Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | Apr. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | 28-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Current Fiscal Year End Date | -14 | |
Entity Central Index Key | 1000228 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | HSIC | |
Entity Registrant Name | HENRY SCHEIN INC | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding | 83,619,111 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $59,202 | $89,474 |
Accounts receivable, net of reserves of $74,051 and $80,671 | 1,099,273 | 1,127,517 |
Inventories, net | 1,297,825 | 1,327,796 |
Deferred income taxes | 52,619 | 56,591 |
Prepaid expenses and other | 293,335 | 311,788 |
Total current assets | 2,802,254 | 2,913,166 |
Property and equipment, net | 292,044 | 311,496 |
Goodwill | 1,855,714 | 1,884,123 |
Other intangibles, net | 601,472 | 643,736 |
Investments and other | 387,780 | 386,286 |
Total assets | 5,939,264 | 6,138,807 |
Current liabilities: | ||
Accounts payable | 716,975 | 860,996 |
Bank credit lines | 163,067 | 182,899 |
Current maturities of long-term debt | 14,586 | 5,815 |
Accrued expenses: | ||
Payroll and related | 181,584 | 237,511 |
Taxes | 152,310 | 151,162 |
Other | 318,317 | 341,728 |
Total current liabilities | 1,546,839 | 1,780,111 |
Long-term debt | 653,718 | 542,776 |
Deferred income taxes | 248,445 | 253,118 |
Other liabilities | 181,246 | 181,830 |
Total liabilities | 2,630,248 | 2,757,835 |
Redeemable noncontrolling interests | 573,137 | 564,527 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $.01 par value, 240,000,000 shares authorized, 83,870,731 outstanding on March 28, 2015 and 84,008,537 outstanding on December 27, 2014 | 839 | 840 |
Additional paid-in capital | 244,748 | 265,363 |
Retained earnings | 2,689,620 | 2,642,523 |
Accumulated other comprehensive income (loss) | -201,867 | -95,132 |
Total Henry Schein, Inc. stockholders' equity | 2,733,340 | 2,813,594 |
Noncontrolling interests | 2,539 | 2,851 |
Total stockholders' equity | 2,735,879 | 2,816,445 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $5,939,264 | $6,138,807 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Accounts receivable, reserves (in dollars) | $74,051 | $80,671 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares outstanding (in shares) | 83,870,731 | 84,008,537 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Net sales | $2,463,646 | $2,430,159 |
Cost of sales | 1,750,251 | 1,733,446 |
Gross profit | 713,395 | 696,713 |
Operating expenses: | ||
Selling, general and administrative | 545,166 | 539,445 |
Restructuring costs | 6,862 | 0 |
Operating income | 161,367 | 157,268 |
Other income (expense): | ||
Interest income | 3,455 | 3,455 |
Interest expense | -6,263 | -5,258 |
Other, net | 120 | 3,580 |
Income before taxes and equity in earnings of affiliates | 158,679 | 159,045 |
Income taxes | -49,127 | -49,623 |
Equity in earnings of affiliates | 2,028 | 706 |
Net income | 111,580 | 110,128 |
Less: Net income attributable to noncontrolling interests | -8,133 | -8,029 |
Net income attributable to Henry Schein, Inc. | $103,447 | $102,099 |
Earnings per share attributable to Henry Schein, Inc.: | ||
Basic (in dollars per share) | $1.24 | $1.20 |
Diluted (in dollars per share) | $1.22 | $1.18 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 83,230 | 84,808 |
Diluted (in shares) | 84,715 | 86,518 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $111,580 | $110,128 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation gain (loss) | -109,872 | 7,792 |
Unrealized gain (loss) from foreign currency hedging activities | -1,888 | -948 |
Unrealized investment gain (loss) | 0 | 11 |
Pension adjustment gain (loss) | 1,449 | 268 |
Other comprehensive income (loss), net of tax | -110,311 | 7,123 |
Comprehensive income (loss) | 1,269 | 117,251 |
Comprehensive income attributable to noncontrolling interests: | ||
Net income | -8,133 | -8,029 |
Foreign currency translation (gain) loss | 3,576 | -2,110 |
Comprehensive income attributable to noncontrolling interests | -4,557 | -10,139 |
Comprehensive income (loss) attributable to Henry Schein, Inc. | ($3,288) | $107,112 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interests [Member] |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 27, 2014 | $2,816,445 | $840 | $265,363 | $2,642,523 | ($95,132) | $2,851 |
Beginning Balance, shares (in shares) at Dec. 27, 2014 | 84,008,537 | 84,008,537 | ||||
Net income (excluding amounts attributable to Redeemable noncontrolling interests) | 103,634 | 0 | 0 | 103,447 | 0 | 187 |
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) | -106,287 | 0 | 0 | 0 | -106,296 | 9 |
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact | -1,888 | 0 | 0 | 0 | -1,888 | 0 |
Pension adjustment gain (loss), net of tax impact | 1,449 | 0 | 0 | 0 | 1,449 | 0 |
Dividends paid | -140 | 0 | 0 | 0 | 0 | -140 |
Initial noncontrolling interests and adjustments related to business acquisitions | -368 | 0 | 0 | 0 | 0 | -368 |
Change in fair value of redeemable securities | -6,042 | 0 | -6,042 | 0 | 0 | 0 |
Other adjustments | 58 | 0 | 58 | 0 | 0 | 0 |
Repurchase and retirement of common stock - Value | -75,707 | -5 | -19,352 | -56,350 | 0 | 0 |
Repurchase and retirement of common stock - Shares | -542,029 | |||||
Stock issued upon exercise of stock options, including tax benefit - Value | 23,272 | 2 | 23,270 | 0 | 0 | 0 |
Stock issued upon exercise of stock options, including tax benefit - Shares | 161,827 | |||||
Stock-based compensation expense - Value | 8,499 | 4 | 8,495 | 0 | 0 | 0 |
Stock-based compensation expense - Shares | 431,921 | |||||
Shares withheld for payroll taxes - Value | -26,883 | -2 | -26,881 | 0 | 0 | 0 |
Shares withheld for payroll taxes - Shares | -189,525 | |||||
Liability for cash settlement stock-based compensation awards | -163 | 0 | -163 | 0 | 0 | 0 |
Ending Balance at Mar. 28, 2015 | $2,735,879 | $839 | $244,748 | $2,689,620 | ($201,867) | $2,539 |
Ending Balance, shares (in shares) at Mar. 28, 2015 | 83,870,731 | 83,870,731 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Net income attributable to redeemable noncontrolling interests | $7,946 |
Foreign currency translation gain (loss) attributable to Redeemable noncontrolling interests | -3,585 |
Unrealized gain (loss) from foreign currency hedging activities, (tax benefit) tax | -286 |
Pension adjustment gain (loss), tax benefit (tax) | -632 |
Stock issued upon exercise of stock options, tax benefit | $15,695 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Cash flows from operating activities: | ||
Net income | $111,580 | $110,128 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 37,149 | 36,136 |
Stock-based compensation expense | 8,499 | 8,963 |
Provision for losses on trade and other accounts receivable | 1,251 | 1,323 |
Provision for (benefit from) deferred income taxes | 17,226 | 15,744 |
Equity in earnings of affiliates | -2,028 | -706 |
Distributions from equity affiliates | 2,335 | 1,972 |
Changes in unrecognized tax benefits | 1,268 | 2,455 |
Other | 3,680 | -482 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | -9,861 | -29,602 |
Inventories | -11,906 | 41,559 |
Other current assets | -3,659 | -23,446 |
Accounts payable and accrued expenses | -182,188 | -219,293 |
Net cash provided by (used in) operating activities | -26,654 | -55,249 |
Cash flows from investing activities: | ||
Purchases of fixed assets | -15,493 | -18,484 |
Payments for equity investments and business acquisitions, net of cash acquired | -13,637 | -144,679 |
Other | -1,185 | -3,931 |
Net cash provided by (used in) investing activities | -30,315 | -167,094 |
Cash flows from financing activities: | ||
Proceeds from (repayments of) bank borrowings | -19,886 | 114,768 |
Proceeds from issuance of long-term debt | 125,000 | 190,387 |
Principal payments for long-term debt | -736 | -396 |
Proceeds from issuance of stock upon exercise of stock options | 7,577 | 16,450 |
Payments for repurchases of common stock | -75,707 | -75,306 |
Excess tax benefits related to stock-based compensation | 2,844 | 3,350 |
Distributions to noncontrolling shareholders | -3,113 | -3,763 |
Acquisitions of noncontrolling interests in subsidiaries | -205 | -83,793 |
Net cash provided by (used in) financing activities | 35,774 | 161,697 |
Effect of exchange rate changes on cash and cash equivalents | -9,077 | 1,145 |
Net change in cash and cash equivalents | -30,272 | -59,501 |
Cash and cash equivalents, beginning of period | 89,474 | 188,616 |
Cash and cash equivalents, end of period | $59,202 | $129,115 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation |
Our consolidated financial statements include our accounts, as well as those of our wholly-owned and majority-owned subsidiaries. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Our accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by U.S. GAAP for complete financial statements. | |
The consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 27, 2014. | |
The preparation of financial statements in conformity with U.S. GAAP 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. The results of operations for the three months ended March 28, 2015 are not necessarily indicative of the results to be expected for any other interim period or for the year ending December 26, 2015. |
Segment_Data
Segment Data | 3 Months Ended | |||||||||
Mar. 28, 2015 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Segment Data | Note 2 – Segment Data | |||||||||
We conduct our business through two reportable segments: (i) health care distribution and (ii) technology and value-added services. These segments offer different products and services to the same customer base. | ||||||||||
The health care distribution reportable segment aggregates our global dental, animal health and medical operating segments. This segment distributes consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. Our global dental group serves office-based dental practitioners, dental laboratories, schools and other institutions. Our global animal health group serves animal health practices and clinics. Our global medical group serves office-based medical practitioners, ambulatory surgery centers, other alternate-care settings and other institutions. Our global dental, animal health and medical groups serve practitioners in 29 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 and animal health clinics. Our value-added practice solutions include financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services. | ||||||||||
The following tables present information about our reportable and operating segments: | ||||||||||
Three Months Ended | ||||||||||
March 28, | March 29, | |||||||||
2015 | 2014 | |||||||||
Net Sales: | ||||||||||
Health care distribution (1): | ||||||||||
Dental | $ | 1,250,073 | $ | 1,296,928 | ||||||
Animal health | 684,324 | 654,488 | ||||||||
Medical | 443,533 | 397,414 | ||||||||
Total health care distribution | 2,377,930 | 2,348,830 | ||||||||
Technology and value-added services (2) | 85,716 | 81,329 | ||||||||
Total | $ | 2,463,646 | $ | 2,430,159 | ||||||
-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. | ||||||||||
Three Months Ended | ||||||||||
March 28, | March 29, | |||||||||
2015 | 2014 | |||||||||
Operating Income: | ||||||||||
Health care distribution | $ | 136,139 | $ | 133,819 | ||||||
Technology and value-added services | 25,228 | 23,449 | ||||||||
Total | $ | 161,367 | $ | 157,268 |
Debt
Debt | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | Note 3 – Debt | ||||||||
Bank Credit Lines | |||||||||
On September 12, 2012, we entered into a new $500 million revolving credit agreement (the “Credit Agreement”) with a $200 million expansion feature, which was originally set to expire on September 12, 2017. On September 22, 2014, we extended the expiration date of the Credit Agreement to September 22, 2019. The interest rate is based on the USD LIBOR plus a spread based on our leverage ratio at the end of each financial reporting quarter. The Credit Agreement provides, among other things, that we are required to maintain maximum leverage ratios, and contains customary representations, warranties and affirmative covenants. The Credit Agreement also contains customary negative covenants, subject to negotiated exceptions on liens, indebtedness, significant corporate changes (including mergers), dispositions and certain restrictive agreements. There was no balance outstanding under this revolving credit facility as of March 28, 2015 and December 27, 2014. As of March 28, 2015 and December 27, 2014, there were $10.1 million of letters of credit provided to third parties under the credit facility. | |||||||||
As of March 28, 2015 and December 27, 2014, we had various other short-term bank credit lines available, of which $163.1 million and $182.9 million, respectively, were outstanding. At March 28, 2015 and December 27, 2014, borrowings under all of our credit lines had a weighted average interest rate of 1.31% and 1.26%, respectively. | |||||||||
Private Placement Facilities | |||||||||
On August 10, 2010, we entered into $400 million private placement facilities with two insurance companies. On April 30, 2012, we increased our available credit facilities by $375 million by entering into a new agreement with one insurance company and amending our existing agreements with two insurance companies. On September 22, 2014, we increased our available private placement facilities by $200 million to a total facility amount of $975 million, and extended the expiration date to September 22, 2017. These facilities are available on an uncommitted basis at fixed rate economic terms to be agreed upon at the time of issuance, from time to time through September 22, 2017. The facilities allow us to issue senior promissory notes to the lenders at a fixed rate based on an agreed upon spread over applicable treasury notes at the time of issuance. The term of each possible issuance will be selected by us and can range from five to 15 years (with an average life no longer than 12 years). The proceeds of any issuances under the facilities will be used for general corporate purposes, including working capital and capital expenditures, to refinance existing indebtedness and/or to fund potential acquisitions. 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 March 28, 2015 are presented in the following table (in thousands): | |||||||||
Amount of | |||||||||
Borrowing | Borrowing | ||||||||
Date of Borrowing | Outstanding | Rate | Due Date | ||||||
2-Sep-10 | $ | 100,000 | 3.79 | % | 2-Sep-20 | ||||
20-Jan-12 | 50,000 | 3.45 | 20-Jan-24 | ||||||
January 20, 2012 (1) | 50,000 | 3.09 | 20-Jan-22 | ||||||
24-Dec-12 | 50,000 | 3 | 24-Dec-24 | ||||||
2-Jun-14 | 100,000 | 3.19 | 2-Jun-21 | ||||||
$ | 350,000 | ||||||||
(1) Annual repayments of approximately $7.1 million for this borrowing will commence on January 20, 2016. | |||||||||
U.S. Trade Accounts Receivable Securitization | |||||||||
On April 17, 2013, we entered into a facility agreement of up to $300 million with a bank, as agent, based on the securitization of our U.S. trade accounts receivable. The new facility allowed us to replace public debt (approximately $220 million), which had a higher interest rate at Henry Schein Animal Health during February 2013 and provided funding for working capital and general corporate purposes. The financing was structured as an asset-backed securitization program with pricing committed for up to three years. On April 17, 2015, we extended the expiration date of this facility agreement to April 15, 2018. The borrowings outstanding under this securitization facility were $275.0 million as of March 28, 2015. At March 28, 2015, the interest rate on borrowings under this facility was based on the average asset-backed commercial paper rate of 20 basis points plus 75 basis points, for a combined rate of 0.95%. | |||||||||
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. | |||||||||
Long-term debt | |||||||||
Long-term debt consisted of the following: | |||||||||
March 28, | December 27, | ||||||||
2015 | 2014 | ||||||||
Private placement facilities | $ | 350,000 | $ | 350,000 | |||||
U.S. trade accounts receivable securitization | 275,000 | 150,000 | |||||||
Notes payable to banks at a weighted-average interest rate of 8.71% | 19 | 30 | |||||||
Various collateralized and uncollateralized loans payable with interest, | |||||||||
in varying installments through 2018 at interest rates ranging | |||||||||
from 1.92% to 5.41% | 40,831 | 41,259 | |||||||
Capital lease obligations payable through 2019 with interest rates | |||||||||
ranging from 2.00% to 11.49% | 2,454 | 7,302 | |||||||
Total | 668,304 | 548,591 | |||||||
Less current maturities | -14,586 | -5,815 | |||||||
Total long-term debt | $ | 653,718 | $ | 542,776 | |||||
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interests | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Temporary Equity Disclosure [Abstract] | ||||||||
Redeemable Noncontrolling Interests | Note 4 – Redeemable Noncontrolling Interests | |||||||
Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Accounting Standards Codification (“ASC”) Topic 480-10 is applicable for noncontrolling interests where we are or may be required to purchase all or a portion of the outstanding interest in a consolidated subsidiary from the noncontrolling interest holder under the terms of a put option contained in contractual agreements. The components of the change in the Redeemable noncontrolling interests for the three months ended March 28, 2015 and the year ended December 27, 2014 are presented in the following table: | ||||||||
March 28, | December 27, | |||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 564,527 | $ | 497,539 | ||||
Decrease in redeemable noncontrolling interests due to | ||||||||
redemptions | -205 | -105,383 | ||||||
Increase in redeemable noncontrolling interests due to business | ||||||||
acquisitions | 1,337 | 120,220 | ||||||
Net income attributable to redeemable noncontrolling interests | 7,946 | 38,741 | ||||||
Dividends declared | -2,925 | -23,346 | ||||||
Effect of foreign currency translation loss attributable to | ||||||||
redeemable noncontrolling interests | -3,585 | -4,080 | ||||||
Change in fair value of redeemable securities | 6,042 | 40,836 | ||||||
Balance, end of period | $ | 573,137 | $ | 564,527 | ||||
Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are adjusted at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||||||
Comprehensive Income | Note 5 – Comprehensive Income | |||||||||||||||
Comprehensive income includes certain gains and losses that, under U.S. GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders' equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) on foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss). | ||||||||||||||||
The following table summarizes our Accumulated other comprehensive income, net of applicable taxes as of: | ||||||||||||||||
March 28, | December 27, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Attributable to Redeemable noncontrolling interests: | ||||||||||||||||
Foreign currency translation adjustment | $ | -9,168 | $ | -5,583 | ||||||||||||
Attributable to noncontrolling interests: | ||||||||||||||||
Foreign currency translation adjustment | $ | -27 | $ | -36 | ||||||||||||
Attributable to Henry Schein, Inc.: | ||||||||||||||||
Foreign currency translation loss | $ | -177,590 | $ | -71,294 | ||||||||||||
Unrealized loss from foreign currency hedging activities | -2,943 | -1,055 | ||||||||||||||
Unrealized investment loss | -136 | -136 | ||||||||||||||
Pension adjustment loss | -21,198 | -22,647 | ||||||||||||||
Accumulated other comprehensive loss | $ | -201,867 | $ | -95,132 | ||||||||||||
Total Accumulated other comprehensive loss | $ | -211,062 | $ | -100,751 | ||||||||||||
The following table summarizes the components of comprehensive income, net of applicable taxes as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 28, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Net income | $ | 111,580 | $ | 110,128 | ||||||||||||
Foreign currency translation gain (loss) | -109,872 | 7,792 | ||||||||||||||
Tax effect | - | - | ||||||||||||||
Foreign currency translation gain (loss) | -109,872 | 7,792 | ||||||||||||||
Unrealized loss from foreign currency hedging activities | -2,174 | -1,152 | ||||||||||||||
Tax effect | 286 | 204 | ||||||||||||||
Unrealized loss from foreign currency hedging activities | -1,888 | -948 | ||||||||||||||
Unrealized investment gain | - | 18 | ||||||||||||||
Tax effect | - | -7 | ||||||||||||||
Unrealized investment gain | - | 11 | ||||||||||||||
Pension adjustment gain | 2,081 | 346 | ||||||||||||||
Tax effect | -632 | -78 | ||||||||||||||
Pension adjustment gain | 1,449 | 268 | ||||||||||||||
Comprehensive income | $ | 1,269 | $ | 117,251 | ||||||||||||
During the three months ended March 28, 2015 and March 29, 2014, we recognized as a component of our comprehensive income, a foreign currency translation gain (loss) of $(109.9) million and $7.8 million, respectively, due to changes in foreign exchange rates from the beginning of the period to the end of the period. Our financial statements are denominated in the U.S. Dollar currency. Fluctuations in the value of foreign currencies as compared to the U.S. Dollar may have a significant impact on our comprehensive income. The foreign currency translation loss during the three months ended March 28, 2015 was impacted by changes in foreign currency exchange rates as follows: | ||||||||||||||||
Foreign Currency | Foreign Currency | |||||||||||||||
Translation | Translation | |||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||
for the Three | for the Three | |||||||||||||||
Months Ended | FX Rate into USD | Months Ended | FX Rate into USD | |||||||||||||
March 28, | March 28, | December 27, | March 29, | March 29, | December 28, | |||||||||||
Currency | 2015 | 2015 | 2014 | 2014 | 2014 | 2013 | ||||||||||
Euro | $ | -77,338 | 1.09 | 1.22 | $ | -441 | 1.38 | 1.38 | ||||||||
British Pound | -14,252 | 1.49 | 1.56 | 3,029 | 1.66 | 1.65 | ||||||||||
Australian Dollar | -7,487 | 0.78 | 0.81 | 8,027 | 0.92 | 0.89 | ||||||||||
Polish Zloty | -2,065 | 0.27 | 0.28 | -78 | 0.33 | 0.33 | ||||||||||
Canadian Dollar | -6,711 | 0.8 | 0.86 | -2,384 | 0.9 | 0.94 | ||||||||||
Brazilian Real | -3,100 | 0.31 | 0.37 | - | 0.44 | 0.43 | ||||||||||
All other currencies | 1,081 | -361 | ||||||||||||||
Total | $ | -109,872 | $ | 7,792 | ||||||||||||
The following table summarizes our total comprehensive income, net of applicable taxes as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 28, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Comprehensive income attributable to | ||||||||||||||||
Henry Schein, Inc. | $ | -3,288 | $ | 107,112 | ||||||||||||
Comprehensive income attributable to | ||||||||||||||||
noncontrolling interests | 196 | 71 | ||||||||||||||
Comprehensive income attributable to | ||||||||||||||||
Redeemable noncontrolling interests | 4,361 | 10,068 | ||||||||||||||
Comprehensive income | $ | 1,269 | $ | 117,251 |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||
Mar. 28, 2015 | |||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||
Fair Value Measurements | Note 6 – Fair Value Measurements | ||||||||||||||
ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”) provides a framework for measuring fair value in generally accepted accounting principles. | |||||||||||||||
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant 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 under ASC Topic 820 are described as follows: | |||||||||||||||
• Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. | |||||||||||||||
• Level 2— Inputs other than quoted 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 valuation methodologies that we used to measure different financial instruments at fair value. | |||||||||||||||
Investments and notes receivable | |||||||||||||||
There are no quoted market prices available for investments in unconsolidated affiliates and notes receivable; however, we believe the carrying amounts are a reasonable estimate of fair value. | |||||||||||||||
Debt | |||||||||||||||
The fair value of our debt as of March 28, 2015 and December 27, 2014 was estimated at $831.4 million and $731.5 million, respectively. Factors that we considered when estimating the fair value of our debt include market conditions, prepayment and make-whole provisions, liquidity levels in the private placement market, variability in pricing from multiple lenders and term of debt. | |||||||||||||||
Derivative contracts | |||||||||||||||
Derivative contracts are valued using quoted market prices and significant other observable and unobservable inputs. We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our derivative instruments primarily include foreign currency forward agreements related to intercompany loans and certain forecasted inventory purchase commitments with suppliers. | |||||||||||||||
The fair values for the majority of our foreign currency derivative contracts are obtained by comparing our contract rate to a published forward price of the underlying market rates, which is based on market rates for comparable transactions and are classified within Level 2 of the fair value hierarchy. | |||||||||||||||
Redeemable noncontrolling interests | |||||||||||||||
Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value based on third-party valuations. The primary factor affecting the future value of redeemable noncontrolling interests is expected earnings and, if such earnings are not achieved, the value of the redeemable noncontrolling interests might be impacted. The noncontrolling interests subject to put options are adjusted to their estimated redemption amounts each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. These adjustments do not impact the calculation of earnings per share. The values for Redeemable noncontrolling interests are classified within Level 3 of the fair value hierarchy. The details of the changes in Redeemable noncontrolling interests are presented in Note 4. | |||||||||||||||
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 March 28, 2015 and December 27, 2014: | |||||||||||||||
28-Mar-15 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,820 | $ | - | $ | 1,820 | |||||||
Total assets | $ | - | $ | 1,820 | $ | - | $ | 1,820 | |||||||
Liabilities: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,021 | $ | - | $ | 1,021 | |||||||
Total liabilities | $ | - | $ | 1,021 | $ | - | $ | 1,021 | |||||||
Redeemable noncontrolling interests | $ | - | $ | - | $ | 573,137 | $ | 573,137 | |||||||
27-Dec-14 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative contracts | $ | - | $ | 2,472 | $ | - | $ | 2,472 | |||||||
Total assets | $ | - | $ | 2,472 | $ | - | $ | 2,472 | |||||||
Liabilities: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,307 | $ | - | $ | 1,307 | |||||||
Total liabilities | $ | - | $ | 1,307 | $ | - | $ | 1,307 | |||||||
Redeemable noncontrolling interests | $ | - | $ | - | $ | 564,527 | $ | 564,527 |
Business_Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 28, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 7 – Business Acquisitions |
Acquisitions | |
The operating results of all acquisitions are reflected in our financial statements from their respective acquisition dates. | |
On March 31, 2015, we completed the acquisition of scil animal care company GmbH (“scil”), a specialty distributor of animal health laboratory and imaging diagnostic products and services to veterinarians primarily in North America and Europe. scil has annual sales of approximately $83 million. | |
We completed certain other acquisitions during the three months ended March 28, 2015. Such acquisitions were immaterial to our financial statements individually and in the aggregate. | |
Some prior owners of such 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 three months ended March 28, 2015 and March 29, 2014, there were no material adjustments recorded in our consolidated statement of income relating to changes in estimated contingent purchase price liabilities. |
Plan_of_Restructuring
Plan of Restructuring | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||
Plan of Restructuring | Note 8 – Plan of Restructuring | |||||||||||||
On November 6, 2014, we announced a corporate initiative to rationalize our operations and provide expense efficiencies, which will occur throughout fiscal 2015. This initiative is expected to include the elimination of approximately 2% to 3% of our workforce and the closing of certain facilities. The costs associated with all actions to complete this restructuring are expected to be in the range of $35 million to $40 million pre-tax (approximately $0.29 to $0.33 per diluted share). We plan to reduce our cost structure to fund new initiatives to drive future growth as our 2015 – 2017 strategic planning cycle begins. During the three months ended March 28, 2015, we recorded $6.9 million in restructuring costs. | ||||||||||||||
On April 30, 2015, we estimated that the total remaining restructuring costs we expect to incur in connection with the restructuring activity to be $30 million to $35 million, consisting of $18 million to $20 million in employee severance pay and benefits, $10 million to $12 million in facility costs, representing primarily lease termination and other facility closure related costs, and $2 million to $3 million in other restructuring costs. | ||||||||||||||
The costs associated with this restructuring are included in a separate line item, “Restructuring costs” within our consolidated statements of income. | ||||||||||||||
The following table shows the amounts expensed and paid for restructuring costs that were incurred during the three months ended March 28, 2015 and during our 2014 fiscal year and the remaining accrued balance of restructuring costs as of March 28, 2015, which is included in Accrued expenses: Other and Other liabilities within our consolidated balance sheet: | ||||||||||||||
Facility | ||||||||||||||
Severance | Closing | |||||||||||||
Costs | Costs | Other | Total | |||||||||||
Balance, December 28, 2013 | $ | 227 | $ | 484 | $ | - | $ | 711 | ||||||
Provision | - | - | - | - | ||||||||||
Payments and other adjustments | -107 | -183 | - | -290 | ||||||||||
Balance, December 27, 2014 | $ | 120 | $ | 301 | $ | - | $ | 421 | ||||||
Provision | 5,086 | 886 | 890 | 6,862 | ||||||||||
Payments | -1,553 | -221 | -746 | -2,520 | ||||||||||
Balance, March 28, 2015 | $ | 3,653 | $ | 966 | $ | 144 | $ | 4,763 | ||||||
The following table shows, by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during the three months ended March 28, 2015 and the 2014 fiscal year and the remaining accrued balance of restructuring costs as of March 28, 2015: | ||||||||||||||
Technology and | ||||||||||||||
Health Care | Value-Added | |||||||||||||
Distribution | Services | Total | ||||||||||||
Balance, December 28, 2013 | $ | 711 | $ | - | $ | 711 | ||||||||
Provision | - | - | - | |||||||||||
Payments and other adjustments | -290 | - | -290 | |||||||||||
Balance, December 27, 2014 | $ | 421 | $ | - | $ | 421 | ||||||||
Provision | 6,860 | 2 | 6,862 | |||||||||||
Payments | -2,518 | -2 | -2,520 | |||||||||||
Balance, March 28, 2015 | $ | 4,763 | $ | - | $ | 4,763 |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 28, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Earnings Per Share | Note 9 – 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: | ||||||
Three Months Ended | ||||||
March 28, | March 29, | |||||
2015 | 2014 | |||||
Basic | 83,230 | 84,808 | ||||
Effect of dilutive securities: | ||||||
Stock options, restricted stock and restricted stock units | 1,485 | 1,710 | ||||
Diluted | 84,715 | 86,518 |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 – Income Taxes |
For the three months ended March 28, 2015, our effective tax rate was 31.0% compared to 31.2% for the prior year period. The difference between our effective tax rates and the federal statutory tax rates for both periods primarily relates to state and foreign income taxes and interest expense. | |
The total amount of unrecognized tax benefits as of March 28, 2015 was approximately $82.9 million, of which $62.5 million would affect the effective tax rate if recognized. It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a material impact on our consolidated financial statements. | |
The total amounts of interest and penalties, which are classified as a component of the provision for income taxes, were approximately $15.9 million and $0, respectively, for the three months ended March 28, 2015. | |
The tax years subject to examination by major tax jurisdictions include the years 2009 and forward by the U.S. Internal Revenue Service, as well as the years 2005 and forward for certain states and certain foreign jurisdictions. In December 2014, the IRS issued a Statutory Notice of Deficiency for 2009, 2010 and 2011. We do not expect this to have a significant effect on our consolidated financial position, liquidity or the results of operations. During the quarter ended March 28, 2015, we filed our petition to the U.S. Tax Court disputing the adjustments proposed by the IRS. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 28, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 11 – Derivatives and Hedging Activities |
We are exposed to market risks as well as changes in foreign currency exchange rates as measured against the U.S. dollar and each other, and changes to the credit markets. We attempt to minimize these risks by primarily using foreign currency forward contracts and by maintaining counter-party credit limits. These hedging activities provide only limited protection against currency exchange and credit risks. Factors that could influence the effectiveness of our hedging programs include currency markets and availability of hedging instruments and liquidity of the credit markets. All foreign currency forward contracts that we enter 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 investments, maintaining a strong balance sheet and having multiple sources of capital. | |
Fluctuations in the value of certain foreign currencies as compared to the U.S. dollar may positively or negatively affect our revenues, gross margins, operating expenses and retained earnings, all of which are expressed in U.S. dollars. Where we deem it prudent, we engage in hedging programs using primarily foreign currency forward contracts aimed at limiting the impact of foreign currency exchange rate fluctuations on earnings. We purchase short-term (i.e., 18 months or less) foreign currency forward contracts to protect against currency exchange risks associated with intercompany loans due from our international subsidiaries and the payment of merchandise purchases to our foreign suppliers. We do not hedge the translation of foreign currency profits into U.S. dollars, as we regard this as an accounting exposure, not an economic exposure. Our hedging activities have historically not had a material impact on our consolidated financial statements. Accordingly, additional disclosures related to derivatives and hedging activities required by ASC Topic 815 have been omitted. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Stock-Based Compensation | Note 12 – Stock-Based Compensation | ||||||||||
Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $8.5 million ($5.9 million after-tax) and $9.0 million ($6.2 million after-tax) for the three months ended March 28, 2015 and March 29, 2014, respectively. | |||||||||||
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 1996 Non-Employee Director Stock Incentive Plan, as amended (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. | |||||||||||
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 1996 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 three-year period as determined by the Compensation Committee of the Board of Directors. Although there is no guarantee that performance targets will be achieved, we estimate the fair value of performance-based restricted stock/units based on our closing stock price at time of grant. | |||||||||||
The Plans provide for adjustments to the performance-based restricted stock/units targets for significant events such as acquisitions, divestitures, new business ventures, share repurchases and certain foreign exchange fluctuations. 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. | |||||||||||
Total unrecognized compensation cost related to non-vested awards as of March 28, 2015 was $139.7 million, which is expected to be recognized over a weighted-average period of approximately 2.6 years. | |||||||||||
The following table summarizes stock option activity under the Plans during the three months ended March 28, 2015: | |||||||||||
Weighted | |||||||||||
Average | |||||||||||
Weighted | Remaining | ||||||||||
Average | Contractual | Aggregate | |||||||||
Exercise | Life in | Intrinsic | |||||||||
Shares | Price | Years | Value | ||||||||
Outstanding at beginning of period | 684 | $ | 53.41 | ||||||||
Granted | - | - | |||||||||
Exercised | -163 | 47.15 | |||||||||
Forfeited | - | - | |||||||||
Outstanding at end of period | 521 | $ | 55.37 | 2.3 | $ | 43,439 | |||||
Options exercisable at end of period | 521 | $ | 55.37 | 2.3 | $ | 43,439 | |||||
The following tables summarize the activity of our non-vested restricted stock/units for the three months ended March 28, 2015: | |||||||||||
Time-Based Restricted Stock/Units | |||||||||||
Weighted Average | |||||||||||
Grant Date Fair | Intrinsic Value | ||||||||||
Shares/Units | Value Per Share | Per Share | |||||||||
Outstanding at beginning of period | 836 | $ | 83.86 | ||||||||
Granted | 163 | 140.76 | |||||||||
Vested | -187 | 72.39 | |||||||||
Forfeited | -8 | 91.9 | |||||||||
Outstanding at end of period | 804 | $ | 98.02 | $ | 138.8 | ||||||
Performance-Based Restricted Stock/Units | |||||||||||
Weighted Average | |||||||||||
Grant Date Fair | Intrinsic Value | ||||||||||
Shares/Units | Value Per Share | Per Share | |||||||||
Outstanding at beginning of period | 1,127 | $ | 77.19 | ||||||||
Granted | 289 | 130.71 | |||||||||
Vested | -297 | 73.49 | |||||||||
Forfeited | -6 | 99.17 | |||||||||
Outstanding at end of period | 1,113 | $ | 97.02 | $ | 138.8 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Supplemental Cash Flow Elements [Abstract] | |||||||
Supplemental Cash Flow Information | Note 13 – Supplemental Cash Flow Information | ||||||
Cash paid for interest and income taxes was: | |||||||
Three Months Ended | |||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Interest | $ | 6,198 | $ | 5,803 | |||
Income taxes | 15,137 | 15,129 | |||||
During the three months ended March 28, 2015 and March 29, 2014, we had $2.2 million and $1.2 million of non-cash net unrealized losses related to foreign currency hedging activities, respectively. |
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | |||||||||
Mar. 28, 2015 | ||||||||||
Segment Reporting [Abstract] | ||||||||||
Business segment information | Three Months Ended | |||||||||
March 28, | March 29, | |||||||||
2015 | 2014 | |||||||||
Net Sales: | ||||||||||
Health care distribution (1): | ||||||||||
Dental | $ | 1,250,073 | $ | 1,296,928 | ||||||
Animal health | 684,324 | 654,488 | ||||||||
Medical | 443,533 | 397,414 | ||||||||
Total health care distribution | 2,377,930 | 2,348,830 | ||||||||
Technology and value-added services (2) | 85,716 | 81,329 | ||||||||
Total | $ | 2,463,646 | $ | 2,430,159 | ||||||
-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. | ||||||||||
Three Months Ended | ||||||||||
March 28, | March 29, | |||||||||
2015 | 2014 | |||||||||
Operating Income: | ||||||||||
Health care distribution | $ | 136,139 | $ | 133,819 | ||||||
Technology and value-added services | 25,228 | 23,449 | ||||||||
Total | $ | 161,367 | $ | 157,268 |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Private placement facilities | Amount of | ||||||||
Borrowing | Borrowing | ||||||||
Date of Borrowing | Outstanding | Rate | Due Date | ||||||
2-Sep-10 | $ | 100,000 | 3.79 | % | 2-Sep-20 | ||||
20-Jan-12 | 50,000 | 3.45 | 20-Jan-24 | ||||||
January 20, 2012 (1) | 50,000 | 3.09 | 20-Jan-22 | ||||||
24-Dec-12 | 50,000 | 3 | 24-Dec-24 | ||||||
2-Jun-14 | 100,000 | 3.19 | 2-Jun-21 | ||||||
$ | 350,000 | ||||||||
(1) Annual repayments of approximately $7.1 million for this borrowing will commence on January 20, 2016. | |||||||||
Schedule of long-term debt | March 28, | December 27, | |||||||
2015 | 2014 | ||||||||
Private placement facilities | $ | 350,000 | $ | 350,000 | |||||
U.S. trade accounts receivable securitization | 275,000 | 150,000 | |||||||
Notes payable to banks at a weighted-average interest rate of 8.71% | 19 | 30 | |||||||
Various collateralized and uncollateralized loans payable with interest, | |||||||||
in varying installments through 2018 at interest rates ranging | |||||||||
from 1.92% to 5.41% | 40,831 | 41,259 | |||||||
Capital lease obligations payable through 2019 with interest rates | |||||||||
ranging from 2.00% to 11.49% | 2,454 | 7,302 | |||||||
Total | 668,304 | 548,591 | |||||||
Less current maturities | -14,586 | -5,815 | |||||||
Total long-term debt | $ | 653,718 | $ | 542,776 | |||||
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Temporary Equity Disclosure [Abstract] | ||||||||
Change in fair value of redeemable noncontrolling interests | March 28, | December 27, | ||||||
2015 | 2014 | |||||||
Balance, beginning of period | $ | 564,527 | $ | 497,539 | ||||
Decrease in redeemable noncontrolling interests due to | ||||||||
redemptions | -205 | -105,383 | ||||||
Increase in redeemable noncontrolling interests due to business | ||||||||
acquisitions | 1,337 | 120,220 | ||||||
Net income attributable to redeemable noncontrolling interests | 7,946 | 38,741 | ||||||
Dividends declared | -2,925 | -23,346 | ||||||
Effect of foreign currency translation loss attributable to | ||||||||
redeemable noncontrolling interests | -3,585 | -4,080 | ||||||
Change in fair value of redeemable securities | 6,042 | 40,836 | ||||||
Balance, end of period | $ | 573,137 | $ | 564,527 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||||||
Accumulated other comprehensive income, net of applicable taxes | March 28, | December 27, | ||||||||||||||
2015 | 2014 | |||||||||||||||
Attributable to Redeemable noncontrolling interests: | ||||||||||||||||
Foreign currency translation adjustment | $ | -9,168 | $ | -5,583 | ||||||||||||
Attributable to noncontrolling interests: | ||||||||||||||||
Foreign currency translation adjustment | $ | -27 | $ | -36 | ||||||||||||
Attributable to Henry Schein, Inc.: | ||||||||||||||||
Foreign currency translation loss | $ | -177,590 | $ | -71,294 | ||||||||||||
Unrealized loss from foreign currency hedging activities | -2,943 | -1,055 | ||||||||||||||
Unrealized investment loss | -136 | -136 | ||||||||||||||
Pension adjustment loss | -21,198 | -22,647 | ||||||||||||||
Accumulated other comprehensive loss | $ | -201,867 | $ | -95,132 | ||||||||||||
Total Accumulated other comprehensive loss | $ | -211,062 | $ | -100,751 | ||||||||||||
Components of comprehensive income, net of applicable taxes | Three Months Ended | |||||||||||||||
March 28, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Net income | $ | 111,580 | $ | 110,128 | ||||||||||||
Foreign currency translation gain (loss) | -109,872 | 7,792 | ||||||||||||||
Tax effect | - | - | ||||||||||||||
Foreign currency translation gain (loss) | -109,872 | 7,792 | ||||||||||||||
Unrealized loss from foreign currency hedging activities | -2,174 | -1,152 | ||||||||||||||
Tax effect | 286 | 204 | ||||||||||||||
Unrealized loss from foreign currency hedging activities | -1,888 | -948 | ||||||||||||||
Unrealized investment gain | - | 18 | ||||||||||||||
Tax effect | - | -7 | ||||||||||||||
Unrealized investment gain | - | 11 | ||||||||||||||
Pension adjustment gain | 2,081 | 346 | ||||||||||||||
Tax effect | -632 | -78 | ||||||||||||||
Pension adjustment gain | 1,449 | 268 | ||||||||||||||
Comprehensive income | $ | 1,269 | $ | 117,251 | ||||||||||||
Components of foreign currency translation gain (loss) by foreign currency | Foreign Currency | Foreign Currency | ||||||||||||||
Translation | Translation | |||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||
for the Three | for the Three | |||||||||||||||
Months Ended | FX Rate into USD | Months Ended | FX Rate into USD | |||||||||||||
March 28, | March 28, | December 27, | March 29, | March 29, | December 28, | |||||||||||
Currency | 2015 | 2015 | 2014 | 2014 | 2014 | 2013 | ||||||||||
Euro | $ | -77,338 | 1.09 | 1.22 | $ | -441 | 1.38 | 1.38 | ||||||||
British Pound | -14,252 | 1.49 | 1.56 | 3,029 | 1.66 | 1.65 | ||||||||||
Australian Dollar | -7,487 | 0.78 | 0.81 | 8,027 | 0.92 | 0.89 | ||||||||||
Polish Zloty | -2,065 | 0.27 | 0.28 | -78 | 0.33 | 0.33 | ||||||||||
Canadian Dollar | -6,711 | 0.8 | 0.86 | -2,384 | 0.9 | 0.94 | ||||||||||
Brazilian Real | -3,100 | 0.31 | 0.37 | - | 0.44 | 0.43 | ||||||||||
All other currencies | 1,081 | -361 | ||||||||||||||
Total | $ | -109,872 | $ | 7,792 | ||||||||||||
Total comprehensive income, net of applicable taxes | Three Months Ended | |||||||||||||||
March 28, | March 29, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Comprehensive income attributable to | ||||||||||||||||
Henry Schein, Inc. | $ | -3,288 | $ | 107,112 | ||||||||||||
Comprehensive income attributable to | ||||||||||||||||
noncontrolling interests | 196 | 71 | ||||||||||||||
Comprehensive income attributable to | ||||||||||||||||
Redeemable noncontrolling interests | 4,361 | 10,068 | ||||||||||||||
Comprehensive income | $ | 1,269 | $ | 117,251 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||
Mar. 28, 2015 | |||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||
Fair value - assets and liabilities measured and recognized on a recurring basis | 28-Mar-15 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,820 | $ | - | $ | 1,820 | |||||||
Total assets | $ | - | $ | 1,820 | $ | - | $ | 1,820 | |||||||
Liabilities: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,021 | $ | - | $ | 1,021 | |||||||
Total liabilities | $ | - | $ | 1,021 | $ | - | $ | 1,021 | |||||||
Redeemable noncontrolling interests | $ | - | $ | - | $ | 573,137 | $ | 573,137 | |||||||
27-Dec-14 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Derivative contracts | $ | - | $ | 2,472 | $ | - | $ | 2,472 | |||||||
Total assets | $ | - | $ | 2,472 | $ | - | $ | 2,472 | |||||||
Liabilities: | |||||||||||||||
Derivative contracts | $ | - | $ | 1,307 | $ | - | $ | 1,307 | |||||||
Total liabilities | $ | - | $ | 1,307 | $ | - | $ | 1,307 | |||||||
Redeemable noncontrolling interests | $ | - | $ | - | $ | 564,527 | $ | 564,527 |
Plan_of_Restructuring_Tables
Plan of Restructuring (Tables) | 3 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||
Schedule of restructuring reserve by type of cost | Facility | |||||||||||||
Severance | Closing | |||||||||||||
Costs | Costs | Other | Total | |||||||||||
Balance, December 28, 2013 | $ | 227 | $ | 484 | $ | - | $ | 711 | ||||||
Provision | - | - | - | - | ||||||||||
Payments and other adjustments | -107 | -183 | - | -290 | ||||||||||
Balance, December 27, 2014 | $ | 120 | $ | 301 | $ | - | $ | 421 | ||||||
Provision | 5,086 | 886 | 890 | 6,862 | ||||||||||
Payments | -1,553 | -221 | -746 | -2,520 | ||||||||||
Balance, March 28, 2015 | $ | 3,653 | $ | 966 | $ | 144 | $ | 4,763 | ||||||
Schedule of restructuring reserve by segment | Technology and | |||||||||||||
Health Care | Value-Added | |||||||||||||
Distribution | Services | Total | ||||||||||||
Balance, December 28, 2013 | $ | 711 | $ | - | $ | 711 | ||||||||
Provision | - | - | - | |||||||||||
Payments and other adjustments | -290 | - | -290 | |||||||||||
Balance, December 27, 2014 | $ | 421 | $ | - | $ | 421 | ||||||||
Provision | 6,860 | 2 | 6,862 | |||||||||||
Payments | -2,518 | -2 | -2,520 | |||||||||||
Balance, March 28, 2015 | $ | 4,763 | $ | - | $ | 4,763 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 28, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Reconciliation of basic and diluted shares used to calculate earnings per share | Three Months Ended | |||||
March 28, | March 29, | |||||
2015 | 2014 | |||||
Basic | 83,230 | 84,808 | ||||
Effect of dilutive securities: | ||||||
Stock options, restricted stock and restricted stock units | 1,485 | 1,710 | ||||
Diluted | 84,715 | 86,518 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||
Mar. 28, 2015 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||
Summary of the stock option activity under the plans | Weighted | ||||||||||
Average | |||||||||||
Weighted | Remaining | ||||||||||
Average | Contractual | Aggregate | |||||||||
Exercise | Life in | Intrinsic | |||||||||
Shares | Price | Years | Value | ||||||||
Outstanding at beginning of period | 684 | $ | 53.41 | ||||||||
Granted | - | - | |||||||||
Exercised | -163 | 47.15 | |||||||||
Forfeited | - | - | |||||||||
Outstanding at end of period | 521 | $ | 55.37 | 2.3 | $ | 43,439 | |||||
Options exercisable at end of period | 521 | $ | 55.37 | 2.3 | $ | 43,439 | |||||
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 | 836 | $ | 83.86 | ||||||||
Granted | 163 | 140.76 | |||||||||
Vested | -187 | 72.39 | |||||||||
Forfeited | -8 | 91.9 | |||||||||
Outstanding at end of period | 804 | $ | 98.02 | $ | 138.8 | ||||||
Performance-Based Restricted Stock/Units | |||||||||||
Weighted Average | |||||||||||
Grant Date Fair | Intrinsic Value | ||||||||||
Shares/Units | Value Per Share | Per Share | |||||||||
Outstanding at beginning of period | 1,127 | $ | 77.19 | ||||||||
Granted | 289 | 130.71 | |||||||||
Vested | -297 | 73.49 | |||||||||
Forfeited | -6 | 99.17 | |||||||||
Outstanding at end of period | 1,113 | $ | 97.02 | $ | 138.8 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | ||||||
Mar. 28, 2015 | |||||||
Supplemental Cash Flow Elements [Abstract] | |||||||
Cash paid for interest and income taxes | Three Months Ended | ||||||
March 28, | March 29, | ||||||
2015 | 2014 | ||||||
Interest | $ | 6,198 | $ | 5,803 | |||
Income taxes | 15,137 | 15,129 |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
number | ||
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | |
Number of countries served globally | 29 | |
Segment Reporting Information [Line Items] | ||
Net sales | $2,463,646 | $2,430,159 |
Operating income | 161,367 | 157,268 |
Health Care Distribution [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,377,930 | 2,348,830 |
Operating income | 136,139 | 133,819 |
Health Care Distribution [Member] | Dental [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,250,073 | 1,296,928 |
Health Care Distribution [Member] | Animal Health [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 684,324 | 654,488 |
Health Care Distribution [Member] | Medical [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 443,533 | 397,414 |
Technology and Value-Added Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 85,716 | 81,329 |
Operating income | $25,228 | $23,449 |
Debt_Bank_Credit_Lines_Details
Debt - Bank Credit Lines (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Dec. 27, 2014 | |
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings under credit lines at period end (in hundredths) | 1.31% | 1.26% |
Revolving credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility borrowing capacity | $500,000,000 | |
Additional credit available under expansion feature of revolving credit facility | 200,000,000 | |
Revolving credit facility expiration date | 22-Sep-19 | |
Line of credit facility, amount outstanding | 0 | 0 |
Outstanding letters of credit provided to third parties | 10,100,000 | 10,100,000 |
Various other short-term bank credit lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, amount outstanding | $163,100,000 | $182,900,000 |
Debt_Longterm_Details
Debt - Long-term (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||
Mar. 28, 2015 | Mar. 29, 2014 | Feb. 21, 2013 | Dec. 27, 2014 | Sep. 22, 2014 | Apr. 30, 2012 | Aug. 10, 2010 | Jan. 20, 2016 | |
company | company | |||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, amount repaid | $736,000 | $396,000 | ||||||
Long-term debt and capital lease obligations including current maturities | 668,304,000 | 548,591,000 | ||||||
Less current maturities | -14,586,000 | -5,815,000 | ||||||
Total long-term debt | 653,718,000 | 542,776,000 | ||||||
Henry Schein Animal Health debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, amount repaid | 220,000,000 | |||||||
Private placement facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maximum borrowing capacity | 975,000,000 | 400,000,000 | ||||||
Private placement facility additional borrowing capacity | 200,000,000 | 375,000,000 | ||||||
Number of insurance companies providing private placement facilities (in number of insurance companies) | 1 | 2 | ||||||
Long-term debt and capital lease obligations including current maturities | 350,000,000 | 350,000,000 | ||||||
Private placement facilities [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of issuances under private placement facilities | 5 years | |||||||
Private placement facilities [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of issuances under private placement facilities | 15 years | |||||||
Private placement facilities [Member] | Maximum Average [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of issuances under private placement facilities | 12 years | |||||||
Private placement facilities [Member] | Private placement facilities maturing in September 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date of borrowing | 2-Sep-10 | |||||||
Due date | 2-Sep-20 | |||||||
Long-term debt and capital lease obligations including current maturities | 100,000,000 | |||||||
Debt instrument, interest rate, stated percentage (in hundredths) | 3.79% | |||||||
Private placement facilities [Member] | Private placement facilities maturing in January 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date of borrowing | 20-Jan-12 | |||||||
Due date | 20-Jan-24 | |||||||
Long-term debt and capital lease obligations including current maturities | 50,000,000 | |||||||
Debt instrument, interest rate, stated percentage (in hundredths) | 3.45% | |||||||
Private placement facilities [Member] | Private placement facilities maturing in January 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date of borrowing | 20-Jan-12 | |||||||
Due date | 20-Jan-22 | |||||||
Long-term debt and capital lease obligations including current maturities | 50,000,000 | |||||||
Debt instrument, interest rate, stated percentage (in hundredths) | 3.09% | |||||||
Private placement facilities [Member] | Private placement facilities maturing in January 2022 [Member] | Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Private placement facility annual payment | 7,100,000 | |||||||
Private placement facilities [Member] | Private placement facilities maturing in December 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date of borrowing | 24-Dec-12 | |||||||
Due date | 24-Dec-24 | |||||||
Long-term debt and capital lease obligations including current maturities | 50,000,000 | |||||||
Debt instrument, interest rate, stated percentage (in hundredths) | 3.00% | |||||||
Private placement facilities [Member] | Private placement facilities maturing in June 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Date of borrowing | 2-Jun-14 | |||||||
Due date | 2-Jun-21 | |||||||
Long-term debt and capital lease obligations including current maturities | 100,000,000 | |||||||
Debt instrument, interest rate, stated percentage (in hundredths) | 3.19% | |||||||
U.S. trade accounts receivable securitization [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maximum borrowing capacity | 300,000,000 | |||||||
Long-term debt and capital lease obligations including current maturities | 275,000,000 | 150,000,000 | ||||||
Pricing commitment period | 3 years | |||||||
Debt instrument, interest rate at period end | 0.95% | |||||||
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 perentage of facility used for calculating commitment fee (in hundredths) | 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 | 0.20% | |||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||
Notes payable to banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt and capital lease obligations including current maturities | 19,000 | 30,000 | ||||||
Debt instrument, interest rate, weighted-average percentage (in hundredths) | 8.71% | |||||||
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt and capital lease obligations including current maturities | 40,831,000 | 41,259,000 | ||||||
Debt instrument interest rate, stated percentage rate range minimum (in hundredths) | 1.92% | |||||||
Debt instrument interest rate, stated percentage rate range maximum (in hundredths) | 5.41% | |||||||
Capital lease obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt and capital lease obligations including current maturities | $2,454,000 | $7,302,000 | ||||||
Debt instrument interest rate, stated percentage rate range minimum (in hundredths) | 2.00% | |||||||
Debt instrument interest rate, stated percentage rate range maximum (in hundredths) | 11.49% |
Redeemable_Noncontrolling_Inte2
Redeemable Noncontrolling Interests (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 |
Components of the change in the redeemable noncontrolling interests [Abstract] | ||
Balance, beginning of period | $564,527 | $497,539 |
Decrease in redeemable noncontrolling interests due to redemptions | -205 | -105,383 |
Increase in redeemable noncontrolling interests due to business acquisitions | 1,337 | 120,220 |
Net income attributable to redeemable noncontrolling interests | 7,946 | 38,741 |
Dividends declared | -2,925 | -23,346 |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | -3,585 | -4,080 |
Change in fair value of redeemable securities | 6,042 | 40,836 |
Balance, end of period | $573,137 | $564,527 |
Comprehensive_Income_Accumulat
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 |
Attributable to Redeemable noncontrolling interests: | |||
Foreign currency translation adjustment | ($9,168) | ($5,583) | |
Attributable to noncontrolling interests: | |||
Foreign currency translation adjustment | -27 | -36 | |
Attributable to Henry Schein, Inc.: | |||
Foreign currency translation gain (loss) | -177,590 | -71,294 | |
Unrealized gain (loss) from foreign currency hedging activities | -2,943 | -1,055 | |
Unrealized investment gain (loss) | -136 | -136 | |
Pension adjustment gain (loss) | -21,198 | -22,647 | |
Accumulated other comprehensive income (loss) | -201,867 | -95,132 | |
Total Accumulated other comprehensive income (loss) | -211,062 | -100,751 | |
Components of comprehensive income [Abstract] | |||
Net income | 111,580 | 110,128 | |
Foreign currency translation gain (loss) | -109,872 | 7,792 | |
Tax effect | 0 | 0 | |
Foreign currency translation gain (loss) | -109,872 | 7,792 | |
Unrealized gain (loss) from foreign currency hedging activities | -2,174 | -1,152 | |
Tax effect | 286 | 204 | |
Unrealized gain (loss) from foreign currency hedging activities | -1,888 | -948 | |
Unrealized investment gain (loss) | 0 | 18 | |
Tax effect | 0 | -7 | |
Unrealized investment gain (loss) | 0 | 11 | |
Pension adjustment gain (loss) | 2,081 | 346 | |
Tax effect | -632 | -78 | |
Pension adjustment gain (loss) | 1,449 | 268 | |
Comprehensive income | $1,269 | $117,251 |
Comprehensive_Income_Foreign_C
Comprehensive Income - Foreign Currency Translation Gain (Loss) Components (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | Dec. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | ($109,872) | $7,792 | ||
Euro | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -77,338 | -441 | ||
FX rate into USD | 1.09 | 1.38 | 1.22 | 1.38 |
British Pound | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -14,252 | 3,029 | ||
FX rate into USD | 1.49 | 1.66 | 1.56 | 1.65 |
Australian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -7,487 | 8,027 | ||
FX rate into USD | 0.78 | 0.92 | 0.81 | 0.89 |
Polish Zloty | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -2,065 | -78 | ||
FX rate into USD | 0.27 | 0.33 | 0.28 | 0.33 |
Canadian Dollar | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -6,711 | -2,384 | ||
FX rate into USD | 0.8 | 0.9 | 0.86 | 0.94 |
Brazilian Real | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | -3,100 | 0 | ||
FX rate into USD | 0.31 | 0.44 | 0.37 | 0.43 |
All other currencies | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign currency translation gain (loss) | $1,081 | ($361) |
Comprehensive_Income_Total_Com
Comprehensive Income - Total Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Comprehensive Income Net Of Applicable Taxes [Abstract] | ||
Comprehensive income (loss) attributable to Henry Schein, Inc. | ($3,288) | $107,112 |
Comprehensive income (loss) attributable to noncontrolling interests | 196 | 71 |
Comprehensive income (loss) attributable to Redeemable noncontrolling interests | 4,361 | 10,068 |
Comprehensive income (loss) | $1,269 | $117,251 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 | Dec. 28, 2013 |
Fair Value Disclosures [Abstract] | |||
Fair value of debt | $831,400,000 | $731,500,000 | |
Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 573,137,000 | 564,527,000 | 497,539,000 |
Fair value, measurements, recurring [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 1,820,000 | 2,472,000 | |
Total assets | 1,820,000 | 2,472,000 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1,021,000 | 1,307,000 | |
Total liabilities | 1,021,000 | 1,307,000 | |
Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 573,137,000 | 564,527,000 | |
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 | |
Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 1,820,000 | 2,472,000 | |
Total assets | 1,820,000 | 2,472,000 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1,021,000 | 1,307,000 | |
Total liabilities | 1,021,000 | 1,307,000 | |
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 | |
Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | $573,137,000 | $564,527,000 |
Business_Acquisitions_Details
Business Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||
Business combination, contingent consideration arrangements, change in amount of contingent consideration, liability | |||
scil animal care company GmbH [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, revenue reported by acquired entity for last annual period | $83 |
Plan_of_Restructuring_Details
Plan of Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Dec. 27, 2014 | Apr. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | $421,000 | $711,000 | $711,000 | |
Provision | 6,862,000 | 0 | 0 | |
Payments and other adjustments | -2,520,000 | -290,000 | ||
Restructuring Reserve, ending balance | 4,763,000 | 421,000 | ||
Health Care Distribution [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 421,000 | 711,000 | 711,000 | |
Provision | 6,860,000 | 0 | ||
Payments and other adjustments | -2,518,000 | -290,000 | ||
Restructuring Reserve, ending balance | 4,763,000 | 421,000 | ||
Technology and Value-Added Services [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 0 | 0 | 0 | |
Provision | 2,000 | 0 | ||
Payments and other adjustments | -2,000 | 0 | ||
Restructuring Reserve, ending balance | 0 | 0 | ||
Severance costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 120,000 | 227,000 | 227,000 | |
Provision | 5,086,000 | 0 | ||
Payments and other adjustments | -1,553,000 | -107,000 | ||
Restructuring Reserve, ending balance | 3,653,000 | 120,000 | ||
Facility closing costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 301,000 | 484,000 | 484,000 | |
Provision | 886,000 | 0 | ||
Payments and other adjustments | -221,000 | -183,000 | ||
Restructuring Reserve, ending balance | 966,000 | 301,000 | ||
Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, beginning balance | 0 | 0 | 0 | |
Provision | 890,000 | 0 | ||
Payments and other adjustments | -746,000 | 0 | ||
Restructuring Reserve, ending balance | 144,000 | 0 | ||
2015 Restructuring | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected percentage of workforce eliminated (in hundredths) | 2.00% | |||
Restructuring costs, expected costs | 35,000,000 | |||
Restructuring costs, expected costs per diluted share | $0.29 | |||
Restructuring costs, remaining expected costs | 30,000,000 | |||
2015 Restructuring | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected percentage of workforce eliminated (in hundredths) | 3.00% | |||
Restructuring costs, expected costs | 40,000,000 | |||
Restructuring costs, expected costs per diluted share | $0.33 | |||
Restructuring costs, remaining expected costs | 35,000,000 | |||
2015 Restructuring | Severance costs [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | 18,000,000 | |||
2015 Restructuring | Severance costs [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | 20,000,000 | |||
2015 Restructuring | Facility closing costs [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | 10,000,000 | |||
2015 Restructuring | Facility closing costs [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | 12,000,000 | |||
2015 Restructuring | Other [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | 2,000,000 | |||
2015 Restructuring | Other [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs, remaining expected costs | $3,000,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 83,230 | 84,808 |
Effect of dilutive securities: | ||
Stock options, restricted stock and restricted stock units (in shares) | 1,485 | 1,710 |
Diluted (in shares) | 84,715 | 86,518 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (in hundredths) | 31.00% | 31.20% |
Unrecognized tax benefits | $82,900,000 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 62,500,000 | |
Total interest | 15,900,000 | |
Total penalites | $0 |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Details) | 3 Months Ended |
Mar. 28, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Maximum duration of foreign currency forward contracts | 18 months |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Pre-tax share-based compensation expense | $8,500,000 | $9,000,000 |
After-tax share-based compensation expense | 5,900,000 | 6,200,000 |
Total unrecognized compensation cost related to non-vested awards | 139,700,000 | |
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards (in years) | 2 years 7 months 6 days | |
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) | 684,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | -163,000 | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 521,000 | |
Ending balance, options exercisable (in shares) | 521,000 | |
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) | $53.41 | |
Granted (in dollars per share) | $0 | |
Exercised (in dollars per share) | $47.15 | |
Forfeited (in dollars per share) | $0 | |
Outstanding at end of period (in dollars per share) | $55.37 | |
Ending balance, options exercisable (in dollars per share) | $55.37 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Stock option oustanding aggregate intrinsic value as of period end | 43,439,000 | |
Stock option exercisable aggregate intrinsic value as of period end | $43,439,000 | |
Weighted average remaining contractual life, options outstanding (in years) | 2 years 3 months 19 days | |
Weighted average remaining contractual life, options exercisable (in years) | 2 years 3 months 19 days | |
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) | 836,000 | |
Granted (in shares) | 163,000 | |
Vested (in shares) | -187,000 | |
Forfeited (in shares) | -8,000 | |
Ending balance outstanding (in shares) | 804,000 | |
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) | $83.86 | |
Granted (in dollars per share) | $140.76 | |
Vested (in dollars per share) | $72.39 | |
Forfeited (in dollars per share) | $91.90 | |
Ending balance outstanding (in dollars per share) | $98.02 | |
Intrinsic value (in dollars per share) | $138.80 | |
Time-based restricted stock/units [Member] | 2013 Stock Incentive Plan, as amended [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/units [Member] | 1996 Non-Employee Director Stock Incentive Plan, as amended [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] | ||
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) | 1,127,000 | |
Granted (in shares) | 289,000 | |
Vested (in shares) | -297,000 | |
Forfeited (in shares) | -6,000 | |
Ending balance outstanding (in shares) | 1,113,000 | |
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) | $77.19 | |
Granted (in dollars per share) | $130.71 | |
Vested (in dollars per share) | $73.49 | |
Forfeited (in dollars per share) | $99.17 | |
Ending balance outstanding (in dollars per share) | $97.02 | |
Intrinsic value (in dollars per share) | $138.80 | |
Performance-based restricted stock/units [Member] | 2013 Stock Incentive Plan, as amended [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of years for full vesting (in years) | 3 years |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Supplemental Cash Flow Information [Abstract] | ||
Interest | $6,198 | $5,803 |
Income taxes | 15,137 | 15,129 |
Unrealized gain (loss) from foreign currency hedging activities | ($2,174) | ($1,152) |