Covetrus (CVET) 10-K 3 Mar 20 2019 FY Annual report Financial data

DEI

DEI - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2019	Feb. 28, 2020	Jun. 28, 2019
DEI [Abstract]
Entity Registrant Name	COVETRUS, INC.
Entity Central Index Key	0001752836
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 2.4
Entity Common Stock, Shares Outstanding		111,708,121
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

CONSOLIDATED AND COMBINED BALAN

CONSOLIDATED AND COMBINED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 130	$ 23
Accounts receivable, net of allowance of $8 and $7 (Note 4)	426	431
Inventories, net	636	564
Other receivables	67	49
Prepaid expenses and other	30	19
Assets held for sale (Note 3)	51	0
Total current assets	1,340	1,086
Non-current assets:
Property and equipment, net (Note 5)		69
Property and equipment, net (Note 5)	93
Operating lease right-of-use assets, net (Note 6)	84
Goodwill (Note 7)	1,154	750
Other intangibles, net (Note 7)	643	208
Investments and other	47	120
Total assets	3,361	2,233
Current liabilities:
Accounts payable	520	440
Current maturities of long-term debt and other borrowings (Note 8)	62	1
Accrued payroll and related liabilities	44	37
Accrued taxes	18	17
Other current liabilities	164	77
Liabilities held for sale (Note 3)	21	0
Total current liabilities	829	572
Non-current liabilities:
Long-term debt and other borrowings, net (Note 8)	1,125	24
Deferred income taxes	47	16
Other liabilities	94	35
Total liabilities	2,095	647
Commitments and contingencies (Note 11)
Redeemable non-controlling interests (Note 12)	10	92
Shareholders' equity:
Common stock, $0.01 par value per share, 675,000,000 shares authorized as of December 31, 2019; 111,620,507 shares issued and outstanding as of December 31, 2019	1	0
Net former parent investment	0	1,576
Accumulated other comprehensive loss (Note 13)	(86)	(82)
Additional paid-in capital	2,381	0
Accumulated deficit	(1,040)	0
Total shareholders’ equity	1,256	1,494
Total liabilities, redeemable non-controlling interests, and shareholders’ equity	$ 3,361	$ 2,233

CONSOLIDATED AND COMBINED BAL_2

CONSOLIDATED AND COMBINED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Accounts receivable, reserves	$ 8	$ 7
Common stock, par value (in usd per share)	$ 0.01
Common stock, shares authorized (in shares)	675,000,000
Common stock, shares issued (in shares)	111,620,507
Common stock, shares outstanding (in shares)	111,620,507

CONSOLIDATED AND COMBINED STATE

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Net sales (Note 4)	$ 3,976		$ 3,778	$ 3,580
Cost of sales	3,227		3,094	2,928
Gross profit	749		684	652
Operating expenses:
Selling, general and administrative	808		547	517
Goodwill impairment	938		0	0
Operating (loss) income	(997)		137	135
Other income (expense):
Interest income	7		6	5
Interest expense	(56)		(3)	(2)
Other, net	17		3	1
Total (loss) income before taxes and equity in earnings of affiliates	(1,029)		143	139
Income tax benefit (expense) (Note 14)	7		(37)	(48)
Equity in earnings of affiliates	0		1	1
Net (loss) income	(1,022)		107	92
Less: net loss (income) attributable to redeemable non-controlling interests	3		(6)	(28)
Net (loss) income attributable to Covetrus	$ (1,019)	[1]	$ 101	$ 64
(Loss) earnings per share attributable to Covetrus: (Note 15)
Basic (in usd per share)	$ (9.50)		$ 1.41	$ 0.90
Diluted (in usd per share)	$ (9.50)		$ 1.40	$ 0.89
Weighted-average common shares outstanding:
Basic (in shares)	107		71	71
Diluted (in shares)	107		72	72
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019

CONSOLIDATED AND COMBINED STA_2

CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (1,022)	$ 107	$ 92
Other comprehensive (loss) income, net of tax:
Foreign currency translation (loss) gain	(3)	(43)	62
Unrealized (loss) gain from foreign currency hedging activities		(1)	1
Unrealized loss on derivative instruments	(1)
Pension adjustment gain	0	2	0
Total other comprehensive (loss) income	(4)	(42)	63
Comprehensive (loss) income	(1,026)	65	155
Comprehensive loss (income) attributable to redeemable non-controlling interests:
Net loss (income)	3	(6)	(28)
Foreign currency translation (gain) loss	(1)	2	(3)
Less: comprehensive loss (income) attributable to redeemable non-controlling interests	2	(4)	(31)
Comprehensive (loss) income attributable to Covetrus	$ (1,024)	$ 61	$ 124

CONSOLIDATED AND COMBINED STA_3

CONSOLIDATED AND COMBINED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions		Total		Common Stock	Additional Paid-in Capital		Accumulated Deficit	Accumulated Other Comprehensive Loss	Net Former Parent Investment
Common stock, shares beginning balance (in shares) at Dec. 31, 2016				0
Common stock, shares beginning balance at Dec. 31, 2016		$ 1,120		$ 0	$ 0		$ 0	$ (102)	$ 1,222
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income attributable to Covetrus		64							64
Other comprehensive income (loss)		60						60
Net increase in former parent investment		13							13
Common stock, shares outstanding (in shares) at Dec. 30, 2017				0
Common stock, shares ending balance at Dec. 30, 2017		1,257		$ 0	0		0	(42)	1,299
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income attributable to Covetrus		101							101
Other comprehensive income (loss)		(40)						(40)
Net increase in former parent investment		174							174
Common stock, shares outstanding (in shares) at Dec. 29, 2018				0
Common stock, shares ending balance at Dec. 29, 2018		1,494		$ 0	0		0	(82)	1,576
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income attributable to Covetrus	[1]	(1,019)					(1,040)		21
Dividend to former parent		(1,174)			(21)				(1,153)
Issuance of shares at Separation (including Share Sale investors) (in shares)				71,693,426
Issuance of shares at Separation (including Share Sale investors)		0		$ 1	608				(609)
Issuance of shares in connection with the Acquisition (in shares)	[2]			39,742,089
Issuance of shares in connection with the Acquisition	[2]	1,772			1,772
Shares canceled (in shares)	[2]			(700,400)
Shares canceled		(30)			(30)	[2]
Issuance of shares in connection with share-based compensation plans (in shares)				885,392
Issuance of shares in connection with share-based compensation plans		5			5
Share-based compensation		46			46
Deferred tax impact of acquisition of non-controlling interest		(7)							(7)
Other comprehensive income (loss)		(4)						(4)
Net increase in former parent investment		172	[2]						172
Other		$ 1			1		0
Common stock, shares outstanding (in shares) at Dec. 31, 2019		111,620,507		111,620,507
Common stock, shares ending balance at Dec. 31, 2019		$ 1,256		$ 1	2,381		(1,040)	(86)	0
Common stock, shares beginning balance at Sep. 30, 2019		1,276
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income attributable to Covetrus		$ (37)
Common stock, shares outstanding (in shares) at Dec. 31, 2019		111,620,507		111,620,507
Common stock, shares ending balance at Dec. 31, 2019		$ 1,256		$ 1	$ 2,381		$ (1,040)	$ (86)	$ 0
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019
[2]	See Note 2 - Business Acquisitions

CONSOLIDATED AND COMBINED STA_4

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ (1,022)	$ 107	$ 92
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	155	64	59
Amortization of right-of-use assets	21	0	0
Goodwill impairment	938	0	0
Share-based compensation expense	46	7	7
(Benefit) provision for deferred income taxes	(25)	(5)	6
Equity in earnings of affiliates	0	(1)	(1)
Amortization of debt issuance costs	5	0	0
Other	(10)	0	0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	13	(13)	(33)
Inventories, net	(58)	(42)	(23)
Other assets and liabilities	(53)	(34)	(5)
Accounts payable and accrued expenses	93	75	6
Net cash provided by operating activities	103	158	108
Cash flows from investing activities:
Purchases of property and equipment	(39)	(22)	(21)
Payments related to equity investments and business acquisitions, net of cash acquired	(26)	(8)	(109)
Proceeds from sale of property and equipment	0	1	1
Net cash used for investing activities	(65)	(29)	(129)
Cash flows from financing activities:
Proceeds from the issuance of debt	1,220	0	0
Principal payments of debt	(43)	(2)	0
Debt issuance costs	(24)	0	0
Dividend paid to former parent	(1,174)	0	0
Issuance of common shares in connection with share-based compensation plans	5	0	0
Net transfers from former parent	165	274	62
Distributions to non-controlling shareholders	0	(10)	(20)
Acquisition payment	(9)	0	0
Acquisitions of non-controlling interests in subsidiaries	(74)	(382)	(26)
Net cash provided by (used for) financing activities	66	(120)	16
Effect of exchange rate changes on cash and cash equivalents	3	(2)	2
Net change in cash and cash equivalents	107	7	(3)
Cash and cash equivalents, beginning of period	23	16	19
Cash and cash equivalents, end of period	130	23	16
Supplemental cash flow disclosures:
Interest	47	0	0
Income taxes	$ 18	$ 12	$ 8

Business Overview and Significa

Business Overview and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Business Overview and Significant Accounting Policies	Business Overview and Significant Accounting Policies Business Covetrus is a global animal-health technology and services company dedicated to supporting the companion, equine, and large-animal veterinary markets. On February 7, 2019 , Henry Schein completed the spin-off of its Animal Health Business and transferred the applicable assets, liabilities, and ownership interests to us (the “Separation”) and distributed all the shares of our common stock that were then owned by Henry Schein to its stockholders of record as of January 17, 2019 (the “Distribution”). Also, on February 7, 2019 and prior to the Distribution, we sold $361 million in shares to accredited institutional investors (the “Share Sale”). The proceeds from the Share Sale were paid to us and distributed to Henry Schein. Concurrent with the Distribution, we paid a cash dividend of $1.2 billion from loan proceeds from our newly established credit facility (see Note 8 - Debt). We then acquired Vets First Choice in an all-stock transaction (the “Acquisition”). Immediately following the Share Sale, Distribution, and Acquisition, on a fully diluted basis, (i) approximately 63% of our outstanding common stock was owned by (a) shareholders of Henry Schein and the Share Sale investors, and (b) specific employees of the Animal Health Business who held certain equity awards, and (ii) approximately 37% was owned by (a) shareholders of Vets First Choice, and (b) certain employees of Vets First Choice who held certain equity awards. On February 8, 2019, our common stock began regular-way trading under the symbol “CVET” on the Nasdaq Global Select Market. Basis of Presentation and Principles of Consolidation We prepared the accompanying consolidated and combined financial statements in accordance with GAAP. Except as otherwise specifically noted, the combined financial statements and other financial information for the fiscal years ended December 29, 2018 and December 30, 2017 relate to the Animal Health Business, as these periods predate the February 7, 2019 effective date of the Acquisition. This Form 10-K does not include the historical financial results of Vets First Choice for the fiscal years ended December 29, 2018 and December 30, 2017 and does not include any pro forma financial statements of Covetrus. Beginning with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, Covetrus began reporting on a consolidated basis, representing the combined operations of the Animal Health Business and Vets First Choice and their respective subsidiaries. The Animal Health Business is deemed the acquirer in this combination for accounting purposes under GAAP, therefore, the Animal Health Business is considered Covetrus’ predecessor and the historical combined financial statements of the Animal Health Business prior to February 7, 2019 are reflected in Covetrus’ quarterly and annual reports as Covetrus’ historical financial statements. The accompanying consolidated and combined financial statements include the operations of the Company as well as those of our wholly-owned and majority-owned subsidiaries from their respective dates of inception or acquisition. All significant intercompany transactions and balances are eliminated in consolidation. All intracompany transactions have been eliminated and all intercompany transactions between the Animal Health Business and Henry Schein have been eliminated in these combined financial statements as such transactions were deemed to not have occurred between us and Henry Schein. Investments in unconsolidated affiliates, which are 20% to 50% owned, or investments of less than 20% in which we could influence the operating or financial decisions, are accounted for under the equity method. The combined financial statements include expense allocations for (i) certain corporate functions historically provided by Henry Schein, including accounting, legal, information services, planning, compliance, investor relations, administration and communication, and similar costs, (ii) employee benefits and incentives, and (iii) share-based compensation. These expenses have been allocated to the Animal Health Business based on direct usage when identifiable, with the remainder allocated on a pro rata basis of net sales, headcount, or other measures of the Animal Health Business and Henry Schein. The Animal Health Business believes the bases on which the expenses have been allocated are a reasonable reflection of the utilization of services provided to, or the benefit received by, the Animal Health Business during the periods presented. The allocations may not, however, reflect the actual expenses that the Animal Health Business would have incurred as a stand-alone company for the periods presented. Actual costs that may have been incurred if the Animal Health Business had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Following the Separation, these functions have been performed using our own resources or third-party service providers. Some of these functions may continue to be provided by Henry Schein under transition services agreements through February 2021. Certain prior period amounts were reclassified to conform to the current presentation. During the fourth quarter ended December 31, 2019 , we recorded a revision to our deferred tax adjustment due to our reassessment of our judgment in the third quarter ended September 30, 2019 on the realizability of deferred tax assets. In the aggregate, the revisions to our tax valuation allowance, including a revision for a deferred tax calculation error that pre-dates the Separation, Distribution and Acquisition, were $53 million . We have concluded that this adjustment was not material to any previously issued financial statements or to our full fiscal year 2019 results. See Note 14 - Income Taxes. Use of Estimates Preparing financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from these estimates. The most significant estimates include our evaluation of goodwill impairment, intangible assets acquired, fair value of our derivatives, share-based compensation, self-insurance reserves, and supplier rebates. Fiscal Year During fiscal years 2017 and 2018, we operated on a 52-53-week basis ending on the last Saturday of December. For fiscal year 2019, we adopted a last day of the calendar year accounting and operating cycle. We made this change on a prospective basis and did not adjust operating results for periods prior to 2019 as the result was not material. Revenue Recognition We recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following: • Identify the contract(s) with a customer, • Identify the performance obligations in the contract, • Determine the transaction price, • Allocate the transaction price to the performance obligations in the contract, and • Recognize revenue when, or as, the entity satisfies a performance obligation. Our revenue is generated from the following major product categories: • Supply Chain Services - primarily includes the sale of animal-health consumable products, including our own proprietary and Covetrus branded products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, and vitamins and supplements to wholesale and retail customers. Our value-added practice solutions include financial services, equipment repair, inventory management, e-commerce, as well as continuing education services for practitioners. • Software Solutions - includes practice management software systems for veterinary practitioners and animal-health clinics, client communication services, reminders, data backup services, and hardware sales and support. • Prescription Management - includes the distribution of finished goods pharmacy products, specialty pharmaceutical compounding, e-commerce, shipping, manufacturer incentives, service fees, and data integration and support services. We estimate the transaction price at contract inception, including any variable consideration, and update the estimate each reporting period for any changes in circumstances. Variable consideration, including provisions for discounts, rebates to customers, customer returns, and other contra revenue adjustments is included in the transaction price at contract inception by estimating the most likely amount based upon historical data and estimates and are provided for in the period in which the related sales are recognized. Many of our contracts with customers require us to take possession of the inventory, provide the goods or services, and establish the price for the goods or services. Revenue and cost of sales from this type of contract are recognized on a gross basis. From time to time, certain contracts require us to arrange for the procurement of goods or services on behalf of our customer, but we do not purchase or take title of the product from the supplier before they are transferred to our customer. In this type of contract, we are acting as an agent and revenue is recognized on a net basis (revenue less cost of sales is included in Net sales) (“Net Agency Revenue”), as the supplier is the primary obligor, bears the inventory and credit risk, establishes the price, picks, packs, and ships the product, determines the product specifications, and the amount is fixed. Payment terms differ by customer and jurisdiction, but generally range from 30 to 60 days. Supply Chain Services Revenue derived from the sale of consumable products is recognized at a point in time when control transfers to the customer. Such sales typically entail high-volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating control has transferred to the customer because we have no post-shipment obligations, and this is when legal title and risks and rewards of ownership transfer to the customer and we have an enforceable right to payment. Revenue derived from the sale of equipment is recognized when control transfers to the customer. This generally occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Some equipment sales require minimal installation which is typically completed at the time of delivery. Our products generally carry standard warranty terms provided by the manufacturer, however, in instances where we provide warranty labor services, the warranty costs are accrued in the period the related revenue is recognized. Software Solutions Revenue derived from the sale of software products is recognized when products are shipped to customers or made available electronically. Such software is generally installed by customers and does not require extensive training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support, is generally recognized over the life of the support period while revenue from training services is recognized over the period the services are provided. Prescription Management Revenue under this category is primarily generated from two sources: (i) prescription management and pharmacy services (including the distribution of finished goods products, specialty pharmaceutical compounding, shipping, manufacturer incentives, and service fees), which is recognized when control transfers to the customer, typically upon shipment or delivery, and (ii) data integration and support services (including software as a service, initial setup to connect customers to hosted software applications, data conversions, custom software developments, upgrades and enhancements, training, software configuration, and technical support), which is recognized over the period the services are provided. Other Revenue Revenue derived from other sources, including freight charges and equipment repairs, is recognized when the related product revenue is recognized or when the services are provided. We applied the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract. Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations that are accounted for separately. When we sell software products together with related services (e.g., training and technical support), we allocate revenue to software using the residual method, utilizing an estimate of our standalone selling price to estimate the fair value of the undelivered elements. There have not been any cases where revenue is deferred due to a lack of a standalone selling price. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available because we do not sell the goods or services separately, we use one of the following techniques to estimate the standalone selling price: (i) adjusted market approach, (ii) cost-plus approach, or (iii) the residual method. There is no specific hierarchy for the use of these methods, but the relative selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone basis, taking into consideration the cost structure of the business, technical skill required, customer location, and other market conditions. Sales, value-add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue, but rather are recorded as liabilities and included in Accrued taxes. See Note 4 - Revenue from Contracts with Customers and Note 18 - Segment Data for additional disclosures. Contract Balances Contract balances represent amounts presented in the consolidated and combined balance sheets when we have either transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets, and contract liabilities. Accounts Receivable The carrying amount of accounts receivable is reduced by an allowance that reflects our best estimate of the amounts that will not be collected. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our allowance for doubtful accounts including historical data, experience, customer types, creditworthiness, and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect collectability. Accounts receivable are written-off when it is probable that all contractual payments due will not be collected. Contract Assets Contract assets include amounts related to any conditional right to consideration for work completed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to Accounts receivable when the right becomes unconditional. Current contract assets are included in Prepaid expenses and other and non-current contract assets are included in Investments and other within the consolidated and combined balance sheets. The contract assets primarily relate to the bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Contract Liabilities Contract liabilities are comprised of advance payments and deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Current contract liabilities are included in Other current liabilities and non-current contract liabilities are included in Other liabilities within the consolidated and combined balance sheets. The contract liabilities primarily relate to advance payments from customers and upfront payments for service arrangements provided over time. Sales Returns Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as a refund liability within Other current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liability based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability, and we record an inventory asset (and a corresponding adjustment to Cost of sales) for any goods or services that we expect to be returned. Prior to the Adoption of Topic 606 Results for reporting periods beginning after December 30, 2017 are presented under “Revenue from Contracts with Customers (Topic 606)”, while prior period amounts continue to be reported under “Revenue Recognition (Topic 605)”, the accounting standard in effect for those periods. Cash and Cash Equivalents We maintain cash depository accounts with banks throughout the world and invest in high quality, short-term, liquid instruments. Such investments are made only in instruments issued by high-quality institutions. These investments mature within three months, and we have not incurred any related losses for the years ended December 31, 2019, December 29, 2018, and December 30, 2017. Inventories Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value. When inventory is adjusted to net realizable value, the corresponding adjustment is included in Cost of sales. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high-tech equipment. In accordance with our policy for inventory valuation, we consider many factors, including the condition and salability of the inventory, historical sales, forecasted sales, and market and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory. In addition, we record a liability for unconditional purchase commitments with contract suppliers for quantities greater than future demand forecasts consistent with excess and obsolete inventory valuations. As of December 31, 2019 and December 29, 2018 , we did not record any liability related to excess unconditional purchase commitments. Assets and Liabilities Held for Sale Assets and liabilities are considered held for sale when certain criteria are met, including when management has committed to a plan to sell the asset, the asset is available for sale in its immediate condition, and the sale is probable within one year of the reporting date. Assets and liabilities held for sale are reported at the lower of cost or fair value less costs to sell. See Note 3 - Held for Sale. Shipping and Handling Costs Freight and other direct shipping costs are included in Cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack, and otherwise prepare, if necessary, merchandise for shipment to customers, are reflected in Selling, general and administrative. Advertising Advertising costs are charged to operations when incurred as part of Selling, general and administrative. We receive reimbursements from certain vendors for advertising costs. Reimbursements for advertising costs are reported on a net basis within Selling, general and administrative. When reimbursements received are more than the cost of advertising, the net amount is reported within Cost of sales. Advertising expense was $17 million in 2019 , $16 million in 2018 , and $15 million in 2017 . Additionally, advertising and promotional costs incurred in connection with direct marketing, including product catalogs and printed materials, are deferred and amortized on a straight-line basis over the period that is benefited, typically one year. Deferred direct marketing expenses included in Prepaid expenses and other were not material in 2019 and 2018 . Supplier Rebates We receive quarterly and annual performance rebates from suppliers based upon attainment of certain sales and/or purchase goals. Supplier rebates are included as a reduction of Cost of sales and are recognized over the period they are earned. The factors considered in estimating supplier rebate accruals include forecasted inventory purchases and sales in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed primarily under the straight-line method. Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. See Note 5 - Property and Equipment, Net. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for use, software developed by a supplier for proprietary use, and costs incurred for our own personnel who are directly associated with software development are capitalized. Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period of the enactment date. See Note 14 - Income Taxes . Our tax provision for fiscal years 2018 and 2017 were prepared utilizing the separate return methodology as if we had not been included in a consolidated or group income tax return with Henry Schein. Current income tax liabilities are presented based on current amounts owed for the current tax year for entities that file separate returns. Current taxes payable for entities that joined in a consolidated or group filing with Henry Schein were settled in Net former parent investment consistent with other intercompany obligations. Share-based Compensation Share-based compensation represents the cost related to share-based awards granted to employees and non-employee directors. We determine the fair value of share-based payment awards using the Black-Scholes model which is affected by the stock price and several assumptions, including expected volatility, expected life, risk-free interest rate, and expected dividends. We recognize share-based compensation expense, net of estimated expected forfeitures, on a straight-line basis over the requisite service period of the award, which is included in Selling, general and administrative in our consolidated and combined statements of operations. Foreign Currency Translation and Transactions The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Statement of operations accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period-to-period are included in Accumulated other comprehensive loss in equity. Gains and losses resulting from foreign currency transactions are included in earnings. Derivatives and Financial Instruments Our global business exposes us to risks related to changes in foreign currency exchange rates and interest rates. Our financial risk management program is designed to manage the exposure arising from cash flow variability and uses derivative financial instruments to minimize this risk. We do not enter into derivative financial instruments for trading or speculative purposes. For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings. For cash flow hedges, the effective portion of the changes in the fair value of the derivative, along with any gain or loss on the hedged item, are recorded as a component of accumulated other comprehensive income and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classified the cash flows related to hedging activities in the same category on the consolidated and combined statements of cash flows as the cash flows related to the hedged item. See Note 9 - Derivatives and Financial Instruments. Business Acquisitions The net assets of businesses acquired are recorded at their fair value at the acquisition date and the consolidated and combined financial statements include their results of operations from that date. Any excess of acquisition consideration over the fair value of identifiable net assets acquired is recorded as goodwill. The major classes of assets and liabilities that we generally allocate purchase price to, excluding goodwill, include identifiable intangible assets (e.g., trademarks and trade names, customer relationships and lists, and non-compete agreements), accounts receivable, inventory, property and equipment, deferred taxes, and other current and long-term assets and liabilities. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments, and assumptions derived from analysis of market conditions, discount rate, discounted cash flows, customer retention rates, and estimated useful lives. See Note 2 - Business Acquisitions. Goodwill As noted in Business Acquisitions above, our Goodwill is derived when we acquire another company. Goodwill is not amortized, but the potential impairment of goodwill is assessed at least annually (at the beginning of the fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment analysis for goodwill requires a comparison of the fair value to the carrying value of a reporting unit. Some important factors that could trigger an interim impairment review include: • Significant underperformance relative to expected historical or projected future operating results, • Significant changes in the manner of the use of acquired assets or our overall business strategy (e.g., decision to divest a business), • Sustained decline in our share price and a resulting decrease in our market capitalization, or • Significant negative industry or economic trends. See Note 7 - Goodwill and Other Intangible Assets, Net and Note 10 - Fair Value for information about our interim impairment test performed in August 2019 and our annual impairment test results. Long-lived Assets Long-lived assets, other than goodwill, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Definite-lived intangible assets consist primarily of non-compete agreements, trademarks, patents, customer relationships, and product development. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When impairment exists, the related assets are written down to fair value. See Note 7 - Goodwill and Other Intangible Assets, Net. Cost of Sales The primary components of Cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks, and rebates) and inbound and outbound freight charges. Our distribution network costs, such as purchasing, receiving, inspections, warehousing, internal inventory transfers, and other related costs are included in Selling, general and administrative along with other operating costs. Total distribution network costs were $18 million in 2019 , $18 million in 2018 , and $16 million in 2017 . Cost of sales also includes costs directly related to the design and production of software, distribution of licenses, hardware and costs related to services provided, and amortization of the capitalized costs for internally generated software for resale. Comprehensive Income Comprehensive income (loss) includes certain gains and losses that, under GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to equity. Comprehensive income (loss) is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) from hedging activities, and pension adjustment gain (loss). Accounting Pronouncements Adopted As of January 1, 2019, we adopted the following ASUs: • ASU 2016-02, “Leases (Topic 842),” introduces the balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. We adopted the new lease standard using the transition option issued under the amendments in ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which allowed us to continue to apply the legacy guidance in Accounting Standards Codification (“ASC”) 840, “Leases,” in the comparative periods presented in the year of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We have lease agreements with both lease and non-lease components, which are generally accounted for together as a single lease component. We made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. We recognize those lease payments in the consolidated statement of operations on a straight-line basis over the lease term. The impact of the adoption was an increase to our operating lease assets and liabilities on January 1, 2019 of $65 million . The initial recognition of the right-of-use asset and lease liability represented a non-cash activity. See Note 6 - Leases . • ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminates step two from the quantitative goodwill impairment test. Under this guidance, annual or interim goodwill impairment testing is performed by comparing the fair value of the reporting units to the carrying value of those units. If the carrying value exceeds the fair value, an impairment charge is recognized, not to exceed the amount of goodwill allocated to each reporting unit. • ASU 2018-02, “Treatment of Stranded Tax Effects in Accumulated Other Comprehensive Income Resulting from the Tax Cuts and Jobs Act of 2017,” allows the reclassification of the income tax effects resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Act") from accumulated comprehensive income to retained earnings. The adoption did not have a material impact on our consolidated financial statements and related disclosures. • ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees. ASU 2019-08 amended 2018-07 to require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. Th

Business Acquisitions

Business Acquisitions	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Business Acquisitions	Business Acquisitions Vets First Choice On February 7, 2019, we acquired Vets First Choice. See Note 1 - Business Overview and Significant Accounting Policies . During the third quarter ended September 30, 2019, we recorded a measurement period adjustment, which was made to reflect the facts and circumstances in existence as of the acquisition date. This adjustment reflects a reduction to the purchase price of $30 million , offset by a corresponding decrease to goodwill. This measurement period adjustment related to the cancellation of 700,400 Covetrus shares issued to Vets First Choice shareholders that were held in escrow. During the fourth quarter ended December 31, 2019 , we recorded a final measurement period adjustment of $4 million which increased the deferred tax liability with a corresponding decrease to goodwill. The estimated consideration and fair value in the tables below have been updated to reflect this measurement period adjustment. The acquisition date fair value of the consideration transferred consisted of the following: Estimated Consideration Total Covetrus shares issued to Vets First Choice shareholders 39,041,689 Per share price (in actuals) (a) $ 43.05 Total fair value of shares issued to Vets First Choice shareholders $ 1,681 Fair value of Vets First Choice replacement stock option awards attributable to pre-acquisition service 62 Vets First Choice debt repaid at close 24 Vets First Choice expenses paid at close 18 Less: Vets First Choice cash used to fund transaction (9 ) Total consideration $ 1,776 (a) Closing price on February 7, 2019, Covetrus shares trading on a when-issued basis (Nasdaq: CVETV) The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed: Estimated Fair Value Fair value of net assets acquired $ 14 Goodwill 1,324 Intangible assets 545 Deferred tax liabilities (107 ) Total acquisition cost $ 1,776 We determined the estimated fair value of the identifiable intangible assets after review and consideration of relevant information including discounted cash flow analysis, market data, and management’s estimates. We engaged an independent valuation firm to assist in determining the fair value of the acquired intangible assets. The value attributed to the other identifiable intangible assets included $20 million in trademarks and trade names, $50 million in product formulas, $125 million in customer relationships, and $350 million in developed technologies. These intangible assets are being amortized over a weighted-average period of seven years . The goodwill from this transaction arose because of our expected ability to leverage existing and new marketing opportunities across a larger revenue base. The goodwill from this transaction is not deductible for tax purposes. The results of operations of Vets First Choice are included in our consolidated results of operations since February 7, 2019, during which period Vets First Choice contributed revenue of $246 million and net loss of $525 million . The following unaudited pro forma financial information presents the results of operations for the years ended December 31, 2019 and December 29, 2018 as if the Acquisition had occurred as of December 31, 2017. The unaudited pro forma results reflect certain adjustments for items that are not expected to have a continuing impact, such as adjustments for transaction costs incurred, management fees, and purchase accounting. The information presented below has been prepared for comparative purposes only and does not purport to be indicative of either future results of operations or the results of operations that would have occurred had the Acquisition been consummated on December 31, 2017: Years Ended December 31, 2019 December 29, 2018 Net sales $ 4,000 $ 3,981 Goodwill impairment $ 938 $ — Net loss $ (1,032 ) $ (63 ) Net loss attributable to Covetrus $ (1,029 ) $ (63 ) Other We completed certain other acquisitions during the year ended December 31, 2019 which were not material to our consolidated financial statements individually or in the aggregate.

Held for Sale

Held for Sale	12 Months Ended
	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Held for Sale	Held for Sale In 2019 , in accordance with our strategy to streamline our organizational focus, we engaged a third party to facilitate the marketing and eventual sale of our scil animal-care business. In January 2020 , we entered into a definitive agreement to sell scil to Heska Corporation for a purchase price of $125 million in cash, subject to customary closing adjustments. Gains are not recognized until the date of sale, which is expected to close during the second quarter ended June 30, 2020 , subject to customary closing conditions. scil is primarily included within our Europe segment. scil's major classes of assets and liabilities were as follows: December 31, 2019 Current assets $ 24 Property and equipment, net 15 Goodwill 2 Other intangibles, net 4 Investments and other 3 Assets held for sale $ 48 Current liabilities $ 18 Other non-current liabilities 3 Liabilities held for sale $ 21 We also have a building for sale in our APAC & Emerging Markets segment which is leased to a long-term tenant. As of December 31, 2019 , the building was included in Assets held for sale at $3 million , net, along with scil's assets held for sale.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	12 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Disaggregation of Revenue The table below presents our revenue disaggregated by major product category and reportable segment for the year ended December 31, 2019 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,816 $ 82 $ 246 $ (33 ) $ 2,111 Europe 1,513 10 — (14 ) 1,509 APAC & Emerging Markets 361 7 — — 368 Eliminations (12 ) — — — (12 ) Total net sales $ 3,678 $ 99 $ 246 $ (47 ) $ 3,976 The table below presents our revenue disaggregated by major product category and reportable segment for the year ended December 29, 2018 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,858 $ 83 $ — $ (2 ) $ 1,939 Europe 1,462 11 — (10 ) 1,463 APAC & Emerging Markets 380 7 — — 387 Eliminations (11 ) — — — (11 ) Total net sales $ 3,689 $ 101 $ — $ (12 ) $ 3,778 The table below presents our revenue recognized under ASC 605 disaggregated by major product category and reportable segment for the year ended December 30, 2017 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,795 $ 83 $ — $ (2 ) $ 1,876 Europe 1,359 11 — 3 1,373 APAC & Emerging Markets 342 7 — — 349 Eliminations (18 ) — — — (18 ) Total net sales $ 3,478 $ 101 $ — $ 1 $ 3,580 The following table presents our revenue and gross billings associated with our Net Agency Revenue: Years Ended December 31, 2019 December 29, 2018 December 30, 2017 Net Agency Revenue $ 18 $ 26 $ 16 Gross billings from Net Agency Revenue $ 447 $ 454 $ 402 Contract Balances The following table presents information about our receivables, contract assets, and contract liabilities from contracts with customers: Balance Sheet Location December 31, 2019 December 29, 2018 Accounts receivable: Accounts receivable, net $ 426 $ 431 Contract liabilities: Deferred revenue, current Other current liabilities $ 37 $ 18 For the year ended December 31, 2019 , deferred revenue recognized from performance obligations completed this period approximates the balance outstanding as of December 29, 2018 . The increase in Deferred revenue for the year ended December 31, 2019 compared to the prior year was primarily attributable to increased customer orders in the U.K. due to uncertainty created by Brexit. Performance Obligations Estimated future revenues expected to be generated from long-term contracts with unsatisfied performance obligations as of December 31, 2019 , was not material.

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following as of: Estimated Useful December 31, December 29, Land N/A $ 1 $ 2 Buildings and permanent improvements 10-40 years 9 17 Leasehold improvements 1-20 years 23 12 Machinery and warehouse equipment 3-10 years 44 43 Furniture, fixtures, and other 2-10 years 36 32 Computer equipment and software 2-10 years 64 36 Total property and equipment, gross 177 142 Less: accumulated depreciation and amortization (84 ) (73 ) Total property and equipment, net $ 93 $ 69 The following table sets forth our depreciation and amortization expense for the years ended: Location December 31, December 29, December 30, Cost of sales $ 3 $ 2 $ 2 Selling, general and administrative 25 13 11 Total depreciation and amortization expense $ 28 $ 15 $ 13

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	Leases We evaluate whether an arrangement is or contains a lease at contract inception. For all our leases, we determine the classification as either operating or financing. We have office space, warehouse facilities, vehicles, and equipment under non-cancelable operating leases with third parties. The leases have remaining lease terms of one to 20 years . Leases with an initial term of 12 months or less are not recognized on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use the incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. We use the implicit rate when readily determinable. Rent expense charged to operations under operating leases during the year ended December 31, 2019 was $25 million . Common Area Maintenance and taxes for the year ended December 31, 2019 was $2 million . Short-term lease expense and variable rent expense during the year ended December 31, 2019 was not material. Rent expense, under ASC 840, was $20 million for the year ended December 29, 2018 and $17 million for the year ended December 30, 2017 . The following table presents the lease balances within the consolidated balance sheet and other supplemental information related to our leases as of December 31, 2019 : Operating Leases: Operating lease right-of-use assets, net $ 84 Accrued expenses, other $ 19 Other liabilities 67 Total operating lease liabilities $ 86 Finance Leases: Property and equipment, net $ 2 Current maturities of long-term debt and other borrowings $ 1 Long-term debt and other borrowings, net — Total finance lease liabilities $ 1 Weighted-average remaining lease term: Operating leases 6.8 years Finance leases 2.4 years Weighted-average discount rate: Operating leases 3.5 % Finance leases 8.1 % Supplemental cash flow information related to leases for the year ended was as follows: December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 25 Right-of-use assets obtained in exchange for new operating lease liabilities $ 104 Right-of-use assets obtained in exchange for new finance lease liabilities $ 1 The following table presents the maturity of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22 $ 1 2021 18 — 2022 13 — 2023 9 — 2024 8 — Thereafter 28 — Total minimum lease payments 98 1 Less: amount representing interest (12 ) — Present value of net minimum lease payments 86 1 Less: current portion of lease obligations (19 ) (1 ) Long-term lease obligations $ 67 $ — As of December 31, 2019 , we had additional operating leases that have not yet commenced which included the following: Description Commencing Lease Term Total Future Lease Payments Compounding pharmacy and offices January 2020 14 years $ 25 Compounding pharmacy November 2020 20 years 28 New corporate headquarters October 2021 20 years 78 Total $ 131
Leases	Leases We evaluate whether an arrangement is or contains a lease at contract inception. For all our leases, we determine the classification as either operating or financing. We have office space, warehouse facilities, vehicles, and equipment under non-cancelable operating leases with third parties. The leases have remaining lease terms of one to 20 years . Leases with an initial term of 12 months or less are not recognized on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use the incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. We use the implicit rate when readily determinable. Rent expense charged to operations under operating leases during the year ended December 31, 2019 was $25 million . Common Area Maintenance and taxes for the year ended December 31, 2019 was $2 million . Short-term lease expense and variable rent expense during the year ended December 31, 2019 was not material. Rent expense, under ASC 840, was $20 million for the year ended December 29, 2018 and $17 million for the year ended December 30, 2017 . The following table presents the lease balances within the consolidated balance sheet and other supplemental information related to our leases as of December 31, 2019 : Operating Leases: Operating lease right-of-use assets, net $ 84 Accrued expenses, other $ 19 Other liabilities 67 Total operating lease liabilities $ 86 Finance Leases: Property and equipment, net $ 2 Current maturities of long-term debt and other borrowings $ 1 Long-term debt and other borrowings, net — Total finance lease liabilities $ 1 Weighted-average remaining lease term: Operating leases 6.8 years Finance leases 2.4 years Weighted-average discount rate: Operating leases 3.5 % Finance leases 8.1 % Supplemental cash flow information related to leases for the year ended was as follows: December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 25 Right-of-use assets obtained in exchange for new operating lease liabilities $ 104 Right-of-use assets obtained in exchange for new finance lease liabilities $ 1 The following table presents the maturity of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22 $ 1 2021 18 — 2022 13 — 2023 9 — 2024 8 — Thereafter 28 — Total minimum lease payments 98 1 Less: amount representing interest (12 ) — Present value of net minimum lease payments 86 1 Less: current portion of lease obligations (19 ) (1 ) Long-term lease obligations $ 67 $ — As of December 31, 2019 , we had additional operating leases that have not yet commenced which included the following: Description Commencing Lease Term Total Future Lease Payments Compounding pharmacy and offices January 2020 14 years $ 25 Compounding pharmacy November 2020 20 years 28 New corporate headquarters October 2021 20 years 78 Total $ 131

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, Net	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets, Net	Goodwill and Other Intangible Assets, Net Goodwill During the first quarter of 2019, in connection with the Separation, Distribution, and Acquisition, we made changes to our organizational and reporting structure. With these changes, we revised our reportable segments and goodwill was reallocated to the new reporting segments. See Note 18 - Segment Data. In August 2019, we released our results for the three and six months ended June 30, 2019 which failed to meet expectations and included a downward revision to our previously provided full-year guidance for the year ended December 31, 2019. We experienced a sustained decline in our share price and a resulting decrease in our market capitalization. These events triggered an interim impairment review as of August 31, 2019. We tested for goodwill impairment by quantitatively comparing the fair values of our reporting units to their carrying amounts. See Note 10 - Fair Value for further information. Based on our analysis, we determined that the carrying value of our reporting units exceeded their fair values, and we recorded a non-tax-deductible goodwill impairment charge totaling $938 million for the year ended December 31, 2019 . Our annual impairment review was performed during the fourth quarter of 2019 using a qualitative approach, and we determined that there was no additional goodwill impairment as of December 31, 2019 . The changes in the Goodwill balances by segment for the years ended December 31, 2019 and December 29, 2018 were as follows: North America Europe APAC & Emerging Markets Total Balance at December 31, 2017 (a) $ 528 $ 182 $ 50 $ 760 Foreign currency translation (1 ) (11 ) (1 ) (13 ) Goodwill additions 2 1 — 3 Balance at December 29, 2018 (a) 529 172 49 750 Foreign currency translation — (8 ) (1 ) (9 ) Goodwill additions (b) 1,280 57 16 1,353 Goodwill impairment (653 ) (221 ) (64 ) (938 ) Divestitures and related adjustments (c) (2 ) — — (2 ) Balance at December 31, 2019 $ 1,154 $ — $ — $ 1,154 (a) Recast to conform to 2019 presentation (b) Includes goodwill adjustments of $34 million related to Vets First Choice; see Note 2 - Business Acquisitions (c) Attributable to scil; see Note 3 - Held for Sale North America Europe APAC & Emerging Markets Total Accumulated impairment at December 29, 2018 $ — $ — $ — $ — Accumulated impairment at December 31, 2019 $ (653 ) $ (221 ) $ (64 ) $ (938 ) Other Intangible Assets, Net We periodically review our long-lived assets for indications of impairment to determine if the carrying value is recoverable and exceeds fair value. The carrying amount of long-lived assets is not recoverable if it exceeds the sum of undiscounted cash flows expected as a result from use and eventual disposition of the asset. Because an interim goodwill assessment was completed, we also performed an interim assessment of long-lived assets as of August 31, 2019. The results of our analysis indicated that the long-lived assets were recoverable as of the assessment date and did not require further impairment review. Definite-lived intangible assets consisted of the following as of: December 31, 2019 Cost Accumulated Amortization Net Customer relationships $ 503 $ (234 ) $ 269 Trademarks 60 (28 ) 32 Patents 30 (24 ) 6 Product development 406 (71 ) 335 Non-compete agreements 2 (1 ) 1 Total $ 1,001 $ (358 ) $ 643 December 29, 2018 Cost Accumulated Amortization Net Customer relationships $ 368 $ (193 ) $ 175 Trademarks 41 (23 ) 18 Patents 30 (20 ) 10 Product development 6 (3 ) 3 Non-compete agreements 4 (2 ) 2 Total $ 449 $ (241 ) $ 208 Other intangible assets were established through business acquisitions. We amortize intangible assets on a straight-line basis over their estimated useful lives. Non-compete agreements represent amounts paid primarily to key employees and prior owners of acquired businesses, as well as certain salespersons, in exchange for placing restrictions on their ability to pose a competitive risk to us. Such amounts are amortized on a straight-line basis over the respective non-compete period which generally commences upon termination of employment or separation from Covetrus. The table below sets forth amortization of intangible assets for the years ended: Location December 31, 2019 December 29, 2018 December 30, 2017 Cost of sales $ 4 $ — $ — Selling, general and administrative 123 49 46 Total amortization $ 127 $ 49 $ 46 The estimated future amortization of intangible assets is as follows: 2020 $ 134 2021 130 2022 126 2023 112 2024 59 Thereafter 82 Total $ 643

Debt

Debt	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt	Debt On February 7, 2019 , we entered into a $1.5 billion syndicated credit agreement with a five -year term (the “Credit Facility”) primarily to pay a dividend to Henry Schein, as well as provide funding for working capital and general corporate purposes. The Credit Facility is comprised of the following: Total Amount Amount Available as of December 31, 2019 Term loan $ 1,200 $ — Revolving line of credit (a) 300 281 Total Credit Facility (b) $ 1,500 $ 281 (a) Letters of credit reduce our borrowing capacity under the revolving line of credit. At December 31, 2019, we had $19 million for letters of credit outstanding against the total $35 million sub-limit available. (b) We paid $24 million of debt issuance costs related to the Credit Facilities which we deferred and amortize on an effective yield basis to interest expense. The unamortized portion at December 31, 2019 was $20 million. In February 2020, the Credit Facility was amended, and the revised terms are reflected below. The term loan and revolving line of credit bear interest on a floating rate basis at our option and incur fees as follows: • LIBOR (ranging from one month to 12 months) subject to a floor of 0.00% ◦ plus, an applicable margin ranging from 1.25% to 2.50% annually based on our leverage ratio at the end of the prior quarter. • Alternative base rate subject to a floor of 1.00% ◦ plus, an applicable margin ranging from 0.25% to 1.50% annually based on our leverage ratio at the end of the prior quarter. • Unused capacity under the revolving line of credit loan incurs a fee ranging from 0.175% to 0.400% per annum based on our leverage ratio at the end of the prior quarter. • Additionally, customary letter of credit fees, as well as fronting fees, are incurred for letters of credit outstanding. The applicable margins on LIBOR and alternative base rate borrowings fluctuated over the course of 2019. As of December 31, 2019 , the applicable margins on LIBOR and alternative base rate borrowings were 2.25% and 1.25% , respectively, for both the term loan and revolving line of credit. The commitment fee for the revolving line of credit as of December 31, 2019 was 0.35% . Starting March 31, 2020, the term loan amortizes in quarterly installments equal to 5.00% per annum of the initial borrowed amount and requires full payment at maturity of all remaining amounts owed. No amortizing payments are required for the revolving line of credit, however all amounts owed are due at maturity. We have the option to prepay both the term loan and revolving line of credit without penalty, subject to certain conditions. If the aggregate balance of loans outstanding exceeds the lender's commitments made to the revolving line of credit at any time, then the amount of such excess is required to be prepaid. Mandatory prepayments of the term loan are required in an amount equal to the net cash proceeds of, subject to specific conditions, (i) certain assets sales, (ii) certain debt offerings, and (iii) certain insurance recovery and condemnation events. We plan to use a portion of the expected net cash proceeds from the sale of our scil animal-care business in an amount up to $60 million to prepay the 2020 quarterly term loan amortization payments. Additionally, the Credit Facility limits or restricts our ability, subject to certain exceptions, to: • incur additional indebtedness, • make dividends and other restricted payments, • incur additional liens, • consolidate, merge, sell, or otherwise dispose of all or substantially all assets, • make investments, • transfer or sell assets, • enter into restrictive agreements, • change the nature of the business, and • enter certain transactions with affiliates. Starting April 1, 2019, we were required to maintain a leverage ratio of less than 5.50 :1.00. The leverage ratio covenant decreases annually, starting with a reduction to 5.00 :1.00 in 2021 and decreasing down to 3.75 :1.00 in 2022. We must also maintain a net interest coverage ratio of no less than 3.00 :1.00 at the end of each quarter. We were in compliance with all financial covenants as of and for the year ended December 31, 2019 . We continuously monitor our compliance with the terms and conditions of our Credit Facility and take such actions as are necessary to attain and ensure compliance. The Credit Facility is guaranteed by Covetrus, the subsidiary borrower, and its subsidiary guarantors. We have pledged substantially all tangible and intangible assets, as well as our ownership interests in certain subsidiary companies, in support of the Credit Facility. Long-term debt as of December 29, 2018 consisted primarily of a $23 million term loan. Prior to the separation and distribution date of February 7, 2019, the Animal Health Business’ long-term debt of $23 million was repaid by the Former Parent. The following table presents the maturities of our Long-term debt and other borrowings as of December 31, 2019 : Credit Facility Other Debt Total Repayments 2020 $ 60 $ 2 $ 62 2021 60 — 60 2022 60 — 60 2023 60 5 65 2024 960 — 960 Total debt maturities 1,200 7 1,207 Less: current maturities (60 ) (2 ) (62 ) Less: unamortized debt issuance costs (20 ) — (20 ) Long-term maturities $ 1,120 $ 5 $ 1,125

Derivatives and Financial Instr

Derivatives and Financial Instruments	12 Months Ended
	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Financial Instruments	Derivatives and Financial Instruments We are exposed to the impact of changes in interest rates in the normal course of business. Our financial risk management program is designed to manage the exposure arising from this cash flow risk and uses derivative financial instruments to minimize this risk. We do not enter into derivative financial instruments for trading or speculative purposes. In July and August 2019, we executed interest rate swap contracts with notional amounts aggregating $500 million that are designated as cash flow hedges to manage interest rate risk on our floating rate debt. These interest rate swap contracts adjust the amount of our total debt that is subject to variable interest rates by effectively fixing the borrowing rates on a portion of our floating rate debt discussed in Note 8 - Debt . Our interest rate swap agreements exchange payment streams based on the notional principal amount. These agreements fix our future interest rates ranging from 1.63% to 1.70% plus the applicable margin as provided in our debt agreement on an amount of our debt principal equal to the then-outstanding swap notional amount. The base notional amount matures two years from inception on July 31, 2021 . On the interest rate swap inception dates, we designated the swaps as a hedge of the variability in cash flows we pay on our variable rate borrowings. Our derivative instruments at December 29, 2018 primarily included foreign currency forward agreements related to certain intercompany loans and certain forecasted inventory purchase commitments with foreign suppliers. The derivative instruments were allocated to us based on a specific identification basis. Foreign currency forward agreements related to forecasted inventory purchase commitments were designated as cash flow hedges. Foreign currency forward agreements related to foreign currency balance sheet exposure provide economic hedges but were not designated as hedges for accounting purposes. The hedging activities in 2018 did not have a material impact on the combined financial statements. Accordingly, additional disclosures related to derivatives and hedging activities have been omitted. The following table discloses the fair value and balance sheet location of our derivative instruments: Liability Derivatives Cash Flow Hedging Instruments: Balance Sheet Location December 31, 2019 December 29, 2018 Interest rate swap contracts Other liabilities $ 1 $ — At inception of the hedging contract, we used statistical regression to assess the effectiveness of the interest rate hedges. The hedging contracts were deemed highly effective and are expected to be highly effective throughout the hedge period. Therefore, we perform a qualitative assessment of the hedge effectiveness at each subsequent quarterly reporting date. As of December 31, 2019 , derivative gains and losses were initially reported as a component of Other comprehensive (loss) income and subsequently recorded in the consolidated statement of operations when the hedged transaction was recognized in earnings. The effect of cash flow hedges on Other comprehensive (loss) income was as follows: Cash Flow Hedging Instruments: Location Year Ended December 31, 2019 Amounts recognized in Other comprehensive (loss) income Accumulated other comprehensive loss $ (1 ) Amounts reclassified out of Accumulated other comprehensive (loss) income into earnings Interest expense $ 1 The net amount of deferred gains on cash flow hedges that are expected to be reclassified from Accumulated other comprehensive income (loss) into Interest expense within the next 12 months is not material.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value	Fair Value GAAP defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy that distinguishes between (i) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (ii) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our consolidated and combined balance sheets, but the fair value is disclosed. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities • Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability • Level 3 - Unobservable inputs for the asset or liability There were no changes in valuation approaches or techniques during the year ended December 31, 2019 . Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Derivative contracts Our derivatives at December 31, 2019 consisted of five interest rate swap contracts which are over-the-counter and not traded through an exchange. The following table presents our financial instruments measured at fair value on a recurring basis and indicates the level within the fair value hierarchy: Level December 31, 2019 December 29, 2018 Liabilities: Interest rate swap contracts 2 $ 1 $ — Foreign currency forward contracts 2 — NM Total liabilities $ 1 $ NM NM - Not material See Note 9 - Derivatives and Financial Instruments for additional information. Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis primarily relate to Property and equipment, net, Operating lease right-of-use assets, net, Goodwill, and Other intangible assets, net. We do not periodically adjust carrying value to fair value for these assets; rather, the carrying value of the asset is reduced to its fair value when we determine that impairment has occurred. At August 31, 2019, assets measured at fair value on a nonrecurring basis consisted of Goodwill. The fair value measurement of goodwill was measured using both the market approach and income approach, which includes discounted expected cash flows. As the discounted cash flows include unobservable inputs that were significant to the fair value measurement, the fair value was classified as a Level 3 measurement within the fair value hierarchy. See Note 7 - Goodwill and Other Intangible Assets, Net . Assets and Liabilities that are not Measured at Fair Value Financial assets and liabilities The carrying amounts reported on the consolidated and combined balance sheets for Cash and cash equivalents, Accounts receivable, net, Other receivables, Accounts payable, and accrued expenses approximate their fair value due to the short maturity of those instruments. Investments in affiliates There are no quoted market prices available for investments in affiliates, however, we believe the carrying amounts are a reasonable estimate of fair value. Long-term debt Our Long-term debt is classified as a Level 2 instrument. The carrying amount of the term loan approximates fair value given the underlying interest rate applied to such amounts outstanding is currently reset to the prevailing monthly market rate. See Note 8 - Debt.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are involved in various legal proceedings that arise in the ordinary course of business. Substantial judgment is required in predicting the outcome of these legal proceedings, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and can be reasonably estimated. No material accrued loss contingencies were recorded as of December 31, 2019 . Securities Litigation Matter On September 30, 2019, the City of Hollywood (Florida) Police Officers' Retirement System filed a putative securities class action lawsuit in the United States District Court for the Eastern District of New York, purportedly on behalf of purchasers of Covetrus common stock from February 8, 2019 through August 12, 2019, against the Company, Henry Schein, Inc., our former Chief Executive Officer and President, and our former Chief Financial Officer (“Defendants”). The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Exchange Act by making allegedly false and misleading statements and omissions, primarily regarding the Company’s financial prospects and the integration costs relating to the business combination involving the Animal Health Business and Vets First Choice. The suit seeks unspecified damages, fees, interest, and costs. We intend to defend the matter vigorously. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from this action. Purchase Obligations We are party to an exclusive supply arrangement for certain products within the U.S. market. We amended this arrangement in February 2020 to extend the purchase obligations until 2025. This multi-year exclusive arrangement includes unconditional purchase obligations as reflected in the table below: Year Amount 2020 $ 8 2021 8 2022 8 2023 7 2024 7 2025 6 Total $ 44 We paid $9 million in 2019 , $9 million in 2018 , and $2 million in 2017 for products purchased under this exclusive arrangement. In 2019, we engaged a third-party for a three-year period ending December 31, 2022. We paid them $2 million in 2019. The fixed portion of the contract is capped at $14 million while the variable portion of the contract is capped at $39 million over the term of the engagement. We consider the contract to be of a “take-or-pay” nature due to the termination fees embedded in the contract: fixed termination fees of $10 million until mid-May 2020, $12 million until mid-November 2020, and $14 million thereafter, plus any variable performance fees through termination. Currently, these variable performance fees cannot be estimated as they are calculated based on future performance achievement.

Redeemable Non-controlling Inte

Redeemable Non-controlling Interests	12 Months Ended
	Dec. 31, 2019
Noncontrolling Interest [Abstract]
Redeemable Non-controlling Interests	Redeemable Non-controlling Interests Some minority equity owners in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities. We initially record our Redeemable non-controlling interests at fair value on the date of acquisition and subsequently adjust to redemption value. The following table presents the components of change and balances of Redeemable non-controlling interests within the consolidated and combined balance sheets as of: December 31, December 29, December 30, Balance at beginning of period $ 92 $ 368 $ 322 Decrease due to redemptions (74 ) (383 ) (26 ) Increase due to business acquisitions — 6 7 Net (loss) income attributable to redeemable non-controlling interests (3 ) 6 28 Dividends paid — (10 ) (20 ) Effect of foreign currency translation (loss) gain attributable to redeemable non-controlling interests 1 (2 ) 3 Change to redemption value (6 ) 107 54 Balance at end of period $ 10 $ 92 $ 368

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes certain gains and losses that are excluded from net income (loss) under GAAP as these amounts are recorded directly as an adjustment to total equity. The following table presents the changes in Accumulated other comprehensive loss, net of applicable taxes, by component: Derivative (Loss) Gain (Loss) Gain on Pension Adjustment Foreign Currency Translation (Loss) Gain Unrealized Gain (Loss) from Foreign Currency Hedging Total Balance as of December 31, 2016 $ — $ (2 ) $ (100 ) $ — $ (102 ) Other comprehensive income attributable to Covetrus before reclassifications — — 59 1 60 Balance as of December 30, 2017 — (2 ) (41 ) 1 (42 ) Other comprehensive income (loss) attributable to Covetrus before reclassifications — 2 (41 ) (1 ) (40 ) Balance as of December 29, 2018 — — (82 ) — (82 ) Other comprehensive loss attributable to Covetrus before reclassifications (1 ) — (4 ) — (5 ) Gain reclassified from Accumulated other comprehensive loss to earnings 1 — — — 1 Balance as of December 31, 2019 $ — $ — $ (86 ) $ — $ (86 ) We recognized foreign currency translation gains (losses) as a component of comprehensive income due to changes in foreign exchange rates from the beginning of the period to the end of the period. The consolidated and combined financial statements are denominated in the U.S. dollar currency. Fluctuations in the value of foreign currencies as compared to the U.S. dollar may have a significant impact on our comprehensive income (loss). The tax effect on accumulated unrealized losses on derivative instruments, unrealized pension adjustment gains, and gains recognized on derivative instruments was immaterial for all years presented.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes (Loss) income before taxes and equity in earnings of affiliates were as follows: Years Ended December 31, December 29, December 30, Domestic $ (809 ) $ 59 $ 69 Foreign (220 ) 84 70 Total (loss) income before taxes and equity in earnings of affiliates $ (1,029 ) $ 143 $ 139 The provisions for income taxes were as follows: Years Ended December 31, December 29, December 30, Current income tax (benefit) expense: U.S. federal $ — $ 13 $ 22 State and local 2 4 4 Foreign 16 25 16 Total current 18 42 42 Deferred income tax (benefit) expense: U.S. federal (10 ) — 7 State and local (7 ) — — Foreign (8 ) (5 ) (1 ) Total deferred (25 ) (5 ) 6 Total income tax (benefit) expense $ (7 ) $ 37 $ 48 Significant components of our deferred tax assets and liabilities were as follows: Years Ended December 31, December 29, Deferred income tax assets: Investment in partnerships $ 96 $ 72 Net operating losses and other carryforwards 38 3 Inventory, premium coupon redemptions, and accounts receivable valuation allowances — 1 Share-based compensation 7 — Other assets 12 1 Total deferred income tax assets 153 77 Valuation allowance for deferred tax assets (49 ) (1 ) Net deferred income tax assets 104 76 Deferred income tax liabilities: Intangibles amortization (125 ) (20 ) Other liabilities (6 ) — Total deferred income tax liabilities (131 ) (20 ) Net deferred income tax (liabilities) assets $ (27 ) $ 56 The deferred income tax assets (liabilities) are classified in the consolidated and combined balance sheets as follows: December 31, December 29, Non-current deferred income tax assets, net (a) $ 20 $ 72 Non-current deferred income tax liabilities, net (47 ) (16 ) Non-current deferred income tax (liabilities) assets $ (27 ) $ 56 (a) Included in Investments and other Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The assessment of the amount of value assigned to the deferred tax assets under the applicable accounting rules is judgmental. The valuation allowance was $49 million as of December 31, 2019 and $1 million as of December 29, 2018 . In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all the deferred tax assets will be realized. The ultimate realization of deferred taxes assets is dependent upon generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and taxable income in carryback years and tax-planning strategies when making this assessment. In evaluating whether it is more likely than not that our deferred tax assets would be recovered, we considered various potential sources of positive and negative evidence including historical cumulative income or loss, projections of future taxable income, available tax planning strategies which are prudent and feasible to implement, and future reversals of existing taxable temporary differences. In the fourth quarter of 2019, we incurred additional losses which, for the first time, created a three-year cumulative loss in the U.S. We determined that the cumulative loss represented a significant piece of negative evidence which is difficult to overcome in determining whether a valuation allowance was required. The cumulative loss caused us to reassess the weight of other available evidence at September 30, 2019. That reassessment resulted in our conclusion that negative evidence at September 30, 2019 outweighed the positive which resulted in the need for a revision. We revised our consolidated financial statements for our quarter ended September 30, 2019, see Note 1 - Business Overview and Significant Accounting Policies . We determined that these amounts are not material to our previously issued quarterly financial statements. The impact to our previously issued consolidated financial statements was as follows: As of September 30, 2019 Consolidated Balance Sheet: Previously Reported Revision As Revised Non-current deferred income tax assets, net (a) $ 38 $ (19 ) $ 19 Total assets 3,328 (19 ) 3,309 Deferred income taxes 11 34 45 Total liabilities 1,989 34 2,023 Accumulated deficit (939 ) (53 ) (992 ) Total shareholders’ equity 1,329 (53 ) 1,276 Total liabilities, redeemable non-controlling interests, and shareholders’ equity $ 3,328 $ (19 ) $ 3,309 (a) Included in Investments and other Quarter Ended September 30, 2019 Consolidated Statement of Operations: Previously Reported Revision As Revised Income tax benefit (expense) $ 60 $ (53 ) $ 7 Net (loss) income $ (909 ) $ (53 ) $ (962 ) Net (loss) income attributable to Covetrus $ (906 ) $ (53 ) $ (959 ) (Loss) earnings per share attributable to Covetrus: Basic $ (8.09 ) $ (0.47 ) $ (8.56 ) Diluted $ (8.09 ) $ (0.47 ) $ (8.56 ) The balance sheet contains assets and liabilities held for sale. The amounts of deferred tax assets and liabilities held for sale at December 31, 2019 were not material. At December 31, 2019 , we had the following tax loss and tax credit carryforwards available to offset taxable income in prior and future years: Amount Expiration Period U.S. federal tax loss carryforwards $ 21 2023 - unlimited U.S. federal and state interest carryforwards $ 8 unlimited U.S. state tax loss carryforwards $ 5 2020 - 2039 Non-U.S. tax loss carryforwards $ 4 2020 - unlimited Total tax loss and tax credit carryforwards $ 38 The U.S. state tax loss carryforwards were incurred in various jurisdictions. The non-U.S. tax loss carryforwards were incurred in various jurisdictions, predominantly France, Germany, Poland, Sweden, and the U.K. The tax provision (benefit) differs from the amount computed by applying the federal statutory income tax rate due to the following: Years Ended December 31, December 29, December 30, Income tax provision at federal statutory rate 21.0 % 21.0 % 35.0 % Transition tax on deemed repatriation of foreign earnings — 2.8 9.4 Pass through non-controlling interest — (2.1 ) (7.9 ) State income tax provision, net of federal income tax effect 0.5 1.4 2.0 Foreign income tax provision (benefit) 0.3 1.4 (6.2 ) Tax on GILTI (0.9 ) 1.4 — Excess tax benefits related to share-based compensation — (0.7 ) (2.9 ) Revaluation of deferred tax assets and liabilities (0.9 ) — 5.3 Valuation allowance impacts (3.9 ) — — Goodwill impairment (14.4 ) — — Other (1.0 ) 0.7 (0.1 ) Total income tax provision 0.7 % 25.9 % 34.6 % We file U.S. federal and various state and local income tax returns as well as income tax returns in 25 foreign jurisdictions. Tax returns are generally subject to examination for a period of three to five years after the filing of the respective return. The tax years subject to examination by major tax jurisdictions include the years 2016 and forward by the U.S. Internal Revenue Service, the years 2015 and forward for certain state and local jurisdictions, and the years 2011 and forward for certain foreign jurisdictions. The Tax Act is comprehensive tax legislation that implemented complex changes to the U.S. tax code and also moved from a global tax regime to a modified territorial regime, which required U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S., provisions for GILTI, a beneficial tax rate on FDII, BEAT that imposes tax on certain foreign related-party payments, and interest limitation. We became subject to the GILTI, FDII, BEAT and interest limitation provisions effective January 1, 2018. We elected to recognize the tax on GILTI as a period expense in the period the tax is incurred and estimated the impact of each provision of the Tax Act on the effective tax and recorded tax expense for the GILTI provision of $10 million and an interest limitation of $7 million for the year ended December 31, 2019 . We recorded a tax expense for the GILTI provision of $2 million for the year ended December 29, 2018 . We have concluded that the BEAT and FDII provisions of the Tax Act will not apply to or will not have a material impact on our consolidated and combined financial statements, therefore, we have not recorded an estimate for these items in the effective tax rate for the years ended December 29, 2018 and December 31, 2019 . Due to the complexities of the Tax Act, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) that allowed us to record a provisional amount for any income tax effects of the Tax Act in accordance with ASC 740, to the extent that a reasonable estimate could be made, in our 2017 combined financial statements. SAB 118 allowed for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. In the fourth quarter of 2017, we recorded provisional amounts related to the Tax Act for any items that could be reasonably estimated at the time. This included the one-time transition tax that we estimated to be $13 million and a net deferred tax expense of $7 million attributable to the revaluation of deferred tax assets and liabilities due to the lower-enacted federal income tax rate of 21%. In the aggregate, for the quarter ended December 30, 2017, these Tax Act modifications resulted in a one-time tax expense of $20 million . Absent the effects of the transition, the revaluation of deferred tax assets and liabilities, and the adoption of ASU 2016-09, “Accounting for Stock Compensation,” our effective tax rate for the year ended December 30, 2017, would have been 22.8% as compared to our actual effective tax rate of 34.6% . For the year ended December 29, 2018 , we recorded $4 million additional expense for the one-time transition tax. The change was a result of additional analysis, changes in interpretation and assumptions, as well as additional regulatory guidance that was issued. As of December 29, 2018 , we completed our analysis of the impact of the Tax Act in accordance with SAB 118 and the amounts are final. Due to the one-time transition tax and the imposition of the GILTI provisions, all previously unremitted earnings will no longer be subject to U.S. federal income tax, however, there could be U.S. state and/or foreign withholding taxes upon distribution of such unremitted earnings. Determination of the amount of unrecognized deferred tax liability with respect to such earnings is not practicable. ASC Topic 740 prescribes the accounting for uncertainty in income taxes recognized in the financial statements in accordance with other provisions contained within the guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate audit settlement. In the normal course of business, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities for uncertain tax positions taken in respect to certain tax matters. The following table provides a reconciliation of unrecognized tax benefits which are included in Other liabilities within the balance sheets: Years Ended December 31, December 29, December 30, Balance at beginning of period $ 6 $ 8 $ 8 Additions based on prior year tax positions — 2 1 Reductions from lapse in statutes of limitations (2 ) (4 ) (1 ) Balance at end of period $ 4 $ 6 $ 8 The amount of unrecognized tax benefits that would affect the effective tax rate if recognized during the year ended December 31, 2019 would be $4 million . We believe that it is reasonably possible that a decrease of up to $1 million in unrecognized tax benefits related to foreign tax exposures may be necessary in the coming year due to lapses of statute of limitations. The balance sheet at December 31, 2019 contains unrecognized tax benefits of $1 million related to assets held for sale. We recognize interest and penalties related to unrecognized tax benefits as components of Income tax (benefit) expense in the statements of operations and accrued $2 million in 2019 and $1 million in 2018 .

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share On February 7, 2019, Henry Schein distributed approximately 71 million shares of Covetrus common stock to its shareholders. The computation of basic earnings per common share (“EPS”) for periods prior to the Separation was performed using the shares distributed by Henry Schein on February 7, 2019. The weighted-average number of shares outstanding for diluted EPS for the periods prior to the Separation also includes approximately 1 million of diluted common share equivalents for restricted stock and restricted stock units as these share-based awards were previously issued by Henry Schein, outstanding at the time of the Separation, and were assumed by Covetrus following the Separation. Basic EPS is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. In addition, the shares of common stock issuable pursuant to restricted stock awards, restricted stock units, and stock options outstanding under our 2019 Omnibus Incentive Compensation Plan are included in the diluted EPS calculation to the extent they are dilutive. The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net (loss) earnings per share: December 31, December 29, December 30, Numerator: Net (loss) income attributable to Covetrus $ (1,019 ) $ 101 $ 64 Denominator: Basic Weighted-average common shares outstanding 107 71 71 Diluted Effect of dilutive shares (a) — 1 1 Diluted shares 107 72 72 Basic (loss) earnings per share $ (9.50 ) $ 1.41 $ 0.90 Diluted (loss) earnings per share $ (9.50 ) $ 1.40 $ 0.89 (a) Shares from share-based awards are not included for periods with a net loss because they would be anti-dilutive. See Note 16 - Share-based Compensation and Other Employee Benefits

Share-based Compensation and Ot

Share-based Compensation and Other Employee Benefits	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Share-based Compensation and Other Employee Benefits	Share-based Compensation and Other Employee Benefits Share-based Compensation Plan In connection with the Separation, Distribution, and Acquisition, all outstanding restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and stock options of Henry Schein and Vets First Choice were exchanged for economically equivalent awards of Covetrus. RSAs and RSUs totaling 327,447 and stock options of 3,914,694 were issued in connection with the exchange. On February 7, 2019, we adopted the 2019 Omnibus Incentive Compensation Plan (the “Plan”) which authorizes Covetrus' Compensation Committee of the Board of Directors to grant stock options, stock awards, stock units, stock appreciation rights, other share-based awards, and cash awards. Awards may be granted to employees, consultants, advisors, and non-employee Directors of Covetrus and our subsidiaries. Awards issued under the Plan may not have a term greater than 10 years from the date of grant, generally vest ratably over a three-year period, and must be issued at a price of not less than 100% of the fair market value at the date of grant. We reserved 11,527,675 shares of our common stock for issuance under the Plan. In addition, to the extent that awards outstanding under the Plan are cancelled, forfeited, or otherwise terminated without being exercised, the number of shares underlying such awards will be available for future grant under the Plan. We recognized pre-tax share-based compensation expense of $46 million ( $40 million after-tax) in 2019 , $7 million ( $6 million after-tax) in 2018 , and $7 million ( $4 million after-tax) in 2017 . No share-based compensation cost was capitalized as part of an asset. Stock Options We grant stock options at an exercise price equal to the closing market price of our stock on the grant date. We use the Black-Scholes pricing model to determine the fair value of options granted and have elected the accrual method for recognizing compensation costs. The fair value of share-based payment awards calculated using the Black-Scholes model varies based on share price, award exercise price, stock volatility, expected term, risk free interest rate, expected dividends, and the assumptions used in determining these variables. No stock options were granted during 2017 and 2018. The following table summarizes our stock option activity under the Plan for the year ended December 31, 2019 : Stock Options Number Weighted- Weighted- Aggregate Outstanding at beginning of year — $ — Granted 5 14.03 Exercised (1 ) 5.14 Forfeited — 18.66 Outstanding at end of year 4 $ 15.29 6.9 years $ 16 Exercisable at end of year 2 $ 9.25 5.2 years $ 12 The following table provides the weighted-average grant-date fair value and related valuation assumptions for these awards granted during the year ended December 31, 2019 : Weighted-average grant-date fair value $ 14.03 Valuation assumptions: Expected term 6.0 years Risk-free interest rate 1.8 % Expected volatility 29.9 % Expected dividend rate — % We received cash from option exercises of $4 million during 2019 . RSAs/RSUs We grant RSAs and RSUs at an exercise price equal to the closing market price of our stock on the grant date. The following table summarizes our RSA/RSU activity under the Plan for the year ended December 31, 2019 : Restricted Stock Awards/Restricted Stock Units Number Weighted- Weighted- Aggregate Nonvested at beginning of year — $ 76.86 Granted 2 27.83 Vested — 66.84 Forfeited — 36.11 Nonvested at end of year 2 $ 25.69 1.6 years $ 22 The weighted-average grant-date fair values for these awards granted during each of the last three years were as follows: December 31, 2019 December 29, 2018 December 30, 2017 Weighted-average grant-date fair value $ 27.83 $ 65.26 $ 85.90 Additional Information As of December 31, 2019 , there was $75 million in unrecognized compensation expense related to nonvested share-based awards that is expected to be recognized over a weighted-average period of 2.4 years . The following table provides further information related to our share-based awards for the last three years: December 31, 2019 December 29, 2018 December 30, 2017 Intrinsic value of stock options exercised $ 15 $ — $ — Fair value of RSA/RSU shares vested $ 3 $ 2 $ — Employee Stock Purchase Plan On February 7, 2019, we adopted the Employee Stock Purchase Plan (the “ESPP”) and approved 2,223,864 shares for issuance under this plan. The share reserve will increase automatically on the first trading day of January of each calendar year beginning January 1, 2020. The ESPP is administered by the Compensation Committee. The ESPP provides for the issuance of shares of our common stock to participating employees. At the end of each designated offering period, which occurs every six months on May 31 and November 30, employees can elect to purchase shares of our common stock with contributions of up to 15% of their base pay, accumulated via payroll deductions, at an amount equal to 85% of the lower of our stock price on (i) the first day of the offering period, or (ii) the last day of the offering period. For the year ended December 31, 2019 , activity under the ESPP was not material. Annual Incentive Plan Our Compensation Committee adopted the Annual Incentive Plan (the “AIP”) on February 7, 2019. The AIP provides pay for performance incentive compensation to our employees, including our named executive officers, rewarding them for their contributions to us with incentive compensation based on attainment of predetermined corporate performance goals, as applicable. Our Compensation Committee designates participants in the AIP for each performance period and may establish corporate performance goals and individual performance goals for our named executive officers under the AIP. The Compensation Committee may subsequently adjust the performance goals to consider such unanticipated circumstances or significant events as our Compensation Committee determines. Our Compensation Committee is responsible for administering the AIP and has full discretionary authority under the AIP and the authority to take any actions it deems necessary or advisable in carrying out its duties thereunder, including delegating their authority under the AIP. For the year ended December 31, 2019 , we recorded compensation expense of $7 million associated with the AIP. 401(k) Plan Covetrus maintains a qualified 401(k) plan covering eligible employees of certain of the U.S. entities as well as certain other defined contribution plans. Matching contributions and administrative expenses related to these plans were $9 million in 2019 , $6 million in 2018 , and $6 million in 2017 .

Related-party Transactions

Related-party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related-party Transactions	Related-party Transactions Long-term Debt As of December 29, 2018 , the combined financial statements included long-term debt with Darby Group Companies, Inc. and M&S Investment Holding I LLC, each a related party of the Former Parent and the Animal Health Business. Prior to the Separation and Distribution date of February 7, 2019, the Former Parent repaid the Animal Health Business’ long-term debt. Allocation of General Corporate Expenses As discussed in Note 1 - Business Overview and Significant Accounting Policies, we were allocated general corporate expenses of $5 million in 2019 , $55 million in 2018 , and $59 million in 2017 which are included within Selling, general and administrative in the consolidated and combined statements of operations. Net Former Parent Investment The net transfers from the Former Parent are reflected in equity on the consolidated and combined balance sheets and statements of shareholders' equity. A reconciliation of Net Former Parent investment in the consolidated and combined statements of equity to the corresponding amount presented on the consolidated and combined statements of cash flows for all periods presented were as follows: December 31, December 29, December 30, Net transfers from Former Parent from statements of shareholders' equity $ 172 $ 174 $ 13 Share-based compensation expense — (7 ) (7 ) Changes to redemption value of redeemable non-controlling interests (6 ) 107 54 Other (1 ) — 2 Total net transfers from Former Parent from statements of cash flows $ 165 $ 274 $ 62

Segment Data

Segment Data	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Segment Data	Segment Data In connection with the Separation, Distribution, and Acquisition, we revised our reportable segments to reflect how the chief operating decision maker (the chief executive officer) (the “CODM”) reviews financial information and makes operating decisions. This resulted in a change in the operating segments from (i) supply chain and (ii) technology and value-added services to (i) North America, (ii) Europe, and (iii) APAC & Emerging Markets. While the historical business was focused on driving growth through specific product and service offerings to its customers, the Separation, Distribution, and Acquisition allowed for the integration of the different products and service offerings, along with prescription management, data analytics, and insights through veterinary practice management software into one multi-channel veterinary platform. We will focus on delivering the integrated platform of products and services to our customers on a geographical basis. During the second quarter of 2019, our CODM began evaluating segment profit (loss) solely based on Adjusted EBITDA. In the prior period, our CODM was using both operating income and Adjusted EBITDA for measurement purposes, thus operating income was presented as it most closely reflected the measurement principle applied to our consolidated and combined financial statements. We do not allocate expenses managed at the corporate level to our segments, such as corporate wages and related benefits, corporate occupancy costs, professional services utilized at the corporate level, and non-recurring expenses. All intersegment balances and transactions have been eliminated in consolidation. The following tables reflect our segment information and Corporate, the segment recast for the prior years, and reconciles Adjusted EBITDA for reportable segments to consolidated net (loss) income attributable to Covetrus: At and For the Year Ended December 31, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 2,111 $ 1,509 $ 368 $ — $ (12 ) $ 3,976 Adjusted EBITDA $ 154 $ 68 $ 19 $ (39 ) $ — $ 202 Depreciation and amortization $ 131 $ 18 $ 6 $ — $ — $ 155 Income tax benefit (expense) $ 8 $ (3 ) $ (4 ) $ 6 $ — $ 7 Total assets $ 2,941 $ 726 $ 137 $ 783 $ (1,226 ) $ 3,361 Expenditures for long-lived assets $ 23 $ 10 $ 1 $ 5 $ — $ 39 Reconciliation of Net Loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (1,019 ) Plus: Depreciation and amortization 155 Plus: Interest expense, net 53 Less: Income tax benefit (7 ) Earnings before interest, taxes, depreciation, and amortization (818 ) Plus: Share-based compensation 46 Plus: Transaction costs 2 Plus: Formation of Covetrus 34 Plus: Separation programs and executive severance 11 Plus: Carve-out operating expenses 5 Plus: IT infrastructure 6 Plus: Goodwill impairment 938 Less: Minority interest in goodwill impairment (3 ) Less: Other (income) expense items, net (19 ) Adjusted EBITDA $ 202 At and For the Year Ended December 29, 2018 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,939 $ 1,463 $ 387 $ — $ (11 ) $ 3,778 Adjusted EBITDA $ 157 $ 75 $ 20 $ (32 ) $ — $ 220 Depreciation and amortization $ 41 $ 17 $ 6 $ — $ — $ 64 Income tax expense $ (18 ) $ (15 ) $ (3 ) $ (1 ) $ — $ (37 ) Total assets $ 1,343 $ 702 $ 182 $ 10 $ (4 ) $ 2,233 Expenditures for long-lived assets $ 14 $ 7 $ 1 $ — $ — $ 22 Reconciliation of Net Income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 101 Plus: Depreciation and amortization 64 Plus: Interest expense, net 2 Plus: Income tax expense 37 Earnings before interest, taxes, depreciation, and amortization 204 Plus: Share-based compensation 7 Plus: Separation programs and executive severance 9 Adjusted EBITDA $ 220 At and For the Year Ended December 30, 2017 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,876 $ 1,373 $ 349 $ — $ (18 ) $ 3,580 Adjusted EBITDA $ 136 $ 62 $ 16 $ (37 ) $ — $ 177 Depreciation and amortization $ 38 $ 16 $ 5 $ — $ — $ 59 Income tax expense $ (34 ) $ (11 ) $ (2 ) $ (1 ) $ — $ (48 ) Total assets $ 1,301 $ 735 $ 174 $ 11 $ (4 ) $ 2,217 Expenditures for long-lived assets $ 13 $ 7 $ 1 $ — $ — $ 21 Reconciliation of Net Income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 64 Plus: Depreciation and amortization 59 Plus: Interest expense, net 2 Plus: Income tax expense 48 Earnings before interest, taxes, depreciation, and amortization 173 Plus: Share-based compensation 4 Adjusted EBITDA $ 177 See Note 4 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In January 2020, we entered into an agreement to combine our business operating in Spain and Portugal with Distrivet, a leading provider of veterinary products and services in Spain. We will own 50.01% of the new company, to be called Distrivet, a Covetrus company. The transaction is expected to close during the second quarter ended June 30, 2020, subject to satisfaction of customary closing conditions, including regulatory clearance.

Summary of Quarterly Data (Unau

Summary of Quarterly Data (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Summary of Quarterly Data (Unaudited)	Summary of Quarterly Data (Unaudited) A summary of quarterly data follows: For the Three Months Ended March 31, June 30, September 30, December 31, Net sales $ 941 $ 1,009 $ 1,018 $ 1,008 Gross profit (a) $ 177 $ 193 $ 191 $ 188 Goodwill impairment $ — $ — $ 939 $ (1 ) Operating loss $ (9 ) $ (5 ) $ (958 ) $ (25 ) Net loss attributable to Covetrus (b) $ (13 ) $ (10 ) $ (959 ) $ (37 ) Loss per share: (b) Basic $ (0.14 ) $ (0.09 ) $ (8.56 ) $ (0.33 ) Diluted $ (0.14 ) $ (0.09 ) $ (8.56 ) $ (0.33 ) (a) 2019 quarterly data reflects a reclassification of Vets First Choice shipping expenses that were previously included in Selling, general and administrative into Cost of sales to classify these Vets First Choice shipping expenses consistently with the rest of our business. (b) The third quarter ended September 30, 2019 includes a revision (see Note 14 - Income Taxes). For the Three Months Ended March 31, June 30, September 30, December 29, Net sales $ 947 $ 1,005 $ 923 $ 903 Gross profit $ 176 $ 183 $ 166 $ 159 Operating income $ 32 $ 38 $ 34 $ 33 Net income attributable to Covetrus $ 23 $ 29 $ 16 $ 33 Earnings per share: Basic $ 0.32 $ 0.40 $ 0.22 $ 0.47 Diluted $ 0.31 $ 0.40 $ 0.22 $ 0.46

Business Overview and Signifi_2

Business Overview and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Principles of Consolidation We prepared the accompanying consolidated and combined financial statements in accordance with GAAP.
Principles of Consolidation	Except as otherwise specifically noted, the combined financial statements and other financial information for the fiscal years ended December 29, 2018 and December 30, 2017 relate to the Animal Health Business, as these periods predate the February 7, 2019 effective date of the Acquisition. This Form 10-K does not include the historical financial results of Vets First Choice for the fiscal years ended December 29, 2018 and December 30, 2017 and does not include any pro forma financial statements of Covetrus. Beginning with the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, Covetrus began reporting on a consolidated basis, representing the combined operations of the Animal Health Business and Vets First Choice and their respective subsidiaries. The Animal Health Business is deemed the acquirer in this combination for accounting purposes under GAAP, therefore, the Animal Health Business is considered Covetrus’ predecessor and the historical combined financial statements of the Animal Health Business prior to February 7, 2019 are reflected in Covetrus’ quarterly and annual reports as Covetrus’ historical financial statements. The accompanying consolidated and combined financial statements include the operations of the Company as well as those of our wholly-owned and majority-owned subsidiaries from their respective dates of inception or acquisition. All significant intercompany transactions and balances are eliminated in consolidation. All intracompany transactions have been eliminated and all intercompany transactions between the Animal Health Business and Henry Schein have been eliminated in these combined financial statements as such transactions were deemed to not have occurred between us and Henry Schein. Investments in unconsolidated affiliates, which are 20% to 50% owned, or investments of less than 20% in which we could influence the operating or financial decisions, are accounted for under the equity method. The combined financial statements include expense allocations for (i) certain corporate functions historically provided by Henry Schein, including accounting, legal, information services, planning, compliance, investor relations, administration and communication, and similar costs, (ii) employee benefits and incentives, and (iii) share-based compensation. These expenses have been allocated to the Animal Health Business based on direct usage when identifiable, with the remainder allocated on a pro rata basis of net sales, headcount, or other measures of the Animal Health Business and Henry Schein. The Animal Health Business believes the bases on which the expenses have been allocated are a reasonable reflection of the utilization of services provided to, or the benefit received by, the Animal Health Business during the periods presented. The allocations may not, however, reflect the actual expenses that the Animal Health Business would have incurred as a stand-alone company for the periods presented. Actual costs that may have been incurred if the Animal Health Business had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, what functions were outsourced or performed by employees, and strategic decisions made in areas such as information technology and infrastructure. Following the Separation, these functions have been performed using our own resources or third-party service providers. Some of these functions may continue to be provided by Henry Schein under transition services agreements through February 2021.
Use of Estimates	Use of Estimates Preparing financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Changes in circumstances could cause actual results to differ materially from these estimates. The most significant estimates include our evaluation of goodwill impairment, intangible assets acquired, fair value of our derivatives, share-based compensation, self-insurance reserves, and supplier rebates.
Fiscal Year	Fiscal Year During fiscal years 2017 and 2018, we operated on a 52-53-week basis ending on the last Saturday of December. For fiscal year 2019, we adopted a last day of the calendar year accounting and operating cycle. We made this change on a prospective basis and did not adjust operating results for periods prior to 2019 as the result was not material.
Revenue Recognition	Supplier Rebates We receive quarterly and annual performance rebates from suppliers based upon attainment of certain sales and/or purchase goals. Supplier rebates are included as a reduction of Cost of sales and are recognized over the period they are earned. The factors considered in estimating supplier rebate accruals include forecasted inventory purchases and sales in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume. Revenue Recognition We recognize revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following: • Identify the contract(s) with a customer, • Identify the performance obligations in the contract, • Determine the transaction price, • Allocate the transaction price to the performance obligations in the contract, and • Recognize revenue when, or as, the entity satisfies a performance obligation. Our revenue is generated from the following major product categories: • Supply Chain Services - primarily includes the sale of animal-health consumable products, including our own proprietary and Covetrus branded products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, and vitamins and supplements to wholesale and retail customers. Our value-added practice solutions include financial services, equipment repair, inventory management, e-commerce, as well as continuing education services for practitioners. • Software Solutions - includes practice management software systems for veterinary practitioners and animal-health clinics, client communication services, reminders, data backup services, and hardware sales and support. • Prescription Management - includes the distribution of finished goods pharmacy products, specialty pharmaceutical compounding, e-commerce, shipping, manufacturer incentives, service fees, and data integration and support services. We estimate the transaction price at contract inception, including any variable consideration, and update the estimate each reporting period for any changes in circumstances. Variable consideration, including provisions for discounts, rebates to customers, customer returns, and other contra revenue adjustments is included in the transaction price at contract inception by estimating the most likely amount based upon historical data and estimates and are provided for in the period in which the related sales are recognized. Many of our contracts with customers require us to take possession of the inventory, provide the goods or services, and establish the price for the goods or services. Revenue and cost of sales from this type of contract are recognized on a gross basis. From time to time, certain contracts require us to arrange for the procurement of goods or services on behalf of our customer, but we do not purchase or take title of the product from the supplier before they are transferred to our customer. In this type of contract, we are acting as an agent and revenue is recognized on a net basis (revenue less cost of sales is included in Net sales) (“Net Agency Revenue”), as the supplier is the primary obligor, bears the inventory and credit risk, establishes the price, picks, packs, and ships the product, determines the product specifications, and the amount is fixed. Payment terms differ by customer and jurisdiction, but generally range from 30 to 60 days. Supply Chain Services Revenue derived from the sale of consumable products is recognized at a point in time when control transfers to the customer. Such sales typically entail high-volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating control has transferred to the customer because we have no post-shipment obligations, and this is when legal title and risks and rewards of ownership transfer to the customer and we have an enforceable right to payment. Revenue derived from the sale of equipment is recognized when control transfers to the customer. This generally occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Some equipment sales require minimal installation which is typically completed at the time of delivery. Our products generally carry standard warranty terms provided by the manufacturer, however, in instances where we provide warranty labor services, the warranty costs are accrued in the period the related revenue is recognized. Software Solutions Revenue derived from the sale of software products is recognized when products are shipped to customers or made available electronically. Such software is generally installed by customers and does not require extensive training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support, is generally recognized over the life of the support period while revenue from training services is recognized over the period the services are provided. Prescription Management Revenue under this category is primarily generated from two sources: (i) prescription management and pharmacy services (including the distribution of finished goods products, specialty pharmaceutical compounding, shipping, manufacturer incentives, and service fees), which is recognized when control transfers to the customer, typically upon shipment or delivery, and (ii) data integration and support services (including software as a service, initial setup to connect customers to hosted software applications, data conversions, custom software developments, upgrades and enhancements, training, software configuration, and technical support), which is recognized over the period the services are provided. Other Revenue Revenue derived from other sources, including freight charges and equipment repairs, is recognized when the related product revenue is recognized or when the services are provided. We applied the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract. Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations that are accounted for separately. When we sell software products together with related services (e.g., training and technical support), we allocate revenue to software using the residual method, utilizing an estimate of our standalone selling price to estimate the fair value of the undelivered elements. There have not been any cases where revenue is deferred due to a lack of a standalone selling price. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available because we do not sell the goods or services separately, we use one of the following techniques to estimate the standalone selling price: (i) adjusted market approach, (ii) cost-plus approach, or (iii) the residual method. There is no specific hierarchy for the use of these methods, but the relative selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone basis, taking into consideration the cost structure of the business, technical skill required, customer location, and other market conditions. Sales, value-add, and other taxes we collect concurrently with revenue-producing activities are excluded from revenue, but rather are recorded as liabilities and included in Accrued taxes. See Note 4 - Revenue from Contracts with Customers and Note 18 - Segment Data for additional disclosures. Contract Balances Contract balances represent amounts presented in the consolidated and combined balance sheets when we have either transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets, and contract liabilities. Accounts Receivable The carrying amount of accounts receivable is reduced by an allowance that reflects our best estimate of the amounts that will not be collected. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our allowance for doubtful accounts including historical data, experience, customer types, creditworthiness, and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect collectability. Accounts receivable are written-off when it is probable that all contractual payments due will not be collected. Contract Assets Contract assets include amounts related to any conditional right to consideration for work completed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to Accounts receivable when the right becomes unconditional. Current contract assets are included in Prepaid expenses and other and non-current contract assets are included in Investments and other within the consolidated and combined balance sheets. The contract assets primarily relate to the bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Contract Liabilities Contract liabilities are comprised of advance payments and deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Current contract liabilities are included in Other current liabilities and non-current contract liabilities are included in Other liabilities within the consolidated and combined balance sheets. The contract liabilities primarily relate to advance payments from customers and upfront payments for service arrangements provided over time. Sales Returns Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as a refund liability within Other current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liability based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability, and we record an inventory asset (and a corresponding adjustment to Cost of sales) for any goods or services that we expect to be returned. Prior to the Adoption of Topic 606 Results for reporting periods beginning after December 30, 2017 are presented under “Revenue from Contracts with Customers (Topic 606)”, while prior period amounts continue to be reported under “Revenue Recognition (Topic 605)”, the accounting standard in effect for those periods.
Shipping and Handling Costs and Cost of Sales	Shipping and Handling Costs Freight and other direct shipping costs are included in Cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack, and otherwise prepare, if necessary, merchandise for shipment to customers, are reflected in Selling, general and administrative. Cost of Sales The primary components of Cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks, and rebates) and inbound and outbound freight charges. Our distribution network costs, such as purchasing, receiving, inspections, warehousing, internal inventory transfers, and other related costs are included in Selling, general and administrative along with other operating costs. Total distribution network costs were $18 million in 2019 , $18 million in 2018 , and $16 million in 2017 . Cost of sales also includes costs directly related to the design and production of software, distribution of licenses, hardware and costs related to services provided, and amortization of the capitalized costs for internally generated software for resale.
Cash and Cash Equivalents	Cash and Cash Equivalents We maintain cash depository accounts with banks throughout the world and invest in high quality, short-term, liquid instruments. Such investments are made only in instruments issued by high-quality institutions. These investments mature within three months, and we have not incurred any related losses for the years ended December 31, 2019, December 29, 2018, and December 30, 2017.
Inventories	Inventories Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value. When inventory is adjusted to net realizable value, the corresponding adjustment is included in Cost of sales. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high-tech equipment. In accordance with our policy for inventory valuation, we consider many factors, including the condition and salability of the inventory, historical sales, forecasted sales, and market and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory.
Advertising	Advertising Advertising costs are charged to operations when incurred as part of Selling, general and administrative. We receive reimbursements from certain vendors for advertising costs. Reimbursements for advertising costs are reported on a net basis within Selling, general and administrative. When reimbursements received are more than the cost of advertising, the net amount is reported within Cost of sales. Advertising expense was $17 million in 2019 , $16 million in 2018 , and $15 million in 2017 . Additionally, advertising and promotional costs incurred in connection with direct marketing, including product catalogs and printed materials, are deferred and amortized on a straight-line basis over the period that is benefited, typically one year.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed primarily under the straight-line method. Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term. See Note 5 - Property and Equipment, Net. Capitalized software costs consist of costs to purchase and develop software. Costs incurred during the application development stage for software bought and further customized by outside suppliers for use, software developed by a supplier for proprietary use, and costs incurred for our own personnel who are directly associated with software development are capitalized.
Income Taxes	Income Taxes We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period of the enactment date. See Note 14 - Income Taxes . Our tax provision for fiscal years 2018 and 2017 were prepared utilizing the separate return methodology as if we had not been included in a consolidated or group income tax return with Henry Schein. Current income tax liabilities are presented based on current amounts owed for the current tax year for entities that file separate returns. Current taxes payable for entities that joined in a consolidated or group filing with Henry Schein were settled in Net former parent investment consistent with other intercompany obligations.
Share-based Compensation	Share-based Compensation Share-based compensation represents the cost related to share-based awards granted to employees and non-employee directors. We determine the fair value of share-based payment awards using the Black-Scholes model which is affected by the stock price and several assumptions, including expected volatility, expected life, risk-free interest rate, and expected dividends. We recognize share-based compensation expense, net of estimated expected forfeitures, on a straight-line basis over the requisite service period of the award, which is included in Selling, general and administrative in our consolidated and combined statements of operations.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Statement of operations accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period-to-period are included in Accumulated other comprehensive loss in equity. Gains and losses resulting from foreign currency transactions are included in earnings.
Derivatives and Financial Instruments	Derivatives and Financial Instruments Our global business exposes us to risks related to changes in foreign currency exchange rates and interest rates. Our financial risk management program is designed to manage the exposure arising from cash flow variability and uses derivative financial instruments to minimize this risk. We do not enter into derivative financial instruments for trading or speculative purposes. For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings. For cash flow hedges, the effective portion of the changes in the fair value of the derivative, along with any gain or loss on the hedged item, are recorded as a component of accumulated other comprehensive income and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classified the cash flows related to hedging activities in the same category on the consolidated and combined statements of cash flows as the cash flows related to the hedged item.
Business	Business Acquisitions The net assets of businesses acquired are recorded at their fair value at the acquisition date and the consolidated and combined financial statements include their results of operations from that date. Any excess of acquisition consideration over the fair value of identifiable net assets acquired is recorded as goodwill. The major classes of assets and liabilities that we generally allocate purchase price to, excluding goodwill, include identifiable intangible assets (e.g., trademarks and trade names, customer relationships and lists, and non-compete agreements), accounts receivable, inventory, property and equipment, deferred taxes, and other current and long-term assets and liabilities. The estimated fair value of identifiable intangible assets is based on critical estimates, judgments, and assumptions derived from analysis of market conditions, discount rate, discounted cash flows, customer retention rates, and estimated useful lives.
Goodwill	Goodwill As noted in Business Acquisitions above, our Goodwill is derived when we acquire another company. Goodwill is not amortized, but the potential impairment of goodwill is assessed at least annually (at the beginning of the fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment analysis for goodwill requires a comparison of the fair value to the carrying value of a reporting unit. Some important factors that could trigger an interim impairment review include: • Significant underperformance relative to expected historical or projected future operating results, • Significant changes in the manner of the use of acquired assets or our overall business strategy (e.g., decision to divest a business), • Sustained decline in our share price and a resulting decrease in our market capitalization, or • Significant negative industry or economic trends.
Long-lived Assets	Long-lived Assets Long-lived assets, other than goodwill, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Definite-lived intangible assets consist primarily of non-compete agreements, trademarks, patents, customer relationships, and product development. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When impairment exists, the related assets are written down to fair value.
Comprehensive Income	Comprehensive Income Comprehensive income (loss) includes certain gains and losses that, under GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to equity. Comprehensive income (loss) is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) from hedging activities, and pension adjustment gain (loss).
Accounting Pronouncements Adopted and to be Adopted	Accounting Pronouncements Adopted As of January 1, 2019, we adopted the following ASUs: • ASU 2016-02, “Leases (Topic 842),” introduces the balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. We adopted the new lease standard using the transition option issued under the amendments in ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which allowed us to continue to apply the legacy guidance in Accounting Standards Codification (“ASC”) 840, “Leases,” in the comparative periods presented in the year of adoption. We elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We have lease agreements with both lease and non-lease components, which are generally accounted for together as a single lease component. We made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. We recognize those lease payments in the consolidated statement of operations on a straight-line basis over the lease term. The impact of the adoption was an increase to our operating lease assets and liabilities on January 1, 2019 of $65 million . The initial recognition of the right-of-use asset and lease liability represented a non-cash activity. See Note 6 - Leases . • ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” eliminates step two from the quantitative goodwill impairment test. Under this guidance, annual or interim goodwill impairment testing is performed by comparing the fair value of the reporting units to the carrying value of those units. If the carrying value exceeds the fair value, an impairment charge is recognized, not to exceed the amount of goodwill allocated to each reporting unit. • ASU 2018-02, “Treatment of Stranded Tax Effects in Accumulated Other Comprehensive Income Resulting from the Tax Cuts and Jobs Act of 2017,” allows the reclassification of the income tax effects resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Act") from accumulated comprehensive income to retained earnings. The adoption did not have a material impact on our consolidated financial statements and related disclosures. • ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments to employees. ASU 2019-08 amended 2018-07 to require that an entity measure and classify share-based payment awards granted to a customer by applying the guidance in Topic 718. The adoption did not have a material impact on our consolidated financial statements and related disclosures. • ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which simplifies the requirements for hedge accounting, more closely aligns hedge accounting with risk management activities and increases transparency of the scope and results of hedging activities. This ASU amends the presentation and disclosure requirements and provides options for new hedging strategies and methods of assessing hedge effectiveness in certain circumstances. ASU 2017-12 is required to be implemented for fiscal years beginning after December 15, 2018. The adoption did not have a material impact on the consolidated financial statements and related disclosures. As of July 1, 2019, we early adopted the following ASUs: • ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). We adopted prospectively and the adoption did not have a material impact on our consolidated financial statements and related disclosures. • ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” removed, modified, and added disclosure requirements for fair value assets and liabilities. The adoption did not have a material impact on our consolidated financial statements and related disclosures. Accounting pronouncement to be adopted: • ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. This ASU is required to be adopted using the modified retrospective basis, with a cumulative-effect adjustment to Retained earnings (Accumulated deficit) as of the beginning of the first reporting period in which the guidance of this ASU is effective. We do not expect that this ASU will have a material impact on the results of our consolidated financial statements. • ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” removes specific technical exceptions to general principles found in Topic 740, items that often produce information investors have a hard time understanding and simplifies the accounting for income taxes. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We are evaluating the anticipated impact of this standard on our financial statements as well as timing of adoption.
Fair Value	Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets that are measured at fair value on a nonrecurring basis primarily relate to Property and equipment, net, Operating lease right-of-use assets, net, Goodwill, and Other intangible assets, net. We do not periodically adjust carrying value to fair value for these assets; rather, the carrying value of the asset is reduced to its fair value when we determine that impairment has occurred. At August 31, 2019, assets measured at fair value on a nonrecurring basis consisted of Goodwill. The fair value measurement of goodwill was measured using both the market approach and income approach, which includes discounted expected cash flows. As the discounted cash flows include unobservable inputs that were significant to the fair value measurement, the fair value was classified as a Level 3 measurement within the fair value hierarchy. See Note 7 - Goodwill and Other Intangible Assets, Net . Assets and Liabilities that are not Measured at Fair Value Financial assets and liabilities The carrying amounts reported on the consolidated and combined balance sheets for Cash and cash equivalents, Accounts receivable, net, Other receivables, Accounts payable, and accrued expenses approximate their fair value due to the short maturity of those instruments. Investments in affiliates There are no quoted market prices available for investments in affiliates, however, we believe the carrying amounts are a reasonable estimate of fair value. Long-term debt Our Long-term debt is classified as a Level 2 instrument. The carrying amount of the term loan approximates fair value given the underlying interest rate applied to such amounts outstanding is currently reset to the prevailing monthly market rate. See Note 8 - Debt.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Schedule of Acquisition Date Fair Value of Consideration Transferred	The acquisition date fair value of the consideration transferred consisted of the following: Estimated Consideration Total Covetrus shares issued to Vets First Choice shareholders 39,041,689 Per share price (in actuals) (a) $ 43.05 Total fair value of shares issued to Vets First Choice shareholders $ 1,681 Fair value of Vets First Choice replacement stock option awards attributable to pre-acquisition service 62 Vets First Choice debt repaid at close 24 Vets First Choice expenses paid at close 18 Less: Vets First Choice cash used to fund transaction (9 ) Total consideration $ 1,776 (a) Closing price on February 7, 2019, Covetrus shares trading on a when-issued basis (Nasdaq: CVETV)
Schedule of Purchase Price Allocation	The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed: Estimated Fair Value Fair value of net assets acquired $ 14 Goodwill 1,324 Intangible assets 545 Deferred tax liabilities (107 ) Total acquisition cost $ 1,776
Unaudited Pro Forma Financial Information	The following unaudited pro forma financial information presents the results of operations for the years ended December 31, 2019 and December 29, 2018 as if the Acquisition had occurred as of December 31, 2017. The unaudited pro forma results reflect certain adjustments for items that are not expected to have a continuing impact, such as adjustments for transaction costs incurred, management fees, and purchase accounting. The information presented below has been prepared for comparative purposes only and does not purport to be indicative of either future results of operations or the results of operations that would have occurred had the Acquisition been consummated on December 31, 2017: Years Ended December 31, 2019 December 29, 2018 Net sales $ 4,000 $ 3,981 Goodwill impairment $ 938 $ — Net loss $ (1,032 ) $ (63 ) Net loss attributable to Covetrus $ (1,029 ) $ (63 )

Held for Sale (Tables)

Held for Sale (Tables)	12 Months Ended
	Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Held for Sale Major Classes of Assets and Liabilities	scil's major classes of assets and liabilities were as follows: December 31, 2019 Current assets $ 24 Property and equipment, net 15 Goodwill 2 Other intangibles, net 4 Investments and other 3 Assets held for sale $ 48 Current liabilities $ 18 Other non-current liabilities 3 Liabilities held for sale $ 21

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The table below presents our revenue disaggregated by major product category and reportable segment for the year ended December 31, 2019 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,816 $ 82 $ 246 $ (33 ) $ 2,111 Europe 1,513 10 — (14 ) 1,509 APAC & Emerging Markets 361 7 — — 368 Eliminations (12 ) — — — (12 ) Total net sales $ 3,678 $ 99 $ 246 $ (47 ) $ 3,976 The table below presents our revenue disaggregated by major product category and reportable segment for the year ended December 29, 2018 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,858 $ 83 $ — $ (2 ) $ 1,939 Europe 1,462 11 — (10 ) 1,463 APAC & Emerging Markets 380 7 — — 387 Eliminations (11 ) — — — (11 ) Total net sales $ 3,689 $ 101 $ — $ (12 ) $ 3,778 The table below presents our revenue recognized under ASC 605 disaggregated by major product category and reportable segment for the year ended December 30, 2017 : Supply Chain Services Software Solutions Prescription Management Eliminations Total North America $ 1,795 $ 83 $ — $ (2 ) $ 1,876 Europe 1,359 11 — 3 1,373 APAC & Emerging Markets 342 7 — — 349 Eliminations (18 ) — — — (18 ) Total net sales $ 3,478 $ 101 $ — $ 1 $ 3,580 The following table presents our revenue and gross billings associated with our Net Agency Revenue: Years Ended December 31, 2019 December 29, 2018 December 30, 2017 Net Agency Revenue $ 18 $ 26 $ 16 Gross billings from Net Agency Revenue $ 447 $ 454 $ 402
Schedule of Receivables, Contract Assets, and Contract Liabilities	The following table presents information about our receivables, contract assets, and contract liabilities from contracts with customers: Balance Sheet Location December 31, 2019 December 29, 2018 Accounts receivable: Accounts receivable, net $ 426 $ 431 Contract liabilities: Deferred revenue, current Other current liabilities $ 37 $ 18

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and equipment, net consisted of the following as of: Estimated Useful December 31, December 29, Land N/A $ 1 $ 2 Buildings and permanent improvements 10-40 years 9 17 Leasehold improvements 1-20 years 23 12 Machinery and warehouse equipment 3-10 years 44 43 Furniture, fixtures, and other 2-10 years 36 32 Computer equipment and software 2-10 years 64 36 Total property and equipment, gross 177 142 Less: accumulated depreciation and amortization (84 ) (73 ) Total property and equipment, net $ 93 $ 69 The following table sets forth our depreciation and amortization expense for the years ended: Location December 31, December 29, December 30, Cost of sales $ 3 $ 2 $ 2 Selling, general and administrative 25 13 11 Total depreciation and amortization expense $ 28 $ 15 $ 13

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Supplemental Balance Sheet Information	The following table presents the lease balances within the consolidated balance sheet and other supplemental information related to our leases as of December 31, 2019 : Operating Leases: Operating lease right-of-use assets, net $ 84 Accrued expenses, other $ 19 Other liabilities 67 Total operating lease liabilities $ 86 Finance Leases: Property and equipment, net $ 2 Current maturities of long-term debt and other borrowings $ 1 Long-term debt and other borrowings, net — Total finance lease liabilities $ 1 Weighted-average remaining lease term: Operating leases 6.8 years Finance leases 2.4 years Weighted-average discount rate: Operating leases 3.5 % Finance leases 8.1 %
Supplemental Cash Flow Information	Supplemental cash flow information related to leases for the year ended was as follows: December 31, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 25 Right-of-use assets obtained in exchange for new operating lease liabilities $ 104 Right-of-use assets obtained in exchange for new finance lease liabilities $ 1
Operating Lease Maturities	The following table presents the maturity of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases 2020 $ 22 $ 1 2021 18 — 2022 13 — 2023 9 — 2024 8 — Thereafter 28 — Total minimum lease payments 98 1 Less: amount representing interest (12 ) — Present value of net minimum lease payments 86 1 Less: current portion of lease obligations (19 ) (1 ) Long-term lease obligations $ 67 $ —
Additional Operating Leases Not Yet Commenced	As of December 31, 2019 , we had additional operating leases that have not yet commenced which included the following: Description Commencing Lease Term Total Future Lease Payments Compounding pharmacy and offices January 2020 14 years $ 25 Compounding pharmacy November 2020 20 years 28 New corporate headquarters October 2021 20 years 78 Total $ 131

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule Changes in Goodwill	The changes in the Goodwill balances by segment for the years ended December 31, 2019 and December 29, 2018 were as follows: North America Europe APAC & Emerging Markets Total Balance at December 31, 2017 (a) $ 528 $ 182 $ 50 $ 760 Foreign currency translation (1 ) (11 ) (1 ) (13 ) Goodwill additions 2 1 — 3 Balance at December 29, 2018 (a) 529 172 49 750 Foreign currency translation — (8 ) (1 ) (9 ) Goodwill additions (b) 1,280 57 16 1,353 Goodwill impairment (653 ) (221 ) (64 ) (938 ) Divestitures and related adjustments (c) (2 ) — — (2 ) Balance at December 31, 2019 $ 1,154 $ — $ — $ 1,154 (a) Recast to conform to 2019 presentation (b) Includes goodwill adjustments of $34 million related to Vets First Choice; see Note 2 - Business Acquisitions (c) Attributable to scil; see Note 3 - Held for Sale North America Europe APAC & Emerging Markets Total Accumulated impairment at December 29, 2018 $ — $ — $ — $ — Accumulated impairment at December 31, 2019 $ (653 ) $ (221 ) $ (64 ) $ (938 )
Schedule of Definite-Lived Intangible Assets	Definite-lived intangible assets consisted of the following as of: December 31, 2019 Cost Accumulated Amortization Net Customer relationships $ 503 $ (234 ) $ 269 Trademarks 60 (28 ) 32 Patents 30 (24 ) 6 Product development 406 (71 ) 335 Non-compete agreements 2 (1 ) 1 Total $ 1,001 $ (358 ) $ 643 December 29, 2018 Cost Accumulated Amortization Net Customer relationships $ 368 $ (193 ) $ 175 Trademarks 41 (23 ) 18 Patents 30 (20 ) 10 Product development 6 (3 ) 3 Non-compete agreements 4 (2 ) 2 Total $ 449 $ (241 ) $ 208
Amortization of Intangible Assets	The table below sets forth amortization of intangible assets for the years ended: Location December 31, 2019 December 29, 2018 December 30, 2017 Cost of sales $ 4 $ — $ — Selling, general and administrative 123 49 46 Total amortization $ 127 $ 49 $ 46
Estimated Future Amortization of Intangible Assets	The estimated future amortization of intangible assets is as follows: 2020 $ 134 2021 130 2022 126 2023 112 2024 59 Thereafter 82 Total $ 643

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Credit Facility	The Credit Facility is comprised of the following: Total Amount Amount Available as of December 31, 2019 Term loan $ 1,200 $ — Revolving line of credit (a) 300 281 Total Credit Facility (b) $ 1,500 $ 281 (a) Letters of credit reduce our borrowing capacity under the revolving line of credit. At December 31, 2019, we had $19 million for letters of credit outstanding against the total $35 million sub-limit available. (b) We paid $24 million of debt issuance costs related to the Credit Facilities which we deferred and amortize on an effective yield basis to interest expense. The unamortized portion at December 31, 2019 was $20 million.
Schedule of Maturity of Debt Obligations	The following table presents the maturities of our Long-term debt and other borrowings as of December 31, 2019 : Credit Facility Other Debt Total Repayments 2020 $ 60 $ 2 $ 62 2021 60 — 60 2022 60 — 60 2023 60 5 65 2024 960 — 960 Total debt maturities 1,200 7 1,207 Less: current maturities (60 ) (2 ) (62 ) Less: unamortized debt issuance costs (20 ) — (20 ) Long-term maturities $ 1,120 $ 5 $ 1,125

Derivatives and Financial Ins_2

Derivatives and Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Fair Value and Balance Sheet Location	The following table discloses the fair value and balance sheet location of our derivative instruments: Liability Derivatives Cash Flow Hedging Instruments: Balance Sheet Location December 31, 2019 December 29, 2018 Interest rate swap contracts Other liabilities $ 1 $ —
Schedule of Effect of Cash Flow Hedges	The effect of cash flow hedges on Other comprehensive (loss) income was as follows: Cash Flow Hedging Instruments: Location Year Ended December 31, 2019 Amounts recognized in Other comprehensive (loss) income Accumulated other comprehensive loss $ (1 ) Amounts reclassified out of Accumulated other comprehensive (loss) income into earnings Interest expense $ 1

Fair Value Fair Value (Tables)

Fair Value Fair Value (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule Financial Instruments Measured at Fair Value on a Recurring Basis	The following table presents our financial instruments measured at fair value on a recurring basis and indicates the level within the fair value hierarchy: Level December 31, 2019 December 29, 2018 Liabilities: Interest rate swap contracts 2 $ 1 $ — Foreign currency forward contracts 2 — NM Total liabilities $ 1 $ NM

Commitments and Contingencies -

Commitments and Contingencies - (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Unconditional Purchase Obligations	This multi-year exclusive arrangement includes unconditional purchase obligations as reflected in the table below: Year Amount 2020 $ 8 2021 8 2022 8 2023 7 2024 7 2025 6 Total $ 44

Redeemable Non-controlling In_2

Redeemable Non-controlling Interests (Tables)	12 Months Ended
	Dec. 31, 2019
Noncontrolling Interest [Abstract]
Redeemable Non-controlling Interests	The following table presents the components of change and balances of Redeemable non-controlling interests within the consolidated and combined balance sheets as of: December 31, December 29, December 30, Balance at beginning of period $ 92 $ 368 $ 322 Decrease due to redemptions (74 ) (383 ) (26 ) Increase due to business acquisitions — 6 7 Net (loss) income attributable to redeemable non-controlling interests (3 ) 6 28 Dividends paid — (10 ) (20 ) Effect of foreign currency translation (loss) gain attributable to redeemable non-controlling interests 1 (2 ) 3 Change to redemption value (6 ) 107 54 Balance at end of period $ 10 $ 92 $ 368

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Loss	The following table presents the changes in Accumulated other comprehensive loss, net of applicable taxes, by component: Derivative (Loss) Gain (Loss) Gain on Pension Adjustment Foreign Currency Translation (Loss) Gain Unrealized Gain (Loss) from Foreign Currency Hedging Total Balance as of December 31, 2016 $ — $ (2 ) $ (100 ) $ — $ (102 ) Other comprehensive income attributable to Covetrus before reclassifications — — 59 1 60 Balance as of December 30, 2017 — (2 ) (41 ) 1 (42 ) Other comprehensive income (loss) attributable to Covetrus before reclassifications — 2 (41 ) (1 ) (40 ) Balance as of December 29, 2018 — — (82 ) — (82 ) Other comprehensive loss attributable to Covetrus before reclassifications (1 ) — (4 ) — (5 ) Gain reclassified from Accumulated other comprehensive loss to earnings 1 — — — 1 Balance as of December 31, 2019 $ — $ — $ (86 ) $ — $ (86 )

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of Income Before Taxes and Equity in Earnings of Affiliates	(Loss) income before taxes and equity in earnings of affiliates were as follows: Years Ended December 31, December 29, December 30, Domestic $ (809 ) $ 59 $ 69 Foreign (220 ) 84 70 Total (loss) income before taxes and equity in earnings of affiliates $ (1,029 ) $ 143 $ 139
Schedule of Provisions for Income Taxes	The provisions for income taxes were as follows: Years Ended December 31, December 29, December 30, Current income tax (benefit) expense: U.S. federal $ — $ 13 $ 22 State and local 2 4 4 Foreign 16 25 16 Total current 18 42 42 Deferred income tax (benefit) expense: U.S. federal (10 ) — 7 State and local (7 ) — — Foreign (8 ) (5 ) (1 ) Total deferred (25 ) (5 ) 6 Total income tax (benefit) expense $ (7 ) $ 37 $ 48
Schedule of Deferred Tax Assets and Liabilities	Significant components of our deferred tax assets and liabilities were as follows: Years Ended December 31, December 29, Deferred income tax assets: Investment in partnerships $ 96 $ 72 Net operating losses and other carryforwards 38 3 Inventory, premium coupon redemptions, and accounts receivable valuation allowances — 1 Share-based compensation 7 — Other assets 12 1 Total deferred income tax assets 153 77 Valuation allowance for deferred tax assets (49 ) (1 ) Net deferred income tax assets 104 76 Deferred income tax liabilities: Intangibles amortization (125 ) (20 ) Other liabilities (6 ) — Total deferred income tax liabilities (131 ) (20 ) Net deferred income tax (liabilities) assets $ (27 ) $ 56 The deferred income tax assets (liabilities) are classified in the consolidated and combined balance sheets as follows: December 31, December 29, Non-current deferred income tax assets, net (a) $ 20 $ 72 Non-current deferred income tax liabilities, net (47 ) (16 ) Non-current deferred income tax (liabilities) assets $ (27 ) $ 56 (a) Included in Investments and other
Schedule of Corrections	We revised our consolidated financial statements for our quarter ended September 30, 2019, see Note 1 - Business Overview and Significant Accounting Policies . We determined that these amounts are not material to our previously issued quarterly financial statements. The impact to our previously issued consolidated financial statements was as follows: As of September 30, 2019 Consolidated Balance Sheet: Previously Reported Revision As Revised Non-current deferred income tax assets, net (a) $ 38 $ (19 ) $ 19 Total assets 3,328 (19 ) 3,309 Deferred income taxes 11 34 45 Total liabilities 1,989 34 2,023 Accumulated deficit (939 ) (53 ) (992 ) Total shareholders’ equity 1,329 (53 ) 1,276 Total liabilities, redeemable non-controlling interests, and shareholders’ equity $ 3,328 $ (19 ) $ 3,309 (a) Included in Investments and other Quarter Ended September 30, 2019 Consolidated Statement of Operations: Previously Reported Revision As Revised Income tax benefit (expense) $ 60 $ (53 ) $ 7 Net (loss) income $ (909 ) $ (53 ) $ (962 ) Net (loss) income attributable to Covetrus $ (906 ) $ (53 ) $ (959 ) (Loss) earnings per share attributable to Covetrus: Basic $ (8.09 ) $ (0.47 ) $ (8.56 ) Diluted $ (8.09 ) $ (0.47 ) $ (8.56 )
Schedule of Tax Loss Carryforwards	At December 31, 2019 , we had the following tax loss and tax credit carryforwards available to offset taxable income in prior and future years: Amount Expiration Period U.S. federal tax loss carryforwards $ 21 2023 - unlimited U.S. federal and state interest carryforwards $ 8 unlimited U.S. state tax loss carryforwards $ 5 2020 - 2039 Non-U.S. tax loss carryforwards $ 4 2020 - unlimited Total tax loss and tax credit carryforwards $ 38
Summary of Tax Credit Carryforwards	At December 31, 2019 , we had the following tax loss and tax credit carryforwards available to offset taxable income in prior and future years: Amount Expiration Period U.S. federal tax loss carryforwards $ 21 2023 - unlimited U.S. federal and state interest carryforwards $ 8 unlimited U.S. state tax loss carryforwards $ 5 2020 - 2039 Non-U.S. tax loss carryforwards $ 4 2020 - unlimited Total tax loss and tax credit carryforwards $ 38
Schedule of Effective Income Tax Rate Reconciliation	The tax provision (benefit) differs from the amount computed by applying the federal statutory income tax rate due to the following: Years Ended December 31, December 29, December 30, Income tax provision at federal statutory rate 21.0 % 21.0 % 35.0 % Transition tax on deemed repatriation of foreign earnings — 2.8 9.4 Pass through non-controlling interest — (2.1 ) (7.9 ) State income tax provision, net of federal income tax effect 0.5 1.4 2.0 Foreign income tax provision (benefit) 0.3 1.4 (6.2 ) Tax on GILTI (0.9 ) 1.4 — Excess tax benefits related to share-based compensation — (0.7 ) (2.9 ) Revaluation of deferred tax assets and liabilities (0.9 ) — 5.3 Valuation allowance impacts (3.9 ) — — Goodwill impairment (14.4 ) — — Other (1.0 ) 0.7 (0.1 ) Total income tax provision 0.7 % 25.9 % 34.6 %
Schedule of Reconciliation of Unrecognized Tax Benefits	The following table provides a reconciliation of unrecognized tax benefits which are included in Other liabilities within the balance sheets: Years Ended December 31, December 29, December 30, Balance at beginning of period $ 6 $ 8 $ 8 Additions based on prior year tax positions — 2 1 Reductions from lapse in statutes of limitations (2 ) (4 ) (1 ) Balance at end of period $ 4 $ 6 $ 8

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computation for net (loss) earnings per share: December 31, December 29, December 30, Numerator: Net (loss) income attributable to Covetrus $ (1,019 ) $ 101 $ 64 Denominator: Basic Weighted-average common shares outstanding 107 71 71 Diluted Effect of dilutive shares (a) — 1 1 Diluted shares 107 72 72 Basic (loss) earnings per share $ (9.50 ) $ 1.41 $ 0.90 Diluted (loss) earnings per share $ (9.50 ) $ 1.40 $ 0.89 (a) Shares from share-based awards are not included for periods with a net loss because they would be anti-dilutive. See Note 16 - Share-based Compensation and Other Employee Benefits

Share-based Compensation and _2

Share-based Compensation and Other Employee Benefits (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Summarizes of Stock Option Activity	The following table summarizes our stock option activity under the Plan for the year ended December 31, 2019 : Stock Options Number Weighted- Weighted- Aggregate Outstanding at beginning of year — $ — Granted 5 14.03 Exercised (1 ) 5.14 Forfeited — 18.66 Outstanding at end of year 4 $ 15.29 6.9 years $ 16 Exercisable at end of year 2 $ 9.25 5.2 years $ 12
Schedule of Weighted-average Grant-date Fair Value and related Valuation Assumptions	The following table provides the weighted-average grant-date fair value and related valuation assumptions for these awards granted during the year ended December 31, 2019 : Weighted-average grant-date fair value $ 14.03 Valuation assumptions: Expected term 6.0 years Risk-free interest rate 1.8 % Expected volatility 29.9 % Expected dividend rate — %
Schedule of Summary of RSA/RSU Activity	The following table summarizes our RSA/RSU activity under the Plan for the year ended December 31, 2019 : Restricted Stock Awards/Restricted Stock Units Number Weighted- Weighted- Aggregate Nonvested at beginning of year — $ 76.86 Granted 2 27.83 Vested — 66.84 Forfeited — 36.11 Nonvested at end of year 2 $ 25.69 1.6 years $ 22 The weighted-average grant-date fair values for these awards granted during each of the last three years were as follows: December 31, 2019 December 29, 2018 December 30, 2017 Weighted-average grant-date fair value $ 27.83 $ 65.26 $ 85.90
Additional Information for Share-based Awards	The following table provides further information related to our share-based awards for the last three years: December 31, 2019 December 29, 2018 December 30, 2017 Intrinsic value of stock options exercised $ 15 $ — $ — Fair value of RSA/RSU shares vested $ 3 $ 2 $ —

Related-party Transactions (Tab

Related-party Transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Reconciliation of Net Parent Investment	A reconciliation of Net Former Parent investment in the consolidated and combined statements of equity to the corresponding amount presented on the consolidated and combined statements of cash flows for all periods presented were as follows: December 31, December 29, December 30, Net transfers from Former Parent from statements of shareholders' equity $ 172 $ 174 $ 13 Share-based compensation expense — (7 ) (7 ) Changes to redemption value of redeemable non-controlling interests (6 ) 107 54 Other (1 ) — 2 Total net transfers from Former Parent from statements of cash flows $ 165 $ 274 $ 62

Segment Data (Tables)

Segment Data (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of Adjusted EBITA by Reportable Segment to Consolidated Net Income (Loss)	The following tables reflect our segment information and Corporate, the segment recast for the prior years, and reconciles Adjusted EBITDA for reportable segments to consolidated net (loss) income attributable to Covetrus: At and For the Year Ended December 31, 2019 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 2,111 $ 1,509 $ 368 $ — $ (12 ) $ 3,976 Adjusted EBITDA $ 154 $ 68 $ 19 $ (39 ) $ — $ 202 Depreciation and amortization $ 131 $ 18 $ 6 $ — $ — $ 155 Income tax benefit (expense) $ 8 $ (3 ) $ (4 ) $ 6 $ — $ 7 Total assets $ 2,941 $ 726 $ 137 $ 783 $ (1,226 ) $ 3,361 Expenditures for long-lived assets $ 23 $ 10 $ 1 $ 5 $ — $ 39 Reconciliation of Net Loss Attributable to Covetrus to Adjusted EBITDA: Net loss attributable to Covetrus $ (1,019 ) Plus: Depreciation and amortization 155 Plus: Interest expense, net 53 Less: Income tax benefit (7 ) Earnings before interest, taxes, depreciation, and amortization (818 ) Plus: Share-based compensation 46 Plus: Transaction costs 2 Plus: Formation of Covetrus 34 Plus: Separation programs and executive severance 11 Plus: Carve-out operating expenses 5 Plus: IT infrastructure 6 Plus: Goodwill impairment 938 Less: Minority interest in goodwill impairment (3 ) Less: Other (income) expense items, net (19 ) Adjusted EBITDA $ 202 At and For the Year Ended December 29, 2018 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,939 $ 1,463 $ 387 $ — $ (11 ) $ 3,778 Adjusted EBITDA $ 157 $ 75 $ 20 $ (32 ) $ — $ 220 Depreciation and amortization $ 41 $ 17 $ 6 $ — $ — $ 64 Income tax expense $ (18 ) $ (15 ) $ (3 ) $ (1 ) $ — $ (37 ) Total assets $ 1,343 $ 702 $ 182 $ 10 $ (4 ) $ 2,233 Expenditures for long-lived assets $ 14 $ 7 $ 1 $ — $ — $ 22 Reconciliation of Net Income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 101 Plus: Depreciation and amortization 64 Plus: Interest expense, net 2 Plus: Income tax expense 37 Earnings before interest, taxes, depreciation, and amortization 204 Plus: Share-based compensation 7 Plus: Separation programs and executive severance 9 Adjusted EBITDA $ 220 At and For the Year Ended December 30, 2017 North America Europe APAC & Emerging Markets Corporate Eliminations Total Net sales $ 1,876 $ 1,373 $ 349 $ — $ (18 ) $ 3,580 Adjusted EBITDA $ 136 $ 62 $ 16 $ (37 ) $ — $ 177 Depreciation and amortization $ 38 $ 16 $ 5 $ — $ — $ 59 Income tax expense $ (34 ) $ (11 ) $ (2 ) $ (1 ) $ — $ (48 ) Total assets $ 1,301 $ 735 $ 174 $ 11 $ (4 ) $ 2,217 Expenditures for long-lived assets $ 13 $ 7 $ 1 $ — $ — $ 21 Reconciliation of Net Income Attributable to Covetrus to Adjusted EBITDA: Net income attributable to Covetrus $ 64 Plus: Depreciation and amortization 59 Plus: Interest expense, net 2 Plus: Income tax expense 48 Earnings before interest, taxes, depreciation, and amortization 173 Plus: Share-based compensation 4 Adjusted EBITDA $ 177 See Note 4 - Revenue from Contracts with Customers for our revenue disaggregated by major product category and reportable segment.

Summary of Quarterly Data (Un_2

Summary of Quarterly Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Summary of Quarterly Data	A summary of quarterly data follows: For the Three Months Ended March 31, June 30, September 30, December 31, Net sales $ 941 $ 1,009 $ 1,018 $ 1,008 Gross profit (a) $ 177 $ 193 $ 191 $ 188 Goodwill impairment $ — $ — $ 939 $ (1 ) Operating loss $ (9 ) $ (5 ) $ (958 ) $ (25 ) Net loss attributable to Covetrus (b) $ (13 ) $ (10 ) $ (959 ) $ (37 ) Loss per share: (b) Basic $ (0.14 ) $ (0.09 ) $ (8.56 ) $ (0.33 ) Diluted $ (0.14 ) $ (0.09 ) $ (8.56 ) $ (0.33 ) (a) 2019 quarterly data reflects a reclassification of Vets First Choice shipping expenses that were previously included in Selling, general and administrative into Cost of sales to classify these Vets First Choice shipping expenses consistently with the rest of our business. (b) The third quarter ended September 30, 2019 includes a revision (see Note 14 - Income Taxes). For the Three Months Ended March 31, June 30, September 30, December 29, Net sales $ 947 $ 1,005 $ 923 $ 903 Gross profit $ 176 $ 183 $ 166 $ 159 Operating income $ 32 $ 38 $ 34 $ 33 Net income attributable to Covetrus $ 23 $ 29 $ 16 $ 33 Earnings per share: Basic $ 0.32 $ 0.40 $ 0.22 $ 0.47 Diluted $ 0.31 $ 0.40 $ 0.22 $ 0.46

Business Overview and Signifi_3

Business Overview and Significant Accounting Policies (Details) - USD ($) $ in Millions	Feb. 07, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017	Jan. 01, 2019
Business Acquisition [Line Items]
Valuation allowance for deferred tax assets		$ 49	$ 1
Advertising expense		17	16	$ 15
Cost of sales		3,227	3,094	2,928
Operating lease right-of-use assets, net		84
Operating lease liabilities		86
ASU 2016-02
Business Acquisition [Line Items]
Operating lease right-of-use assets, net					$ 65
Operating lease liabilities					$ 67
Distribution network costs
Business Acquisition [Line Items]
Cost of sales		18	$ 18	$ 16
Share Sale
Business Acquisition [Line Items]
Issuance of common shares in connection with the merger	$ 361
Henry Schein
Business Acquisition [Line Items]
Cash dividend paid to sole shareholder	$ 1,200
Percentage ownership, parent	63.00%
Vets First Choice
Business Acquisition [Line Items]
Percentage ownership, noncontrolling interest	37.00%
Revision | Deferred tax calculation error
Business Acquisition [Line Items]
Valuation allowance for deferred tax assets		$ 53

Business Acquisitions - Vets Fi

Business Acquisitions - Vets First Choice Narrative (Details) - Vets First Choice - USD ($) $ in Millions	3 Months Ended	11 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2019	Feb. 07, 2019
Business Acquisition [Line Items]
Reduction to purchase price			$ 30
Shares canceled (in shares)			700,400
Intangible assets				$ 545
Weighted-average amortization period			7 years
Revenue		$ 246
Net loss		$ (525)
Goodwill adjustment	$ 4		$ 34
Trademarks and Trade Names
Business Acquisition [Line Items]
Intangible assets				20
Product Formulas
Business Acquisition [Line Items]
Intangible assets				50
Customer relationships
Business Acquisition [Line Items]
Intangible assets				125
Developed Technology Rights
Business Acquisition [Line Items]
Intangible assets				$ 350

Business Acquisitions - Conside

Business Acquisitions - Consideration Transferred Vets First Choice (Details) - Vets First Choice $ / shares in Units, $ in Millions	Feb. 07, 2019USD ($)$ / sharesshares
Business Acquisition [Line Items]
Total Covetrus shares issued to Vets First Choice shareholders (in shares) | shares	39,041,689
Per share price (in actuals) (in usd per share) | $ / shares	$ 43.05
Total fair value of shares issued to Vets First Choice shareholders	$ 1,681
Fair value of Vets First Choice replacement stock option awards attributable to pre-acquisition service	62
Vets First Choice debt repaid at close	24
Vets First Choice expenses paid at close	18
Less: Vets First Choice cash used to fund transaction	(9)
Total consideration	$ 1,776

Business Acquisitions - Summary

Business Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 31, 2019	Feb. 07, 2019	Dec. 29, 2018	Dec. 30, 2017
Business Acquisition [Line Items]
Goodwill	$ 1,154		$ 750	$ 760
Vets First Choice
Business Acquisition [Line Items]
Fair value of net assets acquired		$ 14
Goodwill		1,324
Intangible assets		545
Deferred tax liabilities		(107)
Total acquisition cost		$ 1,776

Business Acquisitions - Unaudit

Business Acquisitions - Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Business Acquisition [Line Items]
Goodwill impairment	$ (1)	$ 939	$ 0	$ 0	$ 938	$ 0	$ 0
Vets First Choice
Business Acquisition [Line Items]
Net sales					4,000	3,981
Goodwill impairment					938	0
Net loss					(1,032)	(63)
Net loss attributable to Covetrus					$ (1,029)	$ (63)

Held for Sale (Details)

Held for Sale (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019	Dec. 29, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current liabilities		$ 21	$ 0
Building held-for-sale		3
Held-for-sale | scil
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets		24
Property and equipment, net		15
Goodwill		2
Other intangibles, net		4
Investments and other		3
Assets held for sale		48
Current liabilities		18
Other non-current liabilities		3
Liabilities held for sale		$ 21
Forecast | Held-for-sale | Subsequent event | scil
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price	$ 125

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 29, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Disaggregation of Revenue [Line Items]
Net sales	$ 1,008	$ 1,018	$ 1,009	$ 941	$ 903	$ 923	$ 1,005	$ 947	$ 3,976	$ 3,778	$ 3,580
Net Agency Revenue
Disaggregation of Revenue [Line Items]
Net sales									18	26	16
Gross billings from Net Agency Revenue									447	454	402
North America
Disaggregation of Revenue [Line Items]
Net sales									2,111	1,939	1,876
Europe
Disaggregation of Revenue [Line Items]
Net sales									1,509	1,463	1,373
APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									368	387	349
Operating Segments | North America
Disaggregation of Revenue [Line Items]
Net sales									2,111	1,939	1,876
Operating Segments | Europe
Disaggregation of Revenue [Line Items]
Net sales									1,509	1,463	1,373
Operating Segments | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									368	387	349
Operating Segments | Supply Chain Services
Disaggregation of Revenue [Line Items]
Net sales									3,678	3,689	3,478
Operating Segments | Supply Chain Services | North America
Disaggregation of Revenue [Line Items]
Net sales									1,816	1,858	1,795
Operating Segments | Supply Chain Services | Europe
Disaggregation of Revenue [Line Items]
Net sales									1,513	1,462	1,359
Operating Segments | Supply Chain Services | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									361	380	342
Operating Segments | Software Solutions
Disaggregation of Revenue [Line Items]
Net sales									99	101	101
Operating Segments | Software Solutions | North America
Disaggregation of Revenue [Line Items]
Net sales									82	83	83
Operating Segments | Software Solutions | Europe
Disaggregation of Revenue [Line Items]
Net sales									10	11	11
Operating Segments | Software Solutions | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									7	7	7
Operating Segments | Prescription Management
Disaggregation of Revenue [Line Items]
Net sales									246	0	0
Operating Segments | Prescription Management | North America
Disaggregation of Revenue [Line Items]
Net sales									246	0	0
Operating Segments | Prescription Management | Europe
Disaggregation of Revenue [Line Items]
Net sales									0	0	0
Operating Segments | Prescription Management | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Net sales									(47)	(12)	1
Eliminations | North America
Disaggregation of Revenue [Line Items]
Net sales									(33)	(2)	(2)
Eliminations | Europe
Disaggregation of Revenue [Line Items]
Net sales									(14)	(10)	3
Eliminations | APAC & Emerging Markets
Disaggregation of Revenue [Line Items]
Net sales									0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Net sales									(12)	(11)	(18)
Eliminations | Supply Chain Services
Disaggregation of Revenue [Line Items]
Net sales									(12)	(11)	(18)
Eliminations | Software Solutions
Disaggregation of Revenue [Line Items]
Net sales									0	0	0
Eliminations | Prescription Management
Disaggregation of Revenue [Line Items]
Net sales									$ 0	$ 0	$ 0

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Schedule of Receivables, Contract Assets, and Contract Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Accounts receivable:
Accounts receivable, net	$ 426	$ 431
Contract liabilities:
Deferred revenue, current	$ 37	$ 18

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		$ 142
Less: accumulated depreciation and amortization		(73)
Total property and equipment, net		69
Total property and equipment, gross	$ 177
Less: accumulated depreciation and amortization	(84)
Total property and equipment, net	93
Depreciation and amortization expense	28	15	$ 13
Cost of sales
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	3	2	2
Selling, general and administrative
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	25	13	$ 11
Land
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		2
Total property and equipment, gross	1
Buildings and permanent improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		17
Total property and equipment, gross	$ 9
Buildings and permanent improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Buildings and permanent improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	40 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		12
Total property and equipment, gross	$ 23
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	1 year
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	20 years
Machinery and warehouse equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		43
Total property and equipment, gross	$ 44
Machinery and warehouse equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Machinery and warehouse equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Furniture, fixtures, and other
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		32
Total property and equipment, gross	$ 36
Furniture, fixtures, and other | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Furniture, fixtures, and other | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Computer equipment and software
Property, Plant and Equipment [Line Items]
Total property and equipment, gross		$ 36
Total property and equipment, gross	$ 64
Computer equipment and software | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Computer equipment and software | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Lessee, Lease, Description [Line Items]
Operating lease, cost	$ 25
CAM and taxes	$ 2
Rent expense		$ 20	$ 17
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease terms	20 years

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) $ in Millions	Dec. 31, 2019USD ($)
Lessee, Operating Lease, Description [Abstract]
Operating lease right-of-use assets, net	$ 84
Accrued expenses, other	19
Other liabilities	67
Total operating lease liabilities	86
Finance Leases:
Property and equipment, net	2
Current maturities of long-term debt and other borrowings	1
Long-term debt and other borrowings, net	0
Total finance lease liabilities	$ 1
Weighted-average remaining lease term:
Operating leases	6 years 10 months
Finance leases	2 years 5 months
Weighted-average discount rate:
Operating leases	3.50%
Finance leases	8.10%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 25
Right-of-use assets obtained in exchange for new operating lease liabilities	104
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 1

Leases - Lease Maturities (Deta

Leases - Lease Maturities (Details) $ in Millions	Dec. 31, 2019USD ($)
Operating Leases
2020	$ 22
2021	18
2022	13
2023	9
2024	8
Thereafter	28
Total minimum lease payments	98
Less: amount representing interest	(12)
Total operating lease liabilities	86
Less: current portion of lease obligations	(19)
Long-term lease obligations	67
Finance Lease, Liability, Payment, Due [Abstract]
2020	1
2021	0
2022	0
2023	0
2024	0
Thereafter	0
Total minimum lease payments	1
Less: amount representing interest	0
Total finance lease liabilities	1
Less: current portion of lease obligations	(1)
Long-term lease obligations	$ 0

Leases - Additional Operating L

Leases - Additional Operating Leases Not Yet Commenced (Details) - Subsequent event - USD ($) $ in Millions	Oct. 21, 2021	Nov. 30, 2020	Jan. 31, 2020
Lessee, Lease, Description [Line Items]
Commencing	$ 131
Compounding pharmacy and offices
Lessee, Lease, Description [Line Items]
Lease Term			14 years
Commencing			$ 25
Compounding pharmacy
Lessee, Lease, Description [Line Items]
Lease Term		20 years
Commencing		$ 28
New corporate headquarters
Lessee, Lease, Description [Line Items]
Lease Term	20 years
Commencing	$ 78

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 1	$ (939)	$ 0	$ 0	$ (938)	$ 0	$ 0

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets, Net - Schedule Changes in Goodwill (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Goodwill [Roll Forward]
Beginning Balance				$ 750	$ 750	$ 760
Foreign currency translation					(9)	(13)
Goodwill additions					1,353	3
Goodwill impairment	$ 1	$ (939)	$ 0	0	(938)	0	$ 0
Divestitures and related adjustments					(2)
Ending Balance	1,154				1,154	750	760
Accumulated impairment at December 31, 2019	(938)				(938)	0
North America
Goodwill [Roll Forward]
Beginning Balance				529	529	528
Foreign currency translation					0	(1)
Goodwill additions					1,280	2
Goodwill impairment					(653)
Divestitures and related adjustments					(2)
Ending Balance	1,154				1,154	529	528
Accumulated impairment at December 31, 2019	(653)				(653)	0
Europe
Goodwill [Roll Forward]
Beginning Balance				172	172	182
Foreign currency translation					(8)	(11)
Goodwill additions					57	1
Goodwill impairment					(221)
Divestitures and related adjustments					0
Ending Balance	0				0	172	182
Accumulated impairment at December 31, 2019	(221)				(221)	0
APAC & Emerging Markets
Goodwill [Roll Forward]
Beginning Balance				$ 49	49	50
Foreign currency translation					(1)	(1)
Goodwill additions					16	0
Goodwill impairment					(64)
Divestitures and related adjustments					0
Ending Balance	0				0	49	$ 50
Accumulated impairment at December 31, 2019	(64)				(64)	0
Vets First Choice
Goodwill [Roll Forward]
Goodwill impairment					(938)	$ 0
Goodwill adjustment	$ (4)				$ (34)

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets, Net - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Cost	$ 1,001	$ 449
Accumulated Amortization	(358)	(241)
Net	643	208
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Cost	503	368
Accumulated Amortization	(234)	(193)
Net	269	175
Trademarks
Finite-Lived Intangible Assets [Line Items]
Cost	60	41
Accumulated Amortization	(28)	(23)
Net	32	18
Patents
Finite-Lived Intangible Assets [Line Items]
Cost	30	30
Accumulated Amortization	(24)	(20)
Net	6	10
Product development
Finite-Lived Intangible Assets [Line Items]
Cost	406	6
Accumulated Amortization	(71)	(3)
Net	335	3
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Cost	2	4
Accumulated Amortization	(1)	(2)
Net	$ 1	$ 2

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets, Net - Amortization of Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 127	$ 49	$ 46
Cost of sales
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	4	0	0
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 123	$ 49	$ 46

Goodwill and Other Intangible_7

Goodwill and Other Intangible Assets, Net - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 134
2021	130
2023	126
2024	112
2024	59
Thereafter	82
Net	$ 643	$ 208

Debt - Narrative (Details)

Debt - Narrative (Details)	Feb. 06, 2019USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 29, 2018USD ($)	Dec. 30, 2017USD ($)	Dec. 31, 2022	Apr. 01, 2019	Feb. 07, 2019USD ($)
Line of Credit Facility [Line Items]
Debt repayment			$ 43,000,000	$ 2,000,000	$ 0
Syndicated credit agreement 2019 | Syndicated Credit Agreement
Line of Credit Facility [Line Items]
Maximum Amount Available			$ 1,500,000,000					$ 1,500,000,000
Credit agreement term			5 years
Leverage ratio (less than 5.50%)							5.50
Interest coverage ratio (greater than)							3
Long-term term loan and capital lease obligations				$ 23,000,000
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Animal Health Business
Line of Credit Facility [Line Items]
Debt repayment	$ 23,000,000
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Forecast
Line of Credit Facility [Line Items]
Leverage ratio (less than 5.50%)		5				3.75
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Revolving line of credit
Line of Credit Facility [Line Items]
Maximum Amount Available			$ 300,000,000
Unused capacity fee			0.35%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Term loan
Line of Credit Facility [Line Items]
Quarterly amortization rate			5.00%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Term loan | Forecast
Line of Credit Facility [Line Items]
Debt repayment		$ 60,000,000
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Minimum | Revolving line of credit
Line of Credit Facility [Line Items]
Unused capacity fee			0.175%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Maximum | Revolving line of credit
Line of Credit Facility [Line Items]
Unused capacity fee			0.40%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Floor rate			0.00%
Variable rate			2.25%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | LIBOR | Minimum
Line of Credit Facility [Line Items]
Variable rate			1.25%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | LIBOR | Maximum
Line of Credit Facility [Line Items]
Variable rate			2.50%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Alternative base rate
Line of Credit Facility [Line Items]
Floor rate			1.00%
Variable rate			1.25%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Alternative base rate | Minimum
Line of Credit Facility [Line Items]
Variable rate			0.25%
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Alternative base rate | Maximum
Line of Credit Facility [Line Items]
Variable rate			1.50%

Debt - Schedule of Credit Facil

Debt - Schedule of Credit Facility (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017	Feb. 07, 2019
Line of Credit Facility [Line Items]
Debt issuance costs	$ 24,000,000	$ 0	$ 0
Syndicated credit agreement 2019 | Syndicated Credit Agreement
Line of Credit Facility [Line Items]
Debt issuance costs	24,000,000
Unamortized debt issuance costs	20,000,000
Maximum Amount Available	1,500,000,000			$ 1,500,000,000
December 31, 2019	281,000,000
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Term loan
Line of Credit Facility [Line Items]
Maximum Amount Available	1,200,000,000
December 31, 2019	0
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Revolving line of credit
Line of Credit Facility [Line Items]
Maximum Amount Available	300,000,000
December 31, 2019	281,000,000
Letters of credit outstanding	19,000,000
Syndicated credit agreement 2019 | Syndicated Credit Agreement | Letter of credit
Line of Credit Facility [Line Items]
Maximum Amount Available	$ 35,000,000

Debt - Schedule of Maturity of

Debt - Schedule of Maturity of Debt Obligations (Details) $ in Millions	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
2020	$ 62
2021	60
2022	60
2023	65
2024	960
Total debt maturities	1,207
Less: current maturities	(62)
Less: unamortized debt issuance costs	(20)
Long-term maturities	1,125
Other Debt
Debt Instrument [Line Items]
2020	2
2021	0
2022	0
2023	5
2024	0
Total debt maturities	7
Less: current maturities	(2)
Less: unamortized debt issuance costs	0
Long-term maturities	5
Term loan | Syndicated Credit Agreement
Debt Instrument [Line Items]
2020	60
2021	60
2022	60
2023	60
2024	960
Total debt maturities	1,200
Less: current maturities	(60)
Less: unamortized debt issuance costs	(20)
Long-term maturities	$ 1,120

Derivatives and Financial Ins_3

Derivatives and Financial Instruments - Narrative (Details) - Cash Flow Hedging - Interest rate swap contracts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Aug. 31, 2019
Derivative [Line Items]
Derivative maturity	2 years
Designated as Hedging Instrument
Derivative [Line Items]
Notional amount		$ 500
Minimum | Designated as Hedging Instrument
Derivative [Line Items]
Fixed interest rate	1.63%
Maximum | Designated as Hedging Instrument
Derivative [Line Items]
Fixed interest rate	1.70%

Derivatives and Financial Ins_4

Derivatives and Financial Instruments - Schedule of Derivative Fair Value and Balance Sheet Location (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Fair Value, Recurring | Cash Flow Hedging | Other liabilities | Interest rate swap contracts
Derivative [Line Items]
Interest rate swap contracts	$ 1	$ 0

Derivatives and Financial Ins_5

Derivatives and Financial Instruments - Schedule of Effect of Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap contracts $ in Millions	12 Months Ended
	Dec. 31, 2019USD ($)
Derivative [Line Items]
Amounts recognized in Other comprehensive (loss) income	$ (1)
Interest expense
Derivative [Line Items]
Amounts reclassified out of Accumulated other comprehensive (loss) income into earnings	$ 1

Fair Value - Narrative and Sche

Fair Value - Narrative and Schedule Financial Instruments Measured at Fair Value on a Recurring Basis (Details) $ in Millions	Dec. 31, 2019USD ($)swap	Dec. 29, 2018USD ($)
Fair Value Disclosures [Abstract]
Number of interest rate swap contracts | swap	5
Liabilities:
Total liabilities	$ 1
Interest rate swap contracts | Fair Value, Recurring | Level 2
Liabilities:
Derivative Liability	1	$ 0
Foreign currency forward contracts | Fair Value, Recurring | Level 2
Liabilities:
Derivative Liability	$ 0

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Payment for purchase obligations	$ 9	$ 9	$ 2
Purchase obligation term	3 years
Prepaid contract fees	$ 2
Fixed fee cap	14
Variable fee cap	39
Contract termination fees until mid-May 2020	10
Contract termination fees until mid-November 2020	12
Contract termination fees after mid-November 2020	$ 14

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Unconditional Purchase Obligations (Details) $ in Millions	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 8
2021	8
2022	8
2023	7
2024	7
2025	6
Unrecorded Unconditional Purchase Obligation	$ 44

Redeemable Non-controlling In_3

Redeemable Non-controlling Interests - Summary of Redeemable Non-controlling Interest (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance at beginning of period	$ 92	$ 368	$ 322
Decrease due to redemptions	(74)	(383)	(26)
Increase due to business acquisitions	0	6	7
Net (loss) income attributable to redeemable non-controlling interests	(3)	6	28
Dividends paid	0	(10)	(20)
Effect of foreign currency translation (loss) gain attributable to redeemable non-controlling interests	1	(2)	3
Change to redemption value	(6)	107	54
Balance at end of period	$ 10	$ 92	$ 368

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	$ 1,494	$ 1,257	$ 1,120
Other comprehensive income (loss) attributable to Covetrus before reclassifications	(5)	(40)	60
Gain reclassified from Accumulated other comprehensive loss to earnings	1
Common stock, shares ending balance	1,256	1,494	1,257
Derivative (Loss) Gain
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	0
Other comprehensive income (loss) attributable to Covetrus before reclassifications	(1)
Gain reclassified from Accumulated other comprehensive loss to earnings	1
Common stock, shares ending balance	0	0
(Loss) Gain on Pension Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	0	(2)	(2)
Other comprehensive income (loss) attributable to Covetrus before reclassifications	0	2	0
Gain reclassified from Accumulated other comprehensive loss to earnings	0
Common stock, shares ending balance	0	0	(2)
Foreign Currency Translation (Loss) Gain
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	(82)	(41)	(100)
Other comprehensive income (loss) attributable to Covetrus before reclassifications	(4)	(41)	59
Gain reclassified from Accumulated other comprehensive loss to earnings	0
Common stock, shares ending balance	(86)	(82)	(41)
Unrealized Gain (Loss) from Foreign Currency Hedging
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	0	1	0
Other comprehensive income (loss) attributable to Covetrus before reclassifications		(1)	1
Common stock, shares ending balance		0	1
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Common stock, shares beginning balance	(82)	(42)	(102)
Common stock, shares ending balance	$ (86)	$ (82)	$ (42)

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Before Taxes and Equity in Earnings of Affiliates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Domestic	$ (809)	$ 59	$ 69
Foreign	(220)	84	70
Total (loss) income before taxes and equity in earnings of affiliates	$ (1,029)	$ 143	$ 139

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provisions for Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Current income tax (benefit) expense:
U.S. federal		$ 0	$ 13	$ 22
State and local		2	4	4
Foreign		16	25	16
Total current		18	42	42
Deferred income tax (benefit) expense:
U.S. federal		(10)	0	7
State and local		(7)	0	0
Foreign		(8)	(5)	(1)
Total deferred		(25)	(5)	6
Total income tax (benefit) expense	$ (7)	$ (7)	$ 37	$ 48

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 29, 2018
Deferred income tax assets:
Investment in partnerships	$ 96	$ 72
Net operating losses and other carryforwards	38	3
Inventory, premium coupon redemptions and accounts receivable valuation allowances	0	1
Share-based compensation	7	0
Other assets	12	1
Total deferred income tax asset	153	77
Valuation allowance for deferred tax assets	(49)	(1)
Non-current deferred income tax assets, net	104	76
Deferred income tax liabilities:
Intangibles amortization	(125)	(20)
Other liabilities	(6)	0
Total deferred income tax liabilities	(131)	(20)
Net deferred income tax (liabilities) assets	$ (27)
Net deferred income tax (liabilities) assets		$ 56

Income Taxes - Classification o

Income Taxes - Classification of Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Non-current deferred income tax assets, net	$ 20		$ 72
Non-current deferred income tax liabilities, net	(47)	$ (45)	(16)
Net deferred income tax (liabilities) assets	$ (27)
Net deferred income tax (liabilities) assets			$ 56

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 30, 2017USD ($)	Dec. 31, 2019USD ($)tax_jurisdiction	Dec. 29, 2018USD ($)	Dec. 30, 2017
Operating Loss Carryforwards [Line Items]
Valuation allowance for deferred tax assets		$ 49	$ 1
Number of foreign jurisdictions | tax_jurisdiction		25
Current tax expense for GILTI provision		$ 10	$ 2
One-time transition tax	$ 13
Current tax expense for GILTI interest limitation		7
One-time transition tax		$ 20
Net deferred tax expense	$ 7
Effective tax rate with without transition, revaluation and ASU adoption changes				22.80%
Effective tax rate		0.70%	25.90%	34.60%
Additional tax expense			$ 4
Unrecognized tax benefits that would impact effective tax rate		$ 4
Decrease reasonably possible		1
Unrecognized tax benefits for assets held for sale		1
Accrued interest and penalties		$ 2	$ 1

Income Taxes - Schedule of Corr

Income Taxes - Schedule of Corrections (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 29, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-current deferred income tax assets, net		$ 19
Total assets	$ 3,361	3,309			$ 2,233				$ 3,361		$ 2,233	$ 2,217
Deferred income taxes	47	45			16				47		16
Total liabilities	2,095	2,023			647				2,095		647
Accumulated deficit	(1,040)	(992)			0				(1,040)		0
Total shareholders’ equity	1,256	1,276			1,494				1,256		1,494	1,257	$ 1,120
Total liabilities, redeemable non-controlling interests, and shareholders’ equity	3,361	3,309			2,233				3,361		2,233
Income tax benefit (expense)		7							7		(37)	(48)
Net (loss) income		(962)							(1,022)		107	92
Net (loss) income attributable to Covetrus	$ (37)	$ (959)	$ (10)	$ (13)	$ 33	$ 16	$ 29	$ 23	$ (1,019)	[1]	$ 101	$ 64
Basic (in usd per share)	$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.47	$ 0.22	$ 0.40	$ 0.32	$ (9.50)		$ 1.41	$ 0.90
Diluted (in usd per share)	$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.46	$ 0.22	$ 0.40	$ 0.31	$ (9.50)		$ 1.40	$ 0.89
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-current deferred income tax assets, net		$ 38
Total assets		3,328
Deferred income taxes		11
Total liabilities		1,989
Accumulated deficit		(939)
Total shareholders’ equity		1,329
Total liabilities, redeemable non-controlling interests, and shareholders’ equity		3,328
Income tax benefit (expense)		60
Net (loss) income		(909)
Net (loss) income attributable to Covetrus		$ (906)
Basic (in usd per share)		$ (8.09)
Diluted (in usd per share)		$ (8.09)
Revision
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-current deferred income tax assets, net		$ (19)
Total assets		(19)
Deferred income taxes		34
Total liabilities		34
Accumulated deficit		(53)
Total shareholders’ equity		(53)
Total liabilities, redeemable non-controlling interests, and shareholders’ equity		(19)
Income tax benefit (expense)		(53)
Net (loss) income		(53)
Net (loss) income attributable to Covetrus		$ (53)
Basic (in usd per share)		$ (0.47)
Diluted (in usd per share)		$ (0.47)
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019

Income Taxes - Schedule of Tax

Income Taxes - Schedule of Tax Loss and Tax Credit Carryforwards (Details) $ in Millions	Dec. 31, 2019USD ($)
Operating Loss Carryforwards [Line Items]
Total tax loss and tax credit carryforwards	$ 38
U.S. Federal
Operating Loss Carryforwards [Line Items]
Loss carryforwards	21
U.S. Federal and State
Operating Loss Carryforwards [Line Items]
Credit and deduction carryforwards	8
U.S. State
Operating Loss Carryforwards [Line Items]
Loss carryforwards	5
Non-U.S.
Operating Loss Carryforwards [Line Items]
Loss carryforwards	$ 4

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Income tax provision at federal statutory rate	21.00%	21.00%	35.00%
Transition tax on deemed repatriation of foreign earnings	0	0.028	0.094
Pass through non-controlling interest	(0.00%)	(2.10%)	(7.90%)
State income tax provision, net of federal income tax effect	0.50%	1.40%	2.00%
Foreign income tax provision (benefit)	0.30%	1.40%	(6.20%)
Tax on GILTI	(0.90%)	1.40%	0.00%
Excess tax benefits related to share-based compensation	0.00%	(0.70%)	(2.90%)
Revaluation of deferred tax assets and liabilities	(0.009)	0	0.053
Valuation allowance impacts	(3.90%)	0.00%	0.00%
Goodwill impairment	(14.40%)	0.00%	0.00%
Other	(1.00%)	0.70%	(0.10%)
Total income tax (benefit) expense	0.70%	25.90%	34.60%

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 6	$ 8	$ 8
Additions based on prior year tax positions	0	2	1
Reductions from lapse in statutes of limitations	(2)	(4)	(1)
Balance at end of period	$ 4	$ 6	$ 8

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	Feb. 07, 2019	Feb. 06, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Diluted common share equivalents for restricted stock (in shares)		1	0	1	1
Henry Schein
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares distributed to stockholders (in shares)	71

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Basic Shares to Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended								12 Months Ended
	Feb. 06, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 29, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017
Earnings Per Share [Abstract]
Net (loss) income attributable to Covetrus		$ (37)	$ (959)	$ (10)	$ (13)	$ 33	$ 16	$ 29	$ 23	$ (1,019)	[1]	$ 101	$ 64
Basic (in shares)										107		71	71
Effect of dilutive shares (in shares)	1									0		1	1
Diluted shares (in shares)										107		72	72
Basic (in usd per share)		$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.47	$ 0.22	$ 0.40	$ 0.32	$ (9.50)		$ 1.41	$ 0.90
Diluted (in usd per share)		$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.46	$ 0.22	$ 0.40	$ 0.31	$ (9.50)		$ 1.40	$ 0.89
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019

Share-based Compensation and _3

Share-based Compensation and Other Employee Benefits - Narrative (Details) - USD ($)	Feb. 07, 2019	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Payment Arrangement [Abstract]
Restricted stock granted (in shares)	327,447
Options granted (in shares)	3,914,694	5,000,000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plus: Share-based compensation		$ 46,000,000	$ 7,000,000	$ 7,000,000
Share-based compensation expense, after tax		40,000,000	6,000,000	4,000,000
Amount capitalized		0	0	0
Proceeds from option exercises		4,000,000
Unrecognized compensation cost		75,000,000
AIP compensation expense		7,000,000
Matching contribution expense		$ 9,000,000	$ 6,000,000	$ 6,000,000
2019 Omnibus Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period		10 years
Vesting period		3 years
Issue price percent of fair market value		100.00%
Shares authorized (in shares)		11,527,675
Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average period of recognition		2 years 5 months
Employee Stock | Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Approved for future issuance (in shares)	2,223,864
Maximum percent of base pay	15.00%
Purchase price of common stock	85.00%

Share-based Compensation and _4

Share-based Compensation and Other Employee Benefits - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 07, 2019	Dec. 31, 2019
Number of Shares
Outstanding at beginning of year (in shares)		0
Granted (in shares)	3,914,694	5,000,000
Exercised (in shares)		(1,000,000)
Forfeited (in shares)		0
Outstanding at end of year (in shares)		4,000,000
Exercisable at end of year (in shares)		2,000,000
Weighted- average Exercise Price Per Share
Outstanding at beginning of year (in usd per share)		$ 0
Granted (in usd per share)		14.03
Exercised (in usd per share)		5.14
Forfeited (in usd per share)		18.66
Outstanding at end of year (in usd per share)		15.29
Exercisable at end of year (in usd per share)		$ 9.25
Stock Option Activity, Additional Disclosures
Outstanding at end of year, Weighted Average Remaining Contractual Term		6 years 11 months
Exercisable at end of year, Weighted Average Remaining Contractual Term		5 years 2 months
Intrinsic value of stock options exercised		$ 16
Exercisable at end of year, Aggregate Intrinsic Value		$ 12

Share-based Compensation and _5

Share-based Compensation and Other Employee Benefits - Schedule of Weighted-average Grant-date Fair Value and related Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2019$ / shares
Share-based Payment Arrangement [Abstract]
Weighted-average grant-date fair value (in use per share)	$ 14.03
Valuation assumptions:
Expected term	6 years
Risk-free interest rate	1.80%
Expected volatility	29.90%
Expected dividend rate	0.00%

Share-based Compensation and _6

Share-based Compensation and Other Employee Benefits - Schedule of Summary of RSA/RSU Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Weighted- average Grant Date Fair Value Per Share
Granted (in usd per share)	$ 27.83	$ 65.26	$ 85.90
Restricted Stock Awards/Restricted Stock Units
Number of Shares
Nonvested at beginning of year (in shares)	0
Granted (in shares)	2
Vested (in shares)	0
Forfeited (in shares)	0
Nonvested at end of year (in shares)	2	0
Weighted- average Grant Date Fair Value Per Share
Nonvested at beginning of year (in usd per share)	$ 76.86
Granted (in usd per share)	27.83
Vested (in usd per share)	66.84
Forfeited (in usd per share)	36.11
Nonvested at end of year (in usd per share)	$ 25.69	$ 76.86
Aggregate Intrinsic Value	1 year 7 months
Aggregate Intrinsic Value	$ 22

Share-based Compensation and _7

Share-based Compensation and Other Employee Benefits - Weighted-average Grant-date Fair Value of RSA/RSU Awards (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Payment Arrangement [Abstract]
Weighted-average grant-date fair value (in usd per share)	$ 27.83	$ 65.26	$ 85.90

Share-based Compensation and _8

Share-based Compensation and Other Employee Benefits - Additional Information for Share-based Awards (Details) - Restricted Stock Awards/Restricted Stock Units - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of stock options exercised	$ 15	$ 0	$ 0
Fair value of RSA/RSU shares vested	$ 3	$ 2	$ 0

Related-party Transactions (Det

Related-party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017
Related Party Transactions [Abstract]
Allocated general corporate expenses	$ 5		$ 55	$ 59
Net transfers from Former Parent from statements of shareholders' equity	172	[1]	174	13
Share-based compensation expense	0		(7)	(7)
Changes to redemption value of redeemable non-controlling interests	(6)		107	54
Other	(1)		0	2
Total net transfers from Former Parent from statements of cash flows	$ 165		$ 274	$ 62
[1]	See Note 2 - Business Acquisitions

Segment Data - Operating Result

Segment Data - Operating Results by Segment (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 29, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017
Segment Reporting Information [Line Items]
Net sales	$ 1,008	$ 1,018	$ 1,009	$ 941	$ 903	$ 923	$ 1,005	$ 947	$ 3,976		$ 3,778	$ 3,580
Adjusted EBITDA									202		220	177
Depreciation and amortization									155		64	59
Income tax benefit (expense)		7							7		(37)	(48)
Total assets	3,361	3,309			2,233				3,361		2,233	2,217
Expenditures for long-lived assets									39		22	21
Net (loss) income attributable to Covetrus	(37)	(959)	(10)	(13)	33	$ 16	$ 29	$ 23	(1,019)	[1]	101	64
Plus: Depreciation and amortization									155		64	59
Plus: Interest expense, net									53		2	2
Earnings before interest, taxes, depreciation, and amortization									(818)		204	173
Plus: Share-based compensation									46		7	7
Plus: Share-based compensation									40		6	4
Plus: Transaction costs									2
Plus: Separation programs and executive severance									11		9
Plus: Formation of Covetrus									34
Plus: Carve-out operating expenses									5
Plus: IT infrastructure									6
Plus: Goodwill impairment	(1)	$ 939	$ 0	$ 0					938		0	0
Less: Minority interest in goodwill impairment									(3)
Less: Other (income) expense items, net									(19)
Adjusted EBITDA									202		220	177
North America
Segment Reporting Information [Line Items]
Net sales									2,111		1,939	1,876
Plus: Goodwill impairment									653
Europe
Segment Reporting Information [Line Items]
Net sales									1,509		1,463	1,373
Plus: Goodwill impairment									221
APAC & Emerging Markets
Segment Reporting Information [Line Items]
Net sales									368		387	349
Plus: Goodwill impairment									64
Operating Segments | North America
Segment Reporting Information [Line Items]
Net sales									2,111		1,939	1,876
Adjusted EBITDA									154		157	136
Depreciation and amortization									131		41	38
Income tax benefit (expense)									8		(18)	(34)
Total assets	2,941				1,343				2,941		1,343	1,301
Expenditures for long-lived assets									23		14	13
Adjusted EBITDA									154		157	136
Operating Segments | Europe
Segment Reporting Information [Line Items]
Net sales									1,509		1,463	1,373
Adjusted EBITDA									68		75	62
Depreciation and amortization									18		17	16
Income tax benefit (expense)									(3)		(15)	(11)
Total assets	726				702				726		702	735
Expenditures for long-lived assets									10		7	7
Adjusted EBITDA									68		75	62
Operating Segments | APAC & Emerging Markets
Segment Reporting Information [Line Items]
Net sales									368		387	349
Adjusted EBITDA									19		20	16
Depreciation and amortization									6		6	5
Income tax benefit (expense)									(4)		(3)	(2)
Total assets	137				182				137		182	174
Expenditures for long-lived assets									1		1	1
Adjusted EBITDA									19		20	16
Corporate
Segment Reporting Information [Line Items]
Net sales									0		0	0
Adjusted EBITDA									(39)		(32)	(37)
Depreciation and amortization									0		0	0
Income tax benefit (expense)									6		(1)	(1)
Total assets	783				10				783		10	11
Expenditures for long-lived assets									5		0	0
Adjusted EBITDA									(39)		(32)	(37)
Eliminations
Segment Reporting Information [Line Items]
Net sales									(12)		(11)	(18)
Adjusted EBITDA									0		0	0
Depreciation and amortization									0		0	0
Income tax benefit (expense)									0		0	0
Total assets	$ (1,226)				$ (4)				(1,226)		(4)	(4)
Expenditures for long-lived assets									0		0	0
Adjusted EBITDA									$ 0		$ 0	$ 0
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019

Subsequent Events (Details)

Subsequent Events (Details)	Jun. 30, 2020
Forecast | Subsequent event | Distrivet
Subsequent Event [Line Items]
Ownership percentage	50.01%

Summary of Quarterly Data (Un_3

Summary of Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 29, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019		Dec. 29, 2018	Dec. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 1,008	$ 1,018	$ 1,009	$ 941	$ 903	$ 923	$ 1,005	$ 947	$ 3,976		$ 3,778	$ 3,580
Gross profit	188	191	193	177	159	166	183	176	749		684	652
Goodwill impairment	(1)	939	0	0					938		0	0
Operating (loss) income	(25)	(958)	(5)	(9)	33	34	38	32	(997)		137	135
Net (loss) income attributable to Covetrus	$ (37)	$ (959)	$ (10)	$ (13)	$ 33	$ 16	$ 29	$ 23	$ (1,019)	[1]	$ 101	$ 64
Earnings (loss) per share:
Basic (in usd per share)	$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.47	$ 0.22	$ 0.40	$ 0.32	$ (9.50)		$ 1.41	$ 0.90
Diluted (in usd per share)	$ (0.33)	$ (8.56)	$ (0.09)	$ (0.14)	$ 0.46	$ 0.22	$ 0.40	$ 0.31	$ (9.50)		$ 1.40	$ 0.89
[1]	Net income earned from January 1, 2019 through February 7, 2019 is attributed to the former parent as it was the sole shareholder prior to February 7, 2019

Uncategorized Items - cvet-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 2,000,000
Net Parent Investment [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 2,000,000