are described as follows: • measurement date. • either directly or indirectly. quoted prices for identical or similar assets or liabilities in markets that are prices that are observable for the asset or liability; and inputs that are observable market data by correlation or other means. • The following section describes the fair values of our financial instruments measure their fair values. Investments and notes receivable There are no quoted market prices available for investments in unconsolidated Certain of our notes receivable contain variable interest rates. estimate of fair value based on the interest rates in the applicable markets. Debt The fair value of our debt (including bank credit lines, current maturities classified as Level 3 within the fair value hierarchy, and as of April 1, 2023 and December 31, 2022 was estimated at $ 1,312 1,149 our debt include market conditions, such as interest rates and credit spreads. Derivative contracts Derivative contracts are valued using quoted market prices and derivative instruments to minimize our exposure to fluctuations in foreign instruments primarily include foreign currency forward agreements related forecasted inventory purchase commitments with foreign suppliers, portion of our euro-denominated foreign operations which are designated return swap for the purpose of economically hedging our unfunded non-qualified plan and our deferred compensation plan. The fair values for the majority of our foreign currency derivative contracts rate to a published forward price of the underlying market rates, which transactions and are classified within Level 2 of the fair value hierarchy. Total The fair value for the total return swap is measured by valuing using market-on-close pricing by industry providers as of the valuation fair value hierarchy. Redeemable noncontrolling interests The values for redeemable noncontrolling interests are classified within Level based on recent transactions and/or implied multiples of earnings. Assets measured on a non-recurring basis at fair value include Goodwill classified as Level 3 within the fair value hierarchy. The following table presents our assets and liabilities that are measured and basis classified under the appropriate level of the fair value hierarchy as of April 1, 2023 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 19 $ - $ 19 Derivative contracts undesignated - 3 - 3 Total return - 1 - 1 Total assets $ - $ 23 $ - $ 23 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 2 - 2 Total liabilities $ - $ 3 $ - $ 3 Redeemable noncontrolling interests $ - $ - $ 570 $ 570 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 23 $ - $ 23 Derivative contracts undesignated - 4 - 4 Total assets $ - $ 27 $ - $ 27 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 3 - 3 Total return - 3 - 3 Total liabilities $ - $ 7 $ - $ 7 Redeemable noncontrolling interests $ - $ - $ 576 $ 576 |
Debt
Debt | 3 Months Ended |
Apr. 01, 2023 | |
Debt [Abstract] | |
Debt | Note 7 – Debt Bank Credit Lines Bank credit lines consisted of the following: April 1, December 31, 2023 2022 Revolving credit agreement $ - $ - Other short-term bank credit lines 236 103 Total $ 236 $ 103 Revolving Credit Agreement On August 20, 2021 , we entered into a $ 1.0 facility, which matures on August 20, 2026 750 to mature in April 2022. the end of each financial reporting quarter. while the remaining LIBOR rates will be discontinued immediately discontinuation of LIBOR as a reference rate in our debt agreements financial position or to materially affect our interest expense. that we maintain certain maximum leverage ratios. representations, warranties and affirmative covenants as well as customary negative negotiated exceptions, on liens, indebtedness, significant corporate changes certain restrictive agreements. no revolving credit facility, and there were $ 9 9 parties under the credit facility. Other Short-Term Bank Credit As of April 1, 2023 and December 31, 2022, we had various other short-term maximum borrowing capacity of $ 404 402 31, 2022, $ 236 103 borrowings under all of these credit lines had a weighted average interest 7.55 % and 10.11 %, respectively. Long-term debt Long-term debt consisted of the following: April 1, December 31, 2023 2022 Private placement facilities $ 699 $ 699 U.S. trade accounts receivable securitization 360 330 Various in varying installments through 2023 at interest rates ranging from 0.00 % to 3.65 % at April 1, 2023 and ranging from 0.00 % to 3.50 % at December 31, 2022 8 7 Finance lease obligations 9 10 Total 1,076 1,046 Less current maturities (55) (6) Total long-term debt $ 1,021 $ 1,040 Private Placement Facilities Our private placement facilities include four 1.5 are available on an uncommitted basis at fixed rate economic time to time through October 20, 2026 . fixed rate based on an agreed upon spread over applicable treasury notes possible issuance will be selected by us and can range from five 15 years 12 years ). working capital and capital expenditures, to refinance existing indebtedness, The agreements provide, among other things, that we maintain restrictions relating to subsidiary indebtedness, liens, affiliate transactions, disposal ownership. applicable due dates. The components of our private placement facility borrowings, which 2.99 %, as of April 1, 2023 are presented in the following table: Amount of Borrowing Borrowing Date of Borrowing Outstanding Rate Due Date January 20, 2012 $ 50 3.45 % January 20, 2024 December 24, 2012 50 3.00 December 24, 2024 June 16, 2017 100 3.42 June 16, 2027 September 15, 2017 100 3.52 September 15, 2029 January 2, 2018 100 3.32 January 2, 2028 September 2, 2020 100 2.35 September 2, 2030 June 2, 2021 100 2.48 June 2, 2031 June 2, 2021 100 2.58 June 2, 2033 Less: Deferred debt issuance costs (1) Total $ 699 U.S. Trade Accounts Receivable Securitization We have a facility agreement 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 three years . purchase limit of $ 450 two December 15, 2025 . As of April 1, 2023 and December 31, 2022, the borrowings outstanding 360 million and $ 330 based on the asset-backed commercial paper rate of 4.99 % plus 0.75 %, for a combined rate of 5.74 %. December 31, 2022, the interest rate on borrowings under this facility was paper rate of 4.58 % plus 0.75 %, for a combined rate of 5.33 %. If our accounts receivable collection pattern changes due to customers our ability to borrow under this facility may be reduced. We are required to pay a commitment fee of 30 35 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8 – Income Taxes For the three months ended April 1, 2023 our effective tax rate was 23.8 % compared to 24.0 % for the prior year period. foreign income taxes and interest expense as well as stock-based compensation. The total amount of unrecognized tax benefits, which are included in consolidated balance sheets, as of April 1, 2023 and December 31, 2022 95 94 respectively, of which $ 80 80 It is possible that the amount of unrecognized tax benefits will material impact on our condensed consolidated statements of income. All tax returns audited by the IRS are officially closed through 2018. IRS include years 2019 and forward. examination. selected for examination. The total amounts of interest and penalties are classified as a component amount of tax interest expense was $ 1 1 months ended March 26, 2022. 13 million as of April 1, 2023 and $ 12 the periods presented were not material to our condensed consolidated financial |
Plan of Restructuring
Plan of Restructuring | 3 Months Ended |
Apr. 01, 2023 | |
Plan of Restructuring [Abstract] | |
Plan of Restructuring | Note 9 – Plan of Restructuring On August 1, 2022, we committed to a restructuring plan focused on streamlining operations and other initiatives to increase efficiency. 2023. amounts expected to be incurred in connection with these activities, both with associated therewith and with respect to the total cost, or an estimate of result in future cash expenditures. During the three months ended April 1, 2023, we recorded restructuring costs of 30 severance and employee-related costs, accelerated amortization of right-of-use other lease exit costs. 1 initiated during 2022 and completed during the three months ended April Restructuring costs recorded for the three months ended April 1, 2023 consisted no restructuring costs for the three months ended March 26, 2022): Three Months Ended April 1, 2023 Health-Care Distribution Technology Value-Added Services Total Severance and employee-related costs $ 17 $ 3 $ 20 Accelerated depreciation and amortization 7 - 7 Exit and other related costs 1 1 2 Loss on disposal of a business 1 - 1 Total restructuring $ 26 $ 4 $ 30 The following table summarizes, restructuring initiatives of April 1, 2023 is included in accrued expenses: other within our condensed Technology Health Care Value-Added Distribution Services Total Balance, December 31, 2022 $ 21 $ 3 $ 24 Restructuring costs 26 4 30 Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets (7) - (7) Cash payments and other adjustments (14) (3) (17) Balance, April 1, 2023 $ 26 $ 4 $ 30 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 01, 2023 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 10 – Legal Proceedings Henry Schein, Inc. has been named as a defendant in multiple opioid related hundred and seventy-five ( 175 ); one or more of Henry Schein, Inc.’s subsidiaries is also named as a defendant in a number of those cases). in a false advertising campaign to expand the market for such drugs and in the supply chain (including Henry Schein, Inc. and its affiliated companies) reaped or otherwise failing to monitor appropriately and restrict the improper consist of some that have been consolidated within the MultiDistrict Litigation Prescription Opiate Litigation (MDL No. 2804; Case No. 17-md-2804) remain pending in state courts and are proceeding independently and outside following cases are set for trial: the action filed by DCH Health Care Authority, et al. in Alabama state court, which has been designated a bellwether with eight thirty-eight action filed by Florida Health Sciences Center, Inc. (and 38 in Florida state court, which is currently scheduled for a jury trial of approximately $ 12.6 two-tenths percent. these actions. In August 2022, Henry Schein received a Grand Jury Subpoena from the United Western District of Virginia, Federal Food, Drug & Cosmetic Act by Butler Animal Health Supply, LLC (“Butler”), a former subsidiary of Henry Schein. October 2022, Henry Schein received a second Grand Jury Subpoena the Western District of Virginia. received from Butler or Covetrus, Inc. (“Covetrus”). subsidiary of Covetrus in 2019 and is no longer owned by Henry Schein. investigation. From time to time, we may become a party to other legal proceedings, liability claims, employment matters, commercial disputes, governmental in some cases involve our entering into settlement arrangements or consent of the ordinary course of our business. in our opinion none of these other pending matters are currently consolidated financial position, liquidity or results of operations. As of April 1, 2023, we had accrued our best estimate of potential losses result in liability and for which we were able to reasonably estimate a expenses, was not material to our financial position, results of operations determining estimated losses considers currently available factors, including probable recoveries from third parties. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 01, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 11 – Stock-Based Compensation Stock-based awards are provided to certain employees under the terms of non-employee directors under the terms of our 2015 Non-Employee Director “Plans”). “Compensation Committee”). form of time-based and performance-based restricted stock units (“RSUs”) in which non-qualified stock options were issued in place of performance-based based and performance-based RSUs, as well as non-qualified stock granting our employees equity-based awards solely in the form of time-based non-employee directors receive equity-based awards solely in the form RSUs are stock-based awards granted to recipients with specified vesting provisions. stock is delivered on or following satisfaction of vesting conditions. vest (i) solely based on the recipient’s continued service over time, primarily with four -year cliff vesting and/or (ii) based on achieving specified performance measurements and the recipient’s continued service over time, primarily with three -year cliff vesting. 12 -month cliff vesting. With respect to time-based RSUs, we estimate the fair value based on our closing stock price on the date of grant. recipient is based upon our performance as measured against specified determined by the Compensation Committee. achieved, we estimate the fair value of performance-based RSUs based on Each of the Plans provide for certain adjustments to the performance the Plans. performance measurement adjustments relate to significant events, including, divestitures, new business ventures, certain capital transactions (including share budgeted average outstanding shares (other than those resulting from capital restructuring costs, if any, certain litigation settlements or payments, if any, changes in accounting principles or in applicable laws or regulations, changes in income tax rates in certain financial impact either positive or negative, of the difference in projected earnings (solely with respect to performance-based RSUs granted in the 2022 and (solely with respect to performance-based RSUs granted in the 2023 plan circumstances affecting us. Over the performance period, the number of shares of common stock that will related compensation expense is adjusted upward or downward based upon our performance targets. recognized as an expense will be based on our actual performance metrics Stock options are awards that allow the recipient to purchase shares of our vesting of the stock options. date of grant. one-third service, subject to the terms and conditions of the 2020 Stock Incentive Plan, three years grant date and have a contractual term of ten years upon certain events. We estimated the fair value of stock options using the Black-Scholes valuation model. ended April 1, 2023 we did no t grant any stock options. Our accompanying condensed consolidated statements of income reflect of $ 10 7 12 9 and March 26, 2022, respectively. Total unrecognized compensation cost related to unvested awards as of April 1, 2023 was $ 119 expected to be recognized over a weighted average period of approximately 2.7 Our accompanying condensed consolidated statements of cash flows present as an adjustment to reconcile net income to net cash provided by operating activities the accompanying consolidated statements of cash flows, there were excess of recognized compensation as a cash inflow from financing 2023 and March 26, 2022, respectively. We have not declared cash dividends on our stock in the past and we do not anticipate declaring cash dividends in the foreseeable future. our stock, historical volatility of our stock, and other factors. Treasury yield curve in effect at the time of grant in conjunction with considering the expected life of options. six -year expected life of the options was determined using the simplified as permitted under SAB Topic 14. value ultimately realized by recipients of stock options, and subsequent reasonableness of the original estimates of fair value made by us. The following table summarizes the stock option activity during the three Stock Options Weighted Average Weighted Average Aggregate Exercise Remaining Contractual Shares Price Life (in years) Outstanding at beginning of period 1,117,574 $ 71.38 Granted - - Exercised (10,897) 62.71 Forfeited (5,911) 77.31 Outstanding at end of period 1,100,766 $ 71.44 8.3 $ 13 Options exercisable at end of period 572,132 $ 68.11 Weighted Average Weighted Average Aggregate Number of Exercise Remaining Contractual Intrinsic Options Price Life (in years) Value Vested 520,781 $ 75.22 8.5 $ 4 The following tables summarize the activity of our unvested RSUs for Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Weighted Average Weighted Average Grant Date Fair Intrinsic Value Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,756,044 $ 66.59 520,916 $ 60.23 Granted 395,750 77.75 465,260 79.66 Vested (387,302) 61.13 (627,596) 60.66 Forfeited (34,843) 68.16 (39,463) 74.48 Outstanding at end of period 1,729,649 $ 70.38 $ 81.54 319,117 $ 68.96 $ 81.54 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Apr. 01, 2023 | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable Noncontrolling Interests | Note 12 – Redeemable Noncontrolling Interests Some minority stockholders in certain of our subsidiaries have the right, their ownership interest in those entities at fair value. applicable for noncontrolling interests where we are or may be required outstanding interest in a consolidated subsidiary from the noncontrolling option contained in contractual agreements. interests for the three months ended April 1, 2023 and the year ended December following table: April 1, December 31, 2023 2022 Balance, beginning of period $ 576 $ 613 Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interests in subsidiaries (8) (31) Increase in redeemable noncontrolling interests due to business acquisitions 3 4 Net income attributable to redeemable noncontrolling interests 4 21 Dividends declared (4) (21) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests 2 (6) Change in fair value of redeemable securities (3) (4) Balance, end of period $ 570 $ 576 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Apr. 01, 2023 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | Note 13 – Comprehensive Income Comprehensive income includes certain gains and losses that, under U.S. such amounts are recorded directly as an adjustment to stockholders’ The following table summarizes our Accumulated other comprehensive loss, net of April 1, December 31, 2023 2022 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (35) $ (37) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (1) $ (1) Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ (213) $ (236) Unrealized gain from foreign currency hedging activities 2 5 Pension adjustment loss (2) (2) Accumulated other comprehensive loss $ (213) $ (233) Total Accumulated $ (249) $ (271) The following table summarizes the components of comprehensive income, net Three Months Ended April 1, March 26, 2023 2022 Net income $ 128 $ 186 Foreign currency translation gain 25 3 Tax effect - - Foreign currency translation gain 25 3 Unrealized gain (loss) from foreign currency hedging activities (4) 2 Tax effect 1 (1) Unrealized gain (loss) from foreign currency hedging activities (3) 1 Comprehensive income $ 150 $ 190 Our financial statements are denominated in the U.S. Dollar currency. currencies as compared to the U.S. Dollar may have a significant impact foreign currency translation gain during the three months ended April 1, 2022 was primarily due to changes in foreign currency exchange Dollar, Brazilian Real, New Zealand Dollar and Canadian Dollar. The following table summarizes our total comprehensive income, net of Three Months Ended April 1, March 26, 2023 2022 Comprehensive income attributable to Henry Schein, Inc. $ 141 $ 184 Comprehensive income attributable to noncontrolling interests 3 1 Comprehensive income attributable to Redeemable noncontrolling interests 6 5 Comprehensive income $ 150 $ 190 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14 Earnings Per Share Basic earnings per share is computed by dividing net income attributable average number of common shares outstanding for the period. to basic earnings per share, except that it reflects the effect of common shares issuable and upon exercise of stock options using the treasury stock method A reconciliation of shares used in calculating earnings per basic and diluted Three Months Ended April 1, March 26, 2023 2022 Basic 131,365,789 137,296,581 Effect of dilutive securities: Stock options and restricted stock units 1,674,097 1,940,891 Diluted 133,039,886 139,237,472 The number of antidilutive securities that were excluded from the calculation shares outstanding are as follows: Three Months Ended April 1, March 26, 2023 2022 Stock options 422,190 76,597 Restricted stock units 18,305 70,923 Total anti-dilutive 440,495 147,520 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 01, 2023 | |
Supplemental Cash Flow information [Abstract] | |
Supplemental Cash Flow Information | Note 15 – Supplemental Cash Flow Information Cash paid for interest and income taxes was: Three Months Ended April 1, March 26, 2023 2022 Interest $ 13 $ 8 Income taxes 21 21 During the three months ended April 1, 2023 and March 26, 2022, we (4) 2 net unrealized gains (losses) related to foreign currency hedging activities, |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 01, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 – Related Party Transactions In connection with the formation of Henry Schein One, LLC, our joint venture formed on July 1, 2018, we entered into a ten-year Internet Brands approximately $ 31 months ended April 1, 2023 and March 26, 2022, we recorded $ 8 9 connection with costs related to this royalty agreement. One, LLC had a net payable balance due to Internet Brands of $ 12 8 of amounts related to results of operations and the royalty agreement. within accrued expenses: other, within our condensed consolidated balance sheets. During our normal course of business, we have interests in entities that we method. 8 $ 12 purchased $ 2 4 had an aggregate of $ 34 36 6 6 million, respectively, due to our equity affiliates. |
Critical Accounting Policies,_2
Critical Accounting Policies, Accounting Pronouncements Adopted and Recently Issued Accounting Standards (Policy) | 3 Months Ended |
Apr. 01, 2023 | |
Critical Accounting Policies, Accounting Pronouncements Adopted and Recently Issued Accounting Standards [Abstract] | |
Accounting Pronouncements Adopted and Recently Issued Accounting Standards | Recently Issued Accounting Standards In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic Program Obligations,” which will increase transparency of supplier finance such programs in connection with the purchase of goods and services to disclose information about such programs. including interim periods within those fiscal years, except for amended for fiscal years beginning after December 15, 2023. have a material impact on our condensed consolidated financial statements. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848,” which extends the period of application of temporary optional expedients from December 21, 2022 to December 31, 2024. material impact on our condensed consolidated financial statements. |
Net Sales from Contracts with_2
Net Sales from Contracts with Customers (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Net Sales from Contracts with Customers [Abstract] | |
Disaggregation of Revenue | Three Months Ended April 1, 2023 North America International Global Net sales: Health care distribution Dental $ 1,144 $ 754 $ 1,898 Medical 951 20 971 Total health care distribution 2,095 774 2,869 Technology 166 25 191 Total net sales $ 2,261 $ 799 $ 3,060 Three Months Ended March 26, 2022 North America International Global Net sales: Health care distribution Dental $ 1,105 $ 723 $ 1,828 Medical 1,150 22 1,172 Total health care distribution 2,255 745 3,000 Technology 156 23 179 Total net sales $ 2,411 $ 768 $ 3,179 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Segment Data [Abstract] | |
Business segment information | Three Months Ended April 1, March 26, 2023 2022 Net Sales: Health care distribution (1) Dental $ 1,898 $ 1,828 Medical 971 1,172 Total health care distribution 2,869 3,000 Technology (2) 191 179 Total $ 3,060 $ 3,179 Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, dental specialty products (including implant, orthodontic and endodontic products), diagnostic tests, infection-control products, PPE products and vitamins. (2) Consists of practice management software and other value-added products, which are distributed primarily to health care providers, practice consultancy, education, revenue cycle management and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. Three Months Ended April 1, March 26, 2023 2022 Operating Income: Health care distribution $ 145 $ 211 Technology 30 33 Total $ 175 $ 244 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Business Acquisitions [Abstract] | |
Summary of Estimated Fair Value of Consideration Paid and Net Assets Acquired | 2023 Acquisition consideration: Cash $ 8 Deferred consideration 1 Noncontrolling interests 2 Total consideration $ 11 Intangible assets $ 2 Total identifiable 2 Goodwill 9 Total net assets acquired $ 11 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Measurements [Abstract] | |
Fair value - assets and liabilities measured and recognized on a recurring basis | April 1, 2023 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 19 $ - $ 19 Derivative contracts undesignated - 3 - 3 Total return - 1 - 1 Total assets $ - $ 23 $ - $ 23 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 2 - 2 Total liabilities $ - $ 3 $ - $ 3 Redeemable noncontrolling interests $ - $ - $ 570 $ 570 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 23 $ - $ 23 Derivative contracts undesignated - 4 - 4 Total assets $ - $ 27 $ - $ 27 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 3 - 3 Total return - 3 - 3 Total liabilities $ - $ 7 $ - $ 7 Redeemable noncontrolling interests $ - $ - $ 576 $ 576 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Debt [Abstract] | |
Bank Credit Lines | April 1, December 31, 2023 2022 Revolving credit agreement $ - $ - Other short-term bank credit lines 236 103 Total $ 236 $ 103 |
Long-Term Debt | April 1, December 31, 2023 2022 Private placement facilities $ 699 $ 699 U.S. trade accounts receivable securitization 360 330 Various in varying installments through 2023 at interest rates ranging from 0.00 % to 3.65 % at April 1, 2023 and ranging from 0.00 % to 3.50 % at December 31, 2022 8 7 Finance lease obligations 9 10 Total 1,076 1,046 Less current maturities (55) (6) Total long-term debt $ 1,021 $ 1,040 |
Private Placement Facility Borrowings | Amount of Borrowing Borrowing Date of Borrowing Outstanding Rate Due Date January 20, 2012 $ 50 3.45 % January 20, 2024 December 24, 2012 50 3.00 December 24, 2024 June 16, 2017 100 3.42 June 16, 2027 September 15, 2017 100 3.52 September 15, 2029 January 2, 2018 100 3.32 January 2, 2028 September 2, 2020 100 2.35 September 2, 2030 June 2, 2021 100 2.48 June 2, 2031 June 2, 2021 100 2.58 June 2, 2033 Less: Deferred debt issuance costs (1) Total $ 699 |
Plan of Restructuring (Tables)
Plan of Restructuring (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Plan of Restructuring [Abstract] | |
Schedule of Restructuring Costs | Three Months Ended April 1, 2023 Health-Care Distribution Technology Value-Added Services Total Severance and employee-related costs $ 17 $ 3 $ 20 Accelerated depreciation and amortization 7 - 7 Exit and other related costs 1 1 2 Loss on disposal of a business 1 - 1 Total restructuring $ 26 $ 4 $ 30 |
Schedule of Restructuring Reserve by Segment | Technology Health Care Value-Added Distribution Services Total Balance, December 31, 2022 $ 21 $ 3 $ 24 Restructuring costs 26 4 30 Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets (7) - (7) Cash payments and other adjustments (14) (3) (17) Balance, April 1, 2023 $ 26 $ 4 $ 30 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock Option Activity Under the Plans | Stock Options Weighted Average Weighted Average Aggregate Exercise Remaining Contractual Shares Price Life (in years) Outstanding at beginning of period 1,117,574 $ 71.38 Granted - - Exercised (10,897) 62.71 Forfeited (5,911) 77.31 Outstanding at end of period 1,100,766 $ 71.44 8.3 $ 13 Options exercisable at end of period 572,132 $ 68.11 |
Intrinsic Values | Weighted Average Weighted Average Aggregate Number of Exercise Remaining Contractual Intrinsic Options Price Life (in years) Value Vested 520,781 $ 75.22 8.5 $ 4 |
Status of Unvested RSUs | Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Weighted Average Weighted Average Grant Date Fair Intrinsic Value Grant Date Fair Intrinsic Value Shares/Units Value Per Share Per Share Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,756,044 $ 66.59 520,916 $ 60.23 Granted 395,750 77.75 465,260 79.66 Vested (387,302) 61.13 (627,596) 60.66 Forfeited (34,843) 68.16 (39,463) 74.48 Outstanding at end of period 1,729,649 $ 70.38 $ 81.54 319,117 $ 68.96 $ 81.54 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Redeemable Noncontrolling Interests [Abstract] | |
Components of the Change in Redeemable Noncontrolling Interests | April 1, December 31, 2023 2022 Balance, beginning of period $ 576 $ 613 Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interests in subsidiaries (8) (31) Increase in redeemable noncontrolling interests due to business acquisitions 3 4 Net income attributable to redeemable noncontrolling interests 4 21 Dividends declared (4) (21) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests 2 (6) Change in fair value of redeemable securities (3) (4) Balance, end of period $ 570 $ 576 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss Net of Applicable Taxes | April 1, December 31, 2023 2022 Attributable to Redeemable noncontrolling interests: Foreign currency translation adjustment $ (35) $ (37) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (1) $ (1) Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ (213) $ (236) Unrealized gain from foreign currency hedging activities 2 5 Pension adjustment loss (2) (2) Accumulated other comprehensive loss $ (213) $ (233) Total Accumulated $ (249) $ (271) |
Components of Comprehensive Income, Net of Applicable Taxes | Three Months Ended April 1, March 26, 2023 2022 Net income $ 128 $ 186 Foreign currency translation gain 25 3 Tax effect - - Foreign currency translation gain 25 3 Unrealized gain (loss) from foreign currency hedging activities (4) 2 Tax effect 1 (1) Unrealized gain (loss) from foreign currency hedging activities (3) 1 Comprehensive income $ 150 $ 190 |
Total Comprehensive Income, Net of Applicable Taxes | Three Months Ended April 1, March 26, 2023 2022 Comprehensive income attributable to Henry Schein, Inc. $ 141 $ 184 Comprehensive income attributable to noncontrolling interests 3 1 Comprehensive income attributable to Redeemable noncontrolling interests 6 5 Comprehensive income $ 150 $ 190 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted | Three Months Ended April 1, March 26, 2023 2022 Basic 131,365,789 137,296,581 Effect of dilutive securities: Stock options and restricted stock units 1,674,097 1,940,891 Diluted 133,039,886 139,237,472 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended April 1, March 26, 2023 2022 Stock options 422,190 76,597 Restricted stock units 18,305 70,923 Total anti-dilutive 440,495 147,520 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Supplemental Cash Flow information [Abstract] | |
Cash paid for interest and income taxes | Three Months Ended April 1, March 26, 2023 2022 Interest $ 13 $ 8 Income taxes 21 21 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Asset Pledged as Collateral [Member] | ||
Pledged assets | $ 555 | $ 327 |
Recourse [Member] | ||
Liabilities of VIE | $ 420 | $ 255 |
Net Sales from Contracts with_3
Net Sales from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Net Sales from Contracts with Customers [Abstract] | ||
Contract with Customer, Liability, Current | $ 85 | $ 86 |
Contract with Customer, Liability, Noncurrent | 9 | $ 8 |
Contract with Customer, Liability, Revenue Recognized | $ 35 |
Net Sales from Contracts with_4
Net Sales from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 3,060 | $ 3,179 |
North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,261 | 2,411 |
International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 799 | 768 |
Health-Care Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,869 | 3,000 |
Health-Care Distribution [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,095 | 2,255 |
Health-Care Distribution [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 774 | 745 |
Health-Care Distribution [Member] | Dental [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,898 | 1,828 |
Health-Care Distribution [Member] | Dental [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,144 | 1,105 |
Health-Care Distribution [Member] | Dental [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 754 | 723 |
Health-Care Distribution [Member] | Medical [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 971 | 1,172 |
Health-Care Distribution [Member] | Medical [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 951 | 1,150 |
Health-Care Distribution [Member] | Medical [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 20 | 22 |
Technology and Value-Added Services [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 191 | 179 |
Technology and Value-Added Services [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 166 | 156 |
Technology and Value-Added Services [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 25 | $ 23 |
Segment Data (Details)
Segment Data (Details) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 USD ($) segments countries | Mar. 26, 2022 USD ($) | |
Segment Data [Abstract] | ||
Number of reportable segments | segments | 2 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,060 | $ 3,179 |
Operating income | 175 | 244 |
Health-Care Distribution [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,869 | 3,000 |
Operating income | $ 145 | 211 |
Number of countries served globally | countries | 32 | |
Health-Care Distribution [Member] | Dental [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,898 | 1,828 |
Health-Care Distribution [Member] | Medical [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 971 | 1,172 |
Technology and Value-Added Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 191 | 179 |
Operating income | $ 30 | $ 33 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Business Acquisition [Line Items] | ||
Acquisition costs | $ 7 | $ 1 |
Series Of Individually Immaterial Business Acquisitions [Member] | Customer Relationships and Lists [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets acquired | $ 1 | |
Estimated useful lives (in years) | 2 years | |
Series Of Individually Immaterial Business Acquisitions [Member] | Trademarks And Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Identifiable intangible assets acquired | $ 1 | |
Estimated useful lives (in years) | 5 years |
Business Acquisitions - Summary
Business Acquisitions - Summary of Estimated Fair Value of Consideration Paid and Net Assets Acquired (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Acquisition consideration: | ||
Noncontrolling interests | $ 3 | |
Identifiable assets acquired and liabilities assumed: | ||
Goodwill | 2,917 | $ 2,893 |
Series Of Individually Immaterial Business Acquisitions [Member] | ||
Acquisition consideration: | ||
Cash | 8 | |
Deferred consideration | 1 | |
Noncontrolling interests | 2 | |
Total consideration | 11 | |
Identifiable assets acquired and liabilities assumed: | ||
Intangible assets | 2 | |
Total identifiable net assets | 2 | |
Goodwill | 9 | |
Total net assets acquired | $ 11 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | $ 570 | $ 576 | $ 613 |
Estimate of Fair Value Measurement [Member] | |||
Debt Instrument, Fair Value Disclosure [Abstract] | |||
Fair value of debt (including bank credit lines) | 1,312 | 1,149 | |
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | |||
Assets [Abstract] | |||
Total assets | 23 | 27 | |
Liabilities [Abstract] | |||
Total liabilities | 3 | 7 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 570 | 576 | |
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 19 | 23 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 1 | |
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 3 | 4 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 2 | 3 | |
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Total return swap [Member] | |||
Assets [Abstract] | |||
Total return swaps | 1 | ||
Liabilities [Abstract] | |||
Total return swaps | 3 | ||
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | |||
Assets [Abstract] | |||
Total assets | 0 | 0 | |
Liabilities [Abstract] | |||
Total liabilities | 0 | 0 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | Total return swap [Member] | |||
Assets [Abstract] | |||
Total return swaps | 0 | ||
Liabilities [Abstract] | |||
Total return swaps | 0 | ||
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | |||
Assets [Abstract] | |||
Total assets | 23 | 27 | |
Liabilities [Abstract] | |||
Total liabilities | 3 | 7 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 19 | 23 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 1 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 3 | 4 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 2 | 3 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Total return swap [Member] | |||
Assets [Abstract] | |||
Total return swaps | 1 | ||
Liabilities [Abstract] | |||
Total return swaps | 3 | ||
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | |||
Assets [Abstract] | |||
Total assets | 0 | 0 | |
Liabilities [Abstract] | |||
Total liabilities | 0 | 0 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 570 | 576 | |
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | Total return swap [Member] | |||
Assets [Abstract] | |||
Total return swaps | $ 0 | ||
Liabilities [Abstract] | |||
Total return swaps | $ 0 |
Debt - Bank credit lines (Detai
Debt - Bank credit lines (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Bank Credit lines | $ 236 | $ 103 |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank Credit lines | 0 | 0 |
Other Short-Term Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank Credit lines | $ 236 | $ 103 |
Debt - Revolving Credit Agreeme
Debt - Revolving Credit Agreement and Other Short-Term Credit Lines Narrative (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 236,000,000 | $ 103,000,000 |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Initiation Date | Aug. 20, 2021 | |
Revolving credit facility borrowing capacity | $ 1,000,000,000 | |
Revolving credit facility expiration date | Aug. 20, 2026 | |
Borrowings | $ 0 | 0 |
Outstanding letters of credit provided to third parties | 9,000,000 | 9,000,000 |
Bank credit lines | 0 | 0 |
Revolving Credit Facility Maturing in April 2022 [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility borrowing capacity | 750,000,000 | |
Other Short-Term Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility borrowing capacity | 404,000,000 | 402,000,000 |
Bank credit lines | $ 236,000,000 | $ 103,000,000 |
Weighted average interest rate on borrowings under credit lines at period end (in hundredths) | 7.55% | 10.11% |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 9 | $ 10 |
Total | 1,076 | 1,046 |
Less current maturities | (55) | (6) |
Long-term debt | 1,021 | 1,040 |
Private Placement Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 699 | 699 |
U.S. Trade Accounts Receivable Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 360 | 330 |
Various Collateralized and Uncollateralized Loans Payable with Interest in Varying Installments Through 2023 at Interest Rates Ranging from 0.00% to 3.65% at April 1, 2023 and Ranging from 0.00% to 3.50% at December 31, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 8 | $ 7 |
Various Collateralized and Uncollateralized Loans Payable with Interest in Varying Installments Through 2023 at Interest Rates Ranging from 0.00% to 3.65% at April 1, 2023 and Ranging from 0.00% to 3.50% at December 31, 2022 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Rate | 0% | 0% |
Various Collateralized and Uncollateralized Loans Payable with Interest in Varying Installments Through 2023 at Interest Rates Ranging from 0.00% to 3.65% at April 1, 2023 and Ranging from 0.00% to 3.50% at December 31, 2022 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Rate | 3.65% | 3.50% |
Debt - Private Placement Facili
Debt - Private Placement Facilities Narrative (Details) - Private Placement Facilities [Member] | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Number of companies included in private placement facilities | 4 |
Debt instrument maximum borrowing capacity | $ 1,500,000,000 |
Debt instrument, maturity date | Oct. 20, 2026 |
Average term of issuances under private placement facilities | 12 years |
Weighted average interest rate on borrowings under credit lines at period end (as a percent) | 2.99% |
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 |
Debt - Private Placement Faci_2
Debt - Private Placement Facility Borrowings (Details) - Private Placement Facilities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Less: Deferred debt issuance costs | $ (1) | |
Total | $ 699 | $ 699 |
Debt Instrument, Maturity Date | Oct. 20, 2026 | |
Private Placement Facilities Maturing in January 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jan. 20, 2012 | |
Long-term Debt, Gross | $ 50 | |
Borrowing Rate | 3.45% | |
Debt Instrument, Maturity Date | Jan. 20, 2024 | |
Private Placement Facilities Maturing in December 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Dec. 24, 2012 | |
Long-term Debt, Gross | $ 50 | |
Borrowing Rate | 3% | |
Debt Instrument, Maturity Date | Dec. 24, 2024 | |
Private Placement Facilities Maturing in June 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jun. 16, 2017 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 3.42% | |
Debt Instrument, Maturity Date | Jun. 16, 2027 | |
Private Placement Facilities Maturing in September 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Sep. 15, 2017 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 3.52% | |
Debt Instrument, Maturity Date | Sep. 15, 2029 | |
Private Placement Facilities Maturing in January 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jan. 02, 2018 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 3.32% | |
Debt Instrument, Maturity Date | Jan. 02, 2028 | |
Private Placement Facilities Maturing in September 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Sep. 02, 2020 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 2.35% | |
Debt Instrument, Maturity Date | Sep. 02, 2030 | |
Private Placement Facilities Maturing in June 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jun. 02, 2021 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 2.48% | |
Debt Instrument, Maturity Date | Jun. 02, 2031 | |
Private Placement Facilities Maturing in June 2033 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jun. 02, 2021 | |
Long-term Debt, Gross | $ 100 | |
Borrowing Rate | 2.58% | |
Debt Instrument, Maturity Date | Jun. 02, 2033 |
Debt - U.S. Trade Accounts Rece
Debt - U.S. Trade Accounts Receivable Securitization Narrative (Details) - U.S. Trade Accounts Receivable Securitization [Member] | 3 Months Ended | 12 Months Ended |
Apr. 01, 2023 USD ($) number | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Pricing commitment period | 3 years | |
Debt Instrument, Maturity Date | Dec. 15, 2025 | |
Debt instrument maximum borrowing capacity | $ 450,000,000 | |
Long-term debt | $ 360,000,000 | $ 330,000,000 |
Commitment fee for facility usage - facility limit less than fifty percent usage (as a percent) | 0.30% | |
Commitment fee for facility usage - facility limit greater than or equal to fifty percent usage (as a percent) | 0.35% | |
Number of banks as agents for debt instrument | number | 2 | |
Average Asset Backed Commercial Paper Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate at period end | 5.74% | 5.33% |
Debt instrument, variable rate basis at period end | 4.99% | 4.58% |
Debt instrument, basis spread on variable rate | 0.75% | 0.75% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Income Tax Examination [Line Items] | |||
Effective tax rate | 23.80% | 24% | |
Tax interest expense (credit) | $ 1 | $ 1 | |
Other Liabilities [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized tax benefits | 95 | $ 94 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 80 | 80 | |
Total interest | $ 13 | $ 12 |
Plan of Restructuring - Narrati
Plan of Restructuring - Narrative (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 30,000,000 | $ 0 |
Disposal of Unprofitable U.S. Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 1,000,000 |
Plan of Restructuring - Schedul
Plan of Restructuring - Schedule of Restructuring Costs (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 30,000,000 | $ 0 |
Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 20,000,000 | |
Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 7,000,000 | |
Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 2,000,000 | |
Disposal of Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | |
Health-Care Distribution [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 26,000,000 | |
Health-Care Distribution [Member] | Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 17,000,000 | |
Health-Care Distribution [Member] | Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 7,000,000 | |
Health-Care Distribution [Member] | Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | |
Health-Care Distribution [Member] | Disposal of Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | |
Technology and Value-Added Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 4,000,000 | |
Technology and Value-Added Services [Member] | Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 3,000,000 | |
Technology and Value-Added Services [Member] | Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 0 | |
Technology and Value-Added Services [Member] | Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | |
Technology and Value-Added Services [Member] | Disposal of Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0 |
Plans of Restructuring and Inte
Plans of Restructuring and Integration Costs - Schedule of Restructuring Reserve by Segment (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | $ 24,000,000 | |
Restructuring costs | 30,000,000 | $ 0 |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | (7,000,000) | $ 0 |
Payments and other adjustments | (17,000,000) | |
Balance, ending | 30,000,000 | |
Health-Care Distribution [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | 21,000,000 | |
Restructuring costs | 26,000,000 | |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | (7,000,000) | |
Payments and other adjustments | (14,000,000) | |
Balance, ending | 26,000,000 | |
Technology and Value-Added Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | 3,000,000 | |
Restructuring costs | 4,000,000 | |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | 0 | |
Payments and other adjustments | (3,000,000) | |
Balance, ending | $ 4,000,000 |
Legal Proceedings - Narrative (
Legal Proceedings - Narrative (Details) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 USD ($) claims | Mar. 26, 2022 USD ($) | |
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Revenues | $ 3,060 | $ 3,179 |
Maximum [Member] | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Loss Contingency, Pending Claims, Number | claims | 175 | |
Actions Consolidated in the MultiDistrict Litigation [Member] | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Maximum sales of opioids in North America during the year, percentage | 0.20% | |
Actions Consolidated in the MultiDistrict Litigation [Member] | Continuing Operations [Member] | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Revenues | $ 12,600 | |
Other Hospitals Located throughout Florida [Member] | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Number of plaintiffs | 38 | |
DCH Health Care Authority, et al. [Member] | ||
Loss Contingency, Information about Litigation Matters [Abstract] | ||
Number of plaintiffs | 38 | |
Number of plaintiffs set for jury trial | 8 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards (in years) | 2 years 8 months 12 days | |
Grants in period (in shares) | 0 | |
Total unrecognized compensation cost related to non-vested awards | $ 119 | |
Expected life of options (years) | 6 years | |
After-tax share-based compensation (credit) expense | $ 7 | $ 9 |
Pre-tax share-based compensation (Credit) expense | $ 10 | $ 12 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of years for full vesting (in years) | 3 years | |
Percentage of stock options vest per year | 33.33% | |
Expiration period (in years) | 10 years | |
Time-Based Restricted Stock Restricted Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of years for full vesting (in years) | 4 years | |
Time-Based Restricted Stock Restricted Units [Member] | 2015 Non-Employee Director Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of years for full vesting (in years) | 12 months | |
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 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity under the Plans (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 1,117,574 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (10,897) |
Forfeited (in shares) | shares | (5,911) |
Outstanding at end of period (in shares) | shares | 1,100,766 |
Weighted Average Exercise Price Per Share [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 71.38 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 62.71 |
Forfeited (in dollars per share) | $ / shares | 77.31 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 71.44 |
Outstanding at end of period, Weighted Average Remaining Contractual Life in Years | 8 years 3 months 18 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 13 |
Options exercisable (in shares) | shares | 572,132 |
Weighted average exercise price, options exercisable (in dollars per share) | $ / shares | $ 68.11 |
Disclosure - Stock-Based Compen
Disclosure - Stock-Based Compensation - Intrinsic Values (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Apr. 01, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options | shares | 520,781 |
Weighted Average Exercise Price | $ / shares | $ 75.22 |
Weighted Average Remaining Contractual Life (in years) | 8 years 6 months |
Aggregate Intrinsic Value | $ | $ 4 |
Stock-Based Compensation - Stat
Stock-Based Compensation - Status of Unvested RSUs (Details) | 3 Months Ended |
Apr. 01, 2023 $ / shares shares | |
Time-Based Restricted Stock Restricted 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) | shares | 1,756,044 |
Granted (in shares) | shares | 395,750 |
Vested (in shares) | shares | (387,302) |
Forfeited (in shares) | shares | (34,843) |
Ending balance outstanding (in shares) | shares | 1,729,649 |
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) | $ 66.59 |
Granted (in dollars per share) | 77.75 |
Vested (in dollars per share) | 61.13 |
Forfeited (in dollars per share) | 68.16 |
Ending balance outstanding (in dollars per share) | 70.38 |
Aggregate intrinsic value | $ 81.54 |
Performance-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) | shares | 520,916 |
Granted (in shares) | shares | 465,260 |
Vested (in shares) | shares | (627,596) |
Forfeited (in shares) | shares | (39,463) |
Ending balance outstanding (in shares) | shares | 319,117 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance outstanding (in dollars per share) | $ 60.23 |
Granted (in dollars per share) | 79.66 |
Vested (in dollars per share) | 60.66 |
Forfeited (in dollars per share) | 74.48 |
Ending balance outstanding (in dollars per share) | 68.96 |
Aggregate intrinsic value | $ 81.54 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Components of the Change in Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Components of the change in the redeemable noncontrolling interests [Abstract] | |||
Balance, beginning of period | $ 576 | $ 613 | $ 613 |
Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interest in subsidiaries | (8) | (31) | |
Increase in redeemable noncontrolling interests due to business acquisitions | 3 | 4 | |
Net income attributable to redeemable noncontrolling interests | 4 | 4 | 21 |
Dividends declared | (4) | (21) | |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | 2 | $ 1 | (6) |
Change in fair value of redeemable securities | (3) | (4) | |
Balance, end of period | $ 570 | $ 576 |
Comprehensive Income - Accumula
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Attributable to Redeemable noncontrolling interests: | |||
Foreign currency translation adjustment | $ (35) | $ (37) | |
Attributable to noncontrolling interests: | |||
Foreign currency translation adjustment | (1) | (1) | |
Attributable to Henry Schein, Inc.: | |||
Foreign currency translation adjustment | (213) | (236) | |
Unrealized gain from foreign currency hedging activities | 2 | 5 | |
Pension adjustment loss | (2) | (2) | |
Accumulated other comprehensive loss | (213) | (233) | |
Total Accumulated other comprehensive loss | (249) | $ (271) | |
Components of Comprehensive Income | |||
Net Income (loss) | 128 | $ 186 | |
Foreign currency translation gain | 25 | 3 | |
Tax effect | 0 | 0 | |
Foreign currency translation gain | 25 | 3 | |
Unrealized gain (loss) from foreign currency hedging activities | (4) | 2 | |
Tax effect | 1 | (1) | |
Unrealized gain (loss) from foreign currency hedging activities | (3) | 1 | |
Comprehensive income | $ 150 | $ 190 |
Comprehensive Income - Total Co
Comprehensive Income - Total Comprehensive Income, Net of Applicable Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Comprehensive Income Net Of Applicable Taxes [Abstract] | ||
Comprehensive income attributable to Henry Schein, Inc. | $ 141 | $ 184 |
Comprehensive income attributable to noncontrolling interests | 3 | 1 |
Comprehensive income attributable to Redeemable noncontrolling interests | 6 | 5 |
Comprehensive income | $ 150 | $ 190 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted (Details) - shares | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 131,365,789 | 137,296,581 |
Effect of dilutive securities: | ||
Stock options and restricted stock units | 1,674,097 | 1,940,891 |
Diluted (in shares) | 133,039,886 | 139,237,472 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS | 440,495 | 147,520 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS | 422,190 | 76,597 |
Restricted Stock Units R S U [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS | 18,305 | 70,923 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2023 | Mar. 26, 2022 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest | $ 13 | $ 8 |
Income taxes | 21 | 21 |
Non-cash net unrealized gains related to foreign currency hedging activities | $ (4) | $ 2 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2023 | Mar. 26, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Current operating lease liabilities | $ 73 | $ 73 | |
Noncurrent operating lease liabilities | 274 | 275 | |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related party | 6 | 6 | |
Due from related party | 34 | 36 | |
Revenue from Related Parties | 8 | $ 12 | |
Related Party Transaction, Purchases from Related Party | $ 2 | 4 | |
Internet Brands Inc [Member] | Royalty Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Period Covered By Agreement | 10 years | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 8 | $ 9 | |
Due to related party | 31 | ||
Related Party Transaction, Due from (to) Related Party | 12 | $ 8 | |
Employees and Minority Shareholders [Member] | |||
Related Party Transaction [Line Items] | |||
Current operating lease liabilities | 4 | ||
Noncurrent operating lease liabilities | $ 15 | ||
Employees and Minority Shareholders [Member] | Operating Lease Liabilities, Current [Member] | Related Party Concentration Risk[Member] | |||
Related Party Transaction [Line Items] | |||
Concentration risk percentage | 6.10% | ||
Employees and Minority Shareholders [Member] | Operating Lease Liabilities, Non-Current [Member] | Related Party Concentration Risk[Member] | |||
Related Party Transaction [Line Items] | |||
Concentration risk percentage | 5.60% | ||
Employees and Minority Shareholders [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Remaining operating lease term | 1 year | ||
Employees and Minority Shareholders [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Remaining operating lease term | 9 years |