Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Entity Central Index Key | 0001000228 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-28 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
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 $.01 per share | |
Trading Symbol | HSIC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 128,050,943 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 159 | $ 171 | |
Accounts receivable, net of allowance for credit losses of $84 and $83 | [1] | 1,644 | 1,863 |
Inventories, net of reserves of $188 and $192 | 1,686 | 1,815 | |
Prepaid expenses and other | 589 | 639 | |
Total current assets | 4,078 | 4,488 | |
Property and equipment, net | 500 | 498 | |
Operating lease right-of-use assets | 314 | 325 | |
Goodwill | 3,835 | 3,875 | |
Other intangibles, net | 915 | 916 | |
Investments and other | 503 | 471 | |
Total assets | 10,145 | 10,573 | |
Current liabilities: | |||
Accounts payable | 879 | 1,020 | |
Bank credit lines | 264 | 264 | |
Current maturities of long-term debt | 103 | 150 | |
Operating lease liabilities | 75 | 80 | |
Accrued expenses: | |||
Payroll and related | 245 | 332 | |
Taxes | 143 | 137 | |
Other | 625 | 700 | |
Total current liabilities | 2,334 | 2,683 | |
Long-term debt | [1] | 2,010 | 1,937 |
Deferred income taxes | 77 | 54 | |
Operating lease liabilities | 266 | 310 | |
Other liabilities | 423 | 436 | |
Total liabilities | 5,110 | 5,420 | |
Redeemable noncontrolling interests | 798 | 864 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, none outstanding | 0 | 0 | |
Common stock, $0.01 par value, 480,000,000 shares authorized,128,480,909 outstanding on March 30, 2024 and 129,247,765 outstanding on December 30, 2023 | 1 | 1 | |
Additional paid-in capital | 0 | 0 | |
Retained earnings | 3,838 | 3,860 | |
Accumulated other comprehensive loss | (239) | (206) | |
Total Henry Schein, Inc. stockholders' equity | 3,600 | 3,655 | |
Noncontrolling interests | 637 | 634 | |
Total stockholders' equity | 4,237 | 4,289 | |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 10,145 | $ 10,573 | |
[1] Amounts presented include balances held by our consolidated variable interest entity (“VIE”). 30, 2023, includes trade accounts receivable of $ 497 284 300 $ 210 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Current assets: | ||
Accounts receivable, allowances for credit losses (in dollars) | $ 84 | $ 83 |
Inventory, reserves | $ 188 | $ 192 |
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) | 128,480,909 | 129,247,765 |
Variable Interest Entity, Primary Beneficiary [Member] | Recourse [Member] | ||
Stockholders' equity: | ||
Liabilities of VIE | $ 300 | $ 210 |
Asset Pledged as Collateral [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Stockholders' equity: | ||
Pledged assets | $ 497 | $ 284 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||
Net sales | $ 3,172 | $ 3,060 |
Cost of sales | 2,160 | 2,094 |
Gross profit | 1,012 | 966 |
Operating expenses: | ||
Selling, general and administrative | 791 | 717 |
Depreciation and amortization | 61 | 44 |
Restructuring costs | 10 | 30 |
Operating income | 150 | 175 |
Other income (expense): | ||
Interest income | 5 | 3 |
Interest expense | (30) | (14) |
Other, net | 2 | (1) |
Income before taxes, equity in earnings of affiliates and noncontrolling interests | 127 | 163 |
Income taxes | (32) | (39) |
Equity in earnings of affiliates, net of tax | 3 | 4 |
Net income | 98 | 128 |
Less: Net income attributable to noncontrolling interests | (5) | (7) |
Net income attributable to Henry Schein, Inc. | $ 93 | $ 121 |
Earnings per share attributable to Henry Schein, Inc.: | ||
Basic (in dollars per share) | $ 0.72 | $ 0.92 |
Diluted (in dollars per share) | $ 0.72 | $ 0.91 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 128,720,661 | 131,365,789 |
Diluted (in shares) | 129,769,580 | 133,039,886 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 98 | $ 128 |
Other comprehensive income, net of tax: | ||
Foreign currency translation gain (loss) | (54) | 25 |
Unrealized gain (loss) from foreign currency hedging activities | 11 | (3) |
Other comprehensive income (loss), net of tax | (43) | 22 |
Comprehensive income | 55 | 150 |
Comprehensive income attributable to noncontrolling interests: | ||
Net income | (5) | (7) |
Foreign currency translation loss (gain) | 10 | (2) |
Comprehensive loss (income) attributable to noncontrolling interests | 5 | (9) |
Comprehensive income attributable to Henry Schein, Inc. | $ 60 | $ 141 |
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. 31, 2022 | $ 4,095 | $ 1 | $ 0 | $ 3,678 | $ (233) | $ 649 |
Beginning Balance, shares (in shares) at Dec. 31, 2022 | 131,792,817 | |||||
Net income (excluding amounts attributable to redeemable noncontrolling interests) | 124 | 121 | 3 | |||
Foreign currency translation loss (excluding loss amounts attributable to redeemable noncontrolling interests) | 23 | 23 | ||||
Unrealized gain from foreign currency hedging activities, net of tax | (3) | (3) | ||||
Change in fair value of redeemable securities | 3 | 3 | ||||
Initial noncontrolling interests and adjustments related to business acquisitions | 3 | 3 | ||||
Repurchases and retirement of common stock - Value | (100) | (13) | (87) | |||
Repurchases and retirement of common stock - Shares | (1,223,919) | |||||
Stock-based compensation expense - Value | 10 | 10 | ||||
Stock-based compensation expense - Shares | 1,016,300 | |||||
Stock issued upon exercise of stock options - Value | 1 | 1 | ||||
Stock issued upon exercise of stock options - Shares | 10,779 | |||||
Shares withheld for payroll taxes - Value | (29) | (29) | ||||
Shares withheld for payroll taxes - Shares | (399,194) | |||||
Transfer of charges in excess of capital | 0 | 28 | (28) | |||
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 | |||||
Beginning Balance at Dec. 30, 2023 | $ 4,289 | $ 1 | 0 | 3,860 | (206) | 634 |
Beginning Balance, shares (in shares) at Dec. 30, 2023 | 129,247,765 | 129,247,765 | ||||
Net income (excluding amounts attributable to redeemable noncontrolling interests) | $ 96 | 93 | 3 | |||
Foreign currency translation loss (excluding loss amounts attributable to redeemable noncontrolling interests) | (44) | (44) | ||||
Unrealized gain from foreign currency hedging activities, net of tax | 11 | 11 | ||||
Change in fair value of redeemable securities | (42) | (42) | ||||
Initial noncontrolling interests and adjustments related to business acquisitions | 1 | 1 | ||||
Repurchases and retirement of common stock - Value | (75) | (10) | (65) | |||
Repurchases and retirement of common stock - Shares | (998,728) | |||||
Stock-based compensation expense - Value | 8 | 8 | ||||
Stock-based compensation expense - Shares | 314,759 | |||||
Stock issued upon exercise of stock options - Value | $ 1 | 1 | ||||
Stock issued upon exercise of stock options - Shares | 21,570 | 20,939 | ||||
Shares withheld for payroll taxes - Value | $ (8) | (8) | ||||
Shares withheld for payroll taxes - Shares | (103,865) | |||||
Settlement of stock-based compensation awards - Value | 0 | 0 | ||||
Settlement of stock-based compensation awards - Shares | 39 | |||||
Transfer of charges in excess of capital | 0 | 50 | (50) | |||
Ending Balance at Mar. 30, 2024 | $ 4,237 | $ 1 | $ 0 | $ 3,838 | $ (239) | $ 637 |
Ending Balance, shares (in shares) at Mar. 30, 2024 | 128,480,909 | 128,480,909 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Net income attributable to redeemable noncontrolling interests | $ 2 | $ 4 | $ 6 |
Foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | (10) | 2 | $ 5 |
Unrealized gain (loss) from foreign currency hedging activities, tax (benefit) | $ 4 | $ (1) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 98 | $ 128 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73 | 52 |
Non-cash restructuring charges | 1 | 7 |
Stock-based compensation expense | 8 | 10 |
Provision for losses on trade and other accounts receivable | 5 | 1 |
Provision for deferred income taxes | 2 | 2 |
Equity in earnings of affiliates | (3) | (4) |
Distributions from equity affiliates | 2 | 2 |
Changes in unrecognized tax benefits | 2 | 1 |
Other | (6) | (1) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 190 | (20) |
Inventories | 74 | 63 |
Other current assets | 41 | 29 |
Accounts payable and accrued expenses | (290) | (243) |
Net cash provided by operating activities | 197 | 27 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (41) | (31) |
Payments related to equity investments and business acquisitions, net of cash acquired | (20) | (1) |
Proceeds from loan to affiliate | 1 | 2 |
Capitalized software costs | (9) | (9) |
Other | (3) | 0 |
Net cash used in investing activities | (72) | (39) |
Cash flows from financing activities: | ||
Net change in credit lines | 0 | 132 |
Proceeds from issuance of long-term debt | 90 | 31 |
Principal payments for long-term debt | (60) | (1) |
Proceeds from issuance of stock upon exercise of stock options | 1 | 1 |
Payments for repurchases and retirement of common stock | (75) | (100) |
Payments for taxes related to shares withheld for employee taxes | (7) | (30) |
Distributions to noncontrolling shareholders | (6) | (4) |
Acquisitions of noncontrolling interests in subsidiaries | (94) | (8) |
Net cash provided by (used in) financing activities | (151) | 21 |
Effect of exchange rate changes on cash and cash equivalents | 14 | 0 |
Net change in cash and cash equivalents | (12) | 9 |
Cash and cash equivalents, beginning of period | 171 | 117 |
Cash and cash equivalents, end of period | $ 159 | $ 126 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 30, 2024 | |
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” and “our”). consolidation. financial decisions are accounted for under the equity method. 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 30, 2023 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 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 March 30, 2024 are not necessarily for any other interim period or for the year ending December 28, 2024. 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. We consolidate the results of operations and financial position of a trade accounts receivable securitization which we consider a VIE because we are its primary beneficiary, as we have the power to direct activities that most significantly affect its economic performance and have the obligation to absorb the benefits. debt. December 30, 2023, certain trade accounts receivable that can only be used $ 497 284 were $ 300 210 |
Significant Accounting Policies
Significant Accounting Policies and Recently Issued Accounting Standards | 3 Months Ended |
Mar. 30, 2024 | |
Significant Accounting Policies and Recently Issued Accounting Standards [Abstract] | |
Significant Accounting Policies and Recently Issued Accounting Standards | Note 2 – Significant Accounting Policies and Recently Issued Accounting Significant Accounting Policies There have been no material changes in our significant accounting policies during 30, 2024, as compared to the significant accounting policies described in Item K for the year ended December 30, 2023. Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “ Income Taxes (Topic ,” which requires public business entities to disclose additional information in specified categories with effective tax rate to the statutory rate for federal, state and foreign income taxes. about individual reconciling items in the rate reconciliation to the extent specified threshold. information pertaining to taxes paid (net of refunds received) to be and further disaggregated for specific jurisdictions to the extent the The ASU also describes items that need to be disaggregated based on to the item’s fundamental or essential characteristics, such as the transaction or event that triggered the establishment of the reconciling item and the activity with which the reconciling eliminates the historic requirement that entities disclose information concerning reasonable possibility of significantly increasing or decreasing in the 12 ASU is effective for annual periods beginning after December 15, 2024. financial statements that have not yet been issued or made available prospective basis; however, retrospective application is permitted. ASU 2023 – 09 will have on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segments ,” which aims to improve financial reporting by requiring disclosure on an annual and interim basis for all public entities to enable investors to analyses. segments. operating decision maker uses to assess segment performance and Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. remove those disclosure requirements and do not change how a public aggregates those operating segments or applies the quantitative thresholds This ASU is effective for fiscal years beginning after December 15, 2023, and interim beginning after December 15, 2024. 2023 – 07 will have a material impact on our consolidated financial In March 2024, the FASB issued ASU 2024-01, “ Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, ” which clarifies how to determine whether a profit interest and similar awards should be accounted for as a share-based payment arrangement of other guidance. of paragraph 718-10-15-3 of Topic 718 to improve its clarity and operability. applies to all entities that issue profits interest awards as compensation for goods or services. financial statements or prospectively to profits interest awards granted If prospective application is elected, an entity must disclose the nature principle that resulted from the adoption of the ASU. December 15, 2024, including interim periods within those fiscal years. ASU 2024 – 01 will have a material impact on our consolidated financial |
Cyber Incident
Cyber Incident | 3 Months Ended |
Mar. 30, 2024 | |
Cyber Incident [Abstract] | |
Cyber Incident | Note 3 – Cyber Incident In October 2023 Henry Schein experienced a cyber incident that primarily American and European dental and medical distribution businesses. software, revenue cycle management and patient relationship management our manufacturing businesses were mostly unaffected. ecommerce platform and related applications, which has since been During the three months ended March 30, 2024, we continued noted above relating primarily to decreased sales to episodic customers (customers less continuous level of demand pre-incident). During the three months ended March 30, 2024, we incurred $ 5 incident, mostly consisting of professional fees. policy limitations. 60 following a $ 5 |
Net Sales from Contracts with C
Net Sales from Contracts with Customers | 3 Months Ended |
Mar. 30, 2024 | |
Net Sales from Contracts with Customers [Abstract] | |
Net sales from Contracts with Customers | Note 4 – Net Sales from Contracts with Customers Net sales are recognized in accordance with policies disclosed in Item the year ended December 30, 2023. Disaggregation of Net Sales The following table disaggregates our net sales by reportable and operating segment Three Months Ended March 30, 2024 North America International Global Net sales: Health care distribution Dental $ 1,103 $ 811 $ 1,914 Medical 1,014 27 1,041 Total health care distribution 2,117 838 2,955 Technology 189 28 217 Total net sales $ 2,306 $ 866 $ 3,172 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 Contract Liabilities At March 30, 2024, December 30, 2023, and December 31, 2022, the current were $ 84 8 89 9 86 8 the three months ended March 30, 2024, we recognized, in net sales, $ 36 deferred at December 30, 2023. 35 million of the amounts that were previously deferred at December 31, 2022. included in accrued expenses: other and the non-current contract liabilities our consolidated balance sheets. |
Segment Data
Segment Data | 3 Months Ended |
Mar. 30, 2024 | |
Segment Data [Abstract] | |
Segment Data | Note 5 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 33 The health care distribution reportable segment aggregates our global dental segment distributes consumable products, dental specialty products (including products), pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, personal equipment (“PPE”) products, vitamins, and orthopedic implants. 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 education services for practitioners, The following tables present information about our reportable and operating Three Months Ended March 30, April 1, 2024 2023 Net sales: Health care distribution (1) Dental $ 1,914 $ 1,898 Medical 1,041 971 Total health care distribution 2,955 2,869 Technology (2) 217 191 Total $ 3,172 $ 3,060 Consists of consumable products, dental specialty products (including implant, orthodontic and endodontic products), small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, PPE products, vitamins, and orthopedic implants. (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, practice technology, network and hardware services, and other services. Three Months Ended March 30, April 1, 2024 2023 Operating Income: Health care distribution $ 126 $ 145 Technology 24 30 Total $ 150 $ 175 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 30, 2024 | |
Business Acquisitions [Abstract] | |
Business Acquisitions | Note 6 Business Acquisitions Our acquisition strategy is focused on investments in companies that our geographic footprint (whether entering a new country, such as emerging markets, or building scale where we have already invested in businesses), and finally, those that enable us to access new products and technologies. 2024 Acquisitions During the quarter ended March 30, 2024, we made acquisitions within segment. 100 %. was $ 19 8 12 assets. 6 development of $ 4 1 1 Weighted average useful lives for these acquired intangible assets were 10 10 5 5 respectively. Goodwill is a result of the expected synergies and cross-selling opportunities that provide for us, as well as the expected growth potential. purposes. The impact of these acquisitions, individually and in the aggregate, was consolidated financial statements. 2023 Acquisitions Acquisition of Shield Healthcare On October 2, 2023 we acquired a 90 % voting equity interest in Shield Healthcare, Inc. (“Shield”), a supplier homecare medical products delivered directly to patients in their homes, for 366 million (including cash paid of $ 307 22 interests of $ 37 range of products, including items such as incontinence, urology, ostomy, enteral nutrition, advanced wound care and diabetes supplies. their homes. The accounting for the acquisition of Shield has not been completed finalizing valuation assessments of accounts receivable, inventory, accrued liabilities and income and non-income based taxes. value of intangible and tangible assets acquired and liabilities assumed. the information necessary to complete the analysis is obtained. recorded immaterial measurement period adjustments, related primarily The pro forma financial information has not been presented because the immaterial to our consolidated financial statements. Acquisition of S.I.N. Implant System On July 5, 2023, we acquired a 100 % voting equity interest in S.I.N. Implant System (“S.I.N.”) for consideration $ 329 procedures and is focused on advancing the development of value-priced dental the distribution of its products into the United States and other international The accounting for the acquisition of S.I.N. has not been completed finalizing valuation assessments of accounts receivable, inventory, accrued liabilities and income and non-income based taxes. value of intangible and tangible assets acquired and liabilities assumed. the information necessary to complete the analysis is obtained. possible but no later than one year from the acquisition date. recorded insignificant measurement period adjustments, related primarily The pro forma financial information has not been presented because the immaterial to our consolidated financial statements. Acquisition of Biotech Dental On April 5, 2023, we acquired a 57 % voting equity interest in Biotech Dental (“Biotech Dental”), which provider of dental implants, clear aligners, individualized prosthetics France. comprehensive, integrated suite of planning and diagnostic software medical devices to create a digital view of the patient, offering greater diagnostic experience. management software solutions will help customers streamline their the ultimate benefit of patients. The following table aggregates the final fair value, as of the date of acquisition, acquired in the Biotech Dental acquisition, including measurement period 2024: Preliminary Allocation as of July 1, 2023 Measurement Period Adjustments Allocation as of March 30, 2024 Acquisition consideration: Cash $ 216 $ - $ 216 Fair value of contributed equity share in a controlled subsidiary 25 - 25 Redeemable noncontrolling interests 182 - 182 Total consideration $ 423 $ - $ 423 Identifiable assets acquired and liabilities assumed: Current assets $ 78 $ (4) $ 74 Intangible assets 119 70 189 Other noncurrent assets 76 (7) 69 Current liabilities (50) (10) (60) Long-term debt (90) 17 (73) Deferred income taxes (38) (15) (53) Other noncurrent liabilities (16) (4) (20) Total identifiable 79 47 126 Goodwill 344 (47) 297 Total net assets acquired $ 423 $ - $ 423 Goodwill is a result of expected synergies that are expected to originate from the growth potential of Biotech Dental. ended March 30, 2024 we finalized our accounting for the acquisition adjustments related primarily to the completion of the intangibles valuation, deferred tax and certain other assets and liabilities. The following table summarizes the identifiable intangible assets acquired Dental: 2023 Weighted Average Lives (in years) Customer relationships and lists $ 47 9 Trademarks / Tradenames 18 7 Product development 124 10 Total $ 189 The pro forma financial information has not been presented because the was immaterial to our condensed consolidated financial statements. Other 2023 Acquisitions During the year ended December 30, 2023, in addition to those noted above, health care distribution and technology and value-added services segments. between 51 % to 100 %. 15 within the selling, general and administrative line in our condensed consolidated a change in the fair value of contingent consideration related to a 2023 During the three months ended March 30, 2024 we completed accounting the year ended December 30, 2023. condensed consolidated financial statements relating to changes in estimated assumed and contingent consideration assets and liabilities. The pro forma financial information for our 2023 acquisitions has not been acquisitions was immaterial to our condensed consolidated Acquisition Costs During the three months ended March 30, 2024 and April 1, 2023 we 2 7 acquisition costs, which are included in “selling, general and administrative” statements of income. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 7 – 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 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 fair value is based on Level 3 inputs within the fair value hierarchy. Debt The fair value of our debt (including bank credit lines, current maturities based on Level 3 inputs within the fair value hierarchy, and as of March 30, 2024 and December 30, 2023 was estimated at $ 2,377 2,351 value of our debt include market conditions, such as interest rates and credit Derivative contracts Derivative contracts are valued using quoted market prices and instruments primarily include foreign currency forward agreements, forecasted foreign currency forward contracts, interest rate swaps and total return swaps. 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 that are classified within Level 2 of the fair value hierarchy. The fair value of the interest rate swap, which is classified within Level 2 by comparing our contract rate to a forward market rate as of the The fair value of total return swaps is determined by valuing the underlying 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 based on recent earnings that are classified within Level 3 of the fair value hierarchy. Assets measured on a non-recurring basis at fair value include intangibles. 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 2023: March 30, 2024 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 2 - 2 Total return - 1 - 1 Total assets $ - $ 4 $ - $ 4 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 1 - 1 Total liabilities $ - $ 2 $ - $ 2 Redeemable noncontrolling interests $ - $ - $ 798 $ 798 December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 1 - 1 Total return - 4 - 4 Total assets $ - $ 6 $ - $ 6 Liabilities: Derivative contracts designated as hedges $ - $ 18 $ - $ 18 Derivative contracts undesignated - 2 - 2 Total liabilities $ - $ 20 $ - $ 20 Redeemable noncontrolling interests $ - $ - $ 864 $ 864 |
Debt
Debt | 3 Months Ended |
Mar. 30, 2024 | |
Debt [Abstract] | |
Debt | Note 8 – Debt Bank Credit Lines Bank credit lines consisted of the following: March 30, December 30, 2024 2023 Revolving credit agreement $ 50 $ 200 Other short-term bank credit lines 214 64 Total $ 264 $ 264 Revolving Credit Agreement On August 20, 2021 , we entered a $ 1.0 which was subsequently amended and restated on July 11, 2023 July 11, 2028 update the interest rate provisions to reflect the current market approach rate on this revolving credit facility is based on Term Secured Overnight Financing Rate (“Term SOFR”) plus a spread based on our leverage ratio at the end of each financial reporting rate on this revolving credit agreement was 5.32 % plus 1.10 % for a combined rate of 6.42 %. Agreement requires, among other things, that we maintain certain maximum Revolving Credit Agreement contains customary representations, warranties customary negative covenants, subject to negotiated exceptions, on changes (including mergers), dispositions and certain restrictive agreements. 30, 2023, we had $ 50 200 During the three months ended March 30, 2024, the average outstanding balance Agreement was approximately $ 100 10 million and $ 10 Agreement. Other Short-Term Bank Credit As of March 30, 2024 and December 30, 2023, we had various other short-term various currencies, with a maximum borrowing capacity of $ 383 368 March 30, 2024 and December 30, 2023, $ 214 64 three months ended March 30, 2024, the average outstanding balances under credit lines was approximately $ 96 short-term bank credit lines had weighted average interest rates of 6.08 % and 6.02 %, respectively. Long-term debt Long-term debt consisted of the following: March 30, December 30, 2024 2023 Private placement facilities $ 1,024 $ 1,074 Term loan 736 741 U.S. trade accounts receivable securitization 300 210 Various in varying installments through 2030 at interest rates from 0.00 % to 9.42 % at March 30, 2024 and from 0.00 % to 9.42 % at December 30, 2023 46 54 Finance lease obligations 7 8 Total 2,113 2,087 Less current maturities (103) (150) Total long-term debt $ 2,010 $ 1,937 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 3.66 %, as of March 30, 2024 are presented in the following table: Amount of Date of Borrowing Borrowing Borrowing Outstanding Rate Due Date 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 May 4, 2023 75 4.79 May 4, 2028 May 4, 2023 75 4.84 May 4, 2030 May 4, 2023 75 4.96 May 4, 2033 May 4, 2023 150 4.94 May 4, 2033 Less: Deferred debt issuance costs (1) Total $ 1,024 Term Loan On July 11, 2023, we entered into a three-year 750 Agreement”). ratio at the end of each financial reporting quarter. We are required to make quarterly payments of $ 5 payments of $ 9 of March 30, 2024, the borrowings outstanding under this term loan were 736 interest rate under the Term Credit Agreement was 5.32 % plus 1.47 % for a combined rate of 6.79 %. December 30, 2023, the borrowings outstanding under this term loan were 741 the interest rate under the Term Credit Agreement was 5.36 % plus 1.35 % for a combined rate of 6.71 %. we have a hedge in place that ultimately creates an effective fixed rate of 5.91 % and 5.79 % at March 30, 2024 and December 30, 2023, respectively. certain maximum leverage ratios. warranties and affirmative covenants as well as customary negative covenants, subject liens, indebtedness, significant corporate changes (including mergers), dispositions agreements. U.S. Trade Accounts Receivable Securitization We have a facility agreement based on our U.S. trade accounts receivable that is structured as an asset-backed securitization program with pricing committed for up to three years . $ 450 two December 15, 2025 . As of March 30, 2024 and December 30, 2023, the borrowings outstanding $ 300 210 was based on the asset-backed commercial paper rate of 5.47 % plus 0.75 %, for a combined rate of 6.22 %. December 30, 2023, the interest rate on borrowings under this facility was paper rate of 5.67 % plus 0.75 %, for a combined rate of 6.42 %. 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 |
Mar. 30, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 – Income Taxes For the three months ended March 30, 2024 our effective tax rate was 25.6 %, compared to 23.8 % for the prior year period. foreign income taxes and interest expense. The Organization of Economic Co-Operation and Development (OECD) issued guidance on Pillar Two Model Rules in December 2021, which provides for a global minimum tax rate on the earnings of large multinational businesses on a country-by-country basis. global tax rate is 15% for various jurisdictions pursuant to the Pillar Two framework. from these developments may result in changes to long-standing tax principles, effective tax rate going forward or result in higher cash tax liabilities. Pillar Two Rules to our financial statements was immaterial. Pillar Two, The total amount of unrecognized tax benefits, which are included in consolidated balance sheets, as of March 30, 2024 and December 30, 2023, was 113 115 respectively, of which $ 106 107 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 2019. IRS include years 2020 and forward. examination. The amount of tax interest expense included as a component of the provision 1 1 million for the three months ended March 30, 2024 and April 1, 2023, interest is included in “other liabilities,” and was $ 17 16 30, 2023. consolidated financial statements. |
Plan of Restructuring
Plan of Restructuring | 3 Months Ended |
Mar. 30, 2024 | |
Plan of Restructuring [Abstract] | |
Plan of Restructuring | Note 10 – Plan of Restructuring On August 1, 2022, we committed to a restructuring plan focused on plan, streamlining operations and other initiatives to increase efficiency. completion and we have extended this initiative through the end of 2024. make a determination of an estimate of the amount or range of amounts these activities, both with respect to each major type of cost associated estimate of the amount or range of amounts that will result in future During the three months ended March 30, 2024 and April 1, 2023, we 10 and $ 30 employee-related costs, accelerated amortization of right-of-use costs. Restructuring costs recorded for the three months ended March 30, 2024 following: Three Months Ended March 30, 2024 Health Care Distribution Technology Value-Added Services Total Severance and employee-related costs $ 6 $ 1 $ 7 Accelerated depreciation and amortization 1 - 1 Exit and other related costs 2 - 2 Total restructuring $ 9 $ 1 $ 10 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 restructuring costs as of March 30, 2024, which primarily relates included in accrued expenses: other within our condensed consolidated leased facilities are recorded within our current and non-current operating consolidated balance sheets. Technology Health Care Value-Added Distribution Services Total Balance, December 30, 2023 $ 22 $ 1 $ 23 Restructuring costs 9 1 10 Non-cash accelerated depreciation and amortization (1) - (1) Cash payments and other adjustments (11) (1) (12) Balance, March 30, 2024 $ 19 $ 1 $ 20 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 30, 2024 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note 11 – Legal Proceedings Henry Schein, Inc. has been named as a defendant in multiple opioid 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 subsidiaries) reaped otherwise failing to monitor appropriately and restrict the improper distribution 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 is currently set for a jury trial on July 8, 2024; the action filed by Mobile state court, which has been set for a jury trial on August 12, 2024; Center, Inc. (and 25 other hospitals located throughout the State of Florida) in Florida state court, scheduled for a jury trial in September 2025. 12.3 sales of opioids represented less than four-tenths of 1 percent. business. 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. On January 18, 2024, a putative class action was filed against the Company Eastern District of New York (“EDNY”), Case No. 24-cv-387 (the “Cruz-Bermudez Action”), based on the October 2023 cyber incident described in On January 26, 2024, a second putative class action was filed against the Company based on the cyber incident, also “Depperschmidt Action”). prejudice. plaintiffs’ counsel from the Depperschmidt Action and an additional new plaintiff. Plaintiffs in the Cruz-Bermudez Action seek to represent a class of all individuals information and personal health information was compromised by been harmed by alleged actions and/or omissions by the Company Company made deceptive public statements regarding privacy and data protection. claims seeking monetary damages, injunctive relief, costs and attorneys’ 22, 2024, plaintiffs voluntarily withdrew two of their five causes of action. Company’s motion to dismiss the remaining claims. vigorously against this action. Henry Schein, Inc. and its affiliate, North American Rescue, LLC (“NAR”), have qui tam lawsuit brought under the federal False Claims Act (“FCA”), in Russ and Murphy ex rel. United States v. North American Rescue, LLC et al. ; Case No. 21-cv-04238, filed in the United States District for the Eastern District of Pennsylvania. Chris Murphy) who worked for one of NAR’s competitors. as a defendant. “CAT”). amended complaint in November 2023. R, Relators requested and obtained leave to file their Second Amended FCA claims are based on allegations that NAR and Henry Schein made false connection with, and sold and submitted false claims for payment to the federal products that Relators contend violated certain “Buy American” Agreements Act of 1979) and/or were not properly sterilized as noted misbranded. blankets, eye, ear, nose and throat kits, and trauma dressing. supervised NAR’s alleged misconduct for a period of time. proved at trial, statutory civil penalties, reasonable expenses, attorneys’ interest. 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 March 30, 2024, 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 |
Mar. 30, 2024 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 12 – Stock-Based Compensation Stock-based awards are provided to certain employees under our 2020 Stock Incentive directors under our 2023 Non-Employee Director Stock Incentive Plan Employee Director Stock Incentive Plan) (together, the “Plans”). Committee of the Board of Directors (the “Compensation Committee”). employees have been granted solely in the form of time-based and performance-based (“RSUs”) with the exception of our 2021 plan year in which non-qualified performance-based RSUs and in 2022, when we granted time-based and qualified stock options. in the form of time-based and performance-based RSUs. solely in the form of time-based RSUs. 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. For these RSUs, we recognize the cost as compensation expense on a straight-line For all RSUs, we estimate the fair value based on our closing stock performance-based RSUs, the number of shares that ultimately vest and our performance as measured against specified targets over a specified period, as Committee. performance-based RSUs based on our closing stock price at time of grant. 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, amortization expense recorded for acquisition-related intangible assets (solely with respect to performance-based RSUs granted in the 2023 and 2024 plan years), payments, if any, changes in accounting principles or in applicable laws or regulations, changes in income tax rates in certain markets, foreign exchange fluctuations, the financial impact in projected earnings generated by COVID-19 test kits (solely with respect the 2022 and 2023 plan years) and impairment charges (solely with respect to performance-based the 2023 and 2024 plan years), and unforeseen events or circumstances Over the performance period, the number of RSUs that will ultimately vest compensation expense is adjusted upward or downward based upon our targets. expense is based on our actual performance metrics as defined under Stock options are awards that allow the recipient to purchase shares of our price set at the time of grant. date of grant. 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 term acceleration upon certain events. vesting method. During the three months ended March 30, 2024, we did no t grant any stock options. Our condensed consolidated statements of income reflect pre-tax share-based compensation 8 and $ 10 Total unrecognized compensation cost related to unvested awards as of March 30, 2024 was $ 120 expected to be recognized over a weighted-average period of approximately 2.7 Our condensed consolidated statements of cash flows present our reconciling adjustment between net income and net cash provided by operating There were no cash benefits associated with tax deductions in excess of months ended March 30, 2024 and April 1, 2023. 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 that most closely aligns to the expected life of options. six - year expected life of the options was determined using the simplified permitted under Staff Accounting Bulletin Topic 14. The following table summarizes the stock option activity for the three Stock Options Weighted Average Weighted Average Aggregate Exercise Remaining Contractual Shares Price Life (in years) Outstanding at beginning of period 1,078,459 $ 71.46 Granted - Exercised (21,570) 62.71 Forfeited (897) 82.62 Outstanding at end of period 1,055,992 $ 71.63 7.3 $ 8 Options exercisable at end of period 908,836 $ 69.49 Weighted Average Weighted Average Aggregate Number of Exercise Remaining Contractual Intrinsic Options Price Life (in years) Value Expected to vest 147,110 $ 84.84 8.0 $ - The following tables summarize the activity of our unvested RSUs for Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Weighted Weighted Average Intrinsic Average Intrinsic Grant Date Fair Value Grant Date Fair Value Shares/Units Value Per Share Per Share Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,655,393 $ 70.34 208,742 $ 78.02 Granted 432,350 76.56 450,333 76.81 Vested (307,839) 62.51 (6,432) 63.01 Forfeited (6,021) 81.48 (6,431) 83.07 Outstanding at end of period 1,773,883 $ 73.19 $ 75.52 646,212 $ 75.68 $ 75.52 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 30, 2024 | |
Redeemable Noncontrolling Interests [Abstract] | |
Redeemable Noncontrolling Interests | Note 13 – 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 March 30, 2024 and the year ended December following table: March 30, December 30, 2024 2023 Balance, beginning of period $ 864 $ 576 Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interests in subsidiaries (94) (19) Increase in redeemable noncontrolling interests due to business acquisitions - 326 Net income attributable to redeemable noncontrolling interests 2 6 Distributions declared, net of capital contributions (6) (19) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests (10) 5 Change in fair value of redeemable securities 42 (11) Balance, end of period $ 798 $ 864 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 30, 2024 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | Note 14 – Comprehensive Income Comprehensive income includes certain gains and losses that, under U.S. are recorded directly to stockholders’ equity. The following table summarizes our Accumulated other comprehensive loss, net of March 30, December 30, 2024 2023 Attributable to redeemable noncontrolling interests: Foreign currency translation adjustment $ (42) $ (32) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (1) $ (1) Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ (232) $ (188) Unrealized loss from hedging activities (2) (13) Pension adjustment loss (5) (5) Accumulated other comprehensive loss $ (239) $ (206) Total Accumulated $ (282) $ (239) The following table summarizes the components of comprehensive income, net Three Months Ended March 30, April 1, 2024 2023 Net income $ 98 $ 128 Foreign currency translation gain (loss) (54) 25 Tax effect - - Foreign currency translation gain (loss) (54) 25 Unrealized gain (loss) from hedging activities 15 (4) Tax effect (4) 1 Unrealized gain (loss) from hedging activities 11 (3) Comprehensive income $ 55 $ 150 Our financial statements are denominated in U.S. Dollars. compared to the U.S. Dollar may have a significant impact on our translation gain (loss) during the three months ended March 30, 2024 primarily due to changes in foreign currency exchange rates of the Euro, Dollar, Swiss Franc and Canadian Dollar. The hedging gain (loss) during the three months ended March 30, 2024, and investment hedge. The following table summarizes our total comprehensive income, net of Three Months Ended March 30, April 1, 2024 2023 Comprehensive income attributable to Henry Schein, Inc. $ 60 $ 141 Comprehensive income attributable to noncontrolling interests 3 3 Comprehensive income (loss) attributable to Redeemable noncontrolling interests (8) 6 Comprehensive income $ 55 $ 150 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15 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 exercise of stock options using the treasury stock method in periods A reconciliation of shares used in calculating earnings per basic and diluted Three Months Ended March 30, April 1, 2024 2023 Basic 128,720,661 131,365,789 Effect of dilutive securities: Stock options and restricted stock units 1,048,919 1,674,097 Diluted 129,769,580 133,039,886 The number of antidilutive securities that were excluded from the calculation shares outstanding are as follows: Three Months Ended March 30, April 1, 2024 2023 Stock options 419,139 422,190 Restricted stock units 245,667 18,305 Total anti-dilutive 664,806 440,495 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 30, 2024 | |
Supplemental Cash Flow information [Abstract] | |
Supplemental Cash Flow Information | Note 16 – Supplemental Cash Flow Information Cash paid for interest and income taxes was: Three Months Ended March 30, April 1, 2024 2023 Interest $ 26 $ 13 Income taxes 21 21 For the three months ended March 30, 2024 and April 1, 2023, we had $ 15 (4) unrealized gains (losses) related to hedging activities, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17 – 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 March 30, 2024 and April 1, 2023, we recorded $ 8 8 connection with costs related to this royalty agreement. Schein One, LLC had a net payable balance to Internet Brands of $ 3 1 comprised of amounts related to results of operations and the royalty agreement. are recorded within accrued expenses: other within our condensed consolidated We have interests in entities that we account for under the equity accounting method. business, during the three months ended March 30, 2024 and April 1, 2023, 12 and $ 8 purchased $ 3 2 we had an aggregate $ 31 32 6 $ 5 Certain of our facilities related to our acquisitions are leased from employees leases are classified as operating leases and have a remaining lease term one month 17 years. $ 5 22 6.7 % and 8.2 % of the total current and non-current operating lease liabilities, respectively. represented 6.3 % and 7.4 % of the total current and non-current operating lease liabilities, respectively. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 30, 2024 | |
Basis of Presentation [Abstract] | |
Principles of Consolidation | Our condensed consolidated financial statements include the accounts of Henry controlled subsidiaries (“we”, “us” and “our”). consolidation. financial decisions are accounted for under the equity method. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles States requires us to make estimates and assumptions that affect the reported amounts of 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 March 30, 2024 are not necessarily for any other interim period or for the year ending December 28, 2024. |
Consolidated Variable Interest Entity | We consolidate the results of operations and financial position of a trade accounts receivable securitization which we consider a VIE because we are its primary beneficiary, as we have the power to direct activities that most significantly affect its economic performance and have the obligation to absorb the benefits. debt. December 30, 2023, certain trade accounts receivable that can only be used $ 497 284 were $ 300 210 |
Significant Accounting Polici_2
Significant Accounting Policies and Recently Issued Accounting Standards (Policy) | 3 Months Ended |
Mar. 30, 2024 | |
Significant Accounting Policies and Recently Issued Accounting Standards [Abstract] | |
Accounting Standard Adopted and Recently Issued Accounting Standards | Recently Issued Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “ Income Taxes (Topic ,” which requires public business entities to disclose additional information in specified categories with effective tax rate to the statutory rate for federal, state and foreign income taxes. about individual reconciling items in the rate reconciliation to the extent specified threshold. information pertaining to taxes paid (net of refunds received) to be and further disaggregated for specific jurisdictions to the extent the The ASU also describes items that need to be disaggregated based on to the item’s fundamental or essential characteristics, such as the transaction or event that triggered the establishment of the reconciling item and the activity with which the reconciling eliminates the historic requirement that entities disclose information concerning reasonable possibility of significantly increasing or decreasing in the 12 ASU is effective for annual periods beginning after December 15, 2024. financial statements that have not yet been issued or made available prospective basis; however, retrospective application is permitted. ASU 2023 – 09 will have on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segments ,” which aims to improve financial reporting by requiring disclosure on an annual and interim basis for all public entities to enable investors to analyses. segments. operating decision maker uses to assess segment performance and Topic 280 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. remove those disclosure requirements and do not change how a public aggregates those operating segments or applies the quantitative thresholds This ASU is effective for fiscal years beginning after December 15, 2023, and interim beginning after December 15, 2024. 2023 – 07 will have a material impact on our consolidated financial In March 2024, the FASB issued ASU 2024-01, “ Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, ” which clarifies how to determine whether a profit interest and similar awards should be accounted for as a share-based payment arrangement of other guidance. of paragraph 718-10-15-3 of Topic 718 to improve its clarity and operability. applies to all entities that issue profits interest awards as compensation for goods or services. financial statements or prospectively to profits interest awards granted If prospective application is elected, an entity must disclose the nature principle that resulted from the adoption of the ASU. December 15, 2024, including interim periods within those fiscal years. ASU 2024 – 01 will have a material impact on our consolidated financial |
Net Sales from Contracts with_2
Net Sales from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Net Sales from Contracts with Customers [Abstract] | |
Disaggregation of Revenue | Three Months Ended March 30, 2024 North America International Global Net sales: Health care distribution Dental $ 1,103 $ 811 $ 1,914 Medical 1,014 27 1,041 Total health care distribution 2,117 838 2,955 Technology 189 28 217 Total net sales $ 2,306 $ 866 $ 3,172 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 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Data [Abstract] | |
Business segment information | Three Months Ended March 30, April 1, 2024 2023 Net sales: Health care distribution (1) Dental $ 1,914 $ 1,898 Medical 1,041 971 Total health care distribution 2,955 2,869 Technology (2) 217 191 Total $ 3,172 $ 3,060 Consists of consumable products, dental specialty products (including implant, orthodontic and endodontic products), small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, PPE products, vitamins, and orthopedic implants. (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, practice technology, network and hardware services, and other services. Three Months Ended March 30, April 1, 2024 2023 Operating Income: Health care distribution $ 126 $ 145 Technology 24 30 Total $ 150 $ 175 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) - Biotech Dental [Member] | 3 Months Ended |
Mar. 30, 2024 | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Value of Consideration Paid and Net Assets Acquired | Preliminary Allocation as of July 1, 2023 Measurement Period Adjustments Allocation as of March 30, 2024 Acquisition consideration: Cash $ 216 $ - $ 216 Fair value of contributed equity share in a controlled subsidiary 25 - 25 Redeemable noncontrolling interests 182 - 182 Total consideration $ 423 $ - $ 423 Identifiable assets acquired and liabilities assumed: Current assets $ 78 $ (4) $ 74 Intangible assets 119 70 189 Other noncurrent assets 76 (7) 69 Current liabilities (50) (10) (60) Long-term debt (90) 17 (73) Deferred income taxes (38) (15) (53) Other noncurrent liabilities (16) (4) (20) Total identifiable 79 47 126 Goodwill 344 (47) 297 Total net assets acquired $ 423 $ - $ 423 |
Summary of Identifiable Intangible Assets Acquired and Estimated Useful Lives | 2023 Weighted Average Lives (in years) Customer relationships and lists $ 47 9 Trademarks / Tradenames 18 7 Product development 124 10 Total $ 189 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Measurements [Abstract] | |
Assets and Liabilities Measured and Recognized on a Recurring Basis | March 30, 2024 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 2 - 2 Total return - 1 - 1 Total assets $ - $ 4 $ - $ 4 Liabilities: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 1 - 1 Total liabilities $ - $ 2 $ - $ 2 Redeemable noncontrolling interests $ - $ - $ 798 $ 798 December 30, 2023 Level 1 Level 2 Level 3 Total Assets: Derivative contracts designated as hedges $ - $ 1 $ - $ 1 Derivative contracts undesignated - 1 - 1 Total return - 4 - 4 Total assets $ - $ 6 $ - $ 6 Liabilities: Derivative contracts designated as hedges $ - $ 18 $ - $ 18 Derivative contracts undesignated - 2 - 2 Total liabilities $ - $ 20 $ - $ 20 Redeemable noncontrolling interests $ - $ - $ 864 $ 864 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt [Abstract] | |
Schedule of Bank Credit Lines | March 30, December 30, 2024 2023 Revolving credit agreement $ 50 $ 200 Other short-term bank credit lines 214 64 Total $ 264 $ 264 |
Schedule of Long-Term Debt | March 30, December 30, 2024 2023 Private placement facilities $ 1,024 $ 1,074 Term loan 736 741 U.S. trade accounts receivable securitization 300 210 Various in varying installments through 2030 at interest rates from 0.00 % to 9.42 % at March 30, 2024 and from 0.00 % to 9.42 % at December 30, 2023 46 54 Finance lease obligations 7 8 Total 2,113 2,087 Less current maturities (103) (150) Total long-term debt $ 2,010 $ 1,937 |
Schedule of Private Placement Facility Borrowings | Amount of Date of Borrowing Borrowing Borrowing Outstanding Rate Due Date 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 May 4, 2023 75 4.79 May 4, 2028 May 4, 2023 75 4.84 May 4, 2030 May 4, 2023 75 4.96 May 4, 2033 May 4, 2023 150 4.94 May 4, 2033 Less: Deferred debt issuance costs (1) Total $ 1,024 |
Plan of Restructuring and Integ
Plan of Restructuring and Integration Costs (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Plan of Restructuring [Abstract] | |
Schedule of Restructuring Costs and Integration Costs | Three Months Ended March 30, 2024 Health Care Distribution Technology Value-Added Services Total Severance and employee-related costs $ 6 $ 1 $ 7 Accelerated depreciation and amortization 1 - 1 Exit and other related costs 2 - 2 Total restructuring $ 9 $ 1 $ 10 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 30, 2023 $ 22 $ 1 $ 23 Restructuring costs 9 1 10 Non-cash accelerated depreciation and amortization (1) - (1) Cash payments and other adjustments (11) (1) (12) Balance, March 30, 2024 $ 19 $ 1 $ 20 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
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 1,078,459 $ 71.46 Granted - Exercised (21,570) 62.71 Forfeited (897) 82.62 Outstanding at end of period 1,055,992 $ 71.63 7.3 $ 8 Options exercisable at end of period 908,836 $ 69.49 |
Intrinsic Values | Weighted Average Weighted Average Aggregate Number of Exercise Remaining Contractual Intrinsic Options Price Life (in years) Value Expected to vest 147,110 $ 84.84 8.0 $ - |
Status of Unvested RSUs | Time-Based Restricted Stock Units Performance-Based Restricted Stock Units Weighted Weighted Average Intrinsic Average Intrinsic Grant Date Fair Value Grant Date Fair Value Shares/Units Value Per Share Per Share Shares/Units Value Per Share Per Share Outstanding at beginning of period 1,655,393 $ 70.34 208,742 $ 78.02 Granted 432,350 76.56 450,333 76.81 Vested (307,839) 62.51 (6,432) 63.01 Forfeited (6,021) 81.48 (6,431) 83.07 Outstanding at end of period 1,773,883 $ 73.19 $ 75.52 646,212 $ 75.68 $ 75.52 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Redeemable Noncontrolling Interests [Abstract] | |
Components of the Change in Redeemable Noncontrolling Interests | March 30, December 30, 2024 2023 Balance, beginning of period $ 864 $ 576 Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interests in subsidiaries (94) (19) Increase in redeemable noncontrolling interests due to business acquisitions - 326 Net income attributable to redeemable noncontrolling interests 2 6 Distributions declared, net of capital contributions (6) (19) Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests (10) 5 Change in fair value of redeemable securities 42 (11) Balance, end of period $ 798 $ 864 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss Net of Applicable Taxes | March 30, December 30, 2024 2023 Attributable to redeemable noncontrolling interests: Foreign currency translation adjustment $ (42) $ (32) Attributable to noncontrolling interests: Foreign currency translation adjustment $ (1) $ (1) Attributable to Henry Schein, Inc.: Foreign currency translation adjustment $ (232) $ (188) Unrealized loss from hedging activities (2) (13) Pension adjustment loss (5) (5) Accumulated other comprehensive loss $ (239) $ (206) Total Accumulated $ (282) $ (239) |
Components of Comprehensive Income, Net of Applicable Taxes | Three Months Ended March 30, April 1, 2024 2023 Net income $ 98 $ 128 Foreign currency translation gain (loss) (54) 25 Tax effect - - Foreign currency translation gain (loss) (54) 25 Unrealized gain (loss) from hedging activities 15 (4) Tax effect (4) 1 Unrealized gain (loss) from hedging activities 11 (3) Comprehensive income $ 55 $ 150 |
Total Comprehensive Income, Net of Applicable Taxes | Three Months Ended March 30, April 1, 2024 2023 Comprehensive income attributable to Henry Schein, Inc. $ 60 $ 141 Comprehensive income attributable to noncontrolling interests 3 3 Comprehensive income (loss) attributable to Redeemable noncontrolling interests (8) 6 Comprehensive income $ 55 $ 150 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted | Three Months Ended March 30, April 1, 2024 2023 Basic 128,720,661 131,365,789 Effect of dilutive securities: Stock options and restricted stock units 1,048,919 1,674,097 Diluted 129,769,580 133,039,886 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended March 30, April 1, 2024 2023 Stock options 419,139 422,190 Restricted stock units 245,667 18,305 Total anti-dilutive 664,806 440,495 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Supplemental Cash Flow information [Abstract] | |
Cash paid for interest and income taxes | Three Months Ended March 30, April 1, 2024 2023 Interest $ 26 $ 13 Income taxes 21 21 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Asset Pledged as Collateral [Member] | ||
Pledged assets | $ 497 | $ 284 |
Recourse [Member] | ||
Liabilities of VIE | $ 300 | $ 210 |
Cybersecurity Incident - Narrat
Cybersecurity Incident - Narrative (Details) - Cyber Incident [Member] $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |
Expenses related to cybersecurity incident | $ 5 |
Cybersecurity Insurance Policy [Member] | |
Unusual or Infrequent Item, or Both [Line Items] | |
Insurance policy limitations | 60 |
Insurance retention | $ 5 |
Net Sales from Contracts with_3
Net Sales from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Net Sales from Contracts with Customers [Abstract] | ||||
Contract with Customer, Liability, Current | $ 84 | $ 89 | $ 86 | |
Contract with Customer, Liability, Noncurrent | 8 | $ 9 | $ 8 | |
Contract with Customer, Liability, Revenue Recognized | $ 36 | $ 35 |
Net Sales from Contracts with_4
Net Sales from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 3,172 | $ 3,060 |
North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,306 | 2,261 |
International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 866 | 799 |
Health Care Distribution [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,955 | 2,869 |
Health Care Distribution [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 2,117 | 2,095 |
Health Care Distribution [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 838 | 774 |
Health Care Distribution [Member] | Dental [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,914 | 1,898 |
Health Care Distribution [Member] | Dental [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,103 | 1,144 |
Health Care Distribution [Member] | Dental [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 811 | 754 |
Health Care Distribution [Member] | Medical [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,041 | 971 |
Health Care Distribution [Member] | Medical [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 1,014 | 951 |
Health Care Distribution [Member] | Medical [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 27 | 20 |
Technology and Value-Added Services [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 217 | 191 |
Technology and Value-Added Services [Member] | North America [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | 189 | 166 |
Technology and Value-Added Services [Member] | International [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Net sales | $ 28 | $ 25 |
Segment Data (Details)
Segment Data (Details) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 USD ($) segments countries | Apr. 01, 2023 USD ($) | |
Segment Data [Abstract] | ||
Number of reportable segments | segments | 2 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,172 | $ 3,060 |
Operating income | 150 | 175 |
Health Care Distribution [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,955 | 2,869 |
Operating income | $ 126 | 145 |
Number of countries served globally | countries | 33 | |
Health Care Distribution [Member] | Dental [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,914 | 1,898 |
Health Care Distribution [Member] | Medical [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,041 | 971 |
Technology and Value-Added Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 217 | 191 |
Operating income | $ 24 | $ 30 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Oct. 02, 2023 | Jul. 05, 2023 | Apr. 05, 2023 | Mar. 30, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 3,835 | $ 3,835 | $ 3,875 | |||||
Acquisition costs | $ 2 | $ 2 | $ 7 | |||||
Series Of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100% | 100% | ||||||
Consideration paid | $ 19 | |||||||
Goodwill | 8 | $ 8 | ||||||
Intangible assets | 12 | 12 | ||||||
Change in fair value of contingent consideration | 15 | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Customer Relationships and Lists [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 6 | 6 | ||||||
Estimated useful lives (in years) | 10 years | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Product Development [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 4 | 4 | ||||||
Estimated useful lives (in years) | 10 years | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Trademarks And Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 1 | 1 | ||||||
Estimated useful lives (in years) | 5 years | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Noncompete Agreements [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 1 | 1 | ||||||
Estimated useful lives (in years) | 5 years | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Minimum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 51% | |||||||
Series Of Individually Immaterial Business Acquisitions [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100% | |||||||
Shield Healthcare, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 90% | |||||||
Consideration paid | $ 307 | |||||||
Total consideration | 366 | |||||||
Deferred consideration | 22 | |||||||
Redeemable noncontrolling interests | $ 37 | |||||||
S.I.N. Implant System [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100% | |||||||
Total consideration | $ 329 | |||||||
Biotech Dental [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 57% | |||||||
Consideration paid | $ 216 | 216 | ||||||
Goodwill | $ 297 | 344 | 297 | |||||
Intangible assets | $ 189 | 119 | 189 | |||||
Total consideration | 423 | 423 | ||||||
Redeemable noncontrolling interests | $ 182 | $ 182 | ||||||
Biotech Dental [Member] | Customer Relationships and Lists [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful lives (in years) | 9 years | |||||||
Biotech Dental [Member] | Product Development [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful lives (in years) | 10 years | |||||||
Biotech Dental [Member] | Trademarks And Trade Names [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful lives (in years) | 7 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 | 6 Months Ended | 9 Months Ended | |
Mar. 30, 2024 | Jul. 01, 2023 | Mar. 30, 2024 | Dec. 30, 2023 | |
Identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 3,835 | $ 3,835 | $ 3,875 | |
Biotech Dental [Member] | ||||
Acquisition consideration: | ||||
Cash | $ 216 | 216 | ||
Fair value of contributed equity share in a controlled subsidiary | 25 | 25 | ||
Redeemable noncontrolling interests | 182 | 182 | ||
Total consideration | 423 | 423 | ||
Identifiable assets acquired and liabilities assumed: | ||||
Current assets | 74 | 78 | 74 | |
Intangible assets | 189 | 119 | 189 | |
Other noncurrent assets | 69 | 76 | 69 | |
Current liabilities | (60) | (50) | (60) | |
Long-term debt | (73) | (90) | (73) | |
Deferred income taxes | (53) | (38) | (53) | |
Other noncurrent liabilities | (20) | (16) | (20) | |
Total identifiable net assets | 126 | 79 | 126 | |
Goodwill | 297 | 344 | 297 | |
Total net assets acquired | 423 | $ 423 | 423 | |
Biotech Dental [Member] | Restatement Adjustment [Member] | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Current assets | (4) | (4) | ||
Intangible assets | 70 | 70 | ||
Other noncurrent assets | (7) | (7) | ||
Current liabilities | (10) | (10) | ||
Long-term debt | 17 | 17 | ||
Deferred income taxes | (15) | (15) | ||
Other noncurrent liabilities | (4) | (4) | ||
Total identifiable net assets | 47 | 47 | ||
Goodwill | (47) | (47) | ||
Total net assets acquired | 0 | 0 | ||
Series Of Individually Immaterial Business Acquisitions [Member] | ||||
Acquisition consideration: | ||||
Cash | 19 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Intangible assets | 12 | 12 | ||
Goodwill | $ 8 | $ 8 |
Business Acquisitions - Summa_2
Business Acquisitions - Summary of Identifiable Intangible Assets Acquired and Estimated Useful Lives (Details) - Biotech Dental [Member] $ in Millions | Apr. 05, 2023 USD ($) |
Business Acquisition [Line Items] | |
Identifiable intangible assets acquired | $ 189 |
Customer Relationships and Lists [Member] | |
Business Acquisition [Line Items] | |
Identifiable intangible assets acquired | $ 47 |
Estimated useful lives (in years) | 9 years |
Trademarks/Tradenames [Member] | |
Business Acquisition [Line Items] | |
Identifiable intangible assets acquired | $ 18 |
Estimated useful lives (in years) | 7 years |
Product Development [Member] | |
Business Acquisition [Line Items] | |
Identifiable intangible assets acquired | $ 124 |
Estimated useful lives (in years) | 10 years |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt (including bank credit lines) | $ 2,377 | $ 2,351 |
Term Credit Agreement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt face amount | $ 750 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured and Recognized on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 | Dec. 31, 2022 |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | $ 798 | $ 864 | $ 576 |
Fair value, measurements, recurring [Member] | |||
Assets [Abstract] | |||
Total return swaps | 1 | 4 | |
Total assets | 4 | 6 | |
Liabilities [Abstract] | |||
Total liabilities | 2 | 20 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 798 | 864 | |
Fair value, measurements, recurring [Member] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 1 | 1 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 18 | |
Fair value, measurements, recurring [Member] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 2 | 1 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 2 | |
Fair value, measurements, recurring [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Total return swaps | 0 | 0 | |
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] | 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] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Total return swaps | 1 | 4 | |
Total assets | 4 | 6 | |
Liabilities [Abstract] | |||
Total liabilities | 2 | 20 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 0 | 0 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Derivative contracts designated as hedges [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 1 | 1 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 18 | |
Fair value, measurements, recurring [Member] | Level 2 [Member] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 2 | 1 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | 1 | 2 | |
Fair value, measurements, recurring [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Total return swaps | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities [Abstract] | |||
Total liabilities | 0 | 0 | |
Attributable To Redeemable Noncontrolling Interests [Abstract] | |||
Redeemable noncontrolling interests | 798 | 864 | |
Fair value, measurements, recurring [Member] | Level 3 [Member] | 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] | Derivative contracts undesignated [Member] | |||
Assets [Abstract] | |||
Derivative contracts - assets | 0 | 0 | |
Liabilities [Abstract] | |||
Derivative contracts - liabilities | $ 0 | $ 0 |
Debt - Revolving Credit Agreeme
Debt - Revolving Credit Agreement Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Aug. 20, 2021 | Mar. 30, 2024 | Dec. 30, 2023 | |
Revolving Credit Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit initiation date | Aug. 20, 2021 | Jul. 11, 2023 | |
Credit facility borrowing capacity | $ 1,000 | ||
Credit facility expiration date | Jul. 11, 2028 | ||
Line of credit interest rate | 5.32% | ||
Debt instrument, basis spread on variable rate | 1.10% | ||
Line of credit combined interest rate | 6.42% | ||
Borrowings | $ 50 | $ 200 | |
Outstanding letters of credit provided to third parties | 10 | 10 | |
Average amount outstanding | 100 | ||
Other Short-Term Credit Lines [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing capacity | 383 | $ 368 | |
Average amount outstanding | $ 96 |
Debt - Other Short-Term Bank Cr
Debt - Other Short-Term Bank Credit Lines Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Line of Credit Facility [Line Items] | ||
Bank credit lines | $ 264 | $ 264 |
Other Short-Term Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility borrowing capacity | 383 | 368 |
Bank credit lines | $ 214 | $ 64 |
Weighted average interest rate on borrowings under credit lines at period end | 6.08% | 6.02% |
Average amount outstanding | $ 96 |
Debt - Private Placement Facili
Debt - Private Placement Facilities Narrative (Details) - Private Placement Facilities [Member] | 3 Months Ended |
Mar. 30, 2024 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 at period end | 3.66% |
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 - Term Loan Narrative (Det
Debt - Term Loan Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 30, 2024 | Dec. 30, 2023 | |
Term Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt face amount | $ 750 | |
Debt term (in years) | 3 years | |
Long-term debt | $ 736 | $ 741 |
Term Credit Agreement [Member] | Interest Rate Swap [Member] | ||
Line of Credit Facility [Line Items] | ||
Derivative fixed interest rate | 5.91% | 5.79% |
Term Credit Agreement [Member] | Secured Overnight Financing Rate Sofr Overnight Index Swap Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.32% | 5.36% |
Debt instrument, basis spread on variable rate | 1.47% | 1.35% |
Debt instrument, interest rate at period end | 6.79% | 6.71% |
September 2024 through June 2026 [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly payments | $ 9 | |
September 2023 through June 2024 [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly payments | $ 5 |
Debt - U.S. Trade Accounts Rece
Debt - U.S. Trade Accounts Receivable Securitization Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 30, 2024 USD ($) number | Dec. 30, 2023 USD ($) | |
U.S. Trade Accounts Receivable Securitization Expiring 2022 [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee basis points depending upon program utilization | 0.0030 | |
U.S. Trade Accounts Receivable Securitization Expiring 2022 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee basis points depending upon program utilization | 0.0035 | |
U.S. Trade Accounts Receivable Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Pricing commitment period | 3 years | |
Debt Instrument, Maturity Date | Dec. 15, 2025 | |
Debt instrument maximum borrowing capacity | $ 450 | |
Long-term debt | $ 300 | $ 210 |
Number of banks as agents for debt instrument | number | 2 | |
U.S. Trade Accounts Receivable Securitization [Member] | Average Asset Backed Commercial Paper Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate at period end | 5.47% | 5.67% |
Debt instrument, basis spread on variable rate | 0.75% | 0.75% |
Debt instrument, variable rate basis at period end | 6.22% | 6.42% |
Debt - Schedule of Bank Credit
Debt - Schedule of Bank Credit Lines (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Line of Credit Facility [Line Items] | ||
Bank Credit lines | $ 264 | $ 264 |
Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank Credit lines | 50 | 200 |
Other Short-Term Credit Lines [Member] | ||
Line of Credit Facility [Line Items] | ||
Bank Credit lines | $ 214 | $ 64 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 | |
Debt Instrument [Line Items] | |||
Finance lease obligations | $ 7 | $ 8 | |
Total | 2,113 | 2,087 | |
Less current maturities | (103) | (150) | |
Long-term debt | [1] | 2,010 | 1,937 |
Term Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 736 | 741 | |
Private Placement Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,024 | 1,074 | |
U.S. Trade Accounts Receivable Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 300 | 210 | |
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 | $ 46 | $ 54 | |
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 | 9.42% | 9.42% | |
[1] Amounts presented include balances held by our consolidated variable interest entity (“VIE”). 30, 2023, includes trade accounts receivable of $ 497 284 300 $ 210 |
Debt - Schedule of Private Plac
Debt - Schedule of Private Placement Facility Borrowings (Details) - Private Placement Facilities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Debt Instrument [Line Items] | ||
Less: Deferred debt issuance costs | $ (1) | |
Total | $ 1,024 | $ 1,074 |
Debt Instrument, Maturity Date | Oct. 20, 2026 | |
Private Placement Facilities 1 [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 2 [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 3 [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 4 [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 5 [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 6 [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 7 [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 | |
Private Placement Facilities 8 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 04, 2023 | |
Long-term Debt, Gross | $ 75 | |
Borrowing Rate | 4.79% | |
Debt Instrument, Maturity Date | May 04, 2028 | |
Private Placement Facilities 9 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 04, 2023 | |
Long-term Debt, Gross | $ 75 | |
Borrowing Rate | 4.84% | |
Debt Instrument, Maturity Date | May 04, 2030 | |
Private Placement Facilities 10 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 04, 2023 | |
Long-term Debt, Gross | $ 75 | |
Borrowing Rate | 4.96% | |
Debt Instrument, Maturity Date | May 04, 2033 | |
Private Placement Facilities 11 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 04, 2023 | |
Long-term Debt, Gross | $ 150 | |
Borrowing Rate | 4.94% | |
Debt Instrument, Maturity Date | May 04, 2033 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Income Tax Examination [Line Items] | |||
Effective tax rate | 25.60% | 23.80% | |
Tax interest expense (credit) | $ 1 | $ 1 | |
Other Liabilities [Member] | |||
Income Tax Examination [Line Items] | |||
Unrecognized tax benefits | 113 | $ 115 | |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 106 | 107 | |
Total interest | $ 17 | $ 16 |
Plan of Restructuring - Narrati
Plan of Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 10 | $ 30 |
Plan of Restructuring - Schedul
Plan of Restructuring - Schedule of Restructuring Costs and Integration Costs (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 10,000,000 | $ 30,000,000 |
Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 7,000,000 | 20,000,000 |
Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | 7,000,000 |
Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 2,000,000 | 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 | 9,000,000 | 26,000,000 |
Health Care Distribution [Member] | Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 6,000,000 | 17,000,000 |
Health Care Distribution [Member] | Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | 7,000,000 |
Health Care Distribution [Member] | Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 2,000,000 | 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 | 1,000,000 | 4,000,000 |
Technology and Value-Added Services [Member] | Severance and Employee-Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1,000,000 | 3,000,000 |
Technology and Value-Added Services [Member] | Accelerated Depreciation and Amortization [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 0 | 0 |
Technology and Value-Added Services [Member] | Exit and Other Related Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0 | 1,000,000 |
Technology and Value-Added Services [Member] | Disposal of Business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 0 |
Plan of Restructuring - Sched_2
Plan of Restructuring - Schedule of Restructuring Reserve by Segment (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | $ 23,000,000 | |
Restructuring costs | 10,000,000 | $ 30,000,000 |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | (1,000,000) | |
Cash payments and other adjustments | 12,000,000 | |
Balance, ending | 20,000,000 | |
Health Care Distribution [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | 22,000,000 | |
Restructuring costs | 9,000,000 | 26,000,000 |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | (1,000,000) | |
Cash payments and other adjustments | 11,000,000 | |
Balance, ending | 19,000,000 | |
Technology and Value-Added Services [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance, beginning | 1,000,000 | |
Restructuring costs | 1,000,000 | $ 4,000,000 |
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets | 0 | |
Cash payments and other adjustments | 1,000,000 | |
Balance, ending | $ 1,000,000 |
Legal Proceedings - Narrative (
Legal Proceedings - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2024 USD ($) claims | Apr. 01, 2023 USD ($) | Dec. 30, 2023 USD ($) | |
Loss Contingency, Information about Litigation Matters [Abstract] | |||
Revenues | $ 3,172 | $ 3,060 | |
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 | 0.40% | ||
Actions Consolidated in the MultiDistrict Litigation [Member] | Continuing Operations [Member] | |||
Loss Contingency, Information about Litigation Matters [Abstract] | |||
Revenues | $ 12,300 | ||
Other Hospitals Located throughout Florida [Member] | |||
Loss Contingency, Information about Litigation Matters [Abstract] | |||
Number of plaintiffs | 25 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
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 | $ 120 | |
Expected life of options (years) | 6 years | |
Pre-tax share-based compensation (Credit) expense | $ 8 | $ 10 |
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 |
Mar. 30, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 1,078,459 |
Exercised (in shares) | shares | (21,570) |
Forfeited (in shares) | shares | (897) |
Outstanding at end of period (in shares) | shares | 1,055,992 |
Weighted Average Exercise Price Per Share [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 71.46 |
Exercised (in dollars per share) | $ / shares | 62.71 |
Forfeited (in dollars per share) | $ / shares | 82.62 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 71.63 |
Outstanding at end of period, Weighted Average Remaining Contractual Life in Years | 7 years 3 months 18 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 8 |
Options exercisable (in shares) | shares | 908,836 |
Weighted average exercise price, options exercisable (in dollars per share) | $ / shares | $ 69.49 |
Stock-Based Compensation - Intr
Stock-Based Compensation - Intrinsic Values (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options | shares | 147,110 |
Weighted Average Exercise Price | $ / shares | $ 84.84 |
Weighted Average Remaining Contractual Life (in years) | 8 years |
Intrinsic Value Per Share | $ | $ 0 |
Stock-Based Compensation - Stat
Stock-Based Compensation - Status of Unvested RSUs (Details) | 3 Months Ended |
Mar. 30, 2024 $ / 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 | 1,655,393 |
Granted (in shares) | shares | 432,350 |
Vested (in shares) | shares | (307,839) |
Forfeited (in shares) | shares | (6,021) |
Ending balance outstanding (in shares) | shares | 1,773,883 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance outstanding (in dollars per share) | $ 70.34 |
Granted (in dollars per share) | 76.56 |
Vested (in dollars per share) | 62.51 |
Forfeited (in dollars per share) | 81.48 |
Ending balance outstanding (in dollars per share) | 73.19 |
Aggregate intrinsic value | $ 75.52 |
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 | 208,742 |
Granted (in shares) | shares | 450,333 |
Vested (in shares) | shares | (6,432) |
Forfeited (in shares) | shares | (6,431) |
Ending balance outstanding (in shares) | shares | 646,212 |
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) | $ 78.02 |
Granted (in dollars per share) | 76.81 |
Vested (in dollars per share) | 63.01 |
Forfeited (in dollars per share) | 83.07 |
Ending balance outstanding (in dollars per share) | 75.68 |
Aggregate intrinsic value | $ 75.52 |
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 | |
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Components of the change in the redeemable noncontrolling interests [Abstract] | |||
Balance, beginning of period | $ 864 | $ 576 | $ 576 |
Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interest in subsidiaries | (94) | (19) | |
Increase in redeemable noncontrolling interests due to business acquisitions | 0 | 326 | |
Net income attributable to redeemable noncontrolling interests | 2 | 4 | 6 |
Dividends declared, net of capital contributions | (6) | (19) | |
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests | (10) | $ 2 | 5 |
Change in fair value of redeemable securities | 42 | (11) | |
Balance, end of period | $ 798 | $ 864 |
Comprehensive Income - Accumula
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Attributable to Redeemable noncontrolling interests: | |||
Foreign currency translation adjustment | $ (42) | $ (32) | |
Attributable to noncontrolling interests: | |||
Foreign currency translation adjustment | (1) | (1) | |
Attributable to Henry Schein, Inc.: | |||
Foreign currency translation adjustment | (232) | (188) | |
Unrealized loss from hedging activities | (2) | (13) | |
Pension adjustment loss | (5) | (5) | |
Accumulated other comprehensive loss | (239) | (206) | |
Total Accumulated other comprehensive loss | (282) | $ (239) | |
Components of Comprehensive Income | |||
Net Income (loss) | 98 | $ 128 | |
Foreign currency translation gain (loss) | (54) | 25 | |
Tax effect | 0 | 0 | |
Foreign currency translation gain (loss) | (54) | 25 | |
Unrealized gain (loss) from foreign currency hedging activities | 15 | (4) | |
Tax effect | (4) | 1 | |
Unrealized gain (loss) from foreign currency hedging activities | 11 | (3) | |
Comprehensive income | $ 55 | $ 150 |
Comprehensive Income - Total Co
Comprehensive Income - Total Comprehensive Income, Net of Applicable Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Comprehensive Income Net Of Applicable Taxes [Abstract] | ||
Comprehensive income attributable to Henry Schein, Inc. | $ 60 | $ 141 |
Comprehensive income attributable to noncontrolling interests | 3 | 3 |
Comprehensive income (loss) attributable to Redeemable noncontrolling interests | (8) | 6 |
Comprehensive income | $ 55 | $ 150 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted (Details) - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 128,720,661 | 131,365,789 |
Effect of dilutive securities: | ||
Stock options and restricted stock units | 1,048,919 | 1,674,097 |
Diluted (in shares) | 129,769,580 | 133,039,886 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS computation | 664,806 | 440,495 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS computation | 419,139 | 422,190 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from EPS computation | 245,667 | 18,305 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest | $ 26 | $ 13 |
Income taxes | 21 | 21 |
Non-cash net unrealized gains related to foreign currency hedging activities | $ 15 | $ (4) |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Related Party Transaction [Line Items] | |||
Current operating lease liabilities | $ 75 | $ 80 | |
Noncurrent operating lease liabilities | 266 | 310 | |
Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Other liabilities | 6 | 5 | |
Due from related party | 31 | 32 | |
Revenues | 12 | $ 8 | |
Purchases from related party | 3 | 2 | |
Internet Brands Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Other liabilities | $ 3 | $ 1 | |
Internet Brands Inc [Member] | Royalty Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Period covered by agreement | 10 years | ||
Related party agreement amount | $ 31 | ||
Operating costs and expenses | 8 | $ 8 | |
Employees and Minority Shareholders [Member] | |||
Related Party Transaction [Line Items] | |||
Current operating lease liabilities | 5 | ||
Noncurrent operating lease liabilities | $ 22 | ||
Employees and Minority Shareholders [Member] | Operating Lease Liabilities, Current [Member] | Related Party Concentration Risk[Member] | |||
Related Party Transaction [Line Items] | |||
Concentration risk percentage | 6.70% | 6.30% | |
Employees and Minority Shareholders [Member] | Operating Lease Liabilities, Non-Current [Member] | Related Party Concentration Risk[Member] | |||
Related Party Transaction [Line Items] | |||
Concentration risk percentage | 8.20% | 7.40% | |
Employees and Minority Shareholders [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Remaining operating lease term | 1 month | ||
Employees and Minority Shareholders [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Remaining operating lease term | 17 years |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 shares | |
Insider Trading Arr [Line Items] | |
Material Terms of Trading Arrangement | ITEM 5. Rule 10b5-1 Trading Arrangements During the three months ended March 30, 2024, (i) Michael S. Ettinger , the Company’s Executive Vice President and Chief Operating Officer , and (ii) Walter Siegel , the Company’s Senior Vice President and Chief Legal Officer , each adopted intended to satisfy the affirmative defense of Exchange Act Rule 10b5 -1(c), as well as the requirements of the Company’s insider trading policy. Each plan is subject to an initial “cooling off” period during which there may be no transactions between the adoption date and a date that is the later of 90 days Company’s filing of its next quarterly report on Form 10-Q or Annual Report on form 10-K. March 4, 2024 , Mr. Ettinger adopted the trading plan to sell a total of 12,240 a term through March 4, 2025 . March 7, 2024 , Mr. Siegel adopted the trading plan to sell 4,134 a limit order at a specified price, with a term through March 7, 2025 . |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Michael S. Ettinger [Member] | |
Insider Trading Arr [Line Items] | |
Name | Michael S. Ettinger |
Title | Executive Vice President and Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 4, 2024 |
Termination Date | March 4, 2025 |
Aggregate Available | 12,240 |
Walter Siegel [Member] | |
Insider Trading Arr [Line Items] | |
Name | Walter Siegel |
Title | Senior Vice President and Chief Legal Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 7, 2024 |
Termination Date | March 7, 2025 |
Aggregate Available | 4,134 |