Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 30, 2016 | Mar. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PDCO | |
Entity Registrant Name | PATTERSON COMPANIES, INC. | |
Entity Central Index Key | 891,024 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 99,089,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 97,701 | $ 347,260 |
Short-term investments | 0 | 53,372 |
Receivables, net of allowance for doubtful accounts | 698,911 | 586,263 |
Inventory | 814,413 | 408,422 |
Prepaid expenses and other current assets | 99,831 | 59,561 |
Current assets held for sale | 0 | 118,347 |
Total current assets | 1,710,856 | 1,573,225 |
Property and equipment, net | 278,288 | 204,133 |
Long-term receivables, net | 145,539 | 71,686 |
Goodwill | 815,316 | 299,924 |
Identifiable intangibles, net | 522,215 | 125,025 |
Other | 83,456 | 37,919 |
Long-term assets held for sale | 0 | 635,794 |
Total assets | 3,555,670 | 2,947,706 |
Current liabilities: | ||
Accounts payable | 503,523 | 323,294 |
Accrued payroll expense | 60,994 | 72,464 |
Other accrued liabilities | 136,581 | 142,611 |
Current maturities of long-term debt | 16,500 | 0 |
Borrowings on revolving credit | 198,000 | 0 |
Current liabilities held for sale | 0 | 39,316 |
Total current liabilities | 915,598 | 577,685 |
Long-term debt | 1,030,250 | 725,000 |
Other non-current liabilities | 247,275 | 81,484 |
Long-term liabilities held for sale | 0 | 49,414 |
Total liabilities | 2,193,123 | 1,433,583 |
Stockholders’ equity: | ||
Common stock | 991 | 1,033 |
Additional paid-in capital | 34,369 | 21,026 |
Accumulated other comprehensive loss | (81,863) | (60,346) |
Retained earnings | 1,486,788 | 1,630,148 |
Unearned ESOP shares | (77,738) | (77,738) |
Total stockholders’ equity | 1,362,547 | 1,514,123 |
Total liabilities and stockholders’ equity | $ 3,555,670 | $ 2,947,706 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,400,853 | $ 958,628 | $ 3,932,933 | $ 2,875,804 |
Cost of sales | 1,060,989 | 696,186 | 2,973,926 | 2,103,458 |
Gross profit | 339,864 | 262,442 | 959,007 | 772,346 |
Operating expenses | 244,135 | 185,065 | 717,638 | 556,833 |
Operating income from continuing operations | 95,729 | 77,377 | 241,369 | 215,513 |
Other income (expense): | ||||
Other income, net | 830 | 541 | 2,454 | 2,688 |
Interest expense | (10,634) | (8,512) | (39,931) | (25,824) |
Income from continuing operations before taxes | 85,925 | 69,406 | 203,892 | 192,377 |
Income tax expense | 28,735 | 22,972 | 83,828 | 65,753 |
Net income from continuing operations | 57,190 | 46,434 | 120,064 | 126,624 |
Net income (loss) from discontinued operations | (750) | 8,242 | 1,500 | 32,119 |
Net income | $ 56,440 | $ 54,676 | $ 121,564 | $ 158,743 |
Basic earnings (loss) per share: | ||||
Continuing operations (in USD per share) | $ 0.60 | $ 0.47 | $ 1.23 | $ 1.28 |
Discontinued operations (in USD per share) | (0.01) | 0.08 | 0.01 | 0.32 |
Net basic earnings per share (in USD per share) | 0.59 | 0.55 | 1.24 | 1.60 |
Diluted earnings (loss) per share: | ||||
Continuing operations (in USD per share) | 0.60 | 0.47 | 1.22 | 1.27 |
Discontinued operations (in USD per share) | (0.01) | 0.08 | 0.01 | 0.32 |
Net diluted earnings per share (in USD per share) | $ 0.59 | $ 0.55 | $ 1.23 | $ 1.59 |
Weighted average shares: | ||||
Basic (in shares) | 95,335 | 98,842 | 97,809 | 98,991 |
Diluted (in shares) | 95,930 | 99,540 | 98,488 | 99,699 |
Dividends declared per common share (in USD per share) | $ 0.22 | $ 0.20 | $ 0.66 | $ 0.60 |
Comprehensive income | ||||
Net income | $ 56,440 | $ 54,676 | $ 121,564 | $ 158,743 |
Foreign currency translation gain (loss) | (18,679) | (44,781) | (23,013) | (71,287) |
Cash flow hedges, net of tax | 442 | (8,143) | 1,496 | (14,319) |
Comprehensive income | $ 38,203 | $ 1,752 | $ 100,047 | $ 73,137 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 30, 2016 | Jan. 24, 2015 | |
Operating activities: | ||
Net income | $ 121,564 | $ 158,743 |
Net income from discontinued operations | 1,500 | 32,119 |
Net income from continuing operations | 120,064 | 126,624 |
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities: | ||
Depreciation | 24,940 | 17,297 |
Amortization | 33,877 | 14,192 |
Bad debt expense | 6,546 | 1,778 |
Non-cash employee compensation | 20,587 | 17,940 |
Accelerated amortization of debt issuance costs on early retirement of debt | 5,153 | 0 |
Excess tax benefits from stock-based compensation | (1,750) | (289) |
Change in assets and liabilities, net of acquired | (256,964) | (58,125) |
Net cash provided by (used in) operating activities- continuing operations | (47,547) | 119,417 |
Net cash provided by (used in) operating activities- discontinued operations | (38,985) | 38,668 |
Net cash provided by (used in) operating activities | (86,532) | 158,085 |
Investing activities: | ||
Additions to property and equipment | (56,280) | (43,182) |
Acquisitions and equity investments, net of cash assumed | (1,106,583) | (8,730) |
Proceeds from sale of securities | 48,744 | 40,775 |
Purchase of investments | 0 | (543) |
Net cash provided by (used in) investing activities- continuing operations | (1,114,119) | (11,680) |
Net cash provided by (used in) investing activities- discontinued operations | 714,680 | 4,256 |
Net cash provided by (used in) investing activities | (399,439) | (7,424) |
Financing activities: | ||
Dividends paid | (67,010) | (60,340) |
Repurchases of common stock | (200,000) | (47,539) |
Proceeds from issuance of long-term debt | 1,000,000 | 0 |
Debt issuance costs | (11,600) | 0 |
Draw on revolver | 198,000 | 0 |
Retirement of long-term debt | (678,250) | 0 |
Other financing activities | 5,523 | 6,484 |
Net cash provided by (used in) financing activities | 246,663 | (101,395) |
Effect of exchange rate changes on cash | (10,251) | (24,452) |
Net change in cash and cash equivalents | (249,559) | 24,814 |
Cash and cash equivalents at beginning of period | 347,260 | 264,908 |
Cash and cash equivalents at end of period | $ 97,701 | $ 289,722 |
General
General | 9 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Patterson Companies, Inc. (“Patterson”) as of January 30, 2016 , and our results of operations and cash flows for the periods ended January 30, 2016 and January 24, 2015 . Such adjustments are of a normal recurring nature. The results of operations for the periods ended January 30, 2016 and January 24, 2015 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the financial statements included in our 2015 Annual Report on Form 10-K filed on June 24, 2015. Such unaudited condensed consolidated financial statements include the assets and liabilities of PDC Funding Company, LLC (“PDC Funding”) and PDC Funding Company II, LLC (“PDC Funding II”), wholly owned subsidiaries and separate legal entities under Minnesota law. PDC Funding and PDC Funding II are fully consolidated special purpose entities established to sell customer installment sale contracts to outside financial institutions in the normal course of their business. The assets of PDC Funding and PDC Funding II would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding or PDC Funding II. Through fiscal 2015, Patterson was comprised of three reportable segments: dental supply, veterinary supply and rehabilitation supply. This fiscal year, we reorganized our reportable segments as a result of our acquisition of Animal Health International, Inc. and our divestiture of our wholly-owned subsidiary Patterson Medical Holdings, Inc., the entity through which we operated the rehabilitation supply business. We now present three different reportable segments: Dental, Animal Health and Corporate. Prior period segment results have been restated to conform to this revised current period presentation. Fiscal Year End We operate with a 52-53 week accounting convention with our fiscal year ending on the last Saturday in April. The third quarters of fiscal 2016 and 2015 include the 13 weeks ended January 30, 2016 and January 24, 2015 , respectively. The nine months ended January 30, 2016 and January 24, 2015 include 40 and 39 weeks, respectively. Fiscal 2016 will include 53 weeks and fiscal 2015 included 52 weeks of operations. Comprehensive Income Comprehensive income is computed as net income including certain other items that are recorded directly to stockholders’ equity. Significant items included in comprehensive income are foreign currency translation adjustments and the effective portion of cash flow hedges, net of tax. Foreign currency translation adjustments do not include a provision for income tax on earnings from foreign operations that are considered to be indefinitely reinvested outside the U.S. The income tax expense (benefit) related to cash flow hedges was $268 and $(4,867) for the three months ended January 30, 2016 and January 24, 2015 , respectively. The income tax expense (benefit) related to cash flow hedges was $618 and $(12,001) for the nine months ended January 30, 2016 and January 24, 2015 , respectively. Earnings Per Share The following table sets forth the computation of the weighted average shares outstanding used to calculate basic and diluted earnings per share (“EPS”): Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Denominator for basic EPS – weighted average shares 95,335 98,842 97,809 98,991 Effect of dilutive securities 595 698 679 708 Denominator for diluted EPS – weighted average shares 95,930 99,540 98,488 99,699 Potentially dilutive securities consisting of stock options, restricted stock and stock purchase plans representing 941 shares and 753 shares for the three and nine months ended January 30, 2016 , respectively, and 102 shares for the three and nine months ended January 24, 2015 , were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, “Revenue from Contracts with Customers (Topic 606).” ASU No. 2014-9 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of this pronouncement by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption is permitted, but not before the original effective date, which for annual periods was December 15, 2016. We are evaluating the new standard, but do not, at this time, anticipate a material impact to our financial statements once implemented. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330), Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. We are required to adopt the new pronouncement in the first quarter of fiscal 2018, and plan to do so at that time. Early adoption is permitted. We are evaluating the effect of adopting this pronouncement, but do not, at this time, anticipate a material impact to our financial statements once implemented. In August 2015, the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU states that ASU No. 2015-3, “Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs” does not address debt issuance costs for line-of-credit arrangements, and therefore the SEC staff would not object to an entity deferring and presenting these related debt issuance costs as an asset and subsequently amortizing the deferred issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. At this time, we do not believe that ASU No. 2015-15 will have a material impact on our financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. We are required to adopt the new pronouncement in the first quarter of fiscal 2017, with early adoption permitted. We are evaluating the effect and timing of adopting this pronouncement, but do not, at this time, anticipate a material impact to the financial statements once implemented. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Income Taxes.” This ASU eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in the classified statement of financial position. We are required to adopt the ASU in the first quarter of fiscal 2018, with early adoption permitted. We are evaluating the effect and timing of adopting this pronouncement, but do not, at this time, anticipate a material impact to the financial statements once implemented. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by most leases, as well as requires additional qualitative and quantitative disclosures. We are required to adopt the ASU in the first quarter of fiscal 2020, with early adoption permitted. We are evaluating the impact of adopting this pronouncement. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, as described further in Note 3 and Note 9 to the Condensed Consolidated Financial Statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Jan. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During our first fiscal quarter of 2016, we completed the acquisition of Animal Health International, Inc., a leading production animal health distribution company in the U.S. This acquisition more than doubled the revenue previously attributable to our animal health business, which was previously focused on the companion animal health market. Our animal health business now offers an expanded range of products and services to a broader base of customers in North America and the U.K. Under terms of the merger agreement, we acquired all of Animal Health International’s stock for $1,106,583 in cash. In connection with the acquisition, we entered into a credit agreement consisting of a $1,000,000 unsecured term loan and a $500,000 unsecured cash flow revolving line of credit, described further in Note 11 to the Condensed Consolidated Financial Statements. The acquisition has been accounted for in accordance with ASC 805, Business Combinations , with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. A valuation of the assets and liabilities from the business acquisition was performed utilizing cost, income and market approaches resulting in $588,213 allocated to identifiable net assets. The initial accounting for the acquisition is not complete because certain information and analysis that may impact our initial valuations are still being obtained or reviewed. The significant assets and liabilities for which provisional amounts are recognized at the acquisition date are property and equipment, intangible assets, goodwill, working capital adjustments and deferred income taxes. The provisional amounts recognized are subject to revision until our valuations are completed, not to exceed one year , and any material adjustments identified that existed as of the acquisition date will be retroactively recorded. The following table summarizes the total purchase price consideration and the preliminary fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition, as of the acquisition date: Total purchase price consideration $ 1,106,583 Receivables $ 161,427 Inventory 195,367 Prepaid expenses and other current assets 33,005 Property and equipment 44,178 Identifiable intangibles 434,300 Other long-term assets 40,869 Total assets acquired 909,146 Accounts payable 122,129 Accrued liabilities and other current liabilities 21,015 Deferred tax liability 177,789 Total liabilities assumed 320,933 Identifiable net assets acquired 588,213 Goodwill 518,370 Net assets acquired $ 1,106,583 As a result of recording the stepped up fair market basis for GAAP purposes, but receiving primarily carryover basis for tax purposes in the acquisition, we recorded a deferred tax asset and deferred tax liability of $2,569 and $177,789 , respectively. The goodwill of $518,370 resulting from the acquisition reflects the excess of our purchase price over the fair value of the net assets acquired. The goodwill recorded as part of the acquisition primarily reflects the value of the assembled workforce, cost synergies, and the potential to integrate and expand existing product lines. We allocated all of the goodwill to our Animal Health reporting segment. None of the goodwill recognized is deductible for income tax purposes, and as such, no deferred taxes have been recorded related to goodwill. Revenues of $992,538 and operating income of $22,196 attributable to the acquisition are included in our condensed consolidated statement of income for the nine months ended January 30, 2016 . Included in operating income for the nine months ended January 30, 2016 is amortization expense of $20,080 related to the identifiable intangible assets acquired in the transaction. The following summarizes the intangible assets, excluding goodwill, acquired as of June 16, 2015. Intangible assets are amortized using methods that approximate the pattern of economic benefit provided by the utilization of the assets. Gross Carrying Weighted Unamortized – indefinite lived: Trade names $ 12,300 indefinite Amortized: Customer relationships 291,900 15.0 Trade names 111,400 10.0 Developed technology and other 18,700 12.2 Total amortized intangible assets 422,000 13.6 Total identifiable intangible assets $ 434,300 The following unaudited pro forma financial results for the combined results of Patterson and Animal Health International for the nine month periods ended January 30, 2016 and January 24, 2015 assume the acquisition occurred on April 27, 2014. The unaudited pro forma financial results may not be indicative of the results that would have occurred had the acquisition been completed as of April 27, 2014, nor are they indicative of future results of operations. Nine Months Ended January 30, January 24, Pro forma net sales $ 4,125,969 $ 4,033,188 Pro forma net income from continuing operations 128,174 122,842 Pro forma net income from continuing operations for the nine month period ended January 30, 2016 includes $12,300 of income tax expense related to the repatriation of foreign earnings, described further in Note 12 to the Condensed Consolidated Financial Statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jan. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On July 1, 2015, we entered into a definitive agreement to sell all of the outstanding shares of common stock of Patterson Medical Holdings, Inc., our wholly owned subsidiary responsible for our rehabilitation supply business known as Patterson Medical (“Patterson Medical”), for $715,000 in cash to Madison Dearborn Partners. The definitive agreement included a working capital adjustment provision that impacted the final sale price. On August 28, 2015, we completed the sale of Patterson Medical for $718,078 , with such sales price including the above-described working capital adjustment. During the third quarter of fiscal 2016, working capital adjustments reduced the sales price to $716,886 . As additional consideration for the shares of Patterson Medical, we obtained a number of common units of the parent company of the buyer equal to 10% of the common units outstanding at closing. Unlike the other common units, these units will only become entitled to begin participating in distributions to the common unit holders at such time, if any, as the Madison Dearborn Partners’ investor cash inflows equal or exceed 2.5 times the Madison Dearborn Partners’ investor cash outflows. These units are non-transferrable. We recorded a pre-tax gain of $24,328 on the sale of Patterson Medical during the nine months ended January 30, 2016 within discontinued operations in the condensed consolidated statements of income. In connection with the above described transaction, we also entered into a transition services agreement with our former subsidiary, pursuant to which Patterson Medical Holdings, Inc., as owned by Madison Dearborn Partners, is paying us to provide, among other things, certain information technology, distribution, facilities, finance, tax and treasury, and human resources services for up to 24 months after closing. As of January 30, 2016 , we classified Patterson Medical’s results of operations as discontinued operations for all periods presented in the condensed consolidated statements of income. The assets and liabilities of Patterson Medical were reflected as held for sale in the condensed consolidated balance sheets as of April 25, 2015. The operations and cash flows of Patterson Medical have been eliminated from our continuing operations, which were previously recorded as the rehabilitation supply reportable segment. The following summarizes the assets and liabilities of Patterson Medical as of April 25, 2015: April 25, 2015 Assets held for sale Receivables, net of allowance for doubtful accounts $ 57,876 Inventory 48,265 Prepaid expenses and other current assets 12,206 Property and equipment, net 22,672 Goodwill 537,175 Identifiable intangibles, net 74,804 Other long-term assets 1,143 Total assets held for sale $ 754,141 Liabilities held for sale Accounts payable $ 26,341 Accrued liabilities and other current liabilities 12,975 Long-term liabilities 49,414 Total liabilities held for sale $ 88,730 The following summarizes the results of operations of our discontinued Patterson Medical operations for the periods presented: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales $ — $ 104,684 $ 168,504 $ 350,362 Cost of sales — 64,567 107,359 218,102 Operating expenses — 26,738 54,954 81,042 Loss (gain) on sale 1,192 — (24,328 ) — Other expense (income) — 224 150 109 Income (loss) before taxes (1,192 ) 13,155 30,369 51,109 Income taxes (442 ) 4,913 28,869 18,990 Net (loss) income from discontinued operations $ (750 ) $ 8,242 $ 1,500 $ 32,119 (a) Includes activity up until the sale date of August 28, 2015. The net loss for the three months ended January 30, 2016, was due to working capital adjustments related to the sales price which reduced the overall gain recognized. Operating expenses for the nine months ended January 30, 2016 include professional fees of $13,692 incurred in connection with the sale of Patterson Medical. Depreciation and amortization were ceased during the nine months ended January 30, 2016 in accordance with accounting for discontinued operations. Income taxes have been allocated to Patterson Medical based on the accounting requirements for presenting discontinued operations. Income taxes as a percent of income before taxes for the nine months ended January 30, 2016 are higher than in the prior period as a result of the requirement to calculate the tax due on the sale of Patterson Medical including certain basis differences that were appropriately not previously recognized for financial reporting purposes. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill balances and related activity by business segment are as follows: Balance at Acquisition Other Activity Balance at Corporate $ — $ — $ — $ — Dental 139,449 — (1,381 ) 138,068 Animal Health 160,475 518,370 (1,597 ) 677,248 Total $ 299,924 $ 518,370 $ (2,978 ) $ 815,316 Balances of other intangible assets, excluding goodwill, are as follows: January 30, April 25, Unamortized – indefinite lived: Copyrights, trade names and trademarks $ 29,900 $ 17,600 Amortized: Distribution agreement, customer lists and other 638,854 221,359 Less: Accumulated amortization (146,539 ) (113,934 ) Net amortized intangible assets 492,315 107,425 Total identifiable intangible assets, net $ 522,215 $ 125,025 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Patterson is a party to certain offsetting and identical interest rate cap agreements. These interest rate cap agreements are not designated for hedge accounting treatment and were entered into to fulfill certain covenants of an equipment finance contracts sale agreement between a commercial paper conduit managed by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and PDC Funding. On November 24, 2015, this sale agreement was amended on terms generally consistent with the expiring agreement. The interest rate cap agreements provide a credit enhancement feature for the financing contracts sold by PDC Funding to the commercial paper conduit. The interest rate cap agreements are canceled and new agreements entered into periodically to maintain consistency with the dollar maximum of the sale agreements and the maturity of the underlying financing contracts. As of January 30, 2016 , PDC Funding had purchased an interest rate cap from a bank with a notional amount of $575,000 and a maturity date of November 2023. Patterson sold an identical interest rate cap to the same bank. Similar to the above agreements, PDC Funding II and Patterson entered into offsetting and identical interest rate cap agreements with a notional amount of $100,000 in fiscal 2014. In August 2015, these agreements were terminated and replaced with offsetting and identical interest rate cap agreements. The notional amount remained at $100,000 and the new maturity date is July 2023. In addition to the purchased and sold identical interest rate cap agreements described above, in May 2012 we entered into an interest rate swap agreement with a bank to economically hedge the interest rate risk associated with a portion of the finance contracts we had sold through the special purpose entities. This agreement expired in April 2015. These interest rate contracts do not qualify for hedge accounting treatment and, accordingly, we record the fair value of the agreements as an asset or liability and the change as income or expense during the period in which the change occurs. In January 2014 we entered into a forward interest rate swap agreement with a notional amount of $250,000 and accounted for as cash flow hedge, to hedge interest rate fluctuations in anticipation of refinancing the 5.17% senior notes due March 25, 2015 with a loan for $250,000 and a term of ten years . This note was repaid on March 25, 2015 and replaced with new $250,000 3.48% senior notes due March 24, 2025 . A cash payment of $29,003 was made in March 2015 to settle the interest rate swap. This amount will be recognized as interest expense over the ten -year life of the new notes. The following presents the fair value of interest rate contracts included in the condensed consolidated balance sheets: Derivative type Classification January 30, 2016 April 25, 2015 Interest rate contracts Other noncurrent assets $ 1,184 $ 1,255 Interest rate contracts Other noncurrent liabilities 1,184 1,255 The following table presents the effect of interest rate contracts on the condensed consolidated statements of income and other comprehensive income (OCI): Three Months Ended Nine Months Ended Derivative type Location of gain/(loss) recognized on derivative January 30, 2016 January 24, 2015 January 30, 2016 January 24, 2015 Interest rate swap OCI $ 442 $ (8,143 ) $ 1,496 $ (14,319 ) We recorded $709 of interest expense during the three months ended January 30, 2016 , and $48 as a reduction to interest expense in the three months ended January 24, 2015 related to the interest rate swap. We recorded $2,114 of interest expense during the nine months ended January 30, 2016 , and $145 as a reduction to interest expense in the nine months ended January 24, 2015 related to the interest rate swap. We recorded no ineffectiveness during the three and nine month periods ended January 30, 2016 and January 24, 2015 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. The fair value hierarchy of measurements is categorized into one of three levels based on the lowest level of significant input used: Level 1 - Quoted prices in active markets for identical assets and liabilities at the measurement date. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for which there is little or no market data available. These inputs reflect management’s assumptions of what market participants would use in pricing the asset or liability. Our hierarchy for assets and liabilities measured at fair value on a recurring basis is as follows: January 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 5,151 $ 5,151 $ — $ — Derivative instruments 1,184 — 1,184 — Total assets $ 6,335 $ 5,151 $ 1,184 $ — Liabilities: Derivative instruments $ 1,184 $ — $ 1,184 $ — April 25, 2015 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 90,569 $ 90,569 $ — $ — Derivative instruments 1,255 — 1,255 — Total assets $ 91,824 $ 90,569 $ 1,255 $ — Liabilities: Derivative instruments $ 1,255 $ — $ 1,255 $ — Cash equivalents – We value cash equivalents at their current market rates. The carrying value of cash equivalents approximates fair value and maturities are less than three months. Derivative instruments – Our derivative instruments consist of interest rate contracts. These instruments are valued using observable inputs such as interest rates and credit spreads. Certain assets are measured at fair value on a non-recurring basis. These assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments under certain circumstances, such as when there is evidence of impairment. There were no fair value adjustments to such assets during the nine month periods ended January 30, 2016 or January 24, 2015 . Our debt is not measured at fair value in the condensed consolidated balance sheets. The estimated fair value of our debt as of January 30, 2016 and April 25, 2015 was $1,047,117 and $746,685 , respectively. The fair value of debt was measured using a discounted cash flow analysis based on expected market based yields (i.e. level 2 inputs). The carrying amounts of receivables, net of allowances, accounts payable, and certain accrued and other current liabilities approximated fair value at January 30, 2016 and April 25, 2015 . |
Securities
Securities | 9 Months Ended |
Jan. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities On October 25, 2013, we invested in three time deposits with total principal of $110,000 Canadian. On October 24, 2014, time deposits with a principal value of $45,000 Canadian matured with a value of $45,436 Canadian. The remaining time deposits with a principal value of $65,000 Canadian matured on October 28, 2015 with a value of $67,031 Canadian. Our time deposit securities were classified as held-to-maturity securities as of April 25, 2015 , as we had both the intent and ability to hold them until maturity. As of April 25, 2015, these securities had a carrying value of $53,372 and were recorded in the condensed consolidated balance sheet as short-term investments. They were carried at cost, adjusted for accrued interest and amortization. The carrying value was not materially different than fair value. The fair value was determined based on a discounted cash flow analysis using unobservable inputs (i.e. level 3 inputs), which included a forward yield curve, the estimated timing of payments and the credit quality of the underlying creditor. Significant changes in any of the significant unobservable inputs in isolation would not have resulted in a materially lower fair value estimate. The interrelationship between these inputs was insignificant. |
Customer Financing
Customer Financing | 9 Months Ended |
Jan. 30, 2016 | |
Receivables [Abstract] | |
Customer Financing | Customer Financing As a convenience to our customers, we offer several different financing alternatives, including a third party program and a Patterson-sponsored program. For the third party program, we act as a facilitator between the customer and the third party financing entity with no on-going involvement in the financing transaction. Under our sponsored program, equipment purchased by customers with strong credit may be financed up to a maximum of $500 for any one customer. We generally sell our customers’ financing contracts to outside financial institutions in the normal course of our business. We currently have two arrangements under which we sell these contracts. First, we operate under an agreement to sell a portion of our equipment finance contracts to commercial paper conduits with The Bank of Tokyo-Mitsubishi UFJ, Ltd. serving as the agent. We utilize a special purpose entity (“SPE”), PDC Funding, a consolidated, wholly owned subsidiary, to fulfill a requirement of participating in the commercial paper conduit. We receive the proceeds of the contracts upon sale. At least 25% of the proceeds are held by the conduit as security against eventual performance of the portfolio. The capacity under the agreement at January 30, 2016 was $575,000 . Second, we also maintain an agreement with Fifth Third Bank whereby the bank purchases customers’ financing contracts. We established another SPE, PDC Funding II, a consolidated, wholly owned subsidiary, which sells financing contracts to the bank. We receive the proceeds of the contracts upon sale. At least 15% of the proceeds are held by the conduit as security against eventual performance of the portfolio. The capacity under the agreement at January 30, 2016 was $100,000 . The portion of the purchase price for the receivables held by the conduits is a deferred purchase price receivable, which is paid to the SPE as payments on the receivables are collected from customers. The deferred purchase price receivable represents a beneficial interest in the transferred financial assets and is recognized at fair value as part of the sale transaction. We value the deferred purchase price receivable based on a discounted cash flow analysis using unobservable inputs (i.e. level 3 inputs), which include a forward yield curve, the estimated timing of payments and the credit quality of the underlying creditor. Significant changes in any of the significant unobservable inputs in isolation would not result in a materially different fair value estimate. The interrelationship between these inputs is insignificant. These financing arrangements are accounted for as a sale of assets under the provisions of ASC 860, Transfers and Servicing . During the three and nine months ended January 30, 2016 , we sold $128,442 and $271,381 , respectively, and during the three and nine months ended January 24, 2015 , we sold $82,977 and $215,125 , respectively, of contracts under these arrangements. We retain servicing responsibilities under both agreements, for which we are paid a servicing fee. The servicing fees we receive are considered adequate compensation for services rendered. Accordingly, no servicing asset or liability has been recorded. The agreements require us to maintain a minimum current ratio and maximum leverage ratio. We were in compliance with those covenants at January 30, 2016 . Included in cash and cash equivalents in the condensed consolidated balance sheets are $26,428 and $29,863 as of January 30, 2016 and April 25, 2015 , respectively, which represents cash collected from previously sold customer financing arrangements that have not yet been settled with the third party. Included in current receivables in the condensed consolidated balance sheets are $92,366 , net of unearned income of $3,982 , and $88,470 , net of unearned income of $4,197 , as of January 30, 2016 and April 25, 2015 , respectively, of finance contracts we have not yet sold. A total of $589,615 of finance contracts receivable sold under the agreements was outstanding at January 30, 2016 . The deferred purchase price under the arrangements was $135,985 and $66,715 as of January 30, 2016 and April 25, 2015 , respectively. Since the internal financing program began in 1994, bad debt write-offs have amounted to less than one -percent of the loans originated. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Through fiscal 2015, Patterson was comprised of three reportable segments: dental supply, veterinary supply and rehabilitation supply. This fiscal year, we reorganized our reportable segments as a result of our acquisition of Animal Health International, Inc. and our divestiture of our wholly-owned subsidiary Patterson Medical Holdings, Inc., the entity through which we operated the rehabilitation supply business. We now present three different reportable segments: Dental, Animal Health and Corporate. Prior period segment results have been restated to conform to this revised current period presentation. Our Dental and Animal Health reportable business segments are strategic business units that offer similar products and services to different customer bases. Dental provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value-added services to dentists and dental laboratories throughout North America. Animal Health, formerly our Patterson Veterinary reportable segment, is a leading, full-line distributor in North America and the U.K. of animal health products, services and technologies to both the production-animal and companion-pet markets. Our Corporate segment, which was previously included in our dental supply reporting segment through the end of fiscal 2015, is comprised of general and administrative expenses, including home office support costs in areas such as information technology, finance, legal, human resources and facilities. In addition, customer financing and other miscellaneous sales are reported within Corporate results. Corporate assets consist primarily of cash and cash equivalents, accounts receivable, property and equipment and long-term receivables. We evaluate segment performance based on operating income. The costs to operate the distribution centers are allocated to the operating units based on the through-put of the unit. The following table presents information about Patterson’s reportable segments: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales Corporate $ 13,489 $ 10,158 $ 37,380 $ 29,050 Dental 637,651 610,655 1,814,090 1,746,165 Animal Health 749,713 337,815 2,081,463 1,100,589 Consolidated net sales $ 1,400,853 $ 958,628 $ 3,932,933 $ 2,875,804 Operating income (loss) from continuing operations Corporate $ (12,338 ) $ (12,535 ) $ (46,193 ) $ (38,698 ) Dental 82,108 78,048 223,454 214,024 Animal Health 25,959 11,864 64,108 40,187 Consolidated operating income from continuing operations $ 95,729 $ 77,377 $ 241,369 $ 215,513 January 30, April 25, Total assets Corporate $ 526,452 $ 539,863 Dental 935,347 1,022,257 Animal Health 2,093,871 631,445 Total assets, excluding assets held for sale 3,555,670 2,193,565 Assets held for sale — 754,141 Total assets $ 3,555,670 $ 2,947,706 The following table presents sales information by product for all of Patterson’s reportable segments: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales Consumables (a) $ 1,059,838 $ 638,541 $ 3,042,634 $ 2,020,345 Equipment and software 248,779 235,847 610,071 596,650 Other (a) 92,236 84,240 280,228 258,809 Consolidated net sales $ 1,400,853 $ 958,628 $ 3,932,933 $ 2,875,804 (a) Certain sales were reclassified from consumable to other in current and prior periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes accumulated other comprehensive loss (AOCL) at January 30, 2016 and April 25, 2015 and the activity for fiscal 2016: Cash Flow Hedges Currency Translation Adjustment Total AOCL at April 25, 2015 $ (18,668 ) $ (41,678 ) $ (60,346 ) Other comprehensive loss before reclassifications — (34,096 ) (34,096 ) Amounts reclassified from AOCL 1,496 11,083 12,579 AOCL at January 30, 2016 $ (17,172 ) $ (64,691 ) $ (81,863 ) The amounts reclassified from AOCL during fiscal 2016 represent gains and losses on cash flow hedges, net of taxes of $618 , and amounts reclassified related to the divestiture of Patterson Medical of $11,083 . The impact to the condensed consolidated statements of income was an increase to interest expense of $2,114 . |
Debt Issuance
Debt Issuance | 9 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Issuance | Debt Issuance During the first quarter of fiscal 2016, we entered into a credit agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent, and Bank of America, N.A., as syndication agent, (the “Credit Agreement”). Pursuant to the Credit Agreement, the lenders provided us with senior unsecured lending facilities of up to $1,500,000 , consisting of a $1,000,000 unsecured term loan and a $500,000 unsecured revolving line of credit. Interest on borrowings under the Credit Agreement is based on LIBOR plus a spread which can range from 1.125% to 2.000% . This spread, as well as a commitment fee on the unused portion of the facility, are based on our leverage ratio, as defined in the Credit Agreement. Initial borrowings under the Credit Agreement were $1,000,000 under the unsecured term loan and $200,000 under the unsecured revolving line of credit. The term loan and revolving credit facilities will mature no later than June 16, 2020 . Upon certain significant asset dispositions, we agreed to use proceeds from such dispositions to effect prepayment of outstanding loan balances under the Credit Agreement. On August 28, 2015, we completed the sale of Patterson Medical, as described further in Note 3 to the Condensed Consolidated Financial Statements. As a result of this sale, $670,000 was repaid on the original outstanding $1,000,000 unsecured term loan. We recorded $5,153 of accelerated debt issuance cost amortization within interest expense concurrent with this early repayment of debt. Additionally, principal payments of $4,125 and $8,250 were made during the three and nine months ended January 30, 2016 , respectively. As of January 30, 2016 , $321,750 was outstanding under the unsecured term loan at an interest rate of LIBOR plus 1.25% . We are subject to various financial covenants under the Credit Agreement including the maintenance of leverage and interest coverage ratios. In the event of our default, any outstanding obligations may become due and payable immediately. We met the covenants under the Credit Agreement as of January 30, 2016 . On June 16, 2015, our previous $300,000 credit facility, which was due to expire in December 2016, was terminated and replaced by the revolving line of credit under the Credit Agreement. As of January 30, 2016 , $198,000 was outstanding under our current revolving line of credit. There were no outstanding borrowings under our current or previous revolving lines of credit at April 25, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate from continuing operations for the three months ended January 30, 2016 was 33.4% compared to 33.1% for the three months ended January 24, 2015 , and for the nine months ended January 30, 2016 was 41.1% compared to 34.2% for the nine months ended January 24, 2015 . The increase in the rate for the nine months ended January 30, 2016 is primarily due to the current year impact of cash repatriation and the impact of transaction-related costs incurred related to the acquisition of Animal Health International, Inc. In the first quarter of fiscal 2016, we approved a one-time repatriation of approximately $200,000 of foreign earnings. This one-time repatriation reduced the overall cost of funding the acquisition of Animal Health International, Inc. In addition, certain foreign cash at Patterson Medical was required to be repatriated as part of the sale transaction. The continuing operations tax impact of $12,300 from the repatriation was recorded during the first nine months of fiscal 2016. We have previously asserted that our foreign earnings are permanently reinvested. Except for the repatriations described above, there is no change in our on-going assertion. |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings In September 2015, we were served with a summons and complaint in an action commenced in the United States District Court for the Eastern District of New York, entitled SourceOne Dental, Inc. v. Patterson Companies, Inc., Henry Schein, Inc. and Benco Dental Supply Company, Civil Action No. 15-cv-05440-JMA-GRB. SourceOne, as plaintiff, alleges that, through its website, it markets and sells dental supplies and equipment to dentists. SourceOne alleges in the complaint, among other things, that we, along with the defendants Henry Schein and Benco, conspired to eliminate plaintiff as a competitor and to exclude them from the market for the marketing, distribution and sale of dental supplies and equipment in the United States and that defendants unlawfully agreed with one another to boycott dentists, manufacturers, and state dental associations that deal with, or considered dealing with, plaintiff. Plaintiff asserts the following claims: (i) unreasonable restraint of trade in violation of state and federal antitrust laws; (ii) tortious interference with prospective business relations; (iii) civil conspiracy; and (iv) aiding and abetting the other defendants’ ongoing tortious and anticompetitive conduct. Plaintiff seeks equitable relief, compensatory and treble damages, jointly and severally, punitive damages, interest, and reasonable costs and expenses, including attorneys’ fees and expert fees. Plaintiff has not specified a damage amount in its complaint. We intend to defend ourselves against the action vigorously. We do not anticipate that this matter will have a material adverse effect on our financial condition. Beginning in January 2016, purported class action complaints were filed against defendants Henry Schein, Inc., Benco Dental Supply Co. and Patterson Companies, Inc. Although there were factual and legal variations among these complaints, each alleged that defendants conspired to foreclose and exclude competitors by boycotting manufacturers, state dental associations, and others that deal with defendants’ competitors. On February 9, 2016, the United States District Court for the Eastern District of New York ordered all of these actions, and all other actions filed thereafter asserting substantially similar claims against defendants, consolidated for pre-trial purposes. On February 26, 2016, a consolidated class action complaint was filed by Arnell Prato, D.D.S., P.L.L.C., d/b/a Down to Earth Dental, Evolution Dental Sciences, LLC, Howard M. May, DDS, P.C., Casey Nelson, D.D.S., Jim Peck, D.D.S., Bernard W. Kurek, D.M.D., Larchmont Dental Associates, P.C., and Keith Schwartz, D.M.D., P.A. (collectively, the “putative class representatives”) in the United States District Court for the Eastern District of New York, entitled In re Dental Supplies Antitrust Litigation, Civil Action No. 1:16-CV-00696-BMC-GRB. Subject to certain exclusions, the putative class representatives seek to represent all persons who purchased dental supplies or equipment in the United States directly from any of the defendants, or non-defendant Burkhart Dental Supply Company, Inc., since August 31, 2008. In the consolidated class action complaint, putative class representatives allege a nationwide agreement among Henry Schein, Benco, Patterson and Burkhart not to compete on price. The consolidated class action complaint asserts a single count under Section 1 of the Sherman Act, and seeks equitable relief, compensatory and treble damages, jointly and severally, interest, and reasonable costs and expenses, including attorneys’ fees and expert fees. Putative class representatives have not specified a damage amount in their complaint. While the outcome of litigation is inherently uncertain, we believe the consolidated class action complaint is without merit, and we intend to vigorously defend ourselves in this litigation. |
General (Policies)
General (Policies) | 9 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of Patterson Companies, Inc. (“Patterson”) as of January 30, 2016 , and our results of operations and cash flows for the periods ended January 30, 2016 and January 24, 2015 . Such adjustments are of a normal recurring nature. The results of operations for the periods ended January 30, 2016 and January 24, 2015 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the financial statements included in our 2015 Annual Report on Form 10-K filed on June 24, 2015. Such unaudited condensed consolidated financial statements include the assets and liabilities of PDC Funding Company, LLC (“PDC Funding”) and PDC Funding Company II, LLC (“PDC Funding II”), wholly owned subsidiaries and separate legal entities under Minnesota law. PDC Funding and PDC Funding II are fully consolidated special purpose entities established to sell customer installment sale contracts to outside financial institutions in the normal course of their business. The assets of PDC Funding and PDC Funding II would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding or PDC Funding II. Through fiscal 2015, Patterson was comprised of three reportable segments: dental supply, veterinary supply and rehabilitation supply. This fiscal year, we reorganized our reportable segments as a result of our acquisition of Animal Health International, Inc. and our divestiture of our wholly-owned subsidiary Patterson Medical Holdings, Inc., the entity through which we operated the rehabilitation supply business. We now present three different reportable segments: Dental, Animal Health and Corporate. Prior period segment results have been restated to conform to this revised current period presentation. |
Fiscal Year End | Fiscal Year End We operate with a 52-53 week accounting convention with our fiscal year ending on the last Saturday in April. The third quarters of fiscal 2016 and 2015 include the 13 weeks ended January 30, 2016 and January 24, 2015 , respectively. The nine months ended January 30, 2016 and January 24, 2015 include 40 and 39 weeks, respectively. Fiscal 2016 will include 53 weeks and fiscal 2015 included 52 weeks of operations. |
Comprehensive Income | Comprehensive Income Comprehensive income is computed as net income including certain other items that are recorded directly to stockholders’ equity. Significant items included in comprehensive income are foreign currency translation adjustments and the effective portion of cash flow hedges, net of tax. Foreign currency translation adjustments do not include a provision for income tax on earnings from foreign operations that are considered to be indefinitely reinvested outside the U.S. |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of the weighted average shares outstanding used to calculate basic and diluted earnings per share (“EPS”): Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Denominator for basic EPS – weighted average shares 95,335 98,842 97,809 98,991 Effect of dilutive securities 595 698 679 708 Denominator for diluted EPS – weighted average shares 95,930 99,540 98,488 99,699 Potentially dilutive securities consisting of stock options, restricted stock and stock purchase plans representing 941 shares and 753 shares for the three and nine months ended January 30, 2016 , respectively, and 102 shares for the three and nine months ended January 24, 2015 , were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, “Revenue from Contracts with Customers (Topic 606).” ASU No. 2014-9 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB deferred the effective date of this pronouncement by one year to December 15, 2017 for interim and annual reporting periods beginning after that date. Early adoption is permitted, but not before the original effective date, which for annual periods was December 15, 2016. We are evaluating the new standard, but do not, at this time, anticipate a material impact to our financial statements once implemented. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330), Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (LIFO) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. We are required to adopt the new pronouncement in the first quarter of fiscal 2018, and plan to do so at that time. Early adoption is permitted. We are evaluating the effect of adopting this pronouncement, but do not, at this time, anticipate a material impact to our financial statements once implemented. In August 2015, the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU states that ASU No. 2015-3, “Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs” does not address debt issuance costs for line-of-credit arrangements, and therefore the SEC staff would not object to an entity deferring and presenting these related debt issuance costs as an asset and subsequently amortizing the deferred issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. At this time, we do not believe that ASU No. 2015-15 will have a material impact on our financial statements and related disclosures. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this ASU require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. We are required to adopt the new pronouncement in the first quarter of fiscal 2017, with early adoption permitted. We are evaluating the effect and timing of adopting this pronouncement, but do not, at this time, anticipate a material impact to the financial statements once implemented. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740), Balance Sheet Classification of Income Taxes.” This ASU eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. This ASU requires that deferred tax liabilities and assets be classified as noncurrent in the classified statement of financial position. We are required to adopt the ASU in the first quarter of fiscal 2018, with early adoption permitted. We are evaluating the effect and timing of adopting this pronouncement, but do not, at this time, anticipate a material impact to the financial statements once implemented. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by most leases, as well as requires additional qualitative and quantitative disclosures. We are required to adopt the ASU in the first quarter of fiscal 2020, with early adoption permitted. We are evaluating the impact of adopting this pronouncement. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation, as described further in Note 3 and Note 9 to the Condensed Consolidated Financial Statements. |
General (Tables)
General (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share (EPS) | The following table sets forth the computation of the weighted average shares outstanding used to calculate basic and diluted earnings per share (“EPS”): Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Denominator for basic EPS – weighted average shares 95,335 98,842 97,809 98,991 Effect of dilutive securities 595 698 679 708 Denominator for diluted EPS – weighted average shares 95,930 99,540 98,488 99,699 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Business Combinations [Abstract] | |
Summary of Total Purchase Price Consideration and Preliminary Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the total purchase price consideration and the preliminary fair value amounts recognized for the assets acquired and liabilities assumed related to the acquisition, as of the acquisition date: Total purchase price consideration $ 1,106,583 Receivables $ 161,427 Inventory 195,367 Prepaid expenses and other current assets 33,005 Property and equipment 44,178 Identifiable intangibles 434,300 Other long-term assets 40,869 Total assets acquired 909,146 Accounts payable 122,129 Accrued liabilities and other current liabilities 21,015 Deferred tax liability 177,789 Total liabilities assumed 320,933 Identifiable net assets acquired 588,213 Goodwill 518,370 Net assets acquired $ 1,106,583 |
Summary of Acquired Intangible Assets Excluding Goodwill | The following summarizes the intangible assets, excluding goodwill, acquired as of June 16, 2015. Intangible assets are amortized using methods that approximate the pattern of economic benefit provided by the utilization of the assets. Gross Carrying Weighted Unamortized – indefinite lived: Trade names $ 12,300 indefinite Amortized: Customer relationships 291,900 15.0 Trade names 111,400 10.0 Developed technology and other 18,700 12.2 Total amortized intangible assets 422,000 13.6 Total identifiable intangible assets $ 434,300 |
Summary of Unaudited Pro Forma Financial Result | The unaudited pro forma financial results may not be indicative of the results that would have occurred had the acquisition been completed as of April 27, 2014, nor are they indicative of future results of operations. Nine Months Ended January 30, January 24, Pro forma net sales $ 4,125,969 $ 4,033,188 Pro forma net income from continuing operations 128,174 122,842 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Assets and Liabilities Held For Sale and Results of Operations Under Discontinued Operation Activities | The following summarizes the assets and liabilities of Patterson Medical as of April 25, 2015: April 25, 2015 Assets held for sale Receivables, net of allowance for doubtful accounts $ 57,876 Inventory 48,265 Prepaid expenses and other current assets 12,206 Property and equipment, net 22,672 Goodwill 537,175 Identifiable intangibles, net 74,804 Other long-term assets 1,143 Total assets held for sale $ 754,141 Liabilities held for sale Accounts payable $ 26,341 Accrued liabilities and other current liabilities 12,975 Long-term liabilities 49,414 Total liabilities held for sale $ 88,730 The following summarizes the results of operations of our discontinued Patterson Medical operations for the periods presented: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales $ — $ 104,684 $ 168,504 $ 350,362 Cost of sales — 64,567 107,359 218,102 Operating expenses — 26,738 54,954 81,042 Loss (gain) on sale 1,192 — (24,328 ) — Other expense (income) — 224 150 109 Income (loss) before taxes (1,192 ) 13,155 30,369 51,109 Income taxes (442 ) 4,913 28,869 18,990 Net (loss) income from discontinued operations $ (750 ) $ 8,242 $ 1,500 $ 32,119 (a) Includes activity up until the sale date of August 28, 2015. |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Balances and Related Activity by Business Segment | Goodwill balances and related activity by business segment are as follows: Balance at Acquisition Other Activity Balance at Corporate $ — $ — $ — $ — Dental 139,449 — (1,381 ) 138,068 Animal Health 160,475 518,370 (1,597 ) 677,248 Total $ 299,924 $ 518,370 $ (2,978 ) $ 815,316 |
Balances of Other Intangible Assets Excluding Goodwill | Balances of other intangible assets, excluding goodwill, are as follows: January 30, April 25, Unamortized – indefinite lived: Copyrights, trade names and trademarks $ 29,900 $ 17,600 Amortized: Distribution agreement, customer lists and other 638,854 221,359 Less: Accumulated amortization (146,539 ) (113,934 ) Net amortized intangible assets 492,315 107,425 Total identifiable intangible assets, net $ 522,215 $ 125,025 |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Interest Rate Contracts Included in Condensed Consolidated Balance Sheets | The following presents the fair value of interest rate contracts included in the condensed consolidated balance sheets: Derivative type Classification January 30, 2016 April 25, 2015 Interest rate contracts Other noncurrent assets $ 1,184 $ 1,255 Interest rate contracts Other noncurrent liabilities 1,184 1,255 |
Effect of Interest Rate Contracts on Condensed Consolidated Statements of Income and Other Comprehensive Income (OCI) | The following table presents the effect of interest rate contracts on the condensed consolidated statements of income and other comprehensive income (OCI): Three Months Ended Nine Months Ended Derivative type Location of gain/(loss) recognized on derivative January 30, 2016 January 24, 2015 January 30, 2016 January 24, 2015 Interest rate swap OCI $ 442 $ (8,143 ) $ 1,496 $ (14,319 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Our hierarchy for assets and liabilities measured at fair value on a recurring basis is as follows: January 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 5,151 $ 5,151 $ — $ — Derivative instruments 1,184 — 1,184 — Total assets $ 6,335 $ 5,151 $ 1,184 $ — Liabilities: Derivative instruments $ 1,184 $ — $ 1,184 $ — April 25, 2015 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 90,569 $ 90,569 $ — $ — Derivative instruments 1,255 — 1,255 — Total assets $ 91,824 $ 90,569 $ 1,255 $ — Liabilities: Derivative instruments $ 1,255 $ — $ 1,255 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Information about Reportable Segments | The following table presents information about Patterson’s reportable segments: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales Corporate $ 13,489 $ 10,158 $ 37,380 $ 29,050 Dental 637,651 610,655 1,814,090 1,746,165 Animal Health 749,713 337,815 2,081,463 1,100,589 Consolidated net sales $ 1,400,853 $ 958,628 $ 3,932,933 $ 2,875,804 Operating income (loss) from continuing operations Corporate $ (12,338 ) $ (12,535 ) $ (46,193 ) $ (38,698 ) Dental 82,108 78,048 223,454 214,024 Animal Health 25,959 11,864 64,108 40,187 Consolidated operating income from continuing operations $ 95,729 $ 77,377 $ 241,369 $ 215,513 January 30, April 25, Total assets Corporate $ 526,452 $ 539,863 Dental 935,347 1,022,257 Animal Health 2,093,871 631,445 Total assets, excluding assets held for sale 3,555,670 2,193,565 Assets held for sale — 754,141 Total assets $ 3,555,670 $ 2,947,706 |
Sales Information by Product | The following table presents sales information by product for all of Patterson’s reportable segments: Three Months Ended Nine Months Ended January 30, January 24, January 30, January 24, Net sales Consumables (a) $ 1,059,838 $ 638,541 $ 3,042,634 $ 2,020,345 Equipment and software 248,779 235,847 610,071 596,650 Other (a) 92,236 84,240 280,228 258,809 Consolidated net sales $ 1,400,853 $ 958,628 $ 3,932,933 $ 2,875,804 (a) Certain sales were reclassified from consumable to other in current and prior periods. |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Summary of Accumulated Other Comprehensive Loss | The following table summarizes accumulated other comprehensive loss (AOCL) at January 30, 2016 and April 25, 2015 and the activity for fiscal 2016: Cash Flow Hedges Currency Translation Adjustment Total AOCL at April 25, 2015 $ (18,668 ) $ (41,678 ) $ (60,346 ) Other comprehensive loss before reclassifications — (34,096 ) (34,096 ) Amounts reclassified from AOCL 1,496 11,083 12,579 AOCL at January 30, 2016 $ (17,172 ) $ (64,691 ) $ (81,863 ) |
General - Additional Informatio
General - Additional Information (Detail) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 30, 2016USD ($)shares | Jan. 24, 2015USD ($)shares | Jan. 30, 2016USD ($)Segmentshares | Jan. 24, 2015USD ($)shares | Apr. 25, 2015Segment | |
Accounting Policies [Abstract] | |||||
Number of reportable segments | Segment | 3 | 3 | |||
Income tax expense (benefit) related to cash flow hedges | $ | $ 268 | $ (4,867) | $ 618 | $ (12,001) | |
Securities excluded from calculation of diluted earnings per share | shares | 941 | 102 | 753 | 102 |
General - Computation of Basic
General - Computation of Basic and Diluted Earnings Per Share (EPS) (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Earnings Per Share [Abstract] | ||||
Denominator for basic EPS – weighted average shares | 95,335 | 98,842 | 97,809 | 98,991 |
Effect of dilutive securities (shares) | 595 | 698 | 679 | 708 |
Denominator for diluted EPS – weighted average shares | 95,930 | 99,540 | 98,488 | 99,699 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Jan. 30, 2016 | Aug. 01, 2015 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | Apr. 25, 2015 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 815,316,000 | $ 815,316,000 | $ 299,924,000 | |||
Revenues | 1,400,853,000 | $ 958,628,000 | 3,932,933,000 | $ 2,875,804,000 | ||
Operating income | $ 95,729,000 | $ 77,377,000 | 241,369,000 | 215,513,000 | ||
Tax impact of repatriation of foreign earnings | $ 12,300,000 | |||||
Animal Health International [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition cash paid | $ 1,106,583,000 | |||||
Identifiable net assets acquired | $ 588,213,000 | |||||
Revision period after valuation completion for provisional amounts | 1 year | |||||
Deferred tax asset | $ 2,569,000 | |||||
Deferred tax liability | 177,789,000 | |||||
Goodwill | 518,370,000 | |||||
Goodwill recognized, deductible for income tax purpose | 0 | |||||
Deferred taxes recorded related to goodwill | 0 | |||||
Revenues | 992,538,000 | |||||
Operating income | 22,196,000 | |||||
Amortization expense related to identifiable intangible assets | 20,080,000 | |||||
Tax impact of repatriation of foreign earnings | $ 12,300,000 | |||||
Animal Health International [Member] | Term Loan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Unsecured term loan | 1,000,000,000 | |||||
Animal Health International [Member] | Unsecured Revolving Line of Credit [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 |
Acquisitions - Summary of Total
Acquisitions - Summary of Total Purchase Price Consideration and Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 01, 2015 | Jan. 30, 2016 | Jun. 16, 2015 | Apr. 25, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 815,316 | $ 299,924 | ||
Animal Health International [Member] | ||||
Business Acquisition [Line Items] | ||||
Total purchase price consideration | $ 1,106,583 | |||
Receivables | 161,427 | |||
Inventory | 195,367 | |||
Prepaid expenses and other current assets | 33,005 | |||
Property and equipment | 44,178 | |||
Identifiable intangibles | 434,300 | $ 434,300 | ||
Other long-term assets | 40,869 | |||
Total assets acquired | 909,146 | |||
Accounts payable | 122,129 | |||
Accrued liabilities and other current liabilities | 21,015 | |||
Deferred tax liability | 177,789 | |||
Total liabilities assumed | 320,933 | |||
Identifiable net assets acquired | 588,213 | |||
Goodwill | 518,370 | |||
Net assets acquired | $ 1,106,583 |
Acquisitions - Summary of Acqui
Acquisitions - Summary of Acquired Intangible Assets Excluding Goodwill (Detail) - Animal Health International [Member] - USD ($) $ in Thousands | Jun. 16, 2015 | Aug. 01, 2015 |
Business Acquisition [Line Items] | ||
Total amortized intangible assets | $ 422,000 | |
Total identifiable intangible assets | $ 434,300 | $ 434,300 |
Finite lived intangible assets, Weighted average life (years) | 13 years 7 months 6 days | |
Unamortized Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Unamortized - indefinite lived | $ 12,300 | |
Indefinite lived intangible assets, Weighted average life (years) | indefinite | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Total amortized intangible assets | $ 291,900 | |
Finite lived intangible assets, Weighted average life (years) | 15 years | |
Amortized Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Total amortized intangible assets | $ 111,400 | |
Finite lived intangible assets, Weighted average life (years) | 10 years | |
Developed Technology and Other [Member] | ||
Business Acquisition [Line Items] | ||
Total amortized intangible assets | $ 18,700 | |
Finite lived intangible assets, Weighted average life (years) | 12 years 2 months 12 days |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Financial Result (Detail) - Animal Health International [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 30, 2016 | Jan. 24, 2015 | |
Business Acquisition [Line Items] | ||
Pro forma net sales | $ 4,125,969 | $ 4,033,188 |
Pro forma net income from continuing operations | $ 128,174 | $ 122,842 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 28, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | Jul. 01, 2015 |
Discontinued Operations and Disposal Groups [Abstract] | ||||||
Consideration receivable as per definitive agreement | $ 716,886 | $ 716,886 | $ 715,000 | |||
Proceeds from the sale including working capital adjustment | $ 718,078 | |||||
Percentage of common units obtained | 10.00% | |||||
Ratio of acquirer cash inflows to cash outflows at which common units obtained begin participating in distributions | 2.5 | |||||
Pre-tax gain on sale | $ (1,192) | $ 0 | $ 24,328 | $ 0 | ||
Transition services agreement, period of involvement | 24 months | |||||
Professional fees incurred with sale of Patterson Medical | $ 13,692 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Assets and Liabilities Held For Sale (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Assets held for sale | ||
Receivables, net of allowance for doubtful accounts | $ 57,876 | |
Inventory | 48,265 | |
Prepaid expenses and other current assets | 12,206 | |
Property and equipment, net | 22,672 | |
Goodwill | 537,175 | |
Identifiable intangibles, net | 74,804 | |
Other long-term assets | 1,143 | |
Total assets held for sale | $ 0 | 754,141 |
Liabilities held for sale | ||
Accounts payable | 26,341 | |
Accrued liabilities and other current liabilities | 12,975 | |
Long-term liabilities | $ 0 | 49,414 |
Total liabilities held for sale | $ 88,730 |
Discontinued Operations - Sum35
Discontinued Operations - Summary of Results of Operations Under Discontinued Operation Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Net sales | $ 0 | $ 104,684 | $ 168,504 | $ 350,362 |
Cost of sales | 0 | 64,567 | 107,359 | 218,102 |
Operating expenses | 0 | 26,738 | 54,954 | 81,042 |
Loss (gain) on sale | 1,192 | 0 | (24,328) | 0 |
Other expense (income) | 0 | 224 | 150 | 109 |
Income (loss) before taxes | (1,192) | 13,155 | 30,369 | 51,109 |
Income taxes | (442) | 4,913 | 28,869 | 18,990 |
Net (loss) income from discontinued operations | $ (750) | $ 8,242 | $ 1,500 | $ 32,119 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Goodwill Balances and Related Activity by Business Segment (Detail) $ in Thousands | 9 Months Ended |
Jan. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at April 25, 2015 | $ 299,924 |
Acquisition Activity and Divestitures | 518,370 |
Other Activity | (2,978) |
Balance at January 30, 2016 | 815,316 |
Operating Segments [Member] | Corporate [Member] | |
Goodwill [Roll Forward] | |
Balance at April 25, 2015 | 0 |
Acquisition Activity and Divestitures | 0 |
Other Activity | 0 |
Balance at January 30, 2016 | 0 |
Operating Segments [Member] | Dental [Member] | |
Goodwill [Roll Forward] | |
Balance at April 25, 2015 | 139,449 |
Acquisition Activity and Divestitures | 0 |
Other Activity | (1,381) |
Balance at January 30, 2016 | 138,068 |
Operating Segments [Member] | Animal Health [Member] | |
Goodwill [Roll Forward] | |
Balance at April 25, 2015 | 160,475 |
Acquisition Activity and Divestitures | 518,370 |
Other Activity | (1,597) |
Balance at January 30, 2016 | $ 677,248 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Balances of Other Intangible Assets Excluding Goodwill (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Copyrights, trade names and trademarks | $ 29,900 | $ 17,600 |
Distribution agreement, customer lists and other | 638,854 | 221,359 |
Less: Accumulated amortization | (146,539) | (113,934) |
Net amortized intangible assets | 492,315 | 107,425 |
Total identifiable intangible assets, net | $ 522,215 | $ 125,025 |
Derivative Financial Instrume38
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | Mar. 25, 2015 | Mar. 31, 2015 | Jan. 31, 2014 | Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | Aug. 31, 2015 | Apr. 26, 2014 |
Interest Rate Cap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | $ 575,000,000 | $ 575,000,000 | |||||||
Replacement Interest Rate Cap Agreement [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | $ 100,000,000 | $ 100,000,000 | |||||||
Interest Rate Swap Agreement [Member] | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | $ 250,000,000 | ||||||||
Percentage of senior notes | 5.17% | ||||||||
Settlement of swap | $ 29,003,000 | ||||||||
Interest Rate Swap Agreement [Member] | 5.17% Senior Notes [Member] | |||||||||
Derivative [Line Items] | |||||||||
Maturity date of long-term loan | Mar. 25, 2015 | ||||||||
Senior notes amount due | $ 250,000,000 | ||||||||
Interest Rate Swap Agreement [Member] | 5.17% Senior Notes [Member] | Long-term Debt [Member] | |||||||||
Derivative [Line Items] | |||||||||
Period of long-term loan | 10 years | ||||||||
Interest Rate Swap Agreement [Member] | Senior Notes 3.48% [Member] | |||||||||
Derivative [Line Items] | |||||||||
Percentage of senior notes | 3.48% | ||||||||
Maturity date of long-term loan | Mar. 24, 2025 | ||||||||
Period of long-term loan | 10 years | ||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||
Interest Rate Swap [Member] | |||||||||
Derivative [Line Items] | |||||||||
Increase (decrease) in interest expense | $ 709,000 | $ (48,000) | $ 2,114,000 | $ (145,000) |
Derivative Financial Instrume39
Derivative Financial Instruments - Fair Value of Interest Rate Contracts Included in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | $ 1,184 | $ 1,255 |
Interest rate, liabilities, fair value | 1,184 | 1,255 |
Other Noncurrent Assets [Member] | Interest Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | 1,184 | 1,255 |
Other Noncurrent Liabilities [Member] | Interest Rate Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | $ 1,184 | $ 1,255 |
Derivative Financial Instrume40
Derivative Financial Instruments - Effect of Interest Rate Contracts on Condensed Consolidated Statements of Income and Other Comprehensive Income (OCI) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effect of interest rate contracts | $ 442 | $ (8,143) | $ 1,496 | $ (14,319) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Assets: | ||
Cash equivalents | $ 5,151 | $ 90,569 |
Derivative instruments | 1,184 | 1,255 |
Total assets | 6,335 | 91,824 |
Liabilities: | ||
Derivative instruments | 1,184 | 1,255 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 5,151 | 90,569 |
Derivative instruments | 0 | 0 |
Total assets | 5,151 | 90,569 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Derivative instruments | 1,184 | 1,255 |
Total assets | 1,184 | 1,255 |
Liabilities: | ||
Derivative instruments | 1,184 | 1,255 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 30, 2016 | Apr. 25, 2015 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of debt | $ 1,047,117 | $ 746,685 |
Securities - Additional Informa
Securities - Additional Information (Detail) $ in Thousands | Oct. 25, 2013CADtime_deposit | Oct. 28, 2015CAD | Apr. 25, 2015USD ($) | Oct. 24, 2014CAD |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Number of time deposits invested | time_deposit | 3 | |||
Total principal amount | CAD 110,000,000 | CAD 65,000,000 | CAD 45,000,000 | |
Maturity value of time deposits | CAD 67,031,000 | CAD 45,436,000 | ||
Short-term Investments [Member] | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Total principal amount | $ | $ 53,372 |
Customer Financing - Additional
Customer Financing - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||
Jan. 30, 2016USD ($) | Jan. 24, 2015USD ($) | Jan. 30, 2016USD ($)finance_agreement | Jan. 24, 2015USD ($) | Apr. 25, 2015USD ($) | Apr. 26, 2014USD ($) | |
Customer Financing [Line Items] | ||||||
Maximum credit financed for equipment purchases for any one customer | $ 500,000 | $ 500,000 | ||||
Number of customer financing contracts | finance_agreement | 2 | |||||
Financing contracts sold under ASC 860 | 128,442,000 | $ 82,977,000 | $ 271,381,000 | $ 215,125,000 | ||
Cash and cash equivalents | 97,701,000 | $ 289,722,000 | 97,701,000 | $ 289,722,000 | $ 347,260,000 | $ 264,908,000 |
Current receivables of finance contracts not yet sold | 92,366,000 | 92,366,000 | 88,470,000 | |||
Unearned income | 3,982,000 | 3,982,000 | 4,197,000 | |||
Finance contracts receivable sold and outstanding | 589,615,000 | 589,615,000 | ||||
Deferred purchase price | 135,985,000 | $ 135,985,000 | 66,715,000 | |||
Bad debt write-offs, percentage, maximum (less than) | 1.00% | |||||
Unsettled Financing Arrangements [Member] | ||||||
Customer Financing [Line Items] | ||||||
Cash and cash equivalents | 26,428,000 | $ 26,428,000 | $ 29,863,000 | |||
Fifth Third Bank [Member] | ||||||
Customer Financing [Line Items] | ||||||
Capacity under agreement | 100,000,000 | 100,000,000 | ||||
The Bank of Tokyo-Mitsubishi UFJ, Ltd. [Member] | ||||||
Customer Financing [Line Items] | ||||||
Capacity under agreement | $ 575,000,000 | $ 575,000,000 | ||||
Minimum [Member] | Fifth Third Bank [Member] | ||||||
Customer Financing [Line Items] | ||||||
Percentage of principal amount of financing contracts held as collateral | 15.00% | |||||
Minimum [Member] | The Bank of Tokyo-Mitsubishi UFJ, Ltd. [Member] | ||||||
Customer Financing [Line Items] | ||||||
Percentage of principal amount of financing contracts held as collateral | 25.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 9 Months Ended | 12 Months Ended |
Jan. 30, 2016 | Apr. 25, 2015 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 3 | 3 |
Segment Reporting - Information
Segment Reporting - Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | Apr. 25, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,400,853 | $ 958,628 | $ 3,932,933 | $ 2,875,804 | |
Operating income (loss) from continuing operations | 95,729 | 77,377 | 241,369 | 215,513 | |
Total assets, excluding assets held for sale | 3,555,670 | 3,555,670 | $ 2,193,565 | ||
Assets held for sale | 0 | 0 | 754,141 | ||
Total assets | 3,555,670 | 3,555,670 | 2,947,706 | ||
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets, excluding assets held for sale | 526,452 | 526,452 | 539,863 | ||
Dental [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets, excluding assets held for sale | 935,347 | 935,347 | 1,022,257 | ||
Animal Health [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets, excluding assets held for sale | 2,093,871 | 2,093,871 | $ 631,445 | ||
Operating Segments [Member] | Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 13,489 | 10,158 | 37,380 | 29,050 | |
Operating income (loss) from continuing operations | (12,338) | (12,535) | (46,193) | (38,698) | |
Operating Segments [Member] | Dental [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 637,651 | 610,655 | 1,814,090 | 1,746,165 | |
Operating income (loss) from continuing operations | 82,108 | 78,048 | 223,454 | 214,024 | |
Operating Segments [Member] | Animal Health [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 749,713 | 337,815 | 2,081,463 | 1,100,589 | |
Operating income (loss) from continuing operations | $ 25,959 | $ 11,864 | $ 64,108 | $ 40,187 |
Segment Reporting - Sales Infor
Segment Reporting - Sales Information by Product (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,400,853 | $ 958,628 | $ 3,932,933 | $ 2,875,804 |
Consumables [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,059,838 | 638,541 | 3,042,634 | 2,020,345 |
Equipment and Software [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 248,779 | 235,847 | 610,071 | 596,650 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 92,236 | $ 84,240 | $ 280,228 | $ 258,809 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss - Summary of Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 9 Months Ended |
Jan. 30, 2016USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
AOCL Beginning Balance | $ 1,514,123 |
AOCL at January 30, 2016 | (81,863) |
AOCL Ending Balance | 1,362,547 |
Cash Flow Hedges [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
AOCL Beginning Balance | (18,668) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from AOCL | 1,496 |
AOCL Ending Balance | (17,172) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
AOCL Beginning Balance | (41,678) |
Other comprehensive loss before reclassifications | (34,096) |
Amounts reclassified from AOCL | 11,083 |
AOCL Ending Balance | (64,691) |
AOCI Attributable to Parent [Member] | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
AOCL Beginning Balance | (60,346) |
Other comprehensive loss before reclassifications | (34,096) |
Amounts reclassified from AOCL | 12,579 |
AOCL Ending Balance | $ (81,863) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 30, 2016 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gains and losses on cash flow hedges, tax | $ 268 | $ (4,867) | $ 618 | $ (12,001) |
Increase in interest expense | 2,114 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCL | 11,083 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Patterson Medical [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from AOCL | $ (11,083) |
Debt Issuance - Additional Info
Debt Issuance - Additional Information (Detail) - USD ($) | Aug. 28, 2015 | Jan. 30, 2016 | Aug. 01, 2015 | Jan. 30, 2016 | Jun. 16, 2015 | Apr. 25, 2015 |
Line of Credit Facility [Line Items] | ||||||
Initial borrowed amount | $ 0 | |||||
Borrowings on revolving credit | $ 198,000,000 | $ 198,000,000 | $ 0 | |||
Credit Facility Expiring on December 2016 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | |||||
Credit Agreement [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||
Expiration date | Jun. 16, 2020 | |||||
Credit Agreement [Member] | LIBOR [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread rate | 1.25% | |||||
Credit Agreement [Member] | LIBOR [Member] | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread rate | 1.125% | |||||
Credit Agreement [Member] | LIBOR [Member] | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread rate | 2.00% | |||||
Credit Agreement [Member] | Unsecured Term Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Initial borrowed amount | 321,750,000 | 1,000,000,000 | $ 321,750,000 | |||
Amount repaid | $ 670,000,000 | |||||
Debt issuance cost amortization | $ 5,153,000 | |||||
Principal payment | $ 4,125,000 | $ 8,250,000 | ||||
Credit Agreement [Member] | Unsecured Revolving Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 500,000,000 | |||||
Initial borrowed amount | $ 200,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2016 | Aug. 01, 2015 | Jan. 24, 2015 | Jan. 30, 2016 | Jan. 24, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 33.40% | 33.10% | 41.10% | 34.20% | |
Repatriation of foreign earnings | $ 200,000 | ||||
Tax impact of repatriation of foreign earnings | $ 12,300 |