Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 27, 2019 | Jun. 18, 2019 | Oct. 28, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 27, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PATTERSON COMPANIES, INC. | ||
Entity Central Index Key | 0000891024 | ||
Current Fiscal Year End Date | --04-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 95,319,000 | ||
Entity Public Float | $ 2,150 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 95,646 | $ 62,984 |
Receivables, net of allowance for doubtful accounts of $6,772 and $9,537 | 582,094 | 826,877 |
Inventory | 761,018 | 779,834 |
Prepaid expenses and other current assets | 165,605 | 103,029 |
Total current assets | 1,604,363 | 1,772,724 |
Property and equipment, net | 305,790 | 290,590 |
Long-term receivables, net | 113,081 | 135,175 |
Goodwill | 816,226 | 815,977 |
Identifiable intangibles, net | 351,153 | 389,424 |
Other non-current assets | 78,656 | 67,774 |
Total assets | 3,269,269 | 3,471,664 |
Current liabilities: | ||
Accounts payable | 648,418 | 610,368 |
Accrued payroll expense | 73,665 | 69,099 |
Other accrued liabilities | 129,654 | 136,316 |
Current maturities of long-term debt | 23,975 | 76,598 |
Borrowings on revolving credit | 0 | 16,000 |
Total current liabilities | 875,712 | 908,381 |
Long-term debt | 725,341 | 922,030 |
Deferred income taxes | 163,488 | 152,104 |
Other non-current liabilities | 24,221 | 27,359 |
Total liabilities | 1,788,762 | 2,009,874 |
Stockholders’ equity: | ||
Common stock, $.01 par value: 600,000 shares authorized; 95,272 and 94,756 shares issued and outstanding | 953 | 948 |
Additional paid-in capital | 131,460 | 103,776 |
Accumulated other comprehensive loss | (88,269) | (74,974) |
Retained earnings | 1,483,496 | 1,497,766 |
Unearned ESOP shares | (50,381) | (65,726) |
Total stockholders’ equity | 1,477,259 | 1,461,790 |
Noncontrolling interests | 3,248 | 0 |
Total stockholders’ equity | 1,480,507 | 1,461,790 |
Total liabilities and stockholders’ equity | $ 3,269,269 | $ 3,471,664 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 6,772 | $ 9,537 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued shares (in shares) | 95,272,000 | 94,756,000 |
Common stock, outstanding shares (in shares) | 95,272,000 | 94,756,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 5,574,523 | $ 5,465,683 | $ 5,593,127 |
Cost of sales | 4,383,748 | 4,266,317 | 4,291,730 |
Gross profit | 1,190,775 | 1,199,366 | 1,301,397 |
Operating expenses | 1,053,059 | 979,477 | 1,013,469 |
Operating income from continuing operations | 137,716 | 219,889 | 287,928 |
Other income (expense): | |||
Other income, net | 8,178 | 6,117 | 6,013 |
Interest expense | (39,666) | (46,743) | (43,060) |
Income from continuing operations before taxes | 106,228 | 179,263 | 250,881 |
Income tax expense (benefit) | 23,352 | (21,711) | 77,093 |
Net income from continuing operations | 82,876 | 200,974 | 173,788 |
Net loss from discontinued operations | 0 | 0 | (2,895) |
Net income | 82,876 | 200,974 | 170,893 |
Net loss attributable to noncontrolling interests | (752) | 0 | 0 |
Net income attributable to Patterson Companies, Inc. | $ 83,628 | $ 200,974 | $ 170,893 |
Basic earnings (loss) per share attributable to Patterson Companies, Inc.: | |||
Continuing operations (in usd per share) | $ 0.90 | $ 2.17 | $ 1.83 |
Discontinued operations (in usd per share) | 0 | 0 | (0.03) |
Basic (in usd per share) | 0.90 | 2.17 | 1.80 |
Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: | |||
Continuing operations (in usd per share) | 0.89 | 2.16 | 1.82 |
Discontinued operations (in usd per share) | 0 | 0 | (0.03) |
Diluted (in usd per share) | $ 0.89 | $ 2.16 | $ 1.79 |
Weighted average shares: | |||
Basic (in shares) | 92,755 | 92,467 | 94,897 |
Diluted (in shares) | 93,484 | 93,094 | 95,567 |
Dividends declared per common share (in usd per share) | $ 1.04 | $ 1.04 | $ 0.98 |
Comprehensive income | |||
Net income attributable to Patterson Companies, Inc. | $ 83,628 | $ 200,974 | $ 170,893 |
Foreign currency translation gain (loss) | (15,583) | 15,824 | (26,450) |
Cash flow hedges, net of tax | 2,288 | 1,871 | 1,745 |
Comprehensive income | $ 69,581 | $ 218,669 | $ 146,188 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Unearned ESOP Shares | Non-controlling interests |
Beginning balance at Apr. 30, 2016 | $ 1,441,746 | $ 991 | $ 48,477 | $ (67,964) | $ 1,529,158 | $ (68,916) | $ 0 |
Beginning balance (in shares) at Apr. 30, 2016 | 99,107 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | (26,450) | (26,450) | |||||
Cash flow hedges | 1,745 | 1,745 | |||||
Net income | 170,893 | 170,893 | |||||
Dividends declared | (93,461) | (93,461) | |||||
Common stock issued and related tax benefits | 6,789 | $ 3 | 6,786 | ||||
Common stock issued and related tax benefits (in shares) | 282 | ||||||
Repurchases of common stock | (125,384) | $ (28) | 0 | (125,356) | |||
Repurchase of common stock (in shares) | (2,855) | ||||||
Stock based compensation | 17,710 | 17,710 | |||||
ESOP activity | 845 | 845 | |||||
Ending balance at Apr. 29, 2017 | 1,394,433 | $ 966 | 72,973 | (92,669) | 1,481,234 | (68,071) | |
Ending balance (in shares) at Apr. 29, 2017 | 96,534 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | 15,824 | 15,824 | |||||
Cash flow hedges | 1,871 | 1,871 | |||||
Net income | 200,974 | 200,974 | |||||
Dividends declared | (96,964) | (96,964) | |||||
Common stock issued and related tax benefits | 12,407 | $ 4 | 12,403 | ||||
Common stock issued and related tax benefits (in shares) | 369 | ||||||
Repurchases of common stock | (87,500) | $ (22) | (87,478) | ||||
Repurchase of common stock (in shares) | (2,147) | ||||||
Stock based compensation | 18,400 | 18,400 | |||||
ESOP activity | 2,345 | 2,345 | |||||
Ending balance at Apr. 28, 2018 | $ 1,461,790 | $ 948 | 103,776 | (74,974) | 1,497,766 | (65,726) | 0 |
Ending balance (in shares) at Apr. 28, 2018 | 94,756 | 94,756 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency translation | $ (15,583) | (15,583) | |||||
Cash flow hedges | 2,288 | 2,288 | |||||
Net income | 82,876 | 83,628 | (752) | ||||
Dividends declared | (97,898) | (97,898) | |||||
Common stock issued and related tax benefits | 8,004 | $ 5 | 7,999 | ||||
Common stock issued and related tax benefits (in shares) | 516 | ||||||
Stock based compensation | 19,685 | 19,685 | |||||
ESOP activity | 15,345 | 15,345 | |||||
Increase from asset acquisition | 4,000 | 4,000 | |||||
Ending balance at Apr. 27, 2019 | $ 1,480,507 | $ 953 | $ 131,460 | $ (88,269) | $ 1,483,496 | $ (50,381) | $ 3,248 |
Ending balance (in shares) at Apr. 27, 2019 | 95,272 | 95,272 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Operating activities: | |||
Net income | $ 82,876 | $ 200,974 | $ 170,893 |
Net loss from discontinued operations | 0 | 0 | (2,895) |
Net income from continuing operations | 82,876 | 200,974 | 173,788 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | |||
Depreciation | 44,371 | 45,115 | 40,004 |
Amortization | 38,402 | 38,701 | 43,814 |
Intangible asset impairment | 0 | 0 | 36,312 |
Bad debt expense | 7,333 | 6,280 | 1,642 |
Non-cash employee compensation | 33,425 | 36,532 | 19,025 |
Deferred income taxes | 10,762 | (41,058) | (13,713) |
Deferred consideration in securitized receivables | (402,367) | (49,650) | (51,402) |
Change in assets and liabilities, net of acquired: | |||
Receivables | 227,907 | 60,211 | (103,181) |
Inventory | 11,547 | (60,475) | (961) |
Accounts payable | 44,189 | (12,103) | 59,654 |
Accrued liabilities | 512 | (24,726) | (9,009) |
Long term receivables | 21,611 | (33,795) | (12,574) |
Other changes from operating activities, net | (72,410) | 12,889 | (17,785) |
Net cash provided by operating activities- continuing operations | 48,158 | 178,895 | 165,614 |
Net cash used in operating activities- discontinued operations | 0 | 0 | (2,895) |
Net cash provided by operating activities | 48,158 | 178,895 | 162,719 |
Investing activities: | |||
Additions to property and equipment | (60,734) | (43,263) | (47,019) |
Collection of deferred purchase price receivables | 402,367 | 49,650 | 51,402 |
Other investing activities | (906) | 10,600 | (3,190) |
Net cash provided by investing activities | 340,727 | 16,987 | 1,193 |
Net cash provided by investing activities- discontinued operations | 0 | 0 | 0 |
Net cash provided by investing activities | 340,727 | 16,987 | 1,193 |
Financing activities: | |||
Dividends paid | (99,468) | (99,199) | (95,910) |
Repurchases of common stock | 0 | (87,500) | (125,384) |
Proceeds from issuance of long-term debt | 0 | 150,000 | 0 |
Debt amendment costs | 0 | 0 | (1,266) |
Retirement of long-term debt | (249,542) | (164,754) | (26,238) |
Draw on (payment on) revolving credit | (16,000) | (43,000) | 39,000 |
Other financing activities | 9,764 | 14,291 | 7,635 |
Net cash used in financing activities | (355,246) | (230,162) | (202,163) |
Effect of exchange rate changes on cash | (977) | 2,305 | (4,243) |
Net change in cash and cash equivalents | 32,662 | (31,975) | (42,494) |
Cash and cash equivalents at beginning of period | 62,984 | 94,959 | 137,453 |
Cash and cash equivalents at end of period | 95,646 | 62,984 | 94,959 |
Supplemental disclosures: | |||
Income taxes paid | 17,530 | 19,611 | 108,394 |
Interest paid | $ 31,045 | $ 36,504 | $ 34,972 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 27, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Patterson Companies, Inc. (referred to herein as “Patterson” or in the first person notations “we,” “our,” and “us”) is a value-added specialty distributor serving the U.S. and Canadian dental supply and the U.S., Canadian and U.K. animal health supply markets. Patterson has three reportable segments: Dental, Animal Health and Corporate. Basis of Presentation The consolidated financial statements include the assets and liabilities of PDC Funding Company, LLC ("PDC Funding"), PDC Funding Company II, LLC ("PDC Funding II") and PDC Funding Company III, LLC ("PDC Funding III"), which are our wholly owned subsidiaries and separate legal entities formed 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. PDC Funding III is a fully consolidated special purpose entity established to sell certain receivables to unaffiliated financial institutions. The assets of PDC Funding, PDC Funding II and PDC Funding III would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding, PDC Funding II or PDC Funding III. The consolidated financial statements also include the assets and liabilities of Technology Partner Innovations, LLC, which is further described in Note 13. Fiscal Year End We operate with a 52-53 week accounting convention with our fiscal year ending on the last Saturday in April. Fiscal 2019 , 2018 and 2017 ended on April 27, 2019 , April 28, 2018 and April 29, 2017 , respectively, and all years consisted of 52 weeks. Fiscal 2020 will end on April 25, 2020 and will consist of 52 weeks. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents consist primarily of investments in money market funds and government securities. The maturity of these securities at the time of purchase is 90 days or less. All cash and cash equivalents are classified as available-for-sale and carried at fair value, which approximates cost. Inventory Inventory consists of merchandise held for sale and is stated at the lower of cost or market. The cost of our inventory includes the amount we pay to our suppliers to acquire inventory and freight costs incurred in connection with the delivery of product to our distribution centers and our other locations. Cost is determined using the last-in, first-out ("LIFO") method for all inventories, except for foreign inventories, which are valued using the first-in, first-out ("FIFO") method. Inventories valued at LIFO represented 82% and 84% of total inventories at April 27, 2019 and April 28, 2018 , respectively. Effective January 28, 2018, the Company changed its method of calculating LIFO inventories within its U.S. Animal Health business segment from the double-extension method to the link-chain method. The Company believes that the LIFO Link Chain method of inventory valuation is preferable as the LIFO Link Chain costing method provides a better matching of current costs with current revenues, provides for a LIFO adjustment more representative of the Company’s actual inflation on its inventories and conforms LIFO inventory costing method (Link Chain) with other Patterson operations that use the LIFO inventory method (Link Chain). The Company determined that it is impracticable to determine the cumulative effect of applying this change retrospectively to any periods prior to April 30, 2017 because complete records of inventory purchases are no longer available for periods prior to that date. The Company applied the change as of April 30, 2017, the earliest date practicable. The effect of the change on the results of operations for the year ended April 28, 2018 was to reduce the consolidated LIFO reserve and increase pre-tax income by $1,800 . The effect of the change on interim periods in 2018 was not material. The accumulated LIFO reserve was $91,342 at April 27, 2019 and $82,105 at April 28, 2018 . We believe that inventory replacement cost exceeds the inventory balance by an amount approximating the LIFO reserve. Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on the straight-line method over estimated useful lives of up to 39 years for buildings or the expected remaining life of purchased buildings, the term of the lease for leasehold improvements, 3 to 10 years for computer hardware and software, and 5 to 10 years for furniture and equipment. Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of cost over the fair value of identifiable net assets of businesses acquired. We have two reporting units as of April 27, 2019 ; Dental and Animal Health. Our Corporate reportable segment's assets and liabilities, and net sales and expenses, are allocated to the two reporting units. Our indefinite-lived intangible asset is a trade name. We assess goodwill for impairment annually and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. If we determine that the fair value of the reporting unit may be less than its carrying amount, we evaluate goodwill using a two-step impairment test. Otherwise, we conclude that no impairment is indicated and we do not perform the two-step impairment test. In fiscal 2019 , we determined it was appropriate to perform a two-step impairment test. The first step of the goodwill impairment test compares the book value of a reporting unit, including goodwill, to its fair value. If the book value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to determine the amount of goodwill impairment loss to be recorded. The determination of fair value involves uncertainties because it requires management to make assumptions and to apply judgment to estimate industry and economic factors and the profitability of future business strategies. Patterson conducts impairment testing based on current business strategy in light of present industry and economic conditions, as well as future expectations. Additionally, in assessing goodwill for impairment, the reasonableness of the implied control premium is considered based on market capitalizations and recent market transactions. Other indefinite-lived intangible assets are assessed for impairment by comparing the carrying value of an asset with its fair value. If the carrying value exceeds fair value, an impairment loss is recognized in an amount equal to the excess. The determination of fair value involves assumptions, including projected revenues and gross profit levels, as well as consideration of any factors that may indicate potential impairment. In the fourth quarter of fiscal 2019 , management completed its annual goodwill and other indefinite-lived intangible asset impairment tests using the beginning of our fiscal 2019 fourth quarter as the valuation date, and determined there was no impairment, and that our Dental reporting unit was not at risk of failing step 1. The Animal Health reporting unit has a higher level of sensitivity to impairment as management currently assesses the various estimates and assumptions used to conduct these tests. Adverse changes to one or more of these estimates or assumptions could cause us to recognize a material impairment charge on this reporting unit. Long-Lived Assets Long-lived assets, including definite-lived intangible assets, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows derived from such assets. Our definite-lived intangible assets primarily consist of customer relationships, trade names and trademarks. When impairment exists, the related assets are written down to fair value using level 3 inputs, as discussed further in Note 10. In fiscal 2017, we recorded a non-cash impairment charge of $36,312 related to a distribution agreement intangible asset. Refer to Note 4 for more information. Financial Instruments We account for derivative financial instruments under the provisions of Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging.” Our use of derivative financial instruments is generally limited to managing well-defined interest rate risks. We do not use financial instruments or derivatives for any trading purposes. Revenue Recognition Revenues are generated from the sale of consumable products, equipment and support, software and support, technical service parts and labor, and other sources. Revenues are recognized when or as performance obligations are satisfied. Performance obligations are satisfied when the customer obtains control of the goods or services. Consumable, equipment, software and parts sales are recorded upon delivery, except in those circumstances where terms of the sale are FOB shipping point, in which case sales are recorded upon shipment. Technical service labor is recognized as it is provided. Revenue derived from equipment and software support is recognized ratably over the period in which the support is provided. In addition to revenues generated from the distribution of consumable products under arrangements (buy/sell agreements) where the full market value of the product is recorded as revenue, we earn commissions for services provided under agency agreements. The agency agreement contrasts to a buy/sell agreement in that we do not have control over the transaction, as we do not have the primary responsibility of fulfilling the promise of the good or service and we do not bill or collect from the customer in an agency relationship. Commissions under agency agreements are recorded when the services are provided. Estimates for returns, damaged goods, rebates, loyalty programs and other revenue allowances are made at the time the revenue is recognized based on the historical experience for such items. The receivables that result from the recognition of revenue are reported net of related allowances. We maintain a valuation allowance based upon the expected collectability of receivables held. Estimates are used to determine the valuation allowance and are based on several factors, including historical collection data, economic trends and credit worthiness of customers. Receivables are written off when we determine the amounts to be uncollectible, typically upon customer bankruptcy or non-response to continuous collection efforts. The portions of receivable amounts that are not expected to be collected during the next twelve months are classified as long-term. Patterson has a relatively large, dispersed customer base and no single customer accounts for more than 10% of consolidated net sales. In addition, the equipment sold to customers under finance contracts generally serves as collateral for the contract and the customer provides a personal guarantee as well. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales tax. Contract Balances Contract balances represent amounts presented in our consolidated balance sheets when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets and contract liabilities. Contract asset balances as of April 27, 2019 and April 28, 2018 were not material. Our contract liabilities primarily relate to advance payments from customers, upfront payments for software and support provided over time, and options that provide a material right to customers, such as our customer loyalty programs. At April 27, 2019 and April 28, 2018 , contract liabilities of $22,004 and $26,166 were reported in other accrued liabilities, respectively. During the fiscal year ended April 27, 2019 , we recognized $25,764 of the amount previously deferred at April 28, 2018 . Patterson Advantage Loyalty Program The Dental segment provides a point-based awards program to qualifying customers involving the issuance of “Patterson Advantage dollars” which can be used toward equipment and technology purchases. Patterson Advantage dollars earned during a program year expire one year after the end of the program year. The cost and corresponding liability associated with the program are recognized as contra-revenue. As of April 27, 2019 , we believe we have sufficient experience with the program to reasonably estimate the amount of Patterson Advantage dollars that will not be redeemed and thus have recorded a liability for 98.5% of the maximum potential amount that could be redeemed. We recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, and we recognize the estimated value of unused Patterson Advantage dollars as redemptions occur. Breakage recognized was immaterial to all periods presented. Freight and Delivery Charges Freight and delivery charges are included in cost of sales in the consolidated statements of income and other comprehensive income. Related Party Transactions We have interests in a number of entities that are accounted for using the equity method. During fiscal 2019 , 2018 and 2017 we made purchases of $87,944 , $84,175 and $55,194 from these entities, respectively. During fiscal 2019 and 2018 , we recorded net sales of $74,489 and $19,743 to these entities, respectively. No sales to these entities were recorded in fiscal 2017 . Income Taxes The liability method is used to account for income tax expense. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established for deferred tax assets if, after assessment of available positive and negative evidence, it is more likely than not that the deferred tax asset will not be fully realized. Employee Stock Ownership Plan ("ESOP") Compensation expense related to our defined contribution ESOP is computed based on the shares allocated method. Self-insurance Patterson is self-insured for certain losses related to general liability, product liability, automobile, workers’ compensation and medical claims. We estimate our liabilities based upon an analysis of historical data and actuarial estimates. While current estimates are believed reasonable based on information currently available, actual results could differ and affect financial results due to changes in the amount or frequency of claims, medical cost inflation or other factors. Historically, actual results related to these types of claims have not varied significantly from estimated amounts. Stock-based Compensation We recognize stock-based compensation expense based on estimated grant date fair values. The grant date fair value of stock options and stock purchases made through our Employee Stock Purchase Plan and our Capital Accumulation Plan are estimated using the Black-Scholes option pricing valuation model. The grant date fair value of performance stock units that vest upon meeting certain market conditions is estimated using the Monte Carlo valuation model. These valuations require estimates to be made including expected stock price volatility which considers historical volatility trends, implied future volatility based on certain traded options and other factors. We estimate the expected life of awards based on several factors, including types of participants, vesting schedules, contractual terms and various factors surrounding exercise behavior of different groups. The grant date fair value of time-based restricted stock awards and restricted stock units is calculated based on the closing price of our common stock on the date of grant. Compensation expense for all share-based payment awards is recognized over the requisite service period (or to the date a participant becomes eligible for retirement, if earlier) for awards that are expected to vest. Comprehensive Income Comprehensive income is computed as net income plus 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 because earnings from foreign operations are considered to be indefinitely reinvested outside the U.S. The income tax expense related to cash flow hedge losses was $620 , $938 and $1,057 for fiscal 2019 , 2018 and 2017 , respectively. Earnings Per Share ("EPS") The amount of basic EPS is computed by dividing net income attributable to Patterson by the weighted average number of outstanding common shares during the period. The amount of diluted EPS is computed by dividing net income by the weighted average number of outstanding common shares and common share equivalents, when dilutive, during the period. The following table sets forth the denominator for the computation of basic and diluted EPS. There were no material adjustments to the numerator. Fiscal Year Ended April 27, 2019 April 28, 2018 April 29, 2017 Denominator for basic EPS – weighted average shares 92,755 92,467 94,897 Effect of dilutive securities – stock options, restricted stock and stock purchase plans 729 627 670 Denominator for diluted EPS – weighted average shares 93,484 93,094 95,567 Potentially dilutive securities representing 1,792 , 1,380 and 1,133 shares for fiscal 2019 , 2018 and 2017 , respectively, were excluded from the calculation of diluted EPS because their effects were anti-dilutive using the treasury stock method. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)". ASU No. 2014-09 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. We adopted the new guidance as of April 29, 2018 using the modified retrospective method, and the adoption had no impact on our consolidated net earnings, financial position, or cash flows. In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments- Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)", which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. We adopted ASU No. 2016-01 in the first quarter of fiscal 2019, and the adoption had no impact on our consolidated net earnings, financial position, or cash flows. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which 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 ASU 2016-02 in the first quarter of fiscal 2020, with early adoption permitted. We plan to adopt the new guidance in the first quarter of fiscal 2020 on a modified retrospective basis through a cumulative-effect adjustment to the beginning retained earnings in the period of adoption. We plan to elect the transition package of practical expedients provided within the guidance, which would eliminate the requirements to reassess lease identification, lease classification and initial direct costs for leases commenced before the effective date. We also plan to elect not to separate lease from non-lease components and to exclude short-term leases from our consolidated balance sheets. While we continue to assess all the impacts of adoption, we anticipate recognizing operating lease liabilities of approximately $80,000 to $100,000 based on the present value of the remaining minimum lease commitments using our incremental borrowing rate as of the effective date of adoption. We also expect to record corresponding right of use assets based upon the operating lease liabilities adjusted for prepaid and deferred rents, unamortized initial direct costs, liabilities associated with lease termination costs and impairments of right of use assets recognized to opening retained earnings at the effective date. Additionally, any existing deferred gains on sale-leaseback transactions will be derecognized from our consolidated balance sheet and recognized to opening retained earnings at the effective date. We are finalizing our assessment of the impact that this guidance will have on our consolidated financial statements, systems, processes and internal controls. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326),” which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. We plan to adopt the new guidance in the first quarter of fiscal 2021. We are currently evaluating the impact of adopting this pronouncement. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects that are stranded in accumulated other comprehensive income as a result of tax reform. This standard also requires certain disclosures about stranded tax effects. We will adopt ASU No. 2018-02 in the first quarter of fiscal 2020, and apply it either in the period of adoption or retrospectively to each period in which the income tax effects of the tax reform related to items in accumulated other comprehensive income are recognized. We are currently evaluating the impact of adopting this pronouncement. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Apr. 27, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents At April 27, 2019 and April 28, 2018 , cash and cash equivalents consisted of the following: April 27, 2019 April 28, 2018 Cash on hand $ 76,117 $ 56,334 Money market funds 19,529 6,650 Total $ 95,646 $ 62,984 Cash on hand is generally in interest earning accounts. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying value of goodwill for each of our reportable segments for the fiscal year ended April 27, 2019 are as follows: Balance at April 28, 2018 Acquisition Other Activity Balance at April 27, 2019 Dental $ 139,654 $ — $ (494 ) $ 139,160 Animal Health 676,323 2,047 (1,304 ) 677,066 Corporate — — — — Total $ 815,977 $ 2,047 $ (1,798 ) $ 816,226 Other activity in fiscal 2019 primarily consists of the impact from foreign currency translation. Balances of other intangible assets, excluding goodwill, are as follows: April 27, 2019 April 28, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Unamortized - indefinite lived: Copyrights, trade names and trademarks $ 12,300 $ — $ 12,300 $ 29,900 $ — $ 29,900 Amortized - definite lived: Customer relationships 353,639 113,812 239,827 355,488 91,374 264,114 Trade names and trademarks 133,202 61,435 71,767 129,973 49,545 80,428 Developed technology and other 70,469 43,210 27,259 55,326 40,344 14,982 Total amortized intangible assets 557,310 218,457 338,853 540,787 181,263 359,524 Total identifiable intangible assets $ 569,610 $ 218,457 $ 351,153 $ 570,687 $ 181,263 $ 389,424 In fiscal 2006, we extended our exclusive North American distribution relationship with Sirona Dental Systems for its CEREC 3D dental restorative system. At that time, we paid a $100,000 distribution fee to extend the existing exclusive relationship for at least a 10 -year period beginning in 2007. This distribution fee was accounted for as an intangible asset and began amortizing in 2007. Based on our November 2016 decision not to extend sales exclusivity for the full Sirona portfolio of products, we recorded a pre-tax non-cash impairment charge of $36,312 in our Dental segment in the third quarter fiscal 2017, related to the distribution fee associated with the CEREC product component of this arrangement. This charge was recorded within operating expenses in the consolidated statements of income and other comprehensive income. In fiscal 2019, $17,600 of indefinite lived assets were reclassified to definite lived assets. With respect to the amortized intangible assets, future amortization expense is expected to approximate $37,236 , $37,135 , $36,824 , $36,232 and $35,575 for fiscal 2020 , 2021 , 2022 , 2023 and 2024 , respectively. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets and other events. |
Receivables Securitization Prog
Receivables Securitization Program | 12 Months Ended |
Apr. 27, 2019 | |
Transfers and Servicing [Abstract] | |
Receivables Securitization Program | Receivables Securitization Program On July 24, 2018, we entered into a Receivables Purchase Agreement (the “Receivables Purchase Agreement”) with MUFG Bank, Ltd. ("MUFG") (f.k.a. The Bank of Tokyo-Mitsubishi UFJ, Ltd.). Under this agreement, MUFG acts as an agent to facilitate the sale of certain Patterson receivables (the “Receivables”) to certain unaffiliated financial institutions (the “Purchasers”). The sale of these receivables is accounted for as a sale of assets under the provisions of ASC 860, Transfers and Servicing. We utilize PDC Funding III to facilitate the sale to fulfill requirements within the agreement. Sales of Receivables occur daily and are settled with the Purchasers on a monthly basis. The proceeds from the sale of these Receivables comprise a combination of cash and a deferred purchase price (“DPP”) receivable. The DPP receivable is ultimately realized by Patterson following the collection of the underlying Receivables sold to the Purchasers. The amount available under the Receivables Purchase Agreement fluctuates over time based on the total amount of eligible Receivables generated during the normal course of business, with maximum availability of $200,000 . As of April 27, 2019 , $166,000 of the amount available under the Receivables Purchase Agreement was utilized. We have no retained interests in the transferred Receivables, other than our right to the DPP receivable and collection and administrative service fees. We consider the fees received adequate compensation for services rendered, and accordingly have recorded no servicing asset or liability. The DPP receivable is recorded at fair value within the consolidated balance sheets within prepaid expenses and other current assets. The DPP receivable was $57,238 as of April 27, 2019 . The difference between the carrying amount of the Receivables and the sum of the cash and fair value of the DPP receivable received at time of transfer is recognized as a gain or loss on sale of the related Receivables. We recorded a loss on sale of Receivables within operating expenses in the consolidated statements of income and other comprehensive income during the fiscal year ended April 27, 2019 of $7,622 . |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Apr. 27, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations In August 2015, we sold all of the outstanding shares of common stock of Patterson Medical Holdings, Inc., our wholly owned subsidiary responsible for our medical rehabilitative and assistive products supply business ("Patterson Medical"), for $716,886 in cash to Madison Dearborn Partners. 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-transferable. In connection with the above described transaction, we also entered into a transition services agreement with our former subsidiary, pursuant to which Patterson Medical, as owned by Madison Dearborn Partners, paid us to provide, among other things, certain information technology, distribution, facilities, finance, tax and treasury, and human resources services. The transition services agreement ended in fiscal 2018, and we no longer provide these services. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following items: April 27, 2019 April 28, 2018 Land $ 11,969 $ 10,227 Buildings 118,556 104,720 Leasehold improvements 28,359 26,624 Furniture and equipment 175,774 171,197 Computer hardware and software 218,893 211,453 Construction-in-progress (1) 75,860 59,691 Property and equipment, gross 629,411 583,912 Accumulated depreciation (323,621 ) (293,322 ) Property and equipment, net $ 305,790 $ 290,590 (1) Includes $57,006 and $43,026 of unamortized computer software development costs of software to be sold as of April 27, 2019 and April 28, 2018 , respectively. |
Debt
Debt | 12 Months Ended |
Apr. 27, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our long-term debt consists of the following: Carrying Value Interest Rate April 27, 2019 April 28, 2018 Senior notes due fiscal 2019 (1) 2.95 % — 60,000 Senior notes due fiscal 2022 (1) 3.59 % 165,000 165,000 Senior notes due fiscal 2024 (1) 3.74 % 100,000 100,000 Senior notes due fiscal 2025 (2) 3.48 % 250,000 250,000 Senior notes due fiscal 2028 (3) 3.79 % 150,000 150,000 Term loan due fiscal 2022 (4) 3.73 % 87,091 276,633 Less: Deferred debt issuance costs (2,775 ) (3,005 ) Total debt 749,316 998,628 Less: Current maturities of long-term debt (23,975 ) (76,598 ) Long-term debt $ 725,341 $ 922,030 (1) Issued in December 2011. (2) Issued in March 2015. (3) Issued in March 2018. (4) Issued in June 2015, amended in January 2017. Interest rate is LIBOR plus 1.25% as of April 27, 2019 . Future principal payments due, based on stated contractual maturities for our long-term debt, are as follows as of April 27, 2019 : Fiscal Year 2020 $ 23,975 2021 29,508 2022 198,608 2023 — 2024 100,000 Thereafter 400,000 Total $ 752,091 In fiscal 2017, we entered into an amended credit agreement ("Amended Credit Agreement"), consisting of a $295,075 term loan and a $750,000 revolving line of credit. In March 2019, we permanently reduced the capacity under the revolving line of credit to $500,000 . Interest on borrowings is variable and is determined as a base rate plus a spread. This spread, as well as a commitment fee on the unused portion of the facility, is based on our leverage ratio, as defined in the Amended Credit Agreement. The term loan and revolving credit facilities will mature no later than January 2022. As of April 27, 2019 , $87,091 of the Amended Credit Agreement unsecured term loan was outstanding at an interest rate of 3.73% , and no amount was outstanding under the Amended Credit Agreement revolving line of credit. At April 28, 2018 , $276,633 was outstanding under the Amended Credit Agreement unsecured term loan at an interest rate of 3.40% , and $16,000 was outstanding under the Amended Credit Agreement revolving line of credit at an interest rate of 2.95% . In March 2018, we issued fixed-rate senior notes with an aggregate principal amount of $150,000 , due fiscal 2028. The proceeds were used to repay $150,000 of senior notes that came due in March 2018. We are subject to various financial covenants under our debt agreements 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 were in compliance with the covenants under our debt agreements as of April 27, 2019 . |
Customer Financing
Customer Financing | 12 Months Ended |
Apr. 27, 2019 | |
Retirement Benefits [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 the Patterson-sponsored program, equipment purchased by creditworthy customers may be financed up to a maximum of $1,000 . We generally sell our customers’ financing contracts to outside financial institutions in the normal course of our business. These financing arrangements are accounted for as a sale of assets under the provisions of ASC 860, Transfers and Servicing . 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 MUFG serving as the agent. We utilize PDC Funding to fulfill a requirement of participating in the commercial paper conduit. We receive the proceeds of the contracts upon sale to MUFG. At least 9.5% of the proceeds are held by the conduit as security against eventual performance of the portfolio. This percentage can be greater and is based upon certain ratios defined in the agreement with MUFG. The capacity under the agreement with MUFG at April 27, 2019 was $525,000 . Second, we maintain an agreement with Fifth Third Bank ("Fifth Third") whereby Fifth Third purchases customers’ financing contracts. PDC Funding II sells its financing contracts to Fifth Third. We receive the proceeds of the contracts upon sale to Fifth Third. At least 11.0% of the proceeds are held by the conduit as security against eventual performance of the portfolio. This percentage can be greater and is based upon certain ratios defined in the agreement with Fifth Third. The capacity under the agreement with Fifth Third at April 27, 2019 was $100,000 . We service the financing contracts under both arrangements, 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 portion of the purchase price for the receivables held by the conduits is deemed a DPP receivable, which is paid to the applicable special purpose entity as payments on the customers’ financing contracts are collected by Patterson from customers. The difference between the carrying amount of the receivables sold under these programs and the sum of the cash and fair value of the DPP receivable received at time of transfer is recognized as a gain on sale of the related receivables and recorded in net sales in the consolidated statements of income and other comprehensive income. Expenses incurred related to customer financing activities are recorded in operating expenses in our consolidated statements of income and other comprehensive income. During fiscal 2019 , 2018 and 2017 , we sold $279,204 , $312,699 and $357,965 of contracts under these arrangements, respectively. We recorded net sales in the consolidated statements of income and other comprehensive income of $16,883 , $13,347 and $20,580 during fiscal 2019 , 2018 and 2017 , respectively, related to these contracts sold. Included in cash and cash equivalents in the consolidated balance sheets are $34,016 and $35,741 as of April 27, 2019 and April 28, 2018 , respectively, which represent cash collected from previously sold customer financing contracts that have not yet been settled. Included in current receivables in the consolidated balance sheets are $48,559 , net of unearned income of $0 , and $46,232 , net of unearned income of $8 , as of April 27, 2019 and April 28, 2018 , respectively, of finance contracts we have not yet sold. A total of $577,246 of finance contracts receivable sold under the arrangements was outstanding at April 27, 2019 . The DPP receivable under the arrangements was $121,657 and $150,404 as of April 27, 2019 and April 28, 2018 , respectively. Since the internal financing program began in 1994, bad debt write-offs have amounted to less than 1% of the loans originated. The arrangements require us to maintain a minimum current ratio and maximum leverage ratio. We were in compliance with those covenants at April 27, 2019 . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Apr. 27, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We are a party to certain offsetting and identical interest rate cap agreements entered into to fulfill certain covenants of the equipment finance contract sale agreements. The interest rate cap agreements also provide a credit enhancement feature for the financing contracts sold by PDC Funding and PDC Funding II to the commercial paper conduit. The interest rate cap agreements are canceled and new agreements are entered into periodically to maintain consistency with the dollar maximum of the sale agreements and the maturity of the underlying financing contracts. As of April 27, 2019 , PDC Funding had purchased an interest rate cap from a bank with a notional amount of $525,000 and a maturity date of July 2026. We sold an identical interest rate cap to the same bank. As of April 27, 2019 , PDC Funding II had purchased an interest rate cap from a bank with a notional amount of $100,000 and a maturity date of December 2025. We sold an identical interest rate cap to the same bank. These interest rate cap agreements 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 March 2008, we entered into two forward starting interest rate swap agreements, each with notional amounts of $100,000 and accounted for as cash flow hedges, to hedge interest rate fluctuations in anticipation of the issuance of the senior notes due fiscal 2015 and fiscal 2018 . Upon issuance of the hedged debt, we settled the forward starting interest rate swap agreements and recorded a $1,000 increase, net of income taxes, to other comprehensive income (loss), which was amortized as a reduction to interest expense over the life of the related debt through the fourth quarter of fiscal 2018. In January 2014, we entered into a forward interest rate swap agreement with a notional amount of $250,000 and accounted for it as a cash flow hedge, in order to hedge interest rate fluctuations in anticipation of refinancing the 5.17% senior notes due March 25, 2015 . These notes were 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 is recorded in other comprehensive income (loss), net of tax, and is recognized as interest expense over the life of the related debt. In January 2019 and April 2019, we entered into forward interest rate swap agreements with notional amounts of $539,400 and $67,291 , respectively, in order to hedge against interest rate fluctuations that impact the amount of net sales we record related to our customer financing contracts. These interest rate swap agreements 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. As of April 27, 2019 , the remaining notional amount for these interest rate swap agreements was $553,719 , with the latest maturity date in fiscal 2026. Cash payments of $89 were made in fiscal 2019 to settle a portion of our liabilities related to these interest rate swap agreements. These payments are reflected as cash outflows in the consolidated statements of cash flows within net cash provided by operating activities. The following presents the fair value of derivative instruments included in the consolidated balance sheets: Derivative type Classification April 27, 2019 April 28, 2018 Assets: Interest rate contracts Other non-current assets $ 380 $ 1,613 Liabilities: Interest rate contracts Other accrued liabilities 1,034 — Interest rate contracts Other non-current liabilities 2,160 1,613 Total liability derivatives $ 3,194 $ 1,613 The following tables present the pre-tax effect of derivative instruments on the consolidated statements of income and other comprehensive income ("OCI"): Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Fiscal Year Ended Derivatives in cash flow hedging relationships Income statement location April 27, 2019 April 28, 2018 April 29, 2017 Interest rate contracts Interest expense $ (2,908 ) $ (2,809 ) $ (2,802 ) Amount of Gain (Loss) Recognized in Income on Derivative Fiscal Year Ended Derivatives not designated as hedging instruments Income statement location April 27, 2019 April 28, 2018 April 29, 2017 Interest rate contracts Other income, net $ (2,903 ) $ — $ — There were no gains or losses recognized in OCI on cash flow hedging derivatives in fiscal 2019 , 2018 or 2017 . We recorded no ineffectiveness during fiscal 2019 , 2018 or 2017 . As of April 27, 2019 , the estimated pre-tax portion of accumulated other comprehensive loss that is expected to be reclassified into earnings over the next twelve months is $2,900 , which will be recorded as an increase to interest expense. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 27, 2019 | |
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: April 27, 2019 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 19,529 $ 19,529 $ — $ — DPP receivable - receivables securitization program 57,238 — — 57,238 DPP receivable - customer financing 121,657 — — 121,657 Derivative instruments 380 — 380 — Total assets $ 198,804 $ 19,529 $ 380 $ 178,895 Liabilities: Derivative instruments $ 3,194 $ — $ 3,194 $ — April 28, 2018 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 6,650 $ 6,650 $ — $ — DPP receivable - receivables securitization program — — — — DPP receivable - customer financing 150,404 — — 150,404 Derivative instruments 1,613 — 1,613 — Total assets $ 158,667 $ 6,650 $ 1,613 $ 150,404 Liabilities: Derivative instruments $ 1,613 $ — $ 1,613 $ — 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. DPP receivable - receivables securitization program – We value this DPP receivable based on a discounted cash flow analysis using unobservable inputs, which include 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. DPP receivable - customer financing – We value this DPP receivable based on a discounted cash flow analysis using unobservable 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. Derivative instruments –Our derivative instruments consist of interest rate cap agreements and interest rate swaps. These instruments are valued using 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. In fiscal 2017, we recorded a non-cash impairment charge of $36,312 related to a distribution agreement intangible asset. Refer to Note 4 for more information. There were no fair value adjustments to such assets in fiscal 2019 or 2018. Our debt is not measured at fair value in the consolidated balance sheets. The estimated fair value of our debt as of April 27, 2019 and April 28, 2018 was $758,121 and $989,124 , respectively, as compared to a carrying value of $749,316 and $998,628 at April 27, 2019 and April 28, 2018 , 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 April 27, 2019 and April 28, 2018 . |
Lease Commitments
Lease Commitments | 12 Months Ended |
Apr. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Lease Commitments Patterson leases facilities for its branch office locations, a few distribution facilities, and certain equipment. These leases are accounted for as operating leases. Future minimum rental payments under noncancelable operating leases are as follows at April 27, 2019 : 2020 $ 21,087 2021 17,133 2022 13,487 2023 8,198 2024 4,126 Thereafter 1,476 Total $ 65,507 Rent expense was $23,141 , $24,425 and $24,502 for fiscal 2019 , 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income from continuing operations before taxes are as follows: Fiscal Year Ended April 27, April 28, April 29, Income from continuing operations before taxes United States $ 76,035 $ 144,278 $ 217,529 International 30,193 34,985 33,352 Total $ 106,228 $ 179,263 $ 250,881 Significant components of income tax expense (benefit) are as follows: Fiscal Year Ended April 27, April 28, April 29, Current: Federal $ (19 ) $ 5,876 $ 72,339 Foreign 9,207 11,228 9,100 State 3,402 2,243 9,367 Total current expense 12,590 19,347 90,806 Deferred: Federal 9,709 (45,177 ) (11,802 ) Foreign (53 ) (743 ) (28 ) State 1,106 4,862 (1,883 ) Total deferred expense (benefit) 10,762 (41,058 ) (13,713 ) Income tax expense (benefit) $ 23,352 $ (21,711 ) $ 77,093 U.S. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was enacted into law. The Tax Act significantly revises the future ongoing U.S. federal corporate income tax by, among other things, lowering the U.S. federal corporate tax rate, implementing a territorial tax system, imposing a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on foreign sourced earnings. Effective January 1, 2018, the Tax Act reduced the U.S. federal corporate tax rate from 35.0% to 21.0% . For the fiscal year ended April 27, 2019 , we utilized a 21.0% U.S. federal statutory rate. For the fiscal year ended April 28, 2018 , we utilized a blended rate of approximately 30.5% . Effective for the fiscal year ended April 27, 2019 , the Tax Act subjects Patterson to tax on global intangible low-taxed income (“GILTI”). We have made an accounting policy election to treat the impacts of GILTI as a period cost in the period incurred. For the fiscal year ended April 28, 2018, these impacts resulted in a provisional discrete net tax benefit of $76,648 , which included provisional amounts of $81,871 of tax benefit on U.S. deferred tax assets and liabilities, $4,006 of tax expense for a one-time transition tax on unremitted foreign earnings and $1,217 in withholding tax paid on current year distributions. During the fiscal year ended April 27, 2019, we completed our accounting for the previously recorded provisional impacts of the Tax Act and recorded additional remeasurement benefit of $2,355 on U.S. deferred tax assets and liabilities and a reduction to the transition tax cost of $331 . While we have completed our accounting for the impacts of the Tax Act, changes in interpretation of the Tax Act, analysis of proposed and final regulations as they are issued, current and additional guidance from the Internal Revenue Service and/or state legislative actions as well as potential changes in accounting standards surrounding income taxes and the Tax Act may result in further, potentially material, changes to these completed computations. Deferred tax assets and liabilities are included in other non-current assets and deferred income taxes on the consolidated balance sheets. Significant components of our deferred tax assets (liabilities) as of April 27, 2019 and April 28, 2018 are as follows: April 27, April 28, Deferred tax assets: Capital accumulation plan $ 3,988 $ 4,862 Inventory related items 4,887 4,407 Bad debt allowance 1,888 1,052 Stock based compensation expense 6,918 6,514 Interest rate swap 4,041 4,712 Foreign tax credit 7,358 8,472 Other 5,053 11,748 Gross deferred tax assets 34,133 41,767 Less: Valuation allowance (11,237 ) (13,830 ) Total net deferred tax assets 22,896 27,937 Deferred tax liabilities LIFO reserve (24,098 ) (19,727 ) Amortizable intangibles (77,126 ) (84,778 ) Goodwill (43,903 ) (41,635 ) Property, plant, equipment (40,793 ) (33,376 ) Total deferred tax liabilities (185,920 ) (179,516 ) Deferred net long-term income tax liability $ (163,024 ) $ (151,579 ) At April 27, 2019 , we had a U.S. foreign tax credit asset that will expire in seven years . In addition, we have deferred tax assets which would give rise to tax capital losses if triggered in the future. These losses would have a five year carryforward period and can only be used against capital gain income. At this time, we believe that it is more likely than not that the foreign tax credit and potential capital loss carryforward attributes totaling $11,237 will not be fully utilized prior to expiration. As a result, a full valuation allowance has been established against these assets. With regard to unremitted earnings of foreign subsidiaries generated after December 31, 2017, we do not currently provide for U.S. taxes since we intend to reinvest such undistributed earnings indefinitely outside of the United States. We continue to apply ASC 740 based on the provisions of the tax law that were in effect immediately prior to the enactment of the new law. Income tax expense varies from the amount computed using the U.S. statutory rate. The reasons for this difference and the related tax effects are shown below: Fiscal Year Ended April 27, April 28, April 29, Tax at U.S. statutory rate $ 22,306 $ 54,674 $ 87,807 State tax provision, net of federal benefit 3,492 4,650 5,217 Effect of foreign taxes 2,728 (186 ) (2,602 ) ESOP (2,465 ) (4,036 ) (4,198 ) Other permanent differences 1,074 (728 ) (2,663 ) Tax on dividends, net of foreign tax credit — — (2,406 ) Tax reform (2,686 ) (76,648 ) — Other (1,097 ) 563 (4,062 ) Income tax expense (benefit) $ 23,352 $ (21,711 ) $ 77,093 We have accounted for the uncertainty in income taxes recognized in the financial statements in accordance with ASC Topic 740, “Income Taxes”. This standard clarifies the separate identification and reporting of estimated amounts that could be assessed upon audit. The potential assessments are considered unrecognized tax benefits, because, if it is ultimately determined they are unnecessary, the reversal of these previously recorded amounts will result in a beneficial impact to our financial statements. As of April 27, 2019 and April 28, 2018 , Patterson’s gross unrecognized tax benefits were $13,035 and $14,227 , respectively. If determined to be unnecessary, these amounts (net of deferred tax assets of $2,225 and $2,418 , respectively, related to the tax deductibility of the gross liabilities) would decrease our effective tax rate. The gross unrecognized tax benefits are included in other non-current liabilities on the consolidated balance sheets. A summary of the changes in the gross amounts of unrecognized tax benefits for the years ended April 27, 2019 and April 28, 2018 is shown below: April 27, April 28, Balance at beginning of period $ 14,227 $ 14,211 Additions for tax positions related to the current year 972 1,713 Additions for tax positions of prior years 50 232 Reductions for tax positions of prior years (228 ) (475 ) Statute expirations (1,984 ) (1,284 ) Settlements (2 ) (170 ) Balance at end of period $ 13,035 $ 14,227 We also recognize both interest and penalties with respect to unrecognized tax benefits as a component of income tax expense. As of April 27, 2019 and April 28, 2018 , we had recorded $1,926 and $1,764 , respectively, for interest and penalties. These amounts are also included in other non-current liabilities on the consolidated balance sheets. These amounts, net of related deferred tax assets, if determined to be unnecessary, would decrease our effective tax rate. During the year ended April 27, 2019 , we recorded as part of tax expense $429 related to an increase in our estimated liability for interest and penalties. Patterson files income tax returns, including returns for our subsidiaries, with federal, state, local and foreign jurisdictions. During fiscal 2018, the Internal Revenue Service (“IRS”) concluded an audit of fiscal years ended April 25, 2015 and April 30, 2016. The IRS has either examined or waived examination for all periods up to and including our fiscal year ended April 30, 2016, resulting in these periods being closed. In addition to the IRS, periodically, state, local and foreign income tax returns are examined by various taxing authorities. We do not believe that the outcome of these various examinations will have a material adverse impact on our financial statements. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Apr. 27, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Segment and Geographic Data We present three reportable segments: Dental, Animal Health and Corporate. Dental and Animal Health 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, dental laboratories, institutions, and other healthcare professionals throughout North America. Animal Health 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 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 fulfillment centers are allocated to the business units based on the through-put of the unit. The following tables present information about our reportable segments: Fiscal Year Ended April 27, April 28, April 29, Consolidated net sales United States $ 4,638,184 $ 4,537,326 $ 4,725,322 United Kingdom 597,953 583,057 547,968 Canada 338,386 345,300 319,837 Total $ 5,574,523 $ 5,465,683 $ 5,593,127 Dental net sales United States $ 1,989,875 $ 1,985,398 $ 2,185,341 Canada 201,915 210,680 204,878 Total $ 2,191,790 $ 2,196,078 $ 2,390,219 Animal Health net sales United States $ 2,620,104 $ 2,524,887 $ 2,496,899 United Kingdom 597,953 583,057 547,968 Canada 136,471 134,620 114,959 Total $ 3,354,528 $ 3,242,564 $ 3,159,826 Corporate net sales United States $ 28,205 $ 27,041 $ 43,082 Total $ 28,205 $ 27,041 $ 43,082 Fiscal Year Ended April 27, April 28, April 29, Consolidated net sales Consumable $ 4,482,016 $ 4,415,643 $ 4,400,888 Equipment and software 753,805 709,253 834,526 Other 338,702 340,787 357,713 Total $ 5,574,523 $ 5,465,683 $ 5,593,127 Dental net sales Consumable $ 1,214,814 $ 1,251,642 $ 1,321,764 Equipment and software 694,864 660,355 780,868 Other 282,112 284,081 287,587 Total $ 2,191,790 $ 2,196,078 $ 2,390,219 Animal Health net sales Consumable $ 3,267,202 $ 3,164,001 $ 3,079,124 Equipment and software 58,941 48,898 53,658 Other 28,385 29,665 27,044 Total $ 3,354,528 $ 3,242,564 $ 3,159,826 Corporate net sales Other $ 28,205 $ 27,041 $ 43,082 Total $ 28,205 $ 27,041 $ 43,082 Fiscal Year Ended April 27, April 28, April 29, Operating income (loss) from continuing operations Dental $ 179,236 $ 229,201 $ 263,671 Animal Health 81,472 78,058 88,132 Corporate (122,992 ) (87,370 ) (63,875 ) Consolidated operating income from continuing operations $ 137,716 $ 219,889 $ 287,928 Depreciation and amortization Dental $ 8,792 $ 7,435 $ 11,840 Animal Health 49,362 50,892 50,144 Corporate 24,619 25,489 21,834 Consolidated depreciation and amortization $ 82,773 $ 83,816 $ 83,818 April 27, April 28, Property and equipment, net United States $ 295,381 $ 278,508 United Kingdom 1,976 1,773 Canada 8,433 10,309 Total $ 305,790 $ 290,590 April 27, April 28, Total assets Dental $ 641,721 $ 853,555 Animal Health 2,156,723 2,128,800 Corporate 470,825 489,309 Total assets $ 3,269,269 $ 3,471,664 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 27, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends The following table presents our declared and paid cash dividends per share on our common stock for the past three years. Dividends were declared and paid in the same period. We expect to continue paying a quarterly cash dividend into the foreseeable future. Quarter Fiscal year 1 2 3 4 2019 $ 0.26 $ 0.26 $ 0.26 $ 0.26 2018 0.26 0.26 0.26 0.26 2017 0.24 0.24 0.24 0.26 Share Repurchases During fiscal 2019 , we had no repurchases of shares of our common stock. During fiscal 2018 , we repurchased and retired 2,147 shares of our common stock for $87,500 , or an average of $40.75 per share. During fiscal 2017 , we repurchased and retired 2,855 shares of our common stock for $125,384 , or an average of $43.91 per share. On March 13, 2018, the Board of Directors authorized a $500,000 share repurchase program through March 13, 2021. As of April 27, 2019 , $500,000 remains available under the current repurchase authorization. Employee Stock Ownership Plan ("ESOP") During 1990, Patterson’s Board of Directors adopted a leveraged ESOP. In fiscal 1991, under the provisions of the plan and related financing arrangements, Patterson loaned the ESOP $22,000 (the “1990 note”) for the purpose of acquiring its then outstanding preferred stock, which was subsequently converted to common stock. The Board of Directors determines the contribution from the Company to the ESOP annually. The contribution is used to retire a portion of the debt, which triggers a release of shares that are then allocated to the employee participants. Shares of stock acquired by the plan are allocated to each participant who has completed 1000 hours of service during the plan year. In fiscal 2011, the final payment on the 1990 note was made and all remaining shares were released for allocation to participants. In fiscal 2002, Patterson’s ESOP and an ESOP sponsored by the Thompson Dental Company (“Thompson”) were used to facilitate the acquisition and merger of Thompson into Patterson. The net result of this transaction was an additional loan of $12,612 being made to the ESOP and the ESOP acquiring 666 shares of common stock. The loan bears interest at current rates but principal did not begin to amortize until fiscal 2012. Beginning in fiscal 2012 and through fiscal 2020, an annual payment of $200 plus interest is due and in fiscal 2020, a final payment of any outstanding principal and interest balance is due. Prepayments of principal can be made at any time without penalty. Of the 666 shares issued in the transaction, 98 were previously allocated to Thompson employees. The remaining 568 shares began to be allocated in fiscal 2004 as interest was paid on the loan. In September 2006, we entered into a third loan agreement with the ESOP and loaned $105,000 (the “2006 note”) for the sole purpose of enabling the ESOP to purchase shares of our common stock. The ESOP purchased 3,160 shares with the proceeds from the 2006 note. Interest on the unpaid principal balance accrues at a rate equal to six-month LIBOR, with the rate resetting semi-annually. Interest payments were not required during the period from and including September 11, 2006 through April 30, 2010. On April 30, 2010, accrued and unpaid interest was added to the outstanding principal balance under the note, with interest thereafter accruing on the increased principal amount. Unpaid interest accruing after April 30, 2010 is due and payable on each successive April 30 occurring through September 10, 2026. Principal payments aren't due until September 10, 2026; however, prepayments can be made without penalty. In fiscal 2012, Patterson contributed $20,214 to the ESOP, which then purchased 844 shares for allocation to the participants. No shares secured by the 2006 note were released prior to fiscal 2011. At April 27, 2019 , a total of 9,387 shares of common stock that have been allocated to participants remained in the ESOP and had a fair market value of $205,018 . Related to the shares from the Thompson transaction, committed-to-be-released shares were 17 and suspense shares were 394 . Finally, with respect to the 2006 note, committed-to-be-released shares were 585 and suspense shares were 697 . Unearned ESOP shares are not considered outstanding for the computation of earnings per share until the shares are committed for release to the participants. During fiscal 2019 , 2018 and 2017 , the compensation expense recognized related to the ESOP was $13,740 , $18,132 and $1,315 , respectively. We anticipate the allocation of the remaining suspense, or unearned, shares to occur over a period of less than 5 years . As of April 27, 2019 , the fair value of all unearned shares held by the ESOP was $23,907 . We will recognize an income tax deduction as the unearned ESOP shares are released. Such deductions will be limited to the ESOP’s original cost to acquire the shares. Dividends on allocated shares are passed through to the ESOP participants. Dividends on unallocated shares are used by the ESOP to make debt service payments on the notes due to Patterson. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Apr. 27, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation The consolidated statements of income and other comprehensive income for fiscal 2019 , 2018 and 2017 include pre-tax (after-tax) stock-based compensation expense of $19,685 ( $15,588 ), $18,400 ( $13,037 ) and $17,710 ( $11,910 ). Pre-tax expense is included in operating expenses within the consolidated statements of income and other comprehensive income. As of April 27, 2019 , the total unrecognized compensation cost related to non-vested awards was $27,998 , and it is expected to be recognized over a weighted average period of approximately 1.6 years. 2015 Omnibus Incentive Plan In September 2015, our shareholders approved the 2015 Omnibus Incentive Plan ("Incentive Plan"), which was amended and restated in September 2018. The aggregate number of shares of common stock that may be issued is 11,500 . The Incentive Plan authorizes various award types to be issued under the plan, including stock options, restricted stock awards, restricted stock units, stock appreciation rights, performance awards, non-employee director awards, cash-based awards and other stock-based awards. We issue new shares for stock option exercises, restricted stock award grants and also for vesting of restricted stock units and performance stock units. Awards that expire or are canceled without delivery of shares generally become available for reissuance under the plan. At April 27, 2019 , there were 7,556 shares available for awards under the Incentive Plan. As a result of the approval of the Incentive Plan, awards are no longer granted under any prior equity incentive plan, but all outstanding awards previously granted under such prior plans will remain outstanding and subject to the terms of such prior plans. At April 27, 2019 , there were 796 shares outstanding under prior plans. Inducement Awards On June 29, 2018, we issued a combination of non-statutory stock options and restricted stock units outside our Incentive Plan to our Chief Financial Officer. The stock option covers 99 shares of our common stock, has an exercise price of $22.67 per share, and has a 10 -year term. Such award will vest, assuming continued employment, to the extent of one-third of the award on the first anniversary of the date of grant, one-third of the award on the second anniversary of the date of grant, and the remaining one-third of the award on the third anniversary of the date of grant. The restricted stock unit award covers 31 shares of our common stock. Such award will vest, assuming continued employment, to the extent of 50% of the award on the first anniversary of the date of grant and the remaining 50% of the award on the second anniversary of the date of grant. On December 1, 2017, we issued a restricted stock unit award outside our Incentive Plan to our Chief Executive Officer. The award covers 56 shares of common stock and will vest, assuming continued employment, to the extent of 50% of the award on the first anniversary of the date of grant and the remaining 50% of the award on the second anniversary of the date of grant. Stock Option Awards Stock options granted to employees expire no later than ten years after the date of grant. Awards typically vest over three or five years . The fair value of stock options granted was estimated as of the grant date using a Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended April 27, April 28, April 29, Expected dividend yield 4.5 % 2.2 % 2.0 % Expected stock price volatility 24.6 % 21.6 % 21.2 % Risk-free interest rate 2.9 % 1.9 % 1.2 % Expected life (years) 6.2 6.6 6.6 Weighted average grant date fair value per share $ 3.66 $ 8.18 $ 8.32 The following is a summary of stock option activity: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Balance as of April 28, 2018 1,206 $ 50.82 Granted 621 23.40 Exercised (1 ) 19.85 Canceled (270 ) 50.41 Balance as of April 27, 2019 1,556 $ 39.96 $ — Vested or expected to vest as of April 27, 2019 1,418 $ 38.84 $ — Exercisable as of April 27, 2019 282 $ 49.05 $ — The weighted average remaining contractual lives of options outstanding and options exercisable as of April 27, 2019 were 7.5 and 5.7 years, respectively. Related to stock options exercised, the intrinsic value, cash received and tax benefits realized were $2 , $13 and $0 , respectively, in fiscal 2019 ; $88 , $324 and $3 , respectively, in fiscal 2018 ; and $266 , $958 and $36 , respectively, in fiscal 2017 . Restricted Stock Restricted stock awards and restricted stock units granted to employees generally vest over a three , five or seven year period. Certain restricted stock awards, which are held by branch managers, are subject to accelerated vesting provisions beginning three years after the grant date, based on certain operating goals. Restricted stock awards are also granted to non-employee directors annually and vest over one year . The grant date fair value of restricted stock awards and restricted stock units is based on the closing stock price on the day of the grant. The total fair value of restricted stock awards and restricted stock units that vested in fiscal 2019 , 2018 and 2017 was $5,683 , $6,939 and $8,528 , respectively. The following is a summary of restricted stock award activity: Restricted Stock Awards Shares Weighted- Average Grant Date Fair Value Outstanding at April 28, 2018 304 $ 40.13 Granted 37 24.83 Vested (133 ) 38.61 Forfeitures (41 ) 41.10 Outstanding at April 27, 2019 167 $ 37.91 The following is a summary of restricted stock unit activity: Restricted Stock Units Shares Weighted- Outstanding at April 28, 2018 541 $ 45.74 Granted 773 23.27 Vested (111 ) 43.71 Forfeitures (78 ) 38.85 Outstanding at April 27, 2019 1,125 $ 30.97 Performance Unit Awards In fiscal 2019, we granted performance unit awards which are earned at the end of a three year period if certain operating goals are met. Accordingly, we recognize expense over the requisite service period based on the outcome that is probable for these awards. In fiscal 2018, 2017 and 2016, we granted performance unit awards with a market-based condition to certain executives. The number of shares to be received at vesting will range from 0% - 200% of the target number of stock units based on Patterson's total shareholder return ("TSR") relative to the performance of companies in the S&P Midcap 400 Index measured over a three year period. We estimate the grant date fair value of the TSR awards using the Monte Carlo valuation model. No performance unit awards vested in fiscal 2019, 2018 or 2017. The following is a summary of performance unit award activity at target: Performance Unit Awards Shares Weighted- Average Grant Date Fair Value Outstanding at April 28, 2018 236 $ 51.66 Granted 142 22.63 Vested — — Forfeitures and cancellations (93 ) 50.22 Outstanding at April 27, 2019 285 $ 34.86 Employee Stock Purchase Plan ("ESPP") We sponsor an ESPP under which a total of 6,750 shares have been reserved for purchase by employees. Eligible employees may purchase shares at 85% of the lower of the fair market value of our common stock on the beginning of the annual offering period, or on the end of each quarterly purchase period, which occur on March 31, June 30, September 30 and December 31. The offering periods begin on January 1 of each calendar year and end on December 31 of each calendar year. At April 27, 2019 , there were 289 shares available for purchase under the ESPP. We estimate the grant date fair value of shares purchased under our ESPP using the Black-Scholes option pricing valuation model with the following weighted average assumptions: Fiscal Year Ended April 27, April 28, April 29, Expected dividend yield 5.2 % 2.8 % 2.3 % Expected stock price volatility 38.6 % 28.1 % 32.9 % Risk-free interest rate 2.5 % 1.7 % 0.7 % Expected life (years) 0.6 0.6 0.6 Weighted average grant date fair value per share $ 5.21 $ 8.73 $ 10.33 Capital Accumulation Plan ("CAP") We also sponsored an employee CAP. A total of 6,000 shares of common stock were reserved for issuance under the CAP. Key employees of Patterson were eligible to participate by purchasing common stock through payroll deductions at 75% of the price of the common stock at the beginning of or the end of the calendar year, whichever was lower. The shares issued are restricted stock and are held in the custody of Patterson until the restrictions lapse. The restriction period is typically three years from the beginning of the plan year, and shares are subject to forfeiture provisions. Effective September 5, 2018, our Board of Directors took the following irrevocable actions with respect to our CAP: (1) it immediately reduced the number of shares available for purchase under the CAP by 1,500 , and (2) it terminated the CAP for new participants, effective January 1, 2019. At April 27, 2019 , 235 shares were available for purchase under the CAP. We estimated the grant date fair value of shares purchased under our CAP using the Black-Scholes option pricing valuation model with the following weighted average assumptions. No CAP shares were granted in the fiscal year ended April 27, 2019 : April 28, April 29, Expected dividend yield 2.8 % 2.3 % Expected stock price volatility 24.4 % 28.3 % Risk-free interest rate 1.8 % 0.9 % Expected life (years) 1.0 1.0 Weighted average grant date fair value per share $ 12.98 $ 15.21 |
Litigation
Litigation | 12 Months Ended |
Apr. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation In September 2015, we were served with a summons and complaint in an action commenced in the U.S. 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 U.S. 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. In June 2017, Henry Schein settled with SourceOne and was dismissed from this litigation with prejudice. We are vigorously defending ourselves in this litigation. Trial is scheduled to begin on September 16, 2019. We do not anticipate that this matter will have a material adverse effect on our financial statements. Beginning in January 2016, purported antitrust class action complaints were filed against defendants Henry Schein, Inc., Benco Dental Supply Company 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 U.S. 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, “putative class representatives”) in the U.S. 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 private dental practices and laboratories who purchased dental supplies or equipment in the U.S. directly from any of the defendants, during the period beginning August 31, 2008 until March 31, 2016. In the consolidated class action complaint, putative class representatives allege a nationwide agreement among Henry Schein, Benco, Patterson and non-party Burkhart Dental Supply Company, Inc. 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. On September 28, 2018, the parties executed a settlement agreement that proposes, subject to court approval, a full and final settlement of the lawsuit on a class-wide basis. Subject to certain exceptions, the settlement class consists of all persons or entities that purchased dental products directly from Henry Schein, Patterson, Benco and Burkhart, or any combination thereof, during the period August 31, 2008 through and including March 31, 2016. In September 2018, we signed an agreement to settle the litigation. Under the terms of the settlement, we paid $28,263 into escrow upon preliminary court approval. Such funds are to be released to the settlement fund administrator upon final court approval of the settlement, which was granted at the fairness hearing held on June 24, 2019. We recorded a pre-tax reserve of $28,263 in our first quarter 2019 results in our Corporate segment to account for the settlement of this matter. On August 31, 2012, Archer and White Sales, Inc. (“Archer”) filed a complaint against Henry Schein, Inc. as well as Danaher Corporation and its subsidiaries Instrumentarium Dental, Inc., Dental Equipment, LLC, Kavo Dental Technologies, LLC and Dental Imaging Technologies Corporation (collectively, the “Danaher Defendants”) in the United States District Court for the Eastern District of Texas, Civil Action No. 2:12-CV-00572-JRG, styled as an antitrust action under Section 1 of the Sherman Act, and the Texas Free Enterprise Antitrust Act. Archer alleges a conspiracy between Henry Schein, an unnamed company and the Danaher Defendants to terminate or limit Archer’s distribution rights. On August 1, 2017, Archer filed an amended complaint, adding Patterson Companies, Inc. and Benco Dental Supply Company as defendants, and alleging that Henry Schein, Patterson, Benco and non-defendant Burkhart Dental Supply Company, Inc. conspired to pressure and agreed to enlist their common suppliers, including the Danaher Defendants, to join a price-fixing conspiracy and boycott by reducing the distribution territory of, and eventually terminating, Archer. Archer seeks injunctive relief, and damages in an amount to be proved at trial, to be trebled with interest and costs, including attorneys’ fees, jointly and severally. On June 25, 2018, the United States Supreme Court granted certiorari to review an arbitration issue raised by the Danaher Defendants, thereby continuing the case stay implemented in March 2018. On October 29, 2018, the Supreme Court heard oral arguments. On January 8, 2019, the Supreme Court issued its published decision vacating the judgment of the U.S. Court of Appeals for the Fifth Circuit and remanded the case to the Fifth Circuit for further proceedings on a second arbitration issue consistent with the Supreme Court’s opinion. The Fifth Circuit heard oral arguments on May 1, 2019. A decision is pending. We are vigorously defending ourselves in this litigation. We do not anticipate that this matter will have a material adverse effect on our financial statements. On August 17, 2017, IQ Dental Supply, Inc. (“IQ Dental”) filed a complaint in the United States District Court for the Eastern District of New York, entitled IQ Dental Supply, Inc. v. Henry Schein, Inc., Patterson Companies, Inc. and Benco Dental Supply Company, Case No. 2:17-cv-4834. Plaintiff alleges that it is a distributor of dental supplies and equipment, and sells dental products through an online dental distribution platform operated by SourceOne Dental, Inc. IQ Dental alleges, among other things, that defendants conspired to suppress competition from IQ Dental and SourceOne 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 and SourceOne. Plaintiff claims that this alleged conduct constitutes unreasonable restraint of trade in violation of Section 1 of the Sherman Act, New York’s Donnelly Act and the New Jersey Antitrust Act, and also makes pendant state law claims for tortious interference with prospective business relations, civil conspiracy and aiding and abetting. Plaintiff seeks injunctive relief, compensatory, treble and punitive damages, jointly and severally, and reasonable costs and expenses, including attorneys’ fees and expert fees. On December 21, 2017, the District Court granted defendants motion to dismiss the complaint with prejudice. Plaintiff appealed the District Court’s order. On May 10, 2019, the U.S. Court of Appeals for the Second Circuit affirmed dismissal of all of IQ Dental's claims but reversed the District Court on dismissal of IQ Dental's direct boycott claims. The case was remanded to the District Court to proceed in accordance with that opinion. The court’s decision is pending. We are vigorously defending ourselves in this litigation. We do not anticipate that this matter will have a material adverse effect on our financial statements. On February 12, 2018, the Federal Trade Commission (“FTC”) issued an administrative complaint entitled In the Matter of Benco Dental Supply Co., Henry Schein, Inc., and Patterson Companies, Inc. Docket No. 9379. The administrative complaint alleges “reason to believe” that Patterson and the other respondents violated Section 5 of the FTC Act, 15 U.S.C. § 45 by conspiring to refuse to offer discounted prices or otherwise negotiate with buying groups seeking to obtain supply agreements on behalf of groups of solo practitioners or small group dental practices. The administrative complaint seeks injunctive relief against Patterson, including an order to cease and desist from the conduct alleged in the complaint and a prohibition from conspiring or agreeing with any competitor or any person to refuse to provide discounts to or compete for the business of any customer. No money damages are sought. We are vigorously defending ourselves against the administrative complaint. The hearing in front of an Administrative Law Judge of the FTC in Washington, D.C. began on October 16, 2018. The factual record closed on February 21, 2019 and post-trial briefing ended on June 6, 2019. We do not anticipate this matter will have a material adverse effect on our financial statements. On March 28, 2018, Plymouth County Retirement System (“Plymouth”) filed a federal securities class action complaint against Patterson Companies, Inc. and its former CEO Scott P. Anderson and former CFO Ann B. Gugino in the U.S. District Court for the District of Minnesota in a case captioned Plymouth County Retirement System v. Patterson Companies, Inc., Scott P. Anderson and Ann B. Gugino , Case No. 0:18-CV-00871 MJD/SER. On November 9, 2018, the complaint was amended to add former CEO James W. Wiltz and former CFO R. Stephen Armstrong as individual defendants. Under the amended complaint, on behalf of all persons or entities that purchased or otherwise acquired Patterson’s common stock between June 26, 2013 and February 28, 2018, Plymouth alleges that Patterson violated federal securities laws by failing to disclose that Patterson’s revenue and earnings were “artificially inflated by Defendants’ illicit, anti-competitive scheme with its purported competitors, Benco and Schein, to prevent the formation of buying groups that would allow its customers who were office-based practitioners to take advantage of pricing arrangements identical or comparable to those enjoyed by large-group customers.” In its class action complaint, Plymouth asserts one count against Patterson for violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and a second, related count against the individual defendants for violating Section 20(a) of the Exchange Act. Plymouth seeks compensatory damages, pre- and post-judgment interest and reasonable attorneys’ fees and experts’ witness fees and costs. On August 30, 2018, Gwinnett County Public Employees Retirement System and Plymouth County Retirement System, Pembroke Pines Pension Fund for Firefighters and Police Officers, Central Laborers Pension Fund were appointed lead plaintiffs. While the outcome of litigation is inherently uncertain, we believe that the class action complaint is without merit, and we are vigorously defending ourselves in this litigation. We do not anticipate that this matter will have a material adverse effect on our financial statements. Patterson has also received, and responded to, requests under Minnesota Business Corporation Act § 302A.461 to inspect corporate books and records relating to the issues raised in the securities class action and the antitrust matters discussed above. During the first quarter of fiscal 2019, the U.S. Attorney’s Office for the Western District of Virginia informed us that our subsidiary, Animal Health International, Inc., has been designated a target of a criminal investigation. The investigation originally related to Animal Health International sales of prescription animal health products to certain persons and/or locations not licensed to receive them in Virginia and Tennessee in violation of federal and state laws. After being contacted by the U.S. Attorney's office, Patterson retained outside legal counsel and began an internal investigation which remains ongoing. Since that time, we have produced documents both responsive to grand jury subpoenas and voluntarily. In December 2018, as a result of our ongoing internal investigation, we voluntarily advised the U.S. Attorney’s Office of Animal Health International shipments of prescription animal health products that were made from a warehouse rather than a pharmacy to customers in the states of Virginia and Tennessee. Thereafter, as part of our ongoing internal investigation, we conducted a comprehensive review of Animal Health International’s distribution and licensing practices across all 50 U.S. states. That review identified compliance issues in additional states, which we voluntarily disclosed to the U.S. Attorney’s Office in April 2019. Our Board of Directors also has established a special investigation committee to oversee and continue the investigation, to review our licensing, dispensing, distribution and related sales practices company-wide, and to report on its findings to the Board and to the U.S. Attorney’s Office. As a result of the ongoing internal investigation, we have modified our licensing, dispensing, distribution and related sales processes and are continuing to evaluate the need for further modification. We continue to cooperate with the U.S. Attorney’s Office and have agreed to extend the existing tolling agreement. At this time, we are unable to make an estimate of the amount of loss, or range of possible loss, that we could incur as a result of the foregoing matter. This matter may divert management’s attention and cause us to suffer reputational harm. We also may be subject to fines or penalties, equitable remedies (including but not limited to the revocation of or non-renewal of licenses) and litigation. The occurrence of any of these events could adversely affect our business, financial condition and results of operations. On August 28, 2018, Kirsten Johnsen filed a stockholder derivative complaint against Patterson Companies, Inc., as a nominal defendant, and the following former and current officers and directors of Patterson: Scott Anderson, Ann Gugino, James Wiltz, John Buck, Jody Feragen, Ellen Rudnick, Les Vinney, Neil Schrimsher, Sarena Lin, Harold Slavkin, Alex Blanco and Mark Walchirk as individual defendants in Hennepin County District Court in a case captioned Kirsten Johnsen v. Scott P. Anderson et al. , Case No. 27-CV-18-14315. Derivatively on behalf of Patterson, plaintiff alleges that Patterson “suppressed price competition and maintained supracompetitive prices for dental supplies and equipment by entering into agreements with Henry Schein and Benco to: (i) fix margins for dental supplies and equipment; and (ii) block the entry and expansion of lower-margin, lower-priced, rival dental distributors through threatened and actual group boycotts.” Plaintiff further alleges that the individual defendants failed to disclose Patterson’s alleged “price-fixing scheme” to the public and purportedly “caused Patterson to repurchase over $412,800 worth of its own stock at artificially inflated prices.” In the derivative complaint, plaintiff asserts three counts against the individual defendants for: (i) breach of fiduciary duty; (ii) waste of corporate assets; and (iii) unjust enrichment. Plaintiff seeks compensatory damages, equitable and injunctive relief as permitted by law, costs, disbursements and reasonable attorneys’ fees, accountants’ fees and experts’ fees, costs and expenses, and an order awarding restitution from the individual defendants and directing Patterson “to take all necessary actions to reform and improve its corporate governance and internal procedures.” On February 19, 2019, the court ordered this litigation stayed pending resolution of the below-described case brought by Sally Pemberton. While the outcome of litigation is inherently uncertain, we believe that the derivative complaint is without merit, and we intend to vigorously defend ourselves in this litigation. We do not anticipate that this matter will have a material adverse effect on our financial statements. On October 1, 2018, Sally Pemberton filed a stockholder derivative complaint against Patterson Companies, Inc., as a nominal defendant, and the following former and current officers and directors of Patterson: Scott Anderson, Ann Gugino, Mark Walchirk, John Buck, Alex Blanco, Jody Feragen, Sarena Lin, Ellen Rudnick, Neil Schrimsher, Les Vinney, James Wiltz, Paul Guggenheim, David Misiak and Tim Rogan as individual defendants in the United States District Court for the District of Minnesota in a case captioned Sally Pemberton v. Scott P. Anderson, et al ., Case No. 18-CV-2818 (PJS/HB). Derivatively on behalf of Patterson, plaintiff alleges that Patterson, with Benco and Henry Schein, “engage[d] in a conspiracy in restraint of trade, whereby the companies agreed to refuse to offer discounted prices or otherwise negotiate with GPOs, agreed to fix margins on dental supplies and equipment, agreed not to poach one another’s customers or sales representatives, and agreed to block the entry and expansion of rival distributors. Plaintiff further alleges that the individual defendants failed to disclose Patterson’s alleged “antitrust misconduct” to the public and purportedly caused Patterson to repurchase $412,800 of its own stock at prices that were artificially inflated. In the derivative complaint, plaintiff asserts six counts against the individual defendants for: (i) breach of fiduciary duty; (ii) waste of corporate assets; (iii) unjust enrichment; (iv) violations of Section 14(a) of the Exchange Act; (v) violations of Section 10(b) and Rule 10b-5 of the Exchange Act and (vi) violations of Section 20(a) of the Exchange Act. Plaintiff seeks compensatory damages with pre-judgment and post-judgment interest, costs, disbursements and reasonable attorneys’ fees, experts’ fees, costs and expenses, and an order awarding restitution from the individual defendants and directing Patterson “to take all necessary actions to reform and improve its corporate governance and internal procedures.” While the outcome of litigation is inherently uncertain, we believe that the derivative complaint is without merit, and we intend to vigorously defend ourselves in this litigation. We do not anticipate that this matter will have a material adverse effect on our financial statements. On October 9, 2018, Nathaniel Kramer filed indirect purchaser litigation against Patterson Companies, Inc., Henry Schein, Inc. and Benco Dental Supply Company in the United States District Court for the District of Northern District of California. The purported class action complaint asserts violations of the California Cartwright Act and the California Unfair Competition Act based on an alleged agreement between Schein, Benco, and Patterson (and unnamed co-conspirators) not to compete as to price and margins. Plaintiff alleges that the agreement allowed the defendants to charge higher prices to dental practices for dental supplies and that the dental practices passed on all, or part of, the increased prices to the consumers of dental services. Subject to certain exclusions, the complaint defines the class as all persons residing in California purchasing and/or reimbursing for dental services from California dental practices. The complaint seeks a permanent injunction, actual damages to be determined at trial, trebled, reasonable attorneys’ fees and costs, and pre- and post-judgment interest. On December 7, 2018, an amended complaint was filed asserting the same claims against the same parties. While the outcome of litigation is inherently uncertain, we believe that the indirect purchaser action is without merit, and we intend to vigorously defend ourselves in this litigation. On January 29, 2019, a purported class action complaint was filed by R. Lawrence Hatchett, M.D. against Patterson Companies, Inc., Henry Schein, Inc., Benco Dental Supply Company, and unnamed co-conspirators in the U.S. District Court for the Southern District of Illinois. The complaint alleges that members of the proposed class suffered antitrust injury due to an unlawful boycott, price-fixing or otherwise anticompetitive conspiracy among Schein, Benco and Patterson. The complaint alleges that the alleged conspiracy overcharged Illinois dental practices, orthodontic practices and dental laboratories on their purchase of dental supplies, which in turn passed on some or all of such overcharges to members of the class. Subject to certain exclusions, the complaint defines the class as all persons residing in Illinois purchasing and/or reimbursing for dental care provided by independent Illinois dental practices purchasing dental supplies from the defendants, or purchasing from buying groups purchasing these supplies from the defendants, on or after January 29, 2015. The complaint alleges violations of the Illinois Antitrust Act, 740 Ill. Comp. Stat. §§ 10/3(2), 10/7(2), and seeks a permanent injunction, actual damages to be determined at trial, trebled, reasonable attorneys’ fees and costs, and pre- and post-judgment interest. While the outcome of litigation is inherently uncertain, we believe that the indirect purchaser action is without merit, and we intend to vigorously defend ourselves in this litigation. In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous cases filed against an array of defendants by various plaintiffs such as counties, cities, hospitals, Indian tribes and others, alleging claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation, captioned In re National Prescription Opiate Litigation , MDL No. 2804 (the “MDL”), is pending in the U.S. District Court for the Northern District of Ohio. On July 12, 2018, Bon Secours Health System, Inc., Bon Secours- Richmond Community Hospital, Incorporated, Bon Secours DePaul Medical Center, Inc., Bon Secours- Memorial Regional Medical Center, Inc., Bon Secours- St. Francis Medical Center, Inc., Bon Secours- St. Mary’s Hospital of Richmond, Inc., Bon Secours- Virginia Healthsource, Inc., Chesapeake Hospital Corporation, Mary Immaculate Hospital, Incorporated and Maryview Hospital (collectively, the “MDL Plaintiffs”) filed a complaint in the MDL against 26 manufacturers and wholesale distributors of prescription opiates (the “MDL Defendants”) alleging that the MDL Defendants improperly marketed, sold or distributed prescription opiates. The MDL Plaintiffs’ complaint alleges violations of federal RICO statutes, violations of the Virginia Consumer Protections Act, negligence, negligence per se, wantonness, recklessness, and gross negligence, fraud and public nuisance. The MDL Plaintiffs seek injunctive relief, the imposition of civil penalties, monetary damages, punitive damages, pre- and post-judgment interest and attorneys’ fees and costs. Neither Patterson nor any of its subsidiaries were named as MDL Defendants in the original complaint. On March 15, 2019, the MDL Plaintiffs amended and supplemented their complaint to assert violations of federal RICO statutes against 67 manufacturers and wholesale distributors of prescription opiates (the “Amended MDL Defendants”). Two of Patterson’s subsidiaries, Patterson Logistics Services, Inc. and Patterson Veterinary Supply, Inc., are named as Amended MDL Defendants. The MDL Plaintiffs allege that the Amended MDL Defendants “breached their legal duties under federal law to monitor, detect, investigate, refuse and report suspicious orders of prescription opiates.” While the outcome of litigation is inherently uncertain, we believe that the MDL Plaintiffs’ claims against Patterson Logistics Services, Inc. and Patterson Veterinary Supply, Inc. are without merit, and we intend to vigorously defend ourselves in this litigation. While management currently believes that resolving the foregoing matters, individually or in the aggregate, will not have a material adverse effect on our financial statements, the litigation and other claims noted above are subject to inherent uncertainties and management’s view of these matters may change in the future. Adverse outcomes in some or all of the claims pending against us may result in significant monetary damages or injunctive relief against us that could adversely affect our ability to conduct our business. There also exists the possibility of a material adverse effect on our financial statements for the period in which the effect of an unfavorable final outcome becomes probable and reasonably estimable. From time to time, we may become a party to other legal proceedings, including, without limitation, product liability claims, intellectual property claims, employment matters, commercial disputes, governmental inquiries and investigations (which may in some cases involve our entering into settlement arrangements or consent decrees), and other matters arising out of the ordinary course of our business. While the results of any legal proceeding cannot be predicted with certainty, in our opinion none of these other pending matters is anticipated to have a material adverse effect on our financial statements. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Apr. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) Quarterly results are determined in accordance with the accounting policies used for annual data and include certain items based upon estimates for the entire year. All fiscal quarters include results for 13 weeks. Quarter Ended April 27, 2019 January 26, 2019 October 27, 2018 July 28, 2018 (1) Net sales $ 1,436,706 $ 1,396,745 $ 1,404,752 $ 1,336,320 Gross profit 312,527 299,509 295,076 283,663 Operating income from continuing operations 46,623 45,363 41,216 4,514 Net income (loss) from continuing operations 27,685 31,054 28,646 (4,509 ) Net loss from discontinued operations — — — — Net income (loss) 27,685 31,054 28,646 (4,509 ) Net loss attributable to noncontrolling interests (305 ) (171 ) (223 ) (53 ) Net income (loss) attributable to Patterson Companies, Inc. $ 27,990 $ 31,225 $ 28,869 $ (4,456 ) Basic earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.30 $ 0.34 $ 0.31 $ (0.05 ) Discontinued operations — — — — Net basic earnings (loss) per share $ 0.30 $ 0.34 $ 0.31 $ (0.05 ) Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.30 $ 0.33 $ 0.31 $ (0.05 ) Discontinued operations — — — — Net diluted earnings (loss) per share $ 0.30 $ 0.33 $ 0.31 $ (0.05 ) Quarter Ended April 28, 2018 January 27, 2018 (2) October 28, 2017 July 29, 2017 Net sales $ 1,400,609 $ 1,375,222 $ 1,385,737 $ 1,304,115 Gross profit 289,839 294,736 315,743 299,048 Operating income from continuing operations 41,251 50,046 71,759 56,833 Net income (loss) from continuing operations 20,928 108,955 40,244 30,847 Net loss from discontinued operations — — — — Net income (loss) 20,928 108,955 40,244 30,847 Net loss attributable to noncontrolling interests — — — — Net income (loss) attributable to Patterson Companies, Inc. $ 20,928 $ 108,955 $ 40,244 $ 30,847 Basic earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.23 $ 1.18 $ 0.43 $ 0.33 Discontinued operations — — — — Net basic earnings (loss) per share $ 0.23 $ 1.18 $ 0.43 $ 0.33 Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.23 $ 1.18 $ 0.43 $ 0.33 Discontinued operations — — — — Net diluted earnings (loss) per share $ 0.23 $ 1.18 $ 0.43 $ 0.33 (1) In the first quarter of fiscal 2019, we recorded a pre-tax charge of $28,263 related to a litigation settlement. See Note 17 to the Consolidated Financial Statements for additional information. (2) In the third quarter of fiscal 2018, the Tax Act was enacted by the U.S. government. During this quarter, we recorded a provisional discrete net tax benefit of $77,256 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 12 Months Ended |
Apr. 27, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss ("AOCL") The following table summarizes the changes in AOCL as of April 27, 2019 : Cash Flow Hedges Currency Translation Adjustment Total AOCL at April 28, 2018 $ (13,118 ) $ (61,856 ) $ (74,974 ) Other comprehensive loss before reclassifications — (15,583 ) (15,583 ) Amounts reclassified from AOCL 2,288 — 2,288 AOCL at April 27, 2019 $ (10,830 ) $ (77,439 ) $ (88,269 ) The amounts reclassified from AOCL during fiscal 2019 represent gains and losses on cash flow hedges, net of taxes of $620 . The impact to the consolidated statements of income and other comprehensive income was an increase to interest expense of $2,908 . |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts | 12 Months Ended |
Apr. 27, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation And Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS PATTERSON COMPANIES, INC. (In thousands) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year ended April 27, 2019 Deducted from asset accounts: Allowance for doubtful accounts $ 9,537 $ 7,333 $ — $ 10,098 $ 6,772 LIFO inventory adjustment $ 82,105 $ 9,237 $ — $ — $ 91,342 Inventory obsolescence reserve 5,376 30,995 — 26,272 10,099 Total inventory reserve $ 87,481 $ 40,232 $ — $ 26,272 $ 101,441 Year ended April 28, 2018 Deducted from asset accounts: Allowance for doubtful accounts $ 9,342 $ 6,280 $ — $ 6,085 $ 9,537 LIFO inventory adjustment $ 77,816 $ 4,289 $ — $ — $ 82,105 Inventory obsolescence reserve 5,621 22,919 — 23,164 5,376 Total inventory reserve $ 83,437 $ 27,208 $ — $ 23,164 $ 87,481 Year ended April 29, 2017 Deducted from asset accounts: Allowance for doubtful accounts $ 12,008 $ 1,825 $ — $ 4,491 $ 9,342 LIFO inventory adjustment $ 76,501 $ 1,315 $ — $ — $ 77,816 Inventory obsolescence reserve 6,621 18,026 — 19,026 5,621 Total inventory reserve $ 83,122 $ 19,341 $ — $ 19,026 $ 83,437 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 27, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Patterson Companies, Inc. (referred to herein as “Patterson” or in the first person notations “we,” “our,” and “us”) is a value-added specialty distributor serving the U.S. and Canadian dental supply and the U.S., Canadian and U.K. animal health supply markets. Patterson has three reportable segments: Dental, Animal Health and Corporate. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the assets and liabilities of PDC Funding Company, LLC ("PDC Funding"), PDC Funding Company II, LLC ("PDC Funding II") and PDC Funding Company III, LLC ("PDC Funding III"), which are our wholly owned subsidiaries and separate legal entities formed 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. PDC Funding III is a fully consolidated special purpose entity established to sell certain receivables to unaffiliated financial institutions. The assets of PDC Funding, PDC Funding II and PDC Funding III would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding, PDC Funding II or PDC Funding III. The consolidated financial statements also include the assets and liabilities of Technology Partner Innovations, LLC, which is further described in Note 13. |
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. Fiscal 2019 , 2018 and 2017 ended on April 27, 2019 , April 28, 2018 and April 29, 2017 , respectively, and all years consisted of 52 weeks. Fiscal 2020 will end on April 25, 2020 and will consist of 52 weeks. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist primarily of investments in money market funds and government securities. The maturity of these securities at the time of purchase is 90 days or less. All cash and cash equivalents are classified as available-for-sale and carried at fair value, which approximates cost. |
Inventory | Inventory Inventory consists of merchandise held for sale and is stated at the lower of cost or market. The cost of our inventory includes the amount we pay to our suppliers to acquire inventory and freight costs incurred in connection with the delivery of product to our distribution centers and our other locations. Cost is determined using the last-in, first-out ("LIFO") method for all inventories, except for foreign inventories, which are valued using the first-in, first-out ("FIFO") method. Inventories valued at LIFO represented 82% and 84% of total inventories at April 27, 2019 and April 28, 2018 , respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation is calculated on the straight-line method over estimated useful lives of up to 39 years for buildings or the expected remaining life of purchased buildings, the term of the lease for leasehold improvements, 3 to 10 years for computer hardware and software, and 5 to 10 years for furniture and equipment. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of cost over the fair value of identifiable net assets of businesses acquired. We have two reporting units as of April 27, 2019 ; Dental and Animal Health. Our Corporate reportable segment's assets and liabilities, and net sales and expenses, are allocated to the two reporting units. Our indefinite-lived intangible asset is a trade name. We assess goodwill for impairment annually and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. If we determine that the fair value of the reporting unit may be less than its carrying amount, we evaluate goodwill using a two-step impairment test. Otherwise, we conclude that no impairment is indicated and we do not perform the two-step impairment test. In fiscal 2019 , we determined it was appropriate to perform a two-step impairment test. The first step of the goodwill impairment test compares the book value of a reporting unit, including goodwill, to its fair value. If the book value of a reporting unit exceeds its fair value, the second step of the impairment test is performed to determine the amount of goodwill impairment loss to be recorded. The determination of fair value involves uncertainties because it requires management to make assumptions and to apply judgment to estimate industry and economic factors and the profitability of future business strategies. Patterson conducts impairment testing based on current business strategy in light of present industry and economic conditions, as well as future expectations. Additionally, in assessing goodwill for impairment, the reasonableness of the implied control premium is considered based on market capitalizations and recent market transactions. Other indefinite-lived intangible assets are assessed for impairment by comparing the carrying value of an asset with its fair value. If the carrying value exceeds fair value, an impairment loss is recognized in an amount equal to the excess. The determination of fair value involves assumptions, including projected revenues and gross profit levels, as well as consideration of any factors that may indicate potential impairment. |
Long-Lived Assets | Long-Lived Assets |
Financial Instruments | Financial Instruments We account for derivative financial instruments under the provisions of Accounting Standards Codification ("ASC") Topic 815, “Derivatives and Hedging.” Our use of derivative financial instruments is generally limited to managing well-defined interest rate risks. We do not use financial instruments or derivatives for any trading purposes. |
Revenue Recognition | Revenue Recognition Revenues are generated from the sale of consumable products, equipment and support, software and support, technical service parts and labor, and other sources. Revenues are recognized when or as performance obligations are satisfied. Performance obligations are satisfied when the customer obtains control of the goods or services. Consumable, equipment, software and parts sales are recorded upon delivery, except in those circumstances where terms of the sale are FOB shipping point, in which case sales are recorded upon shipment. Technical service labor is recognized as it is provided. Revenue derived from equipment and software support is recognized ratably over the period in which the support is provided. In addition to revenues generated from the distribution of consumable products under arrangements (buy/sell agreements) where the full market value of the product is recorded as revenue, we earn commissions for services provided under agency agreements. The agency agreement contrasts to a buy/sell agreement in that we do not have control over the transaction, as we do not have the primary responsibility of fulfilling the promise of the good or service and we do not bill or collect from the customer in an agency relationship. Commissions under agency agreements are recorded when the services are provided. Estimates for returns, damaged goods, rebates, loyalty programs and other revenue allowances are made at the time the revenue is recognized based on the historical experience for such items. The receivables that result from the recognition of revenue are reported net of related allowances. We maintain a valuation allowance based upon the expected collectability of receivables held. Estimates are used to determine the valuation allowance and are based on several factors, including historical collection data, economic trends and credit worthiness of customers. Receivables are written off when we determine the amounts to be uncollectible, typically upon customer bankruptcy or non-response to continuous collection efforts. The portions of receivable amounts that are not expected to be collected during the next twelve months are classified as long-term. Patterson has a relatively large, dispersed customer base and no single customer accounts for more than 10% of consolidated net sales. In addition, the equipment sold to customers under finance contracts generally serves as collateral for the contract and the customer provides a personal guarantee as well. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales tax. Contract Balances Contract balances represent amounts presented in our consolidated balance sheets when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable, contract assets and contract liabilities. |
Patterson Advantage Loyalty Program | Patterson Advantage Loyalty Program The Dental segment provides a point-based awards program to qualifying customers involving the issuance of “Patterson Advantage dollars” which can be used toward equipment and technology purchases. Patterson Advantage dollars earned during a program year expire one year after the end of the program year. The cost and corresponding liability associated with the program are recognized as contra-revenue. As of April 27, 2019 , we believe we have sufficient experience with the program to reasonably estimate the amount of Patterson Advantage dollars that will not be redeemed and thus have recorded a liability for 98.5% of the maximum potential amount that could be redeemed. We recognize the expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer, and we recognize the estimated value of unused Patterson Advantage dollars as redemptions occur. Breakage recognized was immaterial to all periods presented. |
Freight and Delivery Charges | Freight and Delivery Charges Freight and delivery charges are included in cost of sales in the consolidated statements of income and other comprehensive income. |
Income Taxes | ncome Taxes The liability method is used to account for income tax expense. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established for deferred tax assets if, after assessment of available positive and negative evidence, it is more likely than not that the deferred tax asset will not be fully realized. |
Employee Stock Ownership Plan (ESOP) | Employee Stock Ownership Plan ("ESOP") Compensation expense related to our defined contribution ESOP is computed based on the shares allocated method. |
Self-insurance | Self-insurance Patterson is self-insured for certain losses related to general liability, product liability, automobile, workers’ compensation and medical claims. We estimate our liabilities based upon an analysis of historical data and actuarial estimates. While current estimates are believed reasonable based on information currently available, actual results could differ and affect financial results due to changes in the amount or frequency of claims, medical cost inflation or other factors. Historically, actual results related to these types of claims have not varied significantly from estimated amounts. |
Stock-based Compensation | Stock-based Compensation We recognize stock-based compensation expense based on estimated grant date fair values. The grant date fair value of stock options and stock purchases made through our Employee Stock Purchase Plan and our Capital Accumulation Plan are estimated using the Black-Scholes option pricing valuation model. The grant date fair value of performance stock units that vest upon meeting certain market conditions is estimated using the Monte Carlo valuation model. These valuations require estimates to be made including expected stock price volatility which considers historical volatility trends, implied future volatility based on certain traded options and other factors. We estimate the expected life of awards based on several factors, including types of participants, vesting schedules, contractual terms and various factors surrounding exercise behavior of different groups. The grant date fair value of time-based restricted stock awards and restricted stock units is calculated based on the closing price of our common stock on the date of grant. |
Comprehensive Income | Comprehensive Income |
Earnings Per Share | Earnings Per Share ("EPS") The amount of basic EPS is computed by dividing net income attributable to Patterson by the weighted average number of outstanding common shares during the period. The amount of diluted EPS is computed by dividing net income by the weighted average number of outstanding common shares and common share equivalents, when dilutive, during the period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)". ASU No. 2014-09 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. We adopted the new guidance as of April 29, 2018 using the modified retrospective method, and the adoption had no impact on our consolidated net earnings, financial position, or cash flows. In January 2016, the FASB issued ASU No. 2016-01 "Financial Instruments- Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)", which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. We adopted ASU No. 2016-01 in the first quarter of fiscal 2019, and the adoption had no impact on our consolidated net earnings, financial position, or cash flows. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which 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 ASU 2016-02 in the first quarter of fiscal 2020, with early adoption permitted. We plan to adopt the new guidance in the first quarter of fiscal 2020 on a modified retrospective basis through a cumulative-effect adjustment to the beginning retained earnings in the period of adoption. We plan to elect the transition package of practical expedients provided within the guidance, which would eliminate the requirements to reassess lease identification, lease classification and initial direct costs for leases commenced before the effective date. We also plan to elect not to separate lease from non-lease components and to exclude short-term leases from our consolidated balance sheets. While we continue to assess all the impacts of adoption, we anticipate recognizing operating lease liabilities of approximately $80,000 to $100,000 based on the present value of the remaining minimum lease commitments using our incremental borrowing rate as of the effective date of adoption. We also expect to record corresponding right of use assets based upon the operating lease liabilities adjusted for prepaid and deferred rents, unamortized initial direct costs, liabilities associated with lease termination costs and impairments of right of use assets recognized to opening retained earnings at the effective date. Additionally, any existing deferred gains on sale-leaseback transactions will be derecognized from our consolidated balance sheet and recognized to opening retained earnings at the effective date. We are finalizing our assessment of the impact that this guidance will have on our consolidated financial statements, systems, processes and internal controls. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326),” which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. We plan to adopt the new guidance in the first quarter of fiscal 2021. We are currently evaluating the impact of adopting this pronouncement. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which will allow a reclassification from accumulated other comprehensive income to retained earnings for the tax effects that are stranded in accumulated other comprehensive income as a result of tax reform. This standard also requires certain disclosures about stranded tax effects. We will adopt ASU No. 2018-02 in the first quarter of fiscal 2020, and apply it either in the period of adoption or retrospectively to each period in which the income tax effects of the tax reform related to items in accumulated other comprehensive income are recognized. We are currently evaluating the impact of adopting this pronouncement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the denominator for the computation of basic and diluted EPS. There were no material adjustments to the numerator. Fiscal Year Ended April 27, 2019 April 28, 2018 April 29, 2017 Denominator for basic EPS – weighted average shares 92,755 92,467 94,897 Effect of dilutive securities – stock options, restricted stock and stock purchase plans 729 627 670 Denominator for diluted EPS – weighted average shares 93,484 93,094 95,567 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | At April 27, 2019 and April 28, 2018 , cash and cash equivalents consisted of the following: April 27, 2019 April 28, 2018 Cash on hand $ 76,117 $ 56,334 Money market funds 19,529 6,650 Total $ 95,646 $ 62,984 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill | The changes in the carrying value of goodwill for each of our reportable segments for the fiscal year ended April 27, 2019 are as follows: Balance at April 28, 2018 Acquisition Other Activity Balance at April 27, 2019 Dental $ 139,654 $ — $ (494 ) $ 139,160 Animal Health 676,323 2,047 (1,304 ) 677,066 Corporate — — — — Total $ 815,977 $ 2,047 $ (1,798 ) $ 816,226 |
Balances of Other Intangible Assets Excluding Goodwill | Balances of other intangible assets, excluding goodwill, are as follows: April 27, 2019 April 28, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Unamortized - indefinite lived: Copyrights, trade names and trademarks $ 12,300 $ — $ 12,300 $ 29,900 $ — $ 29,900 Amortized - definite lived: Customer relationships 353,639 113,812 239,827 355,488 91,374 264,114 Trade names and trademarks 133,202 61,435 71,767 129,973 49,545 80,428 Developed technology and other 70,469 43,210 27,259 55,326 40,344 14,982 Total amortized intangible assets 557,310 218,457 338,853 540,787 181,263 359,524 Total identifiable intangible assets $ 569,610 $ 218,457 $ 351,153 $ 570,687 $ 181,263 $ 389,424 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following items: April 27, 2019 April 28, 2018 Land $ 11,969 $ 10,227 Buildings 118,556 104,720 Leasehold improvements 28,359 26,624 Furniture and equipment 175,774 171,197 Computer hardware and software 218,893 211,453 Construction-in-progress (1) 75,860 59,691 Property and equipment, gross 629,411 583,912 Accumulated depreciation (323,621 ) (293,322 ) Property and equipment, net $ 305,790 $ 290,590 (1) Includes $57,006 and $43,026 of unamortized computer software development costs of software to be sold as of April 27, 2019 and April 28, 2018 , respectively. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our long-term debt consists of the following: Carrying Value Interest Rate April 27, 2019 April 28, 2018 Senior notes due fiscal 2019 (1) 2.95 % — 60,000 Senior notes due fiscal 2022 (1) 3.59 % 165,000 165,000 Senior notes due fiscal 2024 (1) 3.74 % 100,000 100,000 Senior notes due fiscal 2025 (2) 3.48 % 250,000 250,000 Senior notes due fiscal 2028 (3) 3.79 % 150,000 150,000 Term loan due fiscal 2022 (4) 3.73 % 87,091 276,633 Less: Deferred debt issuance costs (2,775 ) (3,005 ) Total debt 749,316 998,628 Less: Current maturities of long-term debt (23,975 ) (76,598 ) Long-term debt $ 725,341 $ 922,030 (1) Issued in December 2011. (2) Issued in March 2015. (3) Issued in March 2018. (4) Issued in June 2015, amended in January 2017. Interest rate is LIBOR plus 1.25% |
Schedule of Maturities of Long-term Debt | of April 27, 2019 . Future principal payments due, based on stated contractual maturities for our long-term debt, are as follows as of April 27, 2019 : Fiscal Year 2020 $ 23,975 2021 29,508 2022 198,608 2023 — 2024 100,000 Thereafter 400,000 Total $ 752,091 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatie Instruments Included in Consolidated Balance Sheets | The following presents the fair value of derivative instruments included in the consolidated balance sheets: Derivative type Classification April 27, 2019 April 28, 2018 Assets: Interest rate contracts Other non-current assets $ 380 $ 1,613 Liabilities: Interest rate contracts Other accrued liabilities 1,034 — Interest rate contracts Other non-current liabilities 2,160 1,613 Total liability derivatives $ 3,194 $ 1,613 |
Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Statements of Income and Other Comprehensive Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Fiscal Year Ended Derivatives in cash flow hedging relationships Income statement location April 27, 2019 April 28, 2018 April 29, 2017 Interest rate contracts Interest expense $ (2,908 ) $ (2,809 ) $ (2,802 ) Amount of Gain (Loss) Recognized in Income on Derivative Fiscal Year Ended Derivatives not designated as hedging instruments Income statement location April 27, 2019 April 28, 2018 April 29, 2017 Interest rate contracts Other income, net $ (2,903 ) $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
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: April 27, 2019 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 19,529 $ 19,529 $ — $ — DPP receivable - receivables securitization program 57,238 — — 57,238 DPP receivable - customer financing 121,657 — — 121,657 Derivative instruments 380 — 380 — Total assets $ 198,804 $ 19,529 $ 380 $ 178,895 Liabilities: Derivative instruments $ 3,194 $ — $ 3,194 $ — April 28, 2018 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 6,650 $ 6,650 $ — $ — DPP receivable - receivables securitization program — — — — DPP receivable - customer financing 150,404 — — 150,404 Derivative instruments 1,613 — 1,613 — Total assets $ 158,667 $ 6,650 $ 1,613 $ 150,404 Liabilities: Derivative instruments $ 1,613 $ — $ 1,613 $ — |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments under Non-Cancelable Operating Leases | Future minimum rental payments under noncancelable operating leases are as follows at April 27, 2019 : 2020 $ 21,087 2021 17,133 2022 13,487 2023 8,198 2024 4,126 Thereafter 1,476 Total $ 65,507 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of income from continuing operations before taxes are as follows: Fiscal Year Ended April 27, April 28, April 29, Income from continuing operations before taxes United States $ 76,035 $ 144,278 $ 217,529 International 30,193 34,985 33,352 Total $ 106,228 $ 179,263 $ 250,881 Significant components of income tax expense (benefit) are as follows: Fiscal Year Ended April 27, April 28, April 29, Current: Federal $ (19 ) $ 5,876 $ 72,339 Foreign 9,207 11,228 9,100 State 3,402 2,243 9,367 Total current expense 12,590 19,347 90,806 Deferred: Federal 9,709 (45,177 ) (11,802 ) Foreign (53 ) (743 ) (28 ) State 1,106 4,862 (1,883 ) Total deferred expense (benefit) 10,762 (41,058 ) (13,713 ) Income tax expense (benefit) $ 23,352 $ (21,711 ) $ 77,093 |
Components of Deferred Tax Assets (Liabilities) | Significant components of our deferred tax assets (liabilities) as of April 27, 2019 and April 28, 2018 are as follows: April 27, April 28, Deferred tax assets: Capital accumulation plan $ 3,988 $ 4,862 Inventory related items 4,887 4,407 Bad debt allowance 1,888 1,052 Stock based compensation expense 6,918 6,514 Interest rate swap 4,041 4,712 Foreign tax credit 7,358 8,472 Other 5,053 11,748 Gross deferred tax assets 34,133 41,767 Less: Valuation allowance (11,237 ) (13,830 ) Total net deferred tax assets 22,896 27,937 Deferred tax liabilities LIFO reserve (24,098 ) (19,727 ) Amortizable intangibles (77,126 ) (84,778 ) Goodwill (43,903 ) (41,635 ) Property, plant, equipment (40,793 ) (33,376 ) Total deferred tax liabilities (185,920 ) (179,516 ) Deferred net long-term income tax liability $ (163,024 ) $ (151,579 ) |
Summary of Effective Income Tax Expense Reconciliation | Income tax expense varies from the amount computed using the U.S. statutory rate. The reasons for this difference and the related tax effects are shown below: Fiscal Year Ended April 27, April 28, April 29, Tax at U.S. statutory rate $ 22,306 $ 54,674 $ 87,807 State tax provision, net of federal benefit 3,492 4,650 5,217 Effect of foreign taxes 2,728 (186 ) (2,602 ) ESOP (2,465 ) (4,036 ) (4,198 ) Other permanent differences 1,074 (728 ) (2,663 ) Tax on dividends, net of foreign tax credit — — (2,406 ) Tax reform (2,686 ) (76,648 ) — Other (1,097 ) 563 (4,062 ) Income tax expense (benefit) $ 23,352 $ (21,711 ) $ 77,093 |
Summary of Changes in Gross Amounts of Unrecognized Tax Benefits | A summary of the changes in the gross amounts of unrecognized tax benefits for the years ended April 27, 2019 and April 28, 2018 is shown below: April 27, April 28, Balance at beginning of period $ 14,227 $ 14,211 Additions for tax positions related to the current year 972 1,713 Additions for tax positions of prior years 50 232 Reductions for tax positions of prior years (228 ) (475 ) Statute expirations (1,984 ) (1,284 ) Settlements (2 ) (170 ) Balance at end of period $ 13,035 $ 14,227 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Segment Reporting [Abstract] | |
Information about Reportable Segments | The following tables present information about our reportable segments: Fiscal Year Ended April 27, April 28, April 29, Consolidated net sales United States $ 4,638,184 $ 4,537,326 $ 4,725,322 United Kingdom 597,953 583,057 547,968 Canada 338,386 345,300 319,837 Total $ 5,574,523 $ 5,465,683 $ 5,593,127 Dental net sales United States $ 1,989,875 $ 1,985,398 $ 2,185,341 Canada 201,915 210,680 204,878 Total $ 2,191,790 $ 2,196,078 $ 2,390,219 Animal Health net sales United States $ 2,620,104 $ 2,524,887 $ 2,496,899 United Kingdom 597,953 583,057 547,968 Canada 136,471 134,620 114,959 Total $ 3,354,528 $ 3,242,564 $ 3,159,826 Corporate net sales United States $ 28,205 $ 27,041 $ 43,082 Total $ 28,205 $ 27,041 $ 43,082 Fiscal Year Ended April 27, April 28, April 29, Consolidated net sales Consumable $ 4,482,016 $ 4,415,643 $ 4,400,888 Equipment and software 753,805 709,253 834,526 Other 338,702 340,787 357,713 Total $ 5,574,523 $ 5,465,683 $ 5,593,127 Dental net sales Consumable $ 1,214,814 $ 1,251,642 $ 1,321,764 Equipment and software 694,864 660,355 780,868 Other 282,112 284,081 287,587 Total $ 2,191,790 $ 2,196,078 $ 2,390,219 Animal Health net sales Consumable $ 3,267,202 $ 3,164,001 $ 3,079,124 Equipment and software 58,941 48,898 53,658 Other 28,385 29,665 27,044 Total $ 3,354,528 $ 3,242,564 $ 3,159,826 Corporate net sales Other $ 28,205 $ 27,041 $ 43,082 Total $ 28,205 $ 27,041 $ 43,082 Fiscal Year Ended April 27, April 28, April 29, Operating income (loss) from continuing operations Dental $ 179,236 $ 229,201 $ 263,671 Animal Health 81,472 78,058 88,132 Corporate (122,992 ) (87,370 ) (63,875 ) Consolidated operating income from continuing operations $ 137,716 $ 219,889 $ 287,928 Depreciation and amortization Dental $ 8,792 $ 7,435 $ 11,840 Animal Health 49,362 50,892 50,144 Corporate 24,619 25,489 21,834 Consolidated depreciation and amortization $ 82,773 $ 83,816 $ 83,818 |
Sales Information by Product | |
Information by Geographical Area | April 27, April 28, Property and equipment, net United States $ 295,381 $ 278,508 United Kingdom 1,976 1,773 Canada 8,433 10,309 Total $ 305,790 $ 290,590 April 27, April 28, Total assets Dental $ 641,721 $ 853,555 Animal Health 2,156,723 2,128,800 Corporate 470,825 489,309 Total assets $ 3,269,269 $ 3,471,664 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Equity [Abstract] | |
Cash Dividends Declared and Paid | The following table presents our declared and paid cash dividends per share on our common stock for the past three years. Dividends were declared and paid in the same period. We expect to continue paying a quarterly cash dividend into the foreseeable future. Quarter Fiscal year 1 2 3 4 2019 $ 0.26 $ 0.26 $ 0.26 $ 0.26 2018 0.26 0.26 0.26 0.26 2017 0.24 0.24 0.24 0.26 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Summary of Stock Options, Weighted Average Assumptions | The fair value of stock options granted was estimated as of the grant date using a Black-Scholes option-pricing model with the following assumptions: Fiscal Year Ended April 27, April 28, April 29, Expected dividend yield 4.5 % 2.2 % 2.0 % Expected stock price volatility 24.6 % 21.6 % 21.2 % Risk-free interest rate 2.9 % 1.9 % 1.2 % Expected life (years) 6.2 6.6 6.6 Weighted average grant date fair value per share $ 3.66 $ 8.18 $ 8.32 |
Summary of Stock Options | The following is a summary of stock option activity: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Balance as of April 28, 2018 1,206 $ 50.82 Granted 621 23.40 Exercised (1 ) 19.85 Canceled (270 ) 50.41 Balance as of April 27, 2019 1,556 $ 39.96 $ — Vested or expected to vest as of April 27, 2019 1,418 $ 38.84 $ — Exercisable as of April 27, 2019 282 $ 49.05 $ — |
Summary of Non-Vested Restricted Stock Awards and Performance Unit Awards | The following is a summary of performance unit award activity at target: Performance Unit Awards Shares Weighted- Average Grant Date Fair Value Outstanding at April 28, 2018 236 $ 51.66 Granted 142 22.63 Vested — — Forfeitures and cancellations (93 ) 50.22 Outstanding at April 27, 2019 285 $ 34.86 The following is a summary of restricted stock award activity: Restricted Stock Awards Shares Weighted- Average Grant Date Fair Value Outstanding at April 28, 2018 304 $ 40.13 Granted 37 24.83 Vested (133 ) 38.61 Forfeitures (41 ) 41.10 Outstanding at April 27, 2019 167 $ 37.91 The following is a summary of restricted stock unit activity: Restricted Stock Units Shares Weighted- Outstanding at April 28, 2018 541 $ 45.74 Granted 773 23.27 Vested (111 ) 43.71 Forfeitures (78 ) 38.85 Outstanding at April 27, 2019 1,125 $ 30.97 |
Employee Stock Purchase Plan | |
Summary of Weighted-Average Assumptions | We estimate the grant date fair value of shares purchased under our ESPP using the Black-Scholes option pricing valuation model with the following weighted average assumptions: Fiscal Year Ended April 27, April 28, April 29, Expected dividend yield 5.2 % 2.8 % 2.3 % Expected stock price volatility 38.6 % 28.1 % 32.9 % Risk-free interest rate 2.5 % 1.7 % 0.7 % Expected life (years) 0.6 0.6 0.6 Weighted average grant date fair value per share $ 5.21 $ 8.73 $ 10.33 |
Capital Accumulation Plan (CAP) | |
Summary of Weighted-Average Assumptions | We estimated the grant date fair value of shares purchased under our CAP using the Black-Scholes option pricing valuation model with the following weighted average assumptions. No CAP shares were granted in the fiscal year ended April 27, 2019 : April 28, April 29, Expected dividend yield 2.8 % 2.3 % Expected stock price volatility 24.4 % 28.3 % Risk-free interest rate 1.8 % 0.9 % Expected life (years) 1.0 1.0 Weighted average grant date fair value per share $ 12.98 $ 15.21 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results | Quarter Ended April 27, 2019 January 26, 2019 October 27, 2018 July 28, 2018 (1) Net sales $ 1,436,706 $ 1,396,745 $ 1,404,752 $ 1,336,320 Gross profit 312,527 299,509 295,076 283,663 Operating income from continuing operations 46,623 45,363 41,216 4,514 Net income (loss) from continuing operations 27,685 31,054 28,646 (4,509 ) Net loss from discontinued operations — — — — Net income (loss) 27,685 31,054 28,646 (4,509 ) Net loss attributable to noncontrolling interests (305 ) (171 ) (223 ) (53 ) Net income (loss) attributable to Patterson Companies, Inc. $ 27,990 $ 31,225 $ 28,869 $ (4,456 ) Basic earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.30 $ 0.34 $ 0.31 $ (0.05 ) Discontinued operations — — — — Net basic earnings (loss) per share $ 0.30 $ 0.34 $ 0.31 $ (0.05 ) Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.30 $ 0.33 $ 0.31 $ (0.05 ) Discontinued operations — — — — Net diluted earnings (loss) per share $ 0.30 $ 0.33 $ 0.31 $ (0.05 ) Quarter Ended April 28, 2018 January 27, 2018 (2) October 28, 2017 July 29, 2017 Net sales $ 1,400,609 $ 1,375,222 $ 1,385,737 $ 1,304,115 Gross profit 289,839 294,736 315,743 299,048 Operating income from continuing operations 41,251 50,046 71,759 56,833 Net income (loss) from continuing operations 20,928 108,955 40,244 30,847 Net loss from discontinued operations — — — — Net income (loss) 20,928 108,955 40,244 30,847 Net loss attributable to noncontrolling interests — — — — Net income (loss) attributable to Patterson Companies, Inc. $ 20,928 $ 108,955 $ 40,244 $ 30,847 Basic earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.23 $ 1.18 $ 0.43 $ 0.33 Discontinued operations — — — — Net basic earnings (loss) per share $ 0.23 $ 1.18 $ 0.43 $ 0.33 Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: Continuing operations $ 0.23 $ 1.18 $ 0.43 $ 0.33 Discontinued operations — — — — Net diluted earnings (loss) per share $ 0.23 $ 1.18 $ 0.43 $ 0.33 (1) In the first quarter of fiscal 2019, we recorded a pre-tax charge of $28,263 related to a litigation settlement. See Note 17 to the Consolidated Financial Statements for additional information. (2) In the third quarter of fiscal 2018, the Tax Act was enacted by the U.S. government. During this quarter, we recorded a provisional discrete net tax benefit of $77,256 within net income from continuing operations. See Note 12 to the Consolidated Financial Statements for additional information. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 12 Months Ended |
Apr. 27, 2019 | |
Equity [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in AOCL as of April 27, 2019 : Cash Flow Hedges Currency Translation Adjustment Total AOCL at April 28, 2018 $ (13,118 ) $ (61,856 ) $ (74,974 ) Other comprehensive loss before reclassifications — (15,583 ) (15,583 ) Amounts reclassified from AOCL 2,288 — 2,288 AOCL at April 27, 2019 $ (10,830 ) $ (77,439 ) $ (88,269 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Apr. 28, 2018USD ($) | Jan. 28, 2017USD ($) | Apr. 27, 2019USD ($)reporting_unitSegment | Apr. 28, 2018USD ($) | Apr. 29, 2017USD ($) | |
Accounting Policies [Abstract] | |||||
Number of reportable segments | Segment | 3 | ||||
Maturity period of maximum (in days) | 90 days | ||||
Property, Plant and Equipment [Line Items] | |||||
Number of reporting units | reporting_unit | 2 | ||||
Goodwill impairment | $ 0 | ||||
Asset impairment charges | $ 36,312,000 | $ 0 | $ 36,312,000 | $ 0 | |
Contract liabilities | 26,166,000 | 22,004,000 | 26,166,000 | ||
Contract liability, revenue recognized | $ 25,764,000 | ||||
Liability for percentage of maximum potential amount that could be redeemed | 98.50% | ||||
Deferred direct-marketing expenses included in prepaid and other current assets | $ 0 | 0 | |||
The income tax expense (benefit) related to cash flow hedge losses | $ 620,000 | $ 938,000 | $ 1,057,000 | ||
Building | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 39 years | ||||
Computer Hardware And Software | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Computer Hardware And Software | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 10 years | ||||
Office Furniture And Equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Office Furniture And Equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Accounting Policies [Abstract] | |||
Inventories valued at LIFO as % of total inventories | 82.00% | 84.00% | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
LIFO inventory reserve | $ (91,342) | $ (82,105) | |
Increase to pre-tax income | 106,228 | 179,263 | $ 250,881 |
Change in LIFO Calculation Method | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
LIFO inventory reserve | $ 1,800 | ||
Increase to pre-tax income | $ 1,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Related Party Transactions (Details) - Equity Method - USD ($) | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Related Party Transaction [Line Items] | |||
Sales | $ 74,489,000 | $ 19,743,000 | $ 0 |
Purchases | $ 87,944,000 | $ 84,175,000 | $ 55,194,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Earnings Per Share [Abstract] | |||
Denominator for basic earnings per share – weighted average shares (in shares) | 92,755 | 92,467 | 94,897 |
Effect of dilutive securities – stock options, restricted stock and stock purchase plans (in shares) | 729 | 627 | 670 |
Denominator for diluted earnings per share – adjusted weighted average shares (in shares) | 93,484 | 93,094 | 95,567 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,792 | 1,380 | 1,133 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Scenario, Forecast - ASU 2016-02 $ in Thousands | Jul. 27, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease liabilities | $ 80,000 |
Right-of-use assets | 80,000 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease liabilities | 100,000 |
Right-of-use assets | $ 100,000 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | Apr. 30, 2016 |
Cash and Cash Equivalents [Abstract] | ||||
Cash on hand | $ 76,117 | $ 56,334 | ||
Money market funds | 19,529 | 6,650 | ||
Total | $ 95,646 | $ 62,984 | $ 94,959 | $ 137,453 |
Receivables Securitization Pr_2
Receivables Securitization Program (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 27, 2019 | Jul. 24, 2018 | |
Transfers and Servicing [Abstract] | ||
Accounts Receivable Securitization, Eligible Receivables, Amount Utilized Under Purchase Agreement | $ 166,000 | |
Accounts Receivable Securitization, Eligible Receivables, Maximum Available Under Purchase Agreement | $ 200,000 | |
Accounts Receivable from Securitization | 57,238 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale, Gain (Loss) on Sale | $ (7,622) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Details) $ in Thousands | 12 Months Ended |
Apr. 27, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 815,977 |
Goodwill, Acquired During Period | 2,047 |
Other Activity | (1,798) |
Ending Balance | 816,226 |
Operating Segments | Dental net sales | |
Goodwill [Roll Forward] | |
Beginning Balance | 139,654 |
Goodwill, Acquired During Period | 0 |
Other Activity | (494) |
Ending Balance | 139,160 |
Operating Segments | Animal Health net sales | |
Goodwill [Roll Forward] | |
Beginning Balance | 676,323 |
Goodwill, Acquired During Period | 2,047 |
Other Activity | (1,304) |
Ending Balance | 677,066 |
Operating Segments | Corporate net sales | |
Goodwill [Roll Forward] | |
Beginning Balance | 0 |
Goodwill, Acquired During Period | 0 |
Other Activity | 0 |
Ending Balance | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Balances of Other Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Unamortized - indefinite lived: | ||
Copyrights, trade names and trademarks | $ 12,300 | $ 29,900 |
Amortized - definite lived: | ||
Gross | 557,310 | 540,787 |
Accumulated Amortization | (218,457) | (181,263) |
Net | 338,853 | 359,524 |
Total identifiable intangible assets, gross | 569,610 | 570,687 |
Total amortized intangible assets | 351,153 | 389,424 |
Customer relationships | ||
Amortized - definite lived: | ||
Gross | 353,639 | 355,488 |
Accumulated Amortization | (113,812) | (91,374) |
Net | 239,827 | 264,114 |
Trade names and trademarks | ||
Amortized - definite lived: | ||
Gross | 133,202 | 129,973 |
Accumulated Amortization | (61,435) | (49,545) |
Net | 71,767 | 80,428 |
Developed technology and other | ||
Amortized - definite lived: | ||
Gross | 70,469 | 55,326 |
Accumulated Amortization | (43,210) | (40,344) |
Net | $ 27,259 | $ 14,982 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 28, 2017 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | Dec. 31, 2006 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Distribution fee | $ 100,000,000 | ||||
Distribution agreement period | 10 years | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Asset impairment charges | $ 36,312,000 | $ 0 | $ 36,312,000 | $ 0 | |
Indefinite-lived intangible assets to definite lived assets | 17,600,000 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2020 | 37,236,000 | ||||
2021 | 37,135,000 | ||||
2022 | 36,824,000 | ||||
2023 | 36,232,000 | ||||
2024 | $ 35,575,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Patterson Medical - Discontinued Operations, Disposed of by Sale $ in Thousands | 1 Months Ended |
Aug. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Consideration receivable as per definitive agreement | $ 716,886 |
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 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 11,969 | $ 10,227 |
Buildings | 118,556 | 104,720 |
Leasehold improvements | 28,359 | 26,624 |
Furniture and equipment | 175,774 | 171,197 |
Computer hardware and software | 218,893 | 211,453 |
Construction-in-progress | 75,860 | 59,691 |
Property and equipment, gross | 629,411 | 583,912 |
Accumulated depreciation | (323,621) | (293,322) |
Property and equipment, net | 305,790 | 290,590 |
Unamortized capitalized computer development | $ 57,006 | $ 43,026 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||
Less: Deferred debt issuance costs | $ (2,775) | $ (3,005) | |
Total | 749,316 | 998,628 | |
Less: current debt obligations | (23,975) | (76,598) | |
Long-term debt | $ 725,341 | 922,030 | |
Senior notes due fiscal 2019 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 2.95% | ||
Fixed rate senior notes | $ 0 | 60,000 | |
Senior notes due fiscal 2022 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.59% | ||
Fixed rate senior notes | $ 165,000 | 165,000 | |
Senior notes due fiscal 2024 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.74% | ||
Fixed rate senior notes | $ 100,000 | 100,000 | |
Senior notes due fiscal 2025 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.48% | ||
Fixed rate senior notes | $ 250,000 | 250,000 | |
Senior notes due fiscal 2028 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.79% | ||
Fixed rate senior notes | $ 150,000 | 150,000 | $ 150,000 |
Term loan due fiscal 2022 | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.73% | ||
Fixed rate senior notes | $ 87,091 | $ 276,633 | |
Term loan due fiscal 2022 | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.25% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Thousands | Apr. 27, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 23,975 |
2021 | 29,508 |
2022 | 198,608 |
2023 | 0 |
2024 | 100,000 |
Thereafter | 400,000 |
Total | $ 752,091 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | |||||
Mar. 31, 2008 | Apr. 27, 2019 | Mar. 31, 2019 | Apr. 28, 2018 | Mar. 31, 2018 | Apr. 29, 2017 | |
Line of Credit Facility [Line Items] | ||||||
Borrowings on revolving credit | $ 0 | $ 16,000,000 | ||||
Proceeds used to repay senior notes | $ 150,000 | |||||
Credit Agreement | Unsecured Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings on revolving credit | $ 276,633,000 | |||||
Fixed rate | 3.40% | |||||
Credit Agreement | Unsecured Revolving Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Borrowings on revolving credit | $ 16,000,000 | |||||
Fixed rate | 2.95% | |||||
Amended Credit Agreement | Unsecured Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 295,075,000 | |||||
Borrowings on revolving credit | $ 87,091,000 | |||||
Fixed rate | 3.73% | |||||
Amended Credit Agreement | Unsecured Revolving Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | $ 750,000,000 | ||||
Borrowings on revolving credit | $ 0 | |||||
Senior Notes Due 2028 | ||||||
Line of Credit Facility [Line Items] | ||||||
Fixed rate | 3.79% | |||||
Aggregate principal amount | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 |
Customer Financing (Details)
Customer Financing (Details) | 12 Months Ended | |||
Apr. 27, 2019USD ($)contract | Apr. 28, 2018USD ($) | Apr. 29, 2017USD ($) | Apr. 30, 2016USD ($) | |
Customer Financing [Line Items] | ||||
Maximum credit financed for equipment purchases for any one customer | $ 1,000,000 | |||
Number of customer financing contracts | contract | 2 | |||
Financing contracts sold under ASC 860 | $ 279,204,000 | $ 312,699,000 | $ 357,965,000 | |
Net sales from sales of financing contracts | 16,883,000 | 13,347,000 | 20,580,000 | |
Cash and cash equivalents | 95,646,000 | 62,984,000 | $ 94,959,000 | $ 137,453,000 |
Current receivables of finance contracts not yet sold | 48,559,000 | 46,232,000 | ||
Unearned income | 0 | 8,000 | ||
Finance contracts receivable sold and outstanding | 577,246,000 | |||
Deferred purchase price receivable | $ 121,657,000 | 150,404,000 | ||
Maximum bad debt write-offs (percentage) | 1.00% | |||
Unsettled Financing Arrangements | ||||
Customer Financing [Line Items] | ||||
Cash and cash equivalents | $ 34,016,000 | $ 35,741,000 | ||
The Bank of Tokyo-Mitsubishi UFJ, Ltd. | ||||
Customer Financing [Line Items] | ||||
Percentage of principal amount of financing contracts held as collateral (at least) | 9.50% | |||
Capacity under agreement | $ 525,000,000 | |||
Fifth Third Bank | ||||
Customer Financing [Line Items] | ||||
Percentage of principal amount of financing contracts held as collateral (at least) | 11.00% | |||
Capacity under agreement | $ 100,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2015USD ($) | Mar. 31, 2008USD ($)agreement | Apr. 27, 2019USD ($) | Apr. 28, 2018USD ($) | Apr. 29, 2017USD ($) | Apr. 26, 2019USD ($) | Jan. 31, 2019USD ($) | Mar. 25, 2015USD ($) | Jan. 31, 2014USD ($) | |
Derivative [Line Items] | |||||||||
Gains or losses recognized in OCI on derivatives | $ 0 | $ 0 | |||||||
Hedge ineffectiveness recorded | 0 | $ 0 | $ 0 | ||||||
Cash flow hedge gain (loss) to be reclassified into earnings over the next twelve months | (2,900,000) | ||||||||
Interest Rate Cap | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | 525,000,000 | ||||||||
Interest Rate Cap, Funding II | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | 100,000,000 | ||||||||
Interest Rate Swap Agreement | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivatives | 553,719,000 | $ 67,291,000 | $ 539,400,000 | $ 250,000,000 | |||||
Number of interest rate swap agreements | agreement | 2 | ||||||||
Notional amount of derivative asset | $ 100,000,000 | ||||||||
Increase to other comprehensive income | $ 1,000,000 | ||||||||
Percentage of senior notes | 5.17% | ||||||||
Settlement of swap | $ 29,003,000 | $ 89,000 | |||||||
Interest Rate Swap Agreement | Senior Notes 3.48% | |||||||||
Derivative [Line Items] | |||||||||
Percentage of senior notes | 3.48% | ||||||||
Aggregate principal amount | $ 250,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Interest Rate Contracts Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | $ 380 | $ 1,613 |
Interest rate, liabilities, fair value | 3,194 | 1,613 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | 3,194 | 1,613 |
Other non-current assets | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | 380 | 1,613 |
Other accrued liabilities | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | 1,034 | 0 |
Other non-current liabilities | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | $ 2,160 | $ 1,613 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Interest Rate Contracts and Interest Rate Swaps on Consolidated Statements of Income and Other Comprehensive Income (Details) - Interest rate contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified form Accumulated Other Comprehensive Loss | $ (2,908) | $ (2,809) | $ (2,802) |
Other income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivatives not designated as hedging instruments gain (loss) recognized in income | $ (2,903) | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Assets: | ||
Cash equivalents | $ 19,529 | $ 6,650 |
Cash equivalents | 57,238 | 0 |
DPP receivable - customer financing | 121,657 | 150,404 |
Derivative instruments | 380 | 1,613 |
Total assets | 198,804 | 158,667 |
Liabilities: | ||
Derivative instruments | 3,194 | 1,613 |
Level 1 | ||
Assets: | ||
Cash equivalents | 19,529 | 6,650 |
Cash equivalents | 0 | 0 |
DPP receivable - customer financing | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 19,529 | 6,650 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Cash equivalents | 0 | 0 |
DPP receivable - customer financing | 0 | 0 |
Derivative instruments | 380 | 1,613 |
Total assets | 380 | 1,613 |
Liabilities: | ||
Derivative instruments | 3,194 | 1,613 |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Cash equivalents | 57,238 | 0 |
DPP receivable - customer financing | 121,657 | 150,404 |
Derivative instruments | 0 | 0 |
Total assets | 178,895 | 150,404 |
Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 28, 2017 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Asset impairment charges | $ 36,312,000 | $ 0 | $ 36,312,000 | $ 0 |
Estimated fair value of debt | 758,121,000 | 989,124,000 | ||
Long-term debt | $ 749,316,000 | $ 998,628,000 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Rental Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Apr. 27, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 21,087 |
2020 | 17,133 |
2021 | 13,487 |
2022 | 8,198 |
2023 | 4,126 |
Thereafter | 1,476 |
Total | $ 65,507 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 23,141 | $ 24,425 | $ 24,502 |
Income Taxes - Income From Cont
Income Taxes - Income From Continuing Operations Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 76,035 | $ 144,278 | $ 217,529 |
International | 30,193 | 34,985 | 33,352 |
Income from continuing operations before taxes | $ 106,228 | $ 179,263 | $ 250,881 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Current: | |||
Federal | $ (19) | $ 5,876 | $ 72,339 |
Foreign | 9,207 | 11,228 | 9,100 |
State | 3,402 | 2,243 | 9,367 |
Total current expense | 12,590 | 19,347 | 90,806 |
Deferred: | |||
Federal | 9,709 | (45,177) | (11,802) |
Foreign | (53) | (743) | (28) |
State | 1,106 | 4,862 | (1,883) |
Total deferred expense (benefit) | 10,762 | (41,058) | (13,713) |
Income tax expense (benefit) | $ 23,352 | $ (21,711) | $ 77,093 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jan. 27, 2018 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 21.00% | |||
Blended tax rate | 30.50% | |||
Tax Cuts And Jobs Act Of 2017, provisional income tax benefit | $ (77,256) | $ 76,648,000 | ||
Tax Cuts And Jobs Act Of 2017, change in tax rate, deferred taxes, provisional income tax expense | $ 2,355,000 | 81,871,000 | ||
Tax Cuts And Jobs Act Of 2017, transition tax on unremitted foreign earnings | 331,000 | (4,006,000) | ||
Tax Cuts And Jobs Act of 2017, withholding tax on distributions | 1,217,000 | |||
Tax Credit Carryforward [Line Items] | ||||
Foreign net operating loss carryforwards | 11,237,000 | |||
Gross unrecognized tax benefits | 13,035,000 | 14,227,000 | $ 14,211,000 | |
Deferred tax assets, deductibility of gross liabilities | 2,225,000 | 2,418,000 | ||
Interest and penalties | 1,926,000 | $ 1,764,000 | ||
Increase in interest and penalties expense | $ 429,000 | |||
Foreign Tax Credit Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Expiration period | 7 years | |||
Capital Loss Carryforward | ||||
Tax Credit Carryforward [Line Items] | ||||
Expiration period | 5 years |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Apr. 27, 2019 | Apr. 28, 2018 |
Deferred tax assets: | ||
Capital accumulation plan | $ 3,988 | $ 4,862 |
Inventory related items | 4,887 | 4,407 |
Bad debt allowance | 1,888 | 1,052 |
Stock based compensation expense | 6,918 | 6,514 |
Interest rate swap | 4,041 | 4,712 |
Foreign tax credit | 7,358 | 8,472 |
Other | 5,053 | 11,748 |
Gross deferred tax assets | 34,133 | 41,767 |
Less: Valuation allowance | (11,237) | (13,830) |
Total net deferred tax assets | 22,896 | 27,937 |
Deferred tax liabilities | ||
LIFO reserve | (24,098) | (19,727) |
Amortizable intangibles | (77,126) | (84,778) |
Goodwill | (43,903) | (41,635) |
Property, plant, equipment | (40,793) | (33,376) |
Total deferred tax liabilities | (185,920) | (179,516) |
Deferred net long-term income tax liability | $ (163,024) | $ (151,579) |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | $ 22,306 | $ 54,674 | $ 87,807 |
State tax provision, net of federal benefit | 3,492 | 4,650 | 5,217 |
Effect of foreign taxes | 2,728 | (186) | (2,602) |
ESOP | (2,465) | (4,036) | (4,198) |
Other permanent differences | 1,074 | (728) | (2,663) |
Tax on dividends, net of foreign tax credit | 0 | 0 | (2,406) |
Tax reform | (2,686) | (76,648) | 0 |
Other | (1,097) | 563 | (4,062) |
Income tax expense (benefit) | $ 23,352 | $ (21,711) | $ 77,093 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Gross Amounts of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 27, 2019 | Apr. 28, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 14,227 | $ 14,211 |
Additions for tax positions related to the current year | 972 | 1,713 |
Additions for tax positions of prior years | 50 | 232 |
Reductions for tax positions of prior years | (228) | (475) |
Statute expirations | (1,984) | (1,284) |
Settlements | (2) | (170) |
Balance at end of period | $ 13,035 | $ 14,227 |
Segment and Geographic Data - A
Segment and Geographic Data - Additional Information (Details) | 12 Months Ended |
Apr. 27, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Data - I
Segment and Geographic Data - Information by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,436,706 | $ 1,396,745 | $ 1,404,752 | $ 1,336,320 | $ 1,400,609 | $ 1,375,222 | $ 1,385,737 | $ 1,304,115 | $ 5,574,523 | $ 5,465,683 | $ 5,593,127 |
Property and equipment, net | 290,590 | 305,790 | 290,590 | ||||||||
Assets | 3,471,664 | 3,269,269 | 3,471,664 | ||||||||
Dental net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,191,790 | 2,196,078 | 2,390,219 | ||||||||
Assets | 853,555 | 641,721 | 853,555 | ||||||||
Animal Health net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 3,354,528 | 3,242,564 | 3,159,826 | ||||||||
Assets | 2,128,800 | 2,156,723 | 2,128,800 | ||||||||
Corporate net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 28,205 | 27,041 | 43,082 | ||||||||
Assets | 489,309 | 470,825 | 489,309 | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 4,638,184 | 4,537,326 | 4,725,322 | ||||||||
Property and equipment, net | 278,508 | 295,381 | 278,508 | ||||||||
United States | Dental net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,989,875 | 1,985,398 | 2,185,341 | ||||||||
United States | Animal Health net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,620,104 | 2,524,887 | 2,496,899 | ||||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 597,953 | 583,057 | 547,968 | ||||||||
Property and equipment, net | 1,773 | 1,976 | 1,773 | ||||||||
United Kingdom | Animal Health net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 597,953 | 583,057 | 547,968 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 338,386 | 345,300 | 319,837 | ||||||||
Property and equipment, net | $ 10,309 | 8,433 | 10,309 | ||||||||
Canada | Dental net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 201,915 | 210,680 | 204,878 | ||||||||
Canada | Animal Health net sales | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 136,471 | $ 134,620 | $ 114,959 |
Segment and Geographic Data - S
Segment and Geographic Data - Sales Information by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,436,706 | $ 1,396,745 | $ 1,404,752 | $ 1,336,320 | $ 1,400,609 | $ 1,375,222 | $ 1,385,737 | $ 1,304,115 | $ 5,574,523 | $ 5,465,683 | $ 5,593,127 |
Consumable | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 4,482,016 | 4,415,643 | 4,400,888 | ||||||||
Equipment and software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 753,805 | 709,253 | 834,526 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 338,702 | 340,787 | 357,713 | ||||||||
Dental net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,191,790 | 2,196,078 | 2,390,219 | ||||||||
Dental net sales | Consumable | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,214,814 | 1,251,642 | 1,321,764 | ||||||||
Dental net sales | Equipment and software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 694,864 | 660,355 | 780,868 | ||||||||
Dental net sales | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 282,112 | 284,081 | 287,587 | ||||||||
Animal Health net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,354,528 | 3,242,564 | 3,159,826 | ||||||||
Animal Health net sales | Consumable | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,267,202 | 3,164,001 | 3,079,124 | ||||||||
Animal Health net sales | Equipment and software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 58,941 | 48,898 | 53,658 | ||||||||
Animal Health net sales | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 28,385 | 29,665 | 27,044 | ||||||||
Corporate net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 28,205 | 27,041 | 43,082 | ||||||||
Corporate net sales | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 28,205 | $ 27,041 | $ 43,082 |
Segment and Geographic Data -_2
Segment and Geographic Data - Information about Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) from continuing operations | $ 46,623 | $ 45,363 | $ 41,216 | $ 4,514 | $ 41,251 | $ 50,046 | $ 71,759 | $ 56,833 | $ 137,716 | $ 219,889 | $ 287,928 |
Depreciation and amortization | 82,773 | 83,816 | 83,818 | ||||||||
Total assets | 3,471,664 | 3,269,269 | 3,471,664 | ||||||||
Dental net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) from continuing operations | 179,236 | 229,201 | 263,671 | ||||||||
Depreciation and amortization | 8,792 | 7,435 | 11,840 | ||||||||
Total assets | 853,555 | 641,721 | 853,555 | ||||||||
Animal Health net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) from continuing operations | 81,472 | 78,058 | 88,132 | ||||||||
Depreciation and amortization | 49,362 | 50,892 | 50,144 | ||||||||
Total assets | 2,128,800 | 2,156,723 | 2,128,800 | ||||||||
Corporate net sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income (loss) from continuing operations | (122,992) | (87,370) | (63,875) | ||||||||
Depreciation and amortization | 24,619 | 25,489 | $ 21,834 | ||||||||
Total assets | $ 489,309 | $ 470,825 | $ 489,309 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared and Paid (Details) - $ / shares | 3 Months Ended | |||||||||||
Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | Apr. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | |
Equity [Abstract] | ||||||||||||
Cash dividend paid (in usd per share) | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.24 | $ 0.24 | $ 0.24 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2006 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | Apr. 28, 2012 | Dec. 31, 2002 | Mar. 13, 2013 | Dec. 31, 1991 |
Shareholders Equity [Line Items] | ||||||||
Common stock repurchased and retired (in shares) | 0 | 2,147,000 | 2,855,000 | |||||
Common stock repurchased and retired, value | $ 87,500 | $ 125,384 | ||||||
Average cost of common shares repurchased and retired (in usd per share) | $ 40.75 | $ 43.91 | ||||||
Shares authorized for repurchase under share repurchase program (in shares) | 500,000,000 | |||||||
Remaining shares available under repurchase program (in shares) | 500,000,000 | |||||||
Hours of service completed in order to be allocated shares of stock acquired by plan | 1000 hours | |||||||
Number of shares allocated to ESOP (in shares) | 9,387,000 | |||||||
Number of shares allocated to ESOP, Fair value | $ 205,018 | |||||||
ESOP share based compensation expense | 13,740 | $ 18,132 | $ 1,315 | |||||
Fair value of unearned shares by ESOP | $ 50,381 | $ 65,726 | ||||||
Minimum | ||||||||
Shareholders Equity [Line Items] | ||||||||
Unearned shares held by ESOP to occur over a period | 5 years | |||||||
Unearned ESOP Shares | ||||||||
Shareholders Equity [Line Items] | ||||||||
Fair value of unearned shares by ESOP | $ 23,907 | |||||||
Thompson Dental Company | ||||||||
Shareholders Equity [Line Items] | ||||||||
Additional loan to ESOP | $ 12,612 | |||||||
ESOP acquiring shares during acquisition (in shares) | 666,000 | |||||||
Interest due from ESOP | $ 200 | |||||||
Total shares allocated to ESOP (in shares) | 98,000 | |||||||
Remaining shares in ESOP (in shares) | 568,000 | |||||||
Committed-to-be-released (in shares) | 17,000 | |||||||
Suspense shares (in shares) | 394,000 | |||||||
1990 Note | ||||||||
Shareholders Equity [Line Items] | ||||||||
ESOP company loan | $ 22,000 | |||||||
2006 Senior Notes | ||||||||
Shareholders Equity [Line Items] | ||||||||
ESOP company loan | $ 105,000 | |||||||
ESOP acquiring shares during acquisition (in shares) | 3,160,000 | 844,000 | ||||||
Contributed to ESOP | $ 20,214 | |||||||
Committed-to-be-released (in shares) | 585,000 | |||||||
Suspense shares (in shares) | 697,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 08, 2018 | Jun. 29, 2018 | Dec. 01, 2017 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | Apr. 25, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expense recognized | $ 19,685 | $ 18,400 | $ 17,710 | |||||
After-tax stock-based compensation expense | 15,588 | $ 13,037 | 11,910 | |||||
Compensation cost before income taxes related to non-vested awards yet to be recognized | $ 27,998 | |||||||
Total compensation cost expected to be recognized over a weighted average period | 1 year 7 months 6 days | |||||||
Number of shares outstanding (in shares) | 1,556,000 | 1,206,000 | ||||||
Granted (in usd per share) | $ 23.40 | |||||||
Weighted average remaining contractual lives of options outstanding | 7 years 6 months | |||||||
Weighted average remaining contractual lives of options exercisable | 5 years 8 months 12 days | |||||||
Stock options exercised, intrinsic value | $ 2 | $ 88 | 266 | |||||
Stock options exercised, cash received | 13 | 324 | 958 | |||||
Stock options exercised, tax benefit | $ 0 | $ 3 | $ 36 | |||||
First Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 50.00% | |||||||
Second Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 50.00% | |||||||
Non-Statutory Stock Options | First Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 33.00% | |||||||
Non-Statutory Stock Options | Second Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 33.00% | |||||||
Non-Statutory Stock Options | Third Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 33.00% | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of performance units vested | 111,000 | |||||||
Shares granted (in shares) | 773,000 | |||||||
Restricted Stock Units | First Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 50.00% | |||||||
Restricted Stock Units | Second Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting, percentage | 50.00% | |||||||
Performance Unit Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of performance units vested | 0 | 0 | 0 | |||||
Shares granted (in shares) | 142,000 | |||||||
Chief Executive Officer | Non-Statutory Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (in share) | 99,000 | |||||||
Granted (in usd per share) | $ 22.67 | |||||||
Expiration period | 10 years | |||||||
Chief Executive Officer | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (in share) | 31,000 | 56,000 | ||||||
2015 Omnibus Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares of common stock reserved for issuance (in shares) | 11,500,000 | |||||||
Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for awards (in shares) | 7,556,000 | |||||||
Prior Equity Incentive Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares outstanding (in shares) | 796,000 | |||||||
Employee Stock Option Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
Employee Stock Option Plans | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Employee Stock Option Plans | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Restricted Stock And Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total fair value of restricted stock awards vested in period | $ 5,683 | $ 6,939 | $ 8,528 | |||||
Restricted Stock And Restricted Stock Units | First Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock vesting period | 3 years | |||||||
Restricted Stock And Restricted Stock Units | Second Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock vesting period | 5 years | |||||||
Restricted Stock And Restricted Stock Units | Third Anniversary | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock vesting period | 7 years | |||||||
Restricted Stock And Restricted Stock Units | Management | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock vesting period | 3 years | |||||||
Restricted Stock And Restricted Stock Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Minimum restriction period for restricted stock and restricted stock units | 1 year | |||||||
Performance Unit Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock vesting period | 3 years | 3 years | 3 years | |||||
Number of performance units vested | 0 | |||||||
Performance Unit Awards | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares to be received at vesting | 0.00% | |||||||
Performance Unit Awards | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares to be received at vesting | 200.00% | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares of common stock reserved for issuance (in shares) | 6,750,000 | |||||||
Number of shares available for awards (in shares) | 289,000 | |||||||
Percentage of fair market value of the common stock | 85.00% | |||||||
Capital Accumulation Plan (CAP) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares of common stock reserved for issuance (in shares) | 6,000,000 | |||||||
Number of shares available for awards (in shares) | 235,000 | |||||||
Minimum restriction period for restricted stock and restricted stock units | 3 years | |||||||
Percentage of fair market value of the common stock | 75.00% | |||||||
Number of shares reduced (in shares) | 1,500,000 | |||||||
Shares granted (in shares) | 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Weighted-Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Director And Employee Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 4.50% | 2.20% | 2.00% |
Expected stock price volatility | 24.60% | 21.60% | 21.20% |
Risk-free interest rate | 2.90% | 1.90% | 1.20% |
Expected life (years) | 6 years 2 months 12 days | 6 years 7 months 6 days | 6 years 7 months 6 days |
Weighted average grant date fair value per share (in usd per share) | $ 3.66 | $ 8.18 | $ 8.32 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 5.20% | 2.80% | 2.30% |
Expected stock price volatility | 38.60% | 28.10% | 32.90% |
Risk-free interest rate | 2.50% | 1.70% | 0.70% |
Expected life (years) | 18 days | 18 days | 18 days |
Weighted average grant date fair value per share (in usd per share) | $ 5.21 | $ 8.73 | $ 10.33 |
Capital Accumulation Plan (CAP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 2.80% | 2.30% | |
Expected stock price volatility | 24.40% | 28.30% | |
Risk-free interest rate | 1.80% | 0.90% | |
Expected life (years) | 1 year | 1 year | |
Weighted average grant date fair value per share (in usd per share) | $ 12.98 | $ 15.21 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Apr. 27, 2019USD ($)$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 1,206 |
Granted (in shares) | shares | 621 |
Exercised (in shares) | shares | (1) |
Canceled (in shares) | shares | (270) |
Ending balance (in shares) | shares | 1,556 |
Vested or expected to vest at end of year (in shares) | shares | 1,418 |
Exercisable at end of year (in shares) | shares | 282 |
Weighted- Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 50.82 |
Granted (in usd per share) | $ / shares | 23.40 |
Exercised (in usd per share) | $ / shares | 19.85 |
Canceled (in usd per share) | $ / shares | 50.41 |
Ending balance (in usd per share) | $ / shares | 39.96 |
Vested or expected to vest at end of year (in usd per share) | $ / shares | 38.84 |
Exercisable at end of year (in usd per share) | $ / shares | $ 49.05 |
Aggregate Intrinsic Value | |
Balance at end of year | $ | $ 0 |
Vested or expected to vest at end of year | $ | 0 |
Exercisable at end of year | $ | $ 0 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Non-Vested Restricted Stock Awards and Performance Unit Awards (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Restricted Stock Awards | |||
Shares | |||
Outstanding, Beginning balance (in shares) | 304 | ||
Granted (in shares) | 37 | ||
Vested (in shares) | (133) | ||
Forfeitures and cancellations (in shares) | (41) | ||
Outstanding, Ending balance (in shares) | 167 | 304 | |
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 40.13 | ||
Granted (in usd per share) | 24.83 | ||
Vested (in usd per share) | 38.61 | ||
Forfeitures and cancellations (in usd per share) | 41.10 | ||
Ending balance (in usd per share) | $ 37.91 | $ 40.13 | |
Restricted Stock Units | |||
Shares | |||
Outstanding, Beginning balance (in shares) | 541 | ||
Granted (in shares) | 773 | ||
Vested (in shares) | (111) | ||
Forfeitures and cancellations (in shares) | (78) | ||
Outstanding, Ending balance (in shares) | 1,125 | 541 | |
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 45.74 | ||
Granted (in usd per share) | 23.27 | ||
Vested (in usd per share) | 43.71 | ||
Forfeitures and cancellations (in usd per share) | 38.85 | ||
Ending balance (in usd per share) | $ 30.97 | $ 45.74 | |
Performance Unit Awards | |||
Shares | |||
Outstanding, Beginning balance (in shares) | 236 | ||
Granted (in shares) | 142 | ||
Vested (in shares) | 0 | 0 | 0 |
Forfeitures and cancellations (in shares) | (93) | ||
Outstanding, Ending balance (in shares) | 285 | 236 | |
Weighted- Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 51.66 | ||
Granted (in usd per share) | 22.63 | ||
Vested (in usd per share) | 0 | ||
Forfeitures and cancellations (in usd per share) | 50.22 | ||
Ending balance (in usd per share) | $ 34.86 | $ 51.66 |
Litigation (Details)
Litigation (Details) | Mar. 15, 2019subsidiary | Oct. 01, 2018USD ($) | Aug. 28, 2018USD ($) | Feb. 12, 2018USD ($) | Apr. 28, 2018USD ($) | Apr. 29, 2017USD ($) | Jul. 28, 2018USD ($) |
Loss Contingencies [Line Items] | |||||||
Litigation settlement reserve | $ 28,263,000 | ||||||
Damages sought | $ 0 | ||||||
Stock repurchased | $ 412,800,000 | $ 87,500,000 | $ 125,384,000 | ||||
Number of subsidiaries | subsidiary | 2 | ||||||
Kirsten Johnsen V. Scott P. Anderson Et Al | |||||||
Loss Contingencies [Line Items] | |||||||
Stock repurchased | $ 412,800,000 |
Quarterly Results (unaudited) -
Quarterly Results (unaudited) - Summary of Quarterly Results (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Jan. 28, 2017 | Oct. 29, 2016 | Jul. 30, 2016 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | Jul. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 1,436,706,000 | $ 1,396,745,000 | $ 1,404,752,000 | $ 1,336,320,000 | $ 1,400,609,000 | $ 1,375,222,000 | $ 1,385,737,000 | $ 1,304,115,000 | $ 5,574,523,000 | $ 5,465,683,000 | $ 5,593,127,000 | |
Gross profit | 312,527,000 | 299,509,000 | 295,076,000 | 283,663,000 | 289,839,000 | 294,736,000 | 315,743,000 | 299,048,000 | 1,190,775,000 | 1,199,366,000 | 1,301,397,000 | |
Operating income from continuing operations | 46,623,000 | 45,363,000 | 41,216,000 | 4,514,000 | 41,251,000 | 50,046,000 | 71,759,000 | 56,833,000 | 137,716,000 | 219,889,000 | 287,928,000 | |
Net income from continuing operations | 27,685,000 | 31,054,000 | 28,646,000 | (4,509,000) | 20,928,000 | 108,955,000 | 40,244,000 | 30,847,000 | 82,876,000 | 200,974,000 | 173,788,000 | |
Net income from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Net income (loss) | 27,685,000 | 31,054,000 | 28,646,000 | (4,509,000) | 20,928,000 | 108,955,000 | 40,244,000 | 30,847,000 | 82,876,000 | 200,974,000 | 170,893,000 | |
Net loss attributable to noncontrolling interests | (305,000) | (171,000) | (223,000) | (53,000) | 0 | 0 | 0 | 0 | (752,000) | 0 | 0 | |
Net income attributable to Patterson Companies, Inc. | $ 27,990,000 | $ 31,225,000 | $ 28,869,000 | $ (4,456,000) | $ 20,928,000 | $ 108,955,000 | $ 40,244,000 | $ 30,847,000 | $ 83,628,000 | $ 200,974,000 | $ 170,893,000 | |
Basic earnings (loss) per share attributable to Patterson Companies, Inc.: | ||||||||||||
Continuing operations (in usd per share) | $ 0.30 | $ 0.34 | $ 0.31 | $ (0.05) | $ 0.23 | $ 1.18 | $ 0.43 | $ 0.33 | $ 0.90 | $ 2.17 | $ 1.83 | |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | |
Basic (in usd per share) | 0.30 | 0.34 | 0.31 | (0.05) | 0.23 | 1.18 | 0.43 | 0.33 | 0.90 | 2.17 | 1.80 | |
Diluted earnings (loss) per share attributable to Patterson Companies, Inc.: | ||||||||||||
Continuing operations (in usd per share) | 0.30 | 0.33 | 0.31 | (0.05) | 0.23 | 1.18 | 0.43 | 0.33 | 0.89 | 2.16 | 1.82 | |
Discontinued operations (in usd per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | |
Diluted (in usd per share) | $ 0.30 | $ 0.33 | $ 0.31 | $ (0.05) | $ 0.23 | $ 1.18 | $ 0.43 | $ 0.33 | $ 0.89 | $ 2.16 | $ 1.79 | |
Tax Cuts And Jobs Act Of 2017, provisional income tax benefit | $ 77,256 | $ (76,648,000) | ||||||||||
Litigation settlement reserve | $ 28,263,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss ("AOCL") - Summary of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended |
Apr. 27, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 1,461,790 |
Ending Balance | 1,477,259 |
Cash Flow Hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (13,118) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from AOCL | 2,288 |
Ending Balance | (10,830) |
Currency Translation Adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (61,856) |
Other comprehensive loss before reclassifications | (15,583) |
Amounts reclassified from AOCL | 0 |
Ending Balance | (77,439) |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (74,974) |
Other comprehensive loss before reclassifications | (15,583) |
Amounts reclassified from AOCL | 2,288 |
Ending Balance | $ (88,269) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss ("AOCL") - Additional Information (Details) $ in Thousands | 12 Months Ended |
Apr. 27, 2019USD ($) | |
Equity [Abstract] | |
Gains and losses on cash flow hedges, tax | $ 620 |
Increase in interest expense | $ 2,908 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Allowance for doubtful accounts [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 9,537 | $ 9,342 | $ 12,008 |
Charged to Costs and Expenses | 7,333 | 6,280 | 1,825 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 10,098 | 6,085 | 4,491 |
Balance at End of Period | 6,772 | 9,537 | 9,342 |
LIFO inventory adjustment [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 82,105 | 77,816 | 76,501 |
Charged to Costs and Expenses | 9,237 | 4,289 | 1,315 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | 91,342 | 82,105 | 77,816 |
Inventory obsolescence reserve [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 5,376 | 5,621 | 6,621 |
Charged to Costs and Expenses | 30,995 | 22,919 | 18,026 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 26,272 | 23,164 | 19,026 |
Balance at End of Period | 10,099 | 5,376 | 5,621 |
Total inventory reserve [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 87,481 | 83,437 | 83,122 |
Charged to Costs and Expenses | 40,232 | 27,208 | 19,341 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 26,272 | 23,164 | 19,026 |
Balance at End of Period | $ 101,441 | $ 87,481 | $ 83,437 |