Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 29, 2023 | Jun. 14, 2023 | Oct. 29, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 29, 2023 | ||
Current Fiscal Year End Date | --04-29 | ||
Document Transition Report | false | ||
Entity File Number | 0-20572 | ||
Entity Registrant Name | PATTERSON COMPANIES, INC. | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0886515 | ||
Entity Address, Address Line One | 1031 Mendota Heights Road | ||
Entity Address, City or Town | St. Paul | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55120 | ||
City Area Code | 651 | ||
Local Phone Number | 686-1600 | ||
Title of 12(b) Security | Common Stock, par value $.01 | ||
Trading Symbol | PDCO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,521 | ||
Entity Common Stock, Shares Outstanding | 95,294,000 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000891024 |
Audit Information
Audit Information | 12 Months Ended |
Apr. 29, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 159,669 | $ 142,014 |
Receivables, net of allowance for doubtful accounts of $3,667 and $5,913 | 477,384 | 447,162 |
Inventory | 795,072 | 785,604 |
Prepaid expenses and other current assets | 351,011 | 304,242 |
Total current assets | 1,783,136 | 1,679,022 |
Property and equipment, net | 212,283 | 213,140 |
Operating lease right-of-use assets, net | 92,956 | 70,722 |
Long-term receivables, net | 121,717 | 138,812 |
Goodwill, net | 156,420 | 140,630 |
Identifiable intangibles, net | 231,873 | 252,614 |
Investments | 160,022 | 139,182 |
Other non-current assets, net | 120,739 | 107,508 |
Total assets | 2,879,146 | 2,741,630 |
Current liabilities: | ||
Accounts payable | 724,993 | 681,321 |
Accrued payroll expense | 82,253 | 102,266 |
Other accrued liabilities | 168,696 | 173,734 |
Operating lease liabilities | 28,390 | 29,348 |
Current maturities of long-term debt | 36,000 | 0 |
Borrowings on revolving credit | 45,000 | 29,000 |
Total current liabilities | 1,085,332 | 1,015,669 |
Long-term debt | 451,231 | 488,554 |
Non-current operating lease liabilities | 67,376 | 43,332 |
Deferred income taxes | 119,143 | 120,414 |
Other non-current liabilities | 37,529 | 31,026 |
Total liabilities | 1,760,611 | 1,698,995 |
Stockholders’ equity: | ||
Common stock | 964 | 968 |
Additional paid-in capital | 233,706 | 200,520 |
Accumulated other comprehensive loss | (89,262) | (81,516) |
Retained earnings | 972,127 | 921,704 |
Total stockholders’ equity | 1,117,535 | 1,041,676 |
Noncontrolling interests | 1,000 | 959 |
Total stockholders’ equity | 1,118,535 | 1,042,635 |
Total liabilities and stockholders’ equity | $ 2,879,146 | $ 2,741,630 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 3,667 | $ 5,913 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 600,000 | 600,000 |
Common stock, issued shares (in shares) | 96,350 | 96,762 |
Common stock, outstanding shares (in shares) | 96,350 | 96,762 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 6,471,471 | $ 6,499,405 | $ 5,912,066 |
Cost of sales | 5,098,526 | 5,210,318 | 4,708,936 |
Gross profit | 1,372,945 | 1,289,087 | 1,203,130 |
Operating expenses | 1,096,974 | 1,132,085 | 992,523 |
Goodwill impairment | 0 | 0 | 0 |
Operating income | 275,971 | 157,002 | 210,607 |
Gains on investments | 0 | 101,809 | 0 |
Other income (expense): | |||
Other income, net | 27,826 | 27,731 | 13,608 |
Interest expense | (33,636) | (20,288) | (24,284) |
Income before taxes | 270,161 | 266,254 | 199,931 |
Income tax expense | 63,563 | 64,540 | 44,822 |
Net income | 206,598 | 201,714 | 155,109 |
Net loss attributable to noncontrolling interests | (959) | (1,496) | (872) |
Net income attributable to Patterson Companies, Inc. | $ 207,557 | $ 203,210 | $ 155,981 |
Earnings (loss) per share attributable to Patterson Companies, Inc.: | |||
Basic (in usd per share) | $ 2.14 | $ 2.09 | $ 1.63 |
Diluted (in usd per share) | $ 2.12 | $ 2.06 | $ 1.61 |
Weighted average shares: | |||
Basic (in shares) | 97,027 | 97,277 | 95,599 |
Diluted (in shares) | 97,815 | 98,514 | 96,664 |
Dividends declared per common share (in usd per share) | $ 1.04 | $ 1.04 | $ 1.04 |
Comprehensive income | |||
Net income | $ 206,598 | $ 201,714 | $ 155,109 |
Foreign currency translation gain (loss) | (8,788) | (19,966) | 33,405 |
Cash flow hedges, net of tax | 1,042 | 1,042 | 1,042 |
Comprehensive income | $ 198,852 | $ 182,790 | $ 189,556 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 1,042,635 | $ 964,671 | $ 836,444 |
Beginning balance (in shares) | 96,762 | ||
Foreign currency translation | $ (8,788) | (19,966) | 33,405 |
Cash flow hedges | 1,042 | 1,042 | 1,042 |
Net income | 206,598 | 201,714 | 155,109 |
Dividends declared | (101,662) | (102,257) | (99,892) |
Common stock issued | 17,659 | 7,626 | 1,279 |
Repurchases of common stock | (55,492) | (35,000) | |
Stock based compensation | 15,543 | 23,805 | 21,223 |
ESOP activity | 16,061 | ||
Contribution from noncontrolling interest | 1,000 | 1,000 | |
Ending balance | $ 1,118,535 | $ 1,042,635 | 964,671 |
Ending balance (in shares) | 96,350 | 96,762 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 968 | $ 968 | $ 959 |
Beginning balance (in shares) | 96,762 | 96,813 | 95,947 |
Common stock issued | $ 16 | $ 10 | $ 9 |
Common stock issued (in shares) | 1,608 | 981 | 866 |
Repurchases of common stock | $ (20) | $ (10) | |
Repurchases of common stock (in shares) | (2,020) | (1,032) | |
Ending balance | $ 964 | $ 968 | $ 968 |
Ending balance (in shares) | 96,350 | 96,762 | 96,813 |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 200,520 | $ 169,099 | $ 146,606 |
Common stock issued | 17,643 | 7,616 | 1,270 |
Stock based compensation | 15,543 | 23,805 | 21,223 |
Ending balance | 233,706 | 200,520 | 169,099 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (81,516) | (62,592) | (97,039) |
Foreign currency translation | (8,788) | (19,966) | 33,405 |
Cash flow hedges | 1,042 | 1,042 | 1,042 |
Ending balance | (89,262) | (81,516) | (62,592) |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 921,704 | 855,741 | 799,652 |
Net income | 207,557 | 203,210 | 155,981 |
Dividends declared | (101,662) | (102,257) | (99,892) |
Repurchases of common stock | (55,472) | (34,990) | |
Ending balance | 972,127 | 921,704 | 855,741 |
Unearned ESOP Shares | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0 | 0 | (16,061) |
ESOP activity | 16,061 | ||
Ending balance | 0 | 0 | 0 |
Non-controlling interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 959 | 1,455 | 2,327 |
Net income | (959) | (1,496) | (872) |
Contribution from noncontrolling interest | 1,000 | 1,000 | |
Ending balance | $ 1,000 | $ 959 | $ 1,455 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Operating activities: | |||
Net income | $ 206,598 | $ 201,714 | $ 155,109 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation | 45,772 | 44,180 | 41,669 |
Amortization | 37,932 | 37,812 | 37,227 |
Gains on investments | 0 | (101,809) | 0 |
Bad debt expense | 3,450 | 2,769 | 2,559 |
Non-cash employee compensation | 15,543 | 23,805 | 30,488 |
Deferred income taxes | (1,993) | (4,718) | (10,760) |
Non-cash losses (gains) and other, net | 654 | (1,431) | 1,318 |
Change in assets and liabilities: | |||
Receivables | (1,047,075) | (1,144,833) | (916,694) |
Inventory | (11,086) | (53,871) | 91,193 |
Accounts payable | 43,095 | 80,904 | (268,338) |
Accrued liabilities | (21,714) | (27,630) | 85,849 |
Other changes from operating activities, net | (26,028) | (37,886) | 19,861 |
Net cash used in operating activities | (754,852) | (980,994) | (730,519) |
Investing activities: | |||
Additions to property and equipment and software | (64,220) | (38,308) | (25,788) |
Payments related to acquisitions, net of cash acquired | (33,280) | (19,793) | 0 |
Collection of deferred purchase price receivables | 998,912 | 1,213,497 | 833,958 |
Sale of investments | 0 | 75,942 | 396 |
Payments related to investments | (15,000) | 0 | 0 |
Other investing activities | 15,155 | 7,690 | 2,097 |
Net cash provided by investing activities | 901,567 | 1,239,028 | 810,663 |
Financing activities: | |||
Dividends paid | (101,346) | (101,111) | (75,183) |
Repurchases of common stock | (55,492) | (35,000) | 0 |
Payments on long-term debt | (1,500) | (100,750) | 0 |
Draw (payment) on revolving credit | 16,000 | (24,000) | 53,000 |
Other financing activities | 15,854 | 7,627 | (462) |
Net cash used in financing activities | (126,484) | (253,234) | (22,645) |
Effect of exchange rate changes on cash | (2,576) | (6,030) | 7,801 |
Net change in cash and cash equivalents | 17,655 | (1,230) | 65,300 |
Cash and cash equivalents at beginning of period | 142,014 | 143,244 | 77,944 |
Cash and cash equivalents at end of period | 159,669 | 142,014 | 143,244 |
Supplemental disclosures: | |||
Income taxes paid | 62,081 | 83,549 | 48,924 |
Interest paid | 19,623 | 14,633 | 15,234 |
Supplemental disclosure of non-cash investing activity: | |||
Retained interest in securitization transactions | $ 1,008,741 | $ 1,122,627 | $ 900,578 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 29, 2023 | |
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"), PDC Funding Company III, LLC ("PDC Funding III") and PDC Funding Company IV, LLC ("PDC Funding IV") , 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 and PDC Funding IV are fully consolidated special purpose entities established to sell certain receivables to unaffiliated financial institutions. The assets of PDC Funding, PDC Funding II, PDC Funding III and PDC Funding IV would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding, PDC Funding II, PDC Funding III or PDC Funding IV. 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 2023 ended on April 29, 2023 and consisted of 52 weeks. Fiscal 2022 ended on April 30, 2022 and consisted of 53 weeks. Fiscal 2021 ended on April 24, 2021 and consisted of 52 weeks. Fiscal 2024 will end on April 27, 2024 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 cost, which approximates fair value. 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 81% and 85% of total inventories at April 29, 2023 and April 30, 2022, respectively. The accumulated LIFO reserve was $146,915 and $130,959 at April 29, 2023 and April 30, 2022, respectively. 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 and other indefinite-lived intangible assets are not amortized but rather are tested at least annually at the beginning of the fourth quarter for impairment, or more often if events or circumstances indicate the carrying value of the asset may not be recoverable. Goodwill impairment testing is done at the reporting unit level, which represents an operating segment or a component of an operating segment. We have two reporting units; Dental and Animal Health. Our Corporate reportable segment's assets and liabilities, and net sales and expenses, are allocated to the two reporting units. We perform a qualitative evaluation or a quantitative test to assess goodwill for impairment. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We may elect not to perform the qualitative assessment for one or both reporting units and perform a quantitative impairment test. If performed, the quantitative goodwill impairment test compares the fair value of each reporting unit to the reporting unit's carrying value, including goodwill. If the reporting unit's carrying value exceeds its fair value, an impairment loss will be recognized. Any goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. The determination of fair value 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. Our indefinite-lived intangible asset is a trade name, which is assessed for impairment by comparing the carrying value of the 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. We performed qualitative assessments for our goodwill impairment tests in fiscal 2023. No impairments were recorded in fiscal 2023, 2022, or 2021 as a result of goodwill and other indefinite-lived impairment tests performed. Recoverability of 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 7. Other Non-current Assets, Net April 29, 2023 April 30, 2022 Development costs of software to be sold, net $ 71,467 $ 64,513 Other 49,272 42,995 Other non-current assets, net $ 120,739 $ 107,508 During fiscal 2023, 2022 and 2021, we recorded $9,068, $7,267 and $2,346, respectively, of amortization expense related to the development costs of software to be sold in cost of sales within the consolidated statements of operations and other comprehensive income. Recoverability of Development Costs of Software to be Sold At the end of each fiscal quarter, we compare the unamortized capitalized costs of software to be sold to its net realizable value. If the unamortized amount exceeds the net realizable value, an impairment is recorded. If the unamortized capitalized costs are less than the net realizable value of that asset, then there is no impairment. 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 product, 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 support and software services is recognized ratably over the period in which the support and services are 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 29, 2023 and April 30, 2022 were $1,338 and $134, respectively. 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 29, 2023 and April 30, 2022, contract liabilities of $36,850 and $38,581 were reported in other accrued liabilities, respectively. During the fiscal year ended April 29, 2023, we recognized $35,594 of the amount previously deferred at April 30, 2022. 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. Costs of the program and changes in the corresponding liability are recognized as reductions to net sales. As of April 29, 2023, 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 88.0% 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 operations and other comprehensive income. Advertising We expense all advertising and promotional costs as incurred, except for direct marketing expenses, which are expensed over the shorter of the life of the asset or one year. Total net advertising and promotional expenses were $6,888, $1,532 and $134 for fiscal 2023, 2022 and 2021, respectively. There were no deferred direct-marketing expenses included in the consolidated balance sheets as of April 29, 2023 and April 30, 2022. Related Party Transactions We have interests in a number of entities that are accounted for using the equity method. During fiscal 2023, 2022 and 2021, we made purchases of $198,712, $193,625 and $111,339 from these entities, respectively. During fiscal 2023, 2022 and 2021, we recorded net sales of $123,271, $117,347 and $93,577 to these entities, respectively. 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 basis 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. 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 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. Other Income (Expense), Net Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Gain on interest rate swap agreements $ 9,968 $ 15,835 $ 1,151 Investment income and other 17,858 11,896 12,457 Other income (expense), net $ 27,826 $ 27,731 $ 13,608 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 $321, $321 and $321 for fiscal 2023, 2022 and 2021, respectively. Earnings Per Share ("EPS") The amount of basic EPS is computed by dividing net income attributable to Patterson Companies, Inc. 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 29, 2023 April 30, 2022 April 24, 2021 Denominator for basic EPS – weighted average shares 97,027 97,277 95,599 Effect of dilutive securities – stock options, restricted stock and stock purchase plans 788 1,237 1,065 Denominator for diluted EPS – weighted average shares 97,815 98,514 96,664 Potentially dilutive securities representing 932, 772 and 1,014 shares for fiscal 2023, 2022 and 2021, respectively, were excluded from the calculation of diluted EPS because their effects were anti-dilutive using the treasury stock method. Recent Accounting Pronouncements |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionsDuring the third quarter of fiscal 2023, we acquired substantially all of the assets of Relief Services for Veterinary Practitioners and Animal Care Technologies (RSVP and ACT), Texas-based companies that provide innovative solutions to veterinary practices through data extraction and conversion, staffing and video-based training services. Also during the third quarter of fiscal 2023, we acquired substantially all of the assets of Dairy Tech, Inc., a Colorado-based company that provides pasteurizing equipment and single-use bags that allow dairy producers to produce, store and feed colostrum for newborn calves, as well as product offerings for beef cattle producers. These acquisitions are expected to expand our companion animal and production animal value-added platforms by adding solutions to their suite of offerings. The total purchase price for these acquisitions is $37,535, which includes holdbacks of $4,255 that will be paid on the 24 month anniversary of the closing dates and working capital adjustments of $23 which were paid in the fourth quarter of fiscal 2023. As of the acquisition date, we have recorded $17,300 of identifiable intangibles, $16,040 of goodwill and net tangible assets of $4,233 in our condensed consolidated balance sheets related to these acquisitions. Goodwill, which is deductible for income tax purposes, was increased by $272 subsequent to acquisition date as a result of working capital adjustments. Goodwill was recorded within the Animal Health segment and represents the expected benefit of integrating these value-added platforms with our existing operations. We have included their results of operations in our financial statements since the date of acquisition within the Animal Health segment. The accounting for these acquisitions is not complete because certain information and analysis that may impact our initial valuations are still being obtained or reviewed. The acquisitions did not materially impact our financial statements, and therefore pro forma results are not provided. During the first quarter of fiscal 2022, we acquired substantially all of the assets of Miller Vet Holdings, LLC, a multiregional veterinary distributor, for total cash consideration of $19,793 and liabilities assumed of $6,799. We have included its results of operations in our financial statements since the date of acquisition within our Animal Health segment. This acquisition allows us to grow our presence in the companion animal market and drive increased operating leverage and synergies. As of the acquisition date, we recorded $14,000 of identifiable intangibles, $1,063 of goodwill and net tangible assets of $4,796 in our consolidated balance sheets related to this acquisition. Goodwill, which is deductible for income tax purposes, was reduced by $66 subsequent to the acquisition date as a result of working capital adjustments. The accounting for the acquisition was complete as of April 30, 2022. The acquisition did not materially impact our financial statements, and therefore pro forma results are not provided. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Apr. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consisted of the following: April 29, 2023 April 30, 2022 Cash on hand $ 111,892 $ 138,828 Money market funds 47,777 3,186 Total $ 159,669 $ 142,014 Cash on hand is generally in interest earning accounts. Included in cash and cash equivalents in the consolidated balance sheets are $33,072 and $39,106 as of April 29, 2023 and April 30, 2022, respectively, which represent cash collected from previously sold customer financing contracts that have not yet been settled. See Note 5 for additional information. |
Receivables Securitization Prog
Receivables Securitization Program | 12 Months Ended |
Apr. 29, 2023 | |
Transfers and Servicing [Abstract] | |
Receivables Securitization Program | Receivables Securitization Program We are party to certain receivables purchase agreements (the “Receivables Purchase Agreements”) with MUFG Bank, Ltd. ("MUFG") (f.k.a. The Bank of Tokyo-Mitsubishi UFJ, Ltd.), under which 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 and PDC Funding IV to facilitate the sale to fulfill requirements within the agreement. We use a daily unit of account for these Receivables. 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 Agreements 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 29, 2023, of which $200,000 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. As of April 29, 2023 and April 30, 2022, the fair value of outstanding trade receivables transferred to the Purchasers under the facility and derecognized from the consolidated balance sheets were $429,853 and $396,443, respectively. Sales of trade receivables under this facility were $3,718,167, $3,643,700, and $3,171,456, and cash collections from customers on receivables sold were $3,684,412, $3,632,145 and $3,094,060 during the fiscal years ended 2023, 2022 and 2021, respectively. The DPP receivable is recorded at fair value within the consolidated balance sheets within prepaid expenses and other current assets. 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 inclusive of bank fees and allowance for credit losses. In operating expenses in the consolidated statements of operations and other comprehensive income, we recorded losses of $11,403, $3,247 and $3,338 during fiscal 2023, 2022 and 2021, respectively, related to the Receivables. The following rollforward summarizes the activity related to the DPP receivable: Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Beginning DPP receivable balance $ 195,764 $ 183,999 $ 117,327 Non-cash additions to DPP receivable 960,909 1,052,938 768,619 Cash collections on DPP receivable (928,727) (1,041,173) (701,947) Ending DPP receivable balance $ 227,946 $ 195,764 $ 183,999 |
Customer Financing
Customer Financing | 12 Months Ended |
Apr. 29, 2023 | |
Receivables [Abstract] | |
Customer Financing | Customer Financing As a convenience to our customers, we offer several different financing alternatives, including a third party program and a Patterson-sponsored program. For the third party program, we act as a facilitator between the customer and the third party financing entity with no on-going involvement in the financing transaction. Under 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. We use a monthly unit of account for these financing 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 15.0% 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 MUFG. The capacity under the agreement with MUFG at April 29, 2023 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 15.0% 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 29, 2023 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 or loss on sale of the related receivables and recorded in net sales in the consolidated statements of operations and other comprehensive income. Expenses incurred related to customer financing activities are recorded in operating expenses in our consolidated statements of operations and other comprehensive income. During fiscal 2023, 2022 and 2021, we sold $261,853, $314,732 and $369,497 of contracts under these arrangements, respectively. In net sales in the consolidated statements of operations and other comprehensive income, we recorded losses of $4,082, $18,379 and $2,048 during fiscal 2023, 2022 and 2021, respectively, related to these contracts sold. Cash collections on financed receivables sold were $302,851, $426,188 and $401,535 during the fiscal years ended 2023, 2022 and 2021, respectively. Included in cash and cash equivalents in the consolidated balance sheets are $33,072 and $39,106 as of April 29, 2023 and April 30, 2022, 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 $77,646 and $58,190 as of April 29, 2023 and April 30, 2022, respectively, of finance contracts we have not yet sold. A total of $555,763 of finance contracts receivable sold under the arrangements was outstanding at April 29, 2023. Since the internal financing program began in 1994, bad debt write-offs have amounted to less than 1% of the loans originated. The following rollforward summarizes the activity related to the DPP receivable: Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Beginning DPP receivable balance $ 125,332 $ 227,967 $ 228,019 Non-cash additions to DPP receivable 47,832 69,689 131,959 Cash collections on DPP receivable (70,185) (172,324) (132,011) Ending DPP receivable balance $ 102,979 $ 125,332 $ 227,967 The arrangements require us to maintain a minimum current ratio and maximum leverage ratio. We were in compliance with those covenants at April 29, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Apr. 29, 2023 | |
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 29, 2023, PDC Funding had purchased an interest rate cap from a bank with a notional amount of $525,000 and a maturity date of August 2030. We sold an identical interest rate cap to the same bank. As of April 29, 2023, PDC Funding II had purchased an interest rate cap from a bank with a notional amount of $100,000 and a maturity date of September 2029. 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 in fair value as income or expense during the period in which the change occurs. In January 2014, we entered into a forward interest rate swap agreement with a notional amount of $250,000 and accounted for 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, net of tax, and is recognized as interest expense over the life of the related debt. We utilize forward interest rate swap agreements 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 in fair value as income or expense during the period in which the change occurs. As of April 30, 2022, the remaining notional amount for interest rate swap agreements was $574,144, with the latest maturity date in fiscal 2029. During fiscal 2023, we entered into forward interest rate swap agreements with a notional amount of $214,805. As of April 29, 2023, the remaining notional amount for interest rate swap agreements was $551,504, with the latest maturity date in fiscal 2030. Net cash receipts of $7,626 were received and net cash payments of $6,770 were made in fiscal 2023 and 2022, respectively, to settle a portion of our liabilities related to these interest rate swap agreements. These payments and receipts are reflected as cash flows in the consolidated statements of cash flows within net cash used in operating activities. The following presents the fair value of derivative instruments included in the consolidated balance sheets: Derivative type Classification April 29, 2023 April 30, 2022 Assets: Interest rate contracts Prepaid expenses and other current assets $ 5,875 $ 3,875 Interest rate contracts Other non-current assets 23,210 19,871 Total asset derivatives $ 29,085 $ 23,746 Liabilities: Interest rate contracts Other accrued liabilities $ 267 $ 250 Interest rate contracts Other non-current liabilities 12,993 10,013 Total liability derivatives $ 13,260 $ 10,263 The following tables present the pre-tax effect of derivative instruments on the consolidated statements of operations 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 Statements of operations location April 29, 2023 April 30, 2022 April 24, 2021 Interest rate contracts Interest expense $ (1,363) $ (1,363) $ (1,363) Amount of Gain (Loss) Recognized in Income on Derivatives Fiscal Year Ended Derivatives not designated as hedging instruments Statements of operations location April 29, 2023 April 30, 2022 April 24, 2021 Interest rate contracts Other income, net $ 9,968 $ 15,835 $ 1,151 There were no gains or losses recognized in other comprehensive income on cash flow hedging derivatives in fiscal 2023, 2022 or 2021. We recorded no ineffectiveness during fiscal 2023, 2022 or 2021. As of April 29, 2023, the estimated pre-tax portion of accumulated other comprehensive loss that is expected to be reclassified into earnings over the next twelve months is $1,363, which will be recorded as an increase to interest expense. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 29, 2023 | |
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 Our hierarchy for assets and liabilities measured at fair value on a recurring basis is as follows: April 29, 2023 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 47,777 $ 47,777 $ — $ — DPP receivable - receivables securitization program 227,946 — — 227,946 DPP receivable - customer financing 102,979 — — 102,979 Derivative instruments 29,085 — 29,085 — Total assets $ 407,787 $ 47,777 $ 29,085 $ 330,925 Liabilities: Derivative instruments $ 13,260 $ — $ 13,260 $ — April 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 3,186 $ 3,186 $ — $ — DPP receivable - receivables securitization program 195,764 — — 195,764 DPP receivable - customer financing 125,332 — — 125,332 Derivative instruments 23,746 — 23,746 — Total assets $ 348,028 $ 3,186 $ 23,746 $ 321,096 Liabilities: Derivative instruments $ 10,263 $ — $ 10,263 $ — 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. We adjust the carrying value of our non-marketable equity securities to fair value when observable transactions of identical or similar securities occur, or due to an impairment. In fiscal 2022, we sold a portion of our investment in Vetsource, with a carrying value of $25,814, for $56,849. We recorded a pre-tax gain of $31,035 in gains on investments in our consolidated statements of operations and other comprehensive income as a result of this sale. The cash received of $56,849 is reported within investing activities in our consolidated statements of cash flows. In fiscal 2022, we also recorded a pre-tax non-cash gain of $31,035 to reflect the increase in the carrying value of the remaining portion of our investment in Vetsource, which was based on the selling price of the portion of the investment we sold for $56,849. This gain was recorded in gains on investments in our consolidated statements of operations and other comprehensive income. The carrying value of the investment we owned following this sale was $56,849 and $56,849 as of April 29, 2023 and April 30, 2022, respectively. Concurrent with the sale completed in fiscal 2022, we obtained rights that will allow us, under certain circumstances, to require another shareholder of Vetsource to purchase our remaining shares. We recorded a pre-tax non-cash gain of $25,757 in gains on investments in our consolidated statements of operations and other comprehensive income as a result of this transaction. The carrying value of this put option as of April 29, 2023 is $25,757, and is reported within investments in our consolidated balance sheets. The aggregate gains on investments of $87,827 are reported within operating activities in our consolidated statements of cash flows. Concurrent with obtaining this put option, we also granted rights to the same Vetsource shareholder that would allow such shareholder, under certain circumstances, to require us to sell our remaining shares at fair value. There were no fair value adjustments to such assets during the fiscal year ended April 29, 2023. In fiscal 2022, we sold a portion of our investment in Vets Plus with a carrying value of $4,009 for $17,101. We recorded a pre-tax gain of $13,092 in gains on investments in our consolidated statements of operations and other comprehensive income as a result of this sale. This $13,092 pre-tax gain is reported within operating activities in our consolidated statements of cash flows. The cash received of $17,101 is reported within investing activities in our consolidated statements of cash flows. The carrying value of the investment we owned following this sale was $2,299 and $2,355 as of April 29, 2023 and April 30, 2022, respectively. Our debt is not measured at fair value in the consolidated balance sheets. The estimated fair value of our debt as of April 29, 2023 and April 30, 2022 was $483,139 and $489,777, respectively, as compared to a carrying value of $487,231 and $488,554 at April 29, 2023 and April 30, 2022, 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 29, 2023 and April 30, 2022. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 29, 2023 | |
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 reporting units for the fiscal year ended April 29, 2023 were as follows: Balance at April 30, 2022 Acquisition Foreign Currency Translation Balance at April 29, 2023 Dental $ 139,633 $ — $ (522) $ 139,111 Animal Health 997 16,312 — 17,309 Total $ 140,630 $ 16,312 $ (522) $ 156,420 Balances of other intangible assets, excluding goodwill, were as follows: April 29, 2023 April 30, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Unamortized - indefinite lived: Trade name $ 12,300 $ — $ 12,300 $ 12,300 $ — $ 12,300 Amortized - definite lived: Customer relationships 380,205 205,524 174,681 366,969 181,280 185,689 Trade names and trademarks 135,876 107,519 28,357 132,996 95,903 37,093 Developed technology and other 52,920 36,385 16,535 65,757 48,225 17,532 Total amortized intangible assets 569,001 349,428 219,573 565,722 325,408 240,314 Total identifiable intangible assets $ 581,301 $ 349,428 $ 231,873 $ 578,022 $ 325,408 $ 252,614 With respect to the amortized intangible assets, future amortization expense is expected to approximate $38,545, $38,540, $28,730, $27,337 and $26,770 for fiscal 2024, 2025, 2026, 2027 and 2028, 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: April 29, 2023 April 30, 2022 Land $ 9,687 $ 11,341 Buildings 98,174 106,957 Leasehold improvements 31,712 31,395 Furniture and equipment 204,754 187,093 Computer hardware and software 250,805 254,205 Construction-in-progress (1) 32,233 30,502 Property and equipment, gross 627,365 621,493 Accumulated depreciation (415,082) (408,353) Property and equipment, net $ 212,283 $ 213,140 (1) Includes $10,661 and $8,585 of unamortized development costs of software to be sold as of April 29, 2023 and April 30, 2022, respectively. |
Leases
Leases | 12 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases | Leases We lease certain warehouses, office space, vehicles and equipment. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. We recognize lease expense for these leases on a straight-line basis over the lease term. We do not separate lease and non-lease components, and instead account for each lease and non-lease component associated with that lease as a single lease component. Some leases include one or more options to renew. The exercise of renewal options is at our sole discretion. Our lease agreements do not contain significant residual value guarantees, restrictions or covenants. Total lease costs for the fiscal year ended April 29, 2023 and April 30, 2022 were $35,640 and $35,646, respectively, which include variable lease costs and short-term lease costs, which were immaterial. The following table presents future maturities of lease liabilities: 2024 $ 31,482 2025 22,694 2026 15,337 2027 10,943 2028 5,903 After 2028 28,522 Total lease payments 114,881 Less: imputed interest (19,115) Present value of lease liabilities $ 95,766 The following tables present other supplemental information related to leases: Fiscal Year Ended April 29, 2023 April 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 35,779 $ 38,192 Lease assets obtained in exchange for new operating lease liabilities $ 56,603 $ 31,132 April 29, 2023 April 30, 2022 Weighted-average remaining lease term - operating leases 6.50 years 2.98 years Weighted-average discount rate - operating leases 4.40 % 3.10 % |
Debt
Debt | 12 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our long-term debt consisted of the following: Carrying Value Interest Rate April 29, 2023 April 30, 2022 Senior notes due fiscal 2024 (1) 3.74 % 33,000 33,000 Senior notes due fiscal 2025 (2) 3.48 % 117,500 117,500 Senior notes due fiscal 2028 (3) 3.79 % 40,000 40,000 Term loan due fiscal 2024 through 2028 (4) 6.08 % 298,500 300,000 Less: Deferred debt issuance costs (1,769) (1,946) Total debt 487,231 488,554 Less: Current maturities of long-term debt (36,000) — Long-term debt $ 451,231 $ 488,554 (1) Issued in December 2011. (2) Issued in March 2015. (3) Issued in March 2018. (4) Issued in December 2019, amended in October 2022. Interest rate is 1-month SOFR plus 1.10% as of April 29, 2023. Future principal payments due, based on stated contractual maturities for our long-term debt, were as follows as of April 29, 2023: Fiscal Year 2024 $ 36,000 2025 122,750 2026 11,250 2027 15,000 2028 304,000 Thereafter — Total $ 489,000 In fiscal 2021, we entered into an amendment, restatement and consolidation of certain credit agreements with various lenders, including MUFG Bank, Ltd, as administrative agent. This amended and restated credit agreement (the “Credit Agreement”) consisted of a $700,000 revolving credit facility and a $300,000 term loan facility, and was set to mature no later than February 2024. In fiscal 2023, we amended and restated the Credit Agreement (the “Amended Credit Agreement”). The Amended Credit Agreement consists of a $700,000 revolving credit facility and a $300,000 term loan facility, and will mature no later than October 2027. We used the Amended Credit Agreement facilities to refinance and consolidate the Credit Agreement, and pay the fees and expenses incurred therewith. We expect to use the Amended Credit Agreement to finance our ongoing working capital needs and for other general corporate purposes. As of April 29, 2023, $298,500 was outstanding under the Amended Credit Agreement term loan at an interest rate of 6.08% and $45,000 was outstanding under the Amended Credit Agreement revolving credit facility at an interest rate of 5.93%. As of April 30, 2022, $300,000 was outstanding under the Credit Agreement term loan at an interest rate of 1.89%, and $29,000 was outstanding under the Credit Agreement revolving credit facility at an interest rate of 1.54%. 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 29, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before taxes were as follows: Fiscal Year Ended April 29, April 30, April 24, Income before taxes United States $ 233,416 $ 225,195 $ 166,251 International 36,745 41,059 33,680 Total $ 270,161 $ 266,254 $ 199,931 Significant components of income tax expense were as follows: Fiscal Year Ended April 29, April 30, April 24, Current: Federal $ 46,982 $ 46,964 $ 36,836 Foreign 8,280 11,968 9,975 State 10,294 10,326 8,771 Total current expense 65,556 69,258 55,582 Deferred: Federal (4,217) (3,918) (7,529) Foreign 2,601 (217) (362) State (377) (583) (2,869) Total deferred benefit (1,993) (4,718) (10,760) Income tax expense $ 63,563 $ 64,540 $ 44,822 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) were as follows: April 29, April 30, Deferred tax assets: Employee compensation and benefits $ 7,519 $ 9,352 Inventory related items 8,228 9,985 Foreign deferred assets, net 9,551 11,812 Foreign tax credit 7,003 7,037 Lease liability 16,243 14,416 Accrued charitable contributions 902 6,559 Capitalized research and experimentation costs 5,172 — Other accrued liabilities 7,744 6,642 Other 5,475 5,190 Gross deferred tax assets 67,837 70,993 Less: Valuation allowance (18,276) (18,615) Total net deferred tax assets 49,561 52,378 Deferred tax liabilities LIFO reserve (26,010) (20,965) Amortizable intangibles (45,042) (52,952) Goodwill (17,094) (15,727) Property, plant, equipment (33,161) (38,175) Lease right-of-use assets (15,793) (14,103) Investments (26,959) (26,449) Other (3,223) (3,401) Total deferred tax liabilities (167,282) (171,772) Deferred net long-term income tax liability $ (117,721) $ (119,394) At April 29, 2023, we had a U.S. foreign tax credit asset that will expire in three years. In addition, we have foreign deferred tax assets which would give rise to tax capital losses if triggered in the future. These losses 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 $18,276 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. 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 29, April 30, April 24, Tax at U.S. statutory rate $ 56,732 $ 55,912 $ 41,984 State tax provision, net of federal benefit 8,416 9,176 5,400 Effect of foreign taxes 2,853 3,199 2,594 ESOP (2,049) (2,121) (2,286) Other permanent differences 2,481 944 808 Other (4,870) (2,570) (3,678) Income tax expense $ 63,563 $ 64,540 $ 44,822 We have accounted for the uncertainty in income taxes recognized in the financial statements in accordance with ASC Topic 740. 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 29, 2023 and April 30, 2022, Patterson’s gross unrecognized tax benefits were $8,291 and $9,898, respectively. If determined to be unnecessary, these amounts (net of deferred tax assets of $1,741 and $1,786, 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 is shown below. April 29, April 30, Balance at beginning of period $ 9,898 $ 10,866 Additions for tax positions related to the current year 1,158 1,001 Additions for tax positions of prior years 142 42 Reductions for tax positions of prior years (1,400) (77) Statute expirations (1,507) (1,527) Settlements — (407) Balance at end of period $ 8,291 $ 9,898 We also recognize both interest and penalties with respect to unrecognized tax benefits as a component of income tax expense. As of April 29, 2023 and April 30, 2022, we had recorded $1,617 and $1,583, 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 29, 2023, we recorded as part of tax expense $311 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 2021, the Internal Revenue Service (“IRS”) concluded an audit of the fiscal year ended April 28, 2018. The IRS has either examined or waived examination for all periods up to and including our fiscal year ended April 27, 2019. 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. |
Technology Partner Innovations,
Technology Partner Innovations, LLC ("TPI") | 12 Months Ended |
Apr. 29, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Technology Partner Innovations, LLC ("TPI") | Technology Partner Innovations, LLC ("TPI")In fiscal 2019, we entered into an agreement with Cure Partners to form TPI, which offers a cloud-based practice management software, NaVetor, to its customers. Patterson and Cure Partners each contributed net assets of $4,000 to form TPI. Patterson and Cure Partners each contributed additional net assets of $1,000 and $1,000 during fiscal 2023 and 2022, respectively, to TPI. We have determined that TPI is a variable interest entity, and we consolidate the results of operations of TPI as we have concluded that we are the primary beneficiary of TPI. Since TPI was formed, there have been no changes in ownership interests. As of April 29, 2023, we had noncontrolling interests of $1,000 on our consolidated balance sheets.During fiscal 2023, 2022 and 2021, net loss attributable to the noncontrolling interest was $959, $1,496 and $872, respectively. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Apr. 29, 2023 | |
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, 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 and the geographic areas in which we operate: Fiscal Year Ended April 29, April 30, April 24, Consolidated net sales United States $ 5,423,931 $ 5,358,489 $ 4,877,070 United Kingdom 655,103 717,481 677,910 Canada 392,437 423,435 357,086 Total $ 6,471,471 $ 6,499,405 $ 5,912,066 Dental net sales United States $ 2,256,006 $ 2,259,579 $ 2,107,521 Canada 236,136 256,553 219,500 Total $ 2,492,142 $ 2,516,132 $ 2,327,021 Animal Health net sales United States $ 3,153,518 $ 3,098,511 $ 2,744,498 United Kingdom 655,103 717,481 677,910 Canada 156,301 166,882 137,586 Total $ 3,964,922 $ 3,982,874 $ 3,559,994 Corporate net sales United States $ 14,407 $ 399 $ 25,051 Total $ 14,407 $ 399 $ 25,051 Fiscal Year Ended April 29, April 30, April 24, Consolidated net sales Consumable $ 5,147,330 $ 5,248,040 $ 4,748,416 Equipment 950,403 920,424 822,063 Value-added services and other 373,738 330,941 341,587 Total $ 6,471,471 $ 6,499,405 $ 5,912,066 Dental net sales Consumable $ 1,358,823 $ 1,424,677 $ 1,314,236 Equipment 823,978 800,144 730,928 Value-added services and other 309,341 291,311 281,857 Total $ 2,492,142 $ 2,516,132 $ 2,327,021 Animal Health net sales Consumable $ 3,788,507 $ 3,823,363 $ 3,434,180 Equipment 126,425 120,280 91,135 Value-added services and other 49,990 39,231 34,679 Total $ 3,964,922 $ 3,982,874 $ 3,559,994 Corporate net sales Value-added services and other $ 14,407 $ 399 $ 25,051 Total $ 14,407 $ 399 $ 25,051 Fiscal Year Ended April 29, April 30, April 24, Operating income Dental $ 237,268 $ 180,212 $ 201,244 Animal Health 126,994 114,403 88,123 Corporate (88,291) (137,613) (78,760) Consolidated operating income $ 275,971 $ 157,002 $ 210,607 Depreciation and amortization Dental $ 14,051 $ 13,495 $ 7,774 Animal Health 44,644 44,561 45,771 Corporate 25,009 23,936 23,004 Consolidated depreciation and amortization $ 83,704 $ 81,992 $ 76,549 April 29, April 30, Property and equipment, net United States $ 177,163 $ 200,839 United Kingdom 21,033 6,045 Canada 14,087 6,256 Total property and equipment, net $ 212,283 $ 213,140 April 29, April 30, Total assets Dental $ 853,369 $ 851,746 Animal Health 1,570,760 1,459,450 Corporate 455,017 430,434 Total assets $ 2,879,146 $ 2,741,630 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 29, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends The following table presents our declared cash dividends per share on our common stock for the past three years. In fiscal 2023, 2022 and 2021, dividends were declared in the period presented and paid in the following quarter. Quarter Fiscal year 1 2 3 4 2023 $ 0.26 $ 0.26 $ 0.26 $ 0.26 2022 0.26 0.26 0.26 0.26 2021 0.26 0.26 0.26 0.26 Share Repurchases During fiscal 2023, we repurchased 2,020 shares of our common stock for $55,492, or an average of $27.47 per share. During fiscal 2022, we repurchased 1,032 shares of our common stock for $35,000, or an average of $33.90 per share. During fiscal 2021, we had no repurchases of shares of our common stock. On March 16, 2021, the Board of Directors authorized a $500,000 share repurchase program through March 16, 2024. As of April 29, 2023, $409,508 remains available under the current repurchase authorization. ESOP In 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 bore interest at then-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 was due. In fiscal 2021, a final payment of the outstanding principal and interest balance was due and was made. 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 accrued 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 was due and payable on each successive April 30. In fiscal 2021, a final payment of the outstanding principal and interest balance was made. 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 29, 2023, a total of 9,236 shares of common stock that have been allocated to participants remained in the ESOP and had a fair market value of $250,384. As of April 29, 2023, there were no committed-to-be-released shares and no suspense shares remaining related to the ESOP. 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 2023, 2022 and 2021, the compensation expense recognized related to the ESOP was $0, $0 and $9,265, respectively. This compensation expense was computed based on the shares allocated method. In fiscal 2021, we allocated the remaining suspense shares to eligible ESOP participants. We recognized an income tax deduction on the unearned ESOP shares released. The deduction was limited to the ESOP’s original cost to acquire the shares. We ceased contributing to the ESOP after fiscal 2021, and instead we have been making cash-based 401(k) contributions. Dividends on allocated shares are passed through to the ESOP participants. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The consolidated statements of operations and other comprehensive income for fiscal 2023, 2022 and 2021 include pre-tax (after-tax) stock-based compensation expense of $15,543 ($12,353), $23,805 ($18,686) and $21,223 ($16,387), respectively. Pre-tax expense is included in operating expenses within the consolidated statements of operations and other comprehensive income. As of April 29, 2023, the total unrecognized compensation cost related to non-vested awards was $16,758, and it is expected to be recognized over a weighted average period of approximately 1.3 years. 2015 Omnibus Incentive Plan In September 2015, our shareholders approved the 2015 Omnibus Incentive Plan ("Incentive Plan"), which was most recently amended and restated in September 2021. The aggregate number of shares of common stock that may be issued is 19,500. 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 29, 2023, there were 9,927 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 29, 2023, there were 301 shares outstanding under prior plans. Stock Option Awards Stock options granted to employees expire no later than ten years after the date of grant. Awards typically vest over three 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 29, April 30, April 24, Expected dividend yield 3.5 % 3.4 % 4.4 % Expected stock price volatility 38.8 % 38.1 % 34.6 % Risk-free interest rate 3.2 % 1.1 % 0.4 % Expected life (years) 6.0 6.0 6.0 Weighted average grant date fair value per share $ 8.82 $ 7.97 $ 4.60 The following is a summary of stock option activity: Number Weighted- Aggregate Intrinsic Balance as of April 30, 2022 2,737 $ 28.52 Granted 415 30.07 Exercised (687) 22.64 Canceled (445) 29.97 Balance as of April 29, 2023 2,020 $ 30.52 $ 5,065 Vested or expected to vest as of April 29, 2023 2,017 $ 30.52 $ 5,063 Exercisable as of April 29, 2023 1,575 $ 31.03 $ 4,742 The weighted average remaining contractual lives of options outstanding and options exercisable as of April 29, 2023 were 5.8 and 4.9 years, respectively. Related to stock options exercised, the intrinsic value, cash received and tax benefits realized were $4,289, $15,555 and $948, respectively, in fiscal 2023; and $1,552, $3,975 and $238, respectively, in fiscal 2022; and $953, 3,399 and $129, respectively, in fiscal 2021. Restricted Stock Restricted stock awards and restricted stock units granted to employees generally vest over a three year period. 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 2023, 2022 and 2021 was $16,123, $19,970 and $11,672, respectively. The following is a summary of restricted stock award activity: Restricted Stock Awards Shares Weighted- Outstanding at April 30, 2022 27 $ 31.86 Granted 37 27.23 Vested (27) 31.86 Forfeitures — — Outstanding at April 29, 2023 37 $ 27.23 The following is a summary of restricted stock unit activity: Restricted Stock Units Shares Weighted- Outstanding at April 30, 2022 1,002 $ 27.24 Granted 498 30.26 Vested (512) 26.89 Forfeitures (196) 28.16 Outstanding at April 29, 2023 792 $ 29.12 Performance Unit Awards In fiscal 2023, 2022 and 2021, we granted performance unit awards to certain executives which are earned at the end of a three three The following is a summary of performance unit award activity at target: Performance Unit Awards Shares Weighted- Outstanding at April 30, 2022 438 $ 26.14 Granted 224 28.46 Vested (203) 22.25 Forfeitures and cancellations (256) 30.12 Outstanding at April 29, 2023 203 $ 30.14 Employee Stock Purchase Plan ("ESPP") We sponsor an ESPP under which a total of 9,000 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 29, 2023, there were 1,008 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 assumptions: Fiscal Year Ended April 29, April 30, April 24, Expected dividend yield 3.7 % 3.6 % 3.6 % Expected stock price volatility 31.5 % 28.6 % 51.7 % Risk-free interest rate 4.7 % 0.3 % 0.1 % Expected life (years) 0.6 0.6 0.6 Weighted average grant date fair value per share $ 6.89 $ 6.79 $ 8.77 |
Litigation
Litigation | 12 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation From time to time, we become involved in lawsuits, administrative proceedings, government subpoenas, and government investigations (which may, in some cases, involve our entering into settlement agreements or consent decrees), relating to antitrust, commercial, environmental, product liability, intellectual property, regulatory, employment discrimination, securities, and other matters, including matters arising out of the ordinary course of business. The results of any such proceedings cannot be predicted with certainty because such matters are inherently uncertain. Significant damages or penalties may be sought in some matters, and some matters may require years to resolve. We also may be subject to fines or penalties, and equitable remedies (including but not limited to the suspension, revocation or non-renewal of licenses). We accrue for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Adverse outcomes 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 outcome becomes probable and reasonably estimable. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 12 Months Ended |
Apr. 29, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss ("AOCL") The following table summarizes the changes in AOCL during fiscal 2023: Cash Flow Currency Total AOCL at April 30, 2022 $ (3,454) $ (78,062) $ (81,516) Other comprehensive loss before reclassifications — (8,788) (8,788) Amounts reclassified from AOCL 1,042 — 1,042 AOCL at April 29, 2023 $ (2,412) $ (86,850) $ (89,262) The amounts reclassified from AOCL during fiscal 2023 include gains and losses on cash flow hedges, net of taxes of $321. The impact to the consolidated statements of operations and other comprehensive income was an increase to interest expense of $1,363 for fiscal 2023. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts | 12 Months Ended |
Apr. 29, 2023 | |
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 Charged to Deductions Balance at Year ended April 29, 2023 Deducted from asset accounts: Allowance for doubtful accounts $ 5,913 $ 3,450 $ 5,696 $ 3,667 Sales returns and allowances 4,400 57,920 51,241 11,079 Total accounts receivable allowances $ 10,313 $ 61,370 $ 56,937 $ 14,746 LIFO inventory adjustment $ 130,959 $ 15,956 $ — $ 146,915 Inventory obsolescence reserve 21,543 11,223 18,155 14,611 Total inventory reserve $ 152,502 $ 27,179 $ 18,155 $ 161,526 Year ended April 30, 2022 Deducted from asset accounts: Allowance for doubtful accounts $ 6,138 $ 2,769 $ 2,994 $ 5,913 Sales returns and allowances 5,856 59,999 61,455 4,400 Total accounts receivable allowances $ 11,994 $ 62,768 $ 64,449 $ 10,313 LIFO inventory adjustment $ 120,775 $ 10,184 $ — $ 130,959 Inventory obsolescence reserve 29,629 61,647 69,733 21,543 Total inventory reserve $ 150,404 $ 71,831 $ 69,733 $ 152,502 Year ended April 24, 2021 Deducted from asset accounts: Allowance for doubtful accounts $ 5,123 $ 2,559 $ 1,544 $ 6,138 Sales returns and allowances 6,257 53,730 54,131 5,856 Total accounts receivable allowances $ 11,380 $ 56,289 $ 55,675 $ 11,994 LIFO inventory adjustment $ 99,726 $ 21,049 $ — $ 120,775 Inventory obsolescence reserve 25,526 45,761 41,658 29,629 Total inventory reserve $ 125,252 $ 66,810 $ 41,658 $ 150,404 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 29, 2023 | |
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"), PDC Funding Company III, LLC ("PDC Funding III") and PDC Funding Company IV, LLC ("PDC Funding IV") , 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 and PDC Funding IV are fully consolidated special purpose entities established to sell certain receivables to unaffiliated financial institutions. The assets of PDC Funding, PDC Funding II, PDC Funding III and PDC Funding IV would be available first and foremost to satisfy the claims of its creditors. There are no known creditors of PDC Funding, PDC Funding II, PDC Funding III or PDC Funding IV. 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 2023 ended on April 29, 2023 and consisted of 52 weeks. Fiscal 2022 ended on April 30, 2022 and consisted of 53 weeks. Fiscal 2021 ended on April 24, 2021 and consisted of 52 weeks. Fiscal 2024 will end on April 27, 2024 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 cost, which approximates fair value. |
Inventory | InventoryInventory 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 81% and 85% of total inventories at April 29, 2023 and April 30, 2022, 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 and other indefinite-lived intangible assets are not amortized but rather are tested at least annually at the beginning of the fourth quarter for impairment, or more often if events or circumstances indicate the carrying value of the asset may not be recoverable. Goodwill impairment testing is done at the reporting unit level, which represents an operating segment or a component of an operating segment. We have two reporting units; Dental and Animal Health. Our Corporate reportable segment's assets and liabilities, and net sales and expenses, are allocated to the two reporting units. We perform a qualitative evaluation or a quantitative test to assess goodwill for impairment. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. We may elect not to perform the qualitative assessment for one or both reporting units and perform a quantitative impairment test. If performed, the quantitative goodwill impairment test compares the fair value of each reporting unit to the reporting unit's carrying value, including goodwill. If the reporting unit's carrying value exceeds its fair value, an impairment loss will be recognized. Any goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. The determination of fair value 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. Our indefinite-lived intangible asset is a trade name, which is assessed for impairment by comparing the carrying value of the 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. We performed qualitative assessments for our goodwill impairment tests in fiscal 2023. No impairments were recorded in fiscal 2023, 2022, or 2021 as a result of goodwill and other indefinite-lived impairment tests performed. |
Recoverability of Long-Lived Assets | Recoverability of Long-Lived AssetsLong-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 7. |
Recoverability of Development Costs of Software to be Sold | Recoverability of Development Costs of Software to be SoldAt the end of each fiscal quarter, we compare the unamortized capitalized costs of software to be sold to its net realizable value. If the unamortized amount exceeds the net realizable value, an impairment is recorded. If the unamortized capitalized costs are less than the net realizable value of that asset, then there is no impairmen |
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 and Contract Balances | 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 product, 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 support and software services is recognized ratably over the period in which the support and services are 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. Costs of the program and changes in the corresponding liability are recognized as reductions to net sales. As of April 29, 2023, 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 88.0% 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 operations and other comprehensive income. |
Advertising | AdvertisingWe expense all advertising and promotional costs as incurred, except for direct marketing expenses, which are expensed over the shorter of the life of the asset or one year. |
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 basis 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. |
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 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 IncomeComprehensive 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. |
Earnings Per Share | Earnings Per Share ("EPS") The amount of basic EPS is computed by dividing net income attributable to Patterson Companies, Inc. 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 PronouncementsThe Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” in March 2020 and ASU No. 2021-01, “Reference Rate Reform (Topic 848): Scope” in January 2021. These ASUs provide temporary optional expedients and exceptions to existing guidance on contract modifications and hedge accounting to facilitate the market transition from existing reference rates, such as LIBOR which began to be phased out at the end of 2021, to alternate reference rates. These standards were effective upon issuance. We transitioned our financial instruments that previously utilized LIBOR as the reference rate in fiscal 2023. We note this transition did not have a significant impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Other Non-current Assets | Other Non-current Assets, Net April 29, 2023 April 30, 2022 Development costs of software to be sold, net $ 71,467 $ 64,513 Other 49,272 42,995 Other non-current assets, net $ 120,739 $ 107,508 |
Schedule of Other Income, Net | Other Income (Expense), Net Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Gain on interest rate swap agreements $ 9,968 $ 15,835 $ 1,151 Investment income and other 17,858 11,896 12,457 Other income (expense), net $ 27,826 $ 27,731 $ 13,608 |
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 29, 2023 April 30, 2022 April 24, 2021 Denominator for basic EPS – weighted average shares 97,027 97,277 95,599 Effect of dilutive securities – stock options, restricted stock and stock purchase plans 788 1,237 1,065 Denominator for diluted EPS – weighted average shares 97,815 98,514 96,664 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consisted of the following: April 29, 2023 April 30, 2022 Cash on hand $ 111,892 $ 138,828 Money market funds 47,777 3,186 Total $ 159,669 $ 142,014 |
Receivables Securitization Pr_2
Receivables Securitization Program (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Deferred Purchase Price Receivable | The following rollforward summarizes the activity related to the DPP receivable: Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Beginning DPP receivable balance $ 195,764 $ 183,999 $ 117,327 Non-cash additions to DPP receivable 960,909 1,052,938 768,619 Cash collections on DPP receivable (928,727) (1,041,173) (701,947) Ending DPP receivable balance $ 227,946 $ 195,764 $ 183,999 |
Customer Financing (Tables)
Customer Financing (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Receivables [Abstract] | |
Rollforward Summary of Activity Related to the DPP Receivable | The following rollforward summarizes the activity related to the DPP receivable: Fiscal Year Ended April 29, 2023 April 30, 2022 April 24, 2021 Beginning DPP receivable balance $ 125,332 $ 227,967 $ 228,019 Non-cash additions to DPP receivable 47,832 69,689 131,959 Cash collections on DPP receivable (70,185) (172,324) (132,011) Ending DPP receivable balance $ 102,979 $ 125,332 $ 227,967 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative 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 29, 2023 April 30, 2022 Assets: Interest rate contracts Prepaid expenses and other current assets $ 5,875 $ 3,875 Interest rate contracts Other non-current assets 23,210 19,871 Total asset derivatives $ 29,085 $ 23,746 Liabilities: Interest rate contracts Other accrued liabilities $ 267 $ 250 Interest rate contracts Other non-current liabilities 12,993 10,013 Total liability derivatives $ 13,260 $ 10,263 |
Effect of Derivative Instruments in Cash Flow Hedging Relationships on the Consolidated Statements of Income and Other Comprehensive Income | The following tables present the pre-tax effect of derivative instruments on the consolidated statements of operations 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 Statements of operations location April 29, 2023 April 30, 2022 April 24, 2021 Interest rate contracts Interest expense $ (1,363) $ (1,363) $ (1,363) Amount of Gain (Loss) Recognized in Income on Derivatives Fiscal Year Ended Derivatives not designated as hedging instruments Statements of operations location April 29, 2023 April 30, 2022 April 24, 2021 Interest rate contracts Other income, net $ 9,968 $ 15,835 $ 1,151 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy Measurements, Fair Value Levels | 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 |
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 29, 2023 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 47,777 $ 47,777 $ — $ — DPP receivable - receivables securitization program 227,946 — — 227,946 DPP receivable - customer financing 102,979 — — 102,979 Derivative instruments 29,085 — 29,085 — Total assets $ 407,787 $ 47,777 $ 29,085 $ 330,925 Liabilities: Derivative instruments $ 13,260 $ — $ 13,260 $ — April 30, 2022 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 3,186 $ 3,186 $ — $ — DPP receivable - receivables securitization program 195,764 — — 195,764 DPP receivable - customer financing 125,332 — — 125,332 Derivative instruments 23,746 — 23,746 — Total assets $ 348,028 $ 3,186 $ 23,746 $ 321,096 Liabilities: Derivative instruments $ 10,263 $ — $ 10,263 $ — |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Value of Goodwill | The changes in the carrying value of goodwill for each of our reporting units for the fiscal year ended April 29, 2023 were as follows: Balance at April 30, 2022 Acquisition Foreign Currency Translation Balance at April 29, 2023 Dental $ 139,633 $ — $ (522) $ 139,111 Animal Health 997 16,312 — 17,309 Total $ 140,630 $ 16,312 $ (522) $ 156,420 |
Balances of Other Intangible Assets Excluding Goodwill | Balances of other intangible assets, excluding goodwill, were as follows: April 29, 2023 April 30, 2022 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Unamortized - indefinite lived: Trade name $ 12,300 $ — $ 12,300 $ 12,300 $ — $ 12,300 Amortized - definite lived: Customer relationships 380,205 205,524 174,681 366,969 181,280 185,689 Trade names and trademarks 135,876 107,519 28,357 132,996 95,903 37,093 Developed technology and other 52,920 36,385 16,535 65,757 48,225 17,532 Total amortized intangible assets 569,001 349,428 219,573 565,722 325,408 240,314 Total identifiable intangible assets $ 581,301 $ 349,428 $ 231,873 $ 578,022 $ 325,408 $ 252,614 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: April 29, 2023 April 30, 2022 Land $ 9,687 $ 11,341 Buildings 98,174 106,957 Leasehold improvements 31,712 31,395 Furniture and equipment 204,754 187,093 Computer hardware and software 250,805 254,205 Construction-in-progress (1) 32,233 30,502 Property and equipment, gross 627,365 621,493 Accumulated depreciation (415,082) (408,353) Property and equipment, net $ 212,283 $ 213,140 (1) Includes $10,661 and $8,585 of unamortized development costs of software to be sold as of April 29, 2023 and April 30, 2022, respectively. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Maturities of Lease Liabilities | The following table presents future maturities of lease liabilities: 2024 $ 31,482 2025 22,694 2026 15,337 2027 10,943 2028 5,903 After 2028 28,522 Total lease payments 114,881 Less: imputed interest (19,115) Present value of lease liabilities $ 95,766 |
Supplemental Information Related to Leases | The following tables present other supplemental information related to leases: Fiscal Year Ended April 29, 2023 April 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 35,779 $ 38,192 Lease assets obtained in exchange for new operating lease liabilities $ 56,603 $ 31,132 April 29, 2023 April 30, 2022 Weighted-average remaining lease term - operating leases 6.50 years 2.98 years Weighted-average discount rate - operating leases 4.40 % 3.10 % |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our long-term debt consisted of the following: Carrying Value Interest Rate April 29, 2023 April 30, 2022 Senior notes due fiscal 2024 (1) 3.74 % 33,000 33,000 Senior notes due fiscal 2025 (2) 3.48 % 117,500 117,500 Senior notes due fiscal 2028 (3) 3.79 % 40,000 40,000 Term loan due fiscal 2024 through 2028 (4) 6.08 % 298,500 300,000 Less: Deferred debt issuance costs (1,769) (1,946) Total debt 487,231 488,554 Less: Current maturities of long-term debt (36,000) — Long-term debt $ 451,231 $ 488,554 (1) Issued in December 2011. (2) Issued in March 2015. (3) Issued in March 2018. (4) Issued in December 2019, amended in October 2022. Interest rate is 1-month SOFR plus 1.10% as of April 29, 2023. |
Schedule of Maturities of Long-term Debt | Future principal payments due, based on stated contractual maturities for our long-term debt, were as follows as of April 29, 2023: Fiscal Year 2024 $ 36,000 2025 122,750 2026 11,250 2027 15,000 2028 304,000 Thereafter — Total $ 489,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The components of income before taxes were as follows: Fiscal Year Ended April 29, April 30, April 24, Income before taxes United States $ 233,416 $ 225,195 $ 166,251 International 36,745 41,059 33,680 Total $ 270,161 $ 266,254 $ 199,931 Significant components of income tax expense were as follows: Fiscal Year Ended April 29, April 30, April 24, Current: Federal $ 46,982 $ 46,964 $ 36,836 Foreign 8,280 11,968 9,975 State 10,294 10,326 8,771 Total current expense 65,556 69,258 55,582 Deferred: Federal (4,217) (3,918) (7,529) Foreign 2,601 (217) (362) State (377) (583) (2,869) Total deferred benefit (1,993) (4,718) (10,760) Income tax expense $ 63,563 $ 64,540 $ 44,822 |
Components of Deferred Tax Assets (Liabilities) | Significant components of our deferred tax assets (liabilities) were as follows: April 29, April 30, Deferred tax assets: Employee compensation and benefits $ 7,519 $ 9,352 Inventory related items 8,228 9,985 Foreign deferred assets, net 9,551 11,812 Foreign tax credit 7,003 7,037 Lease liability 16,243 14,416 Accrued charitable contributions 902 6,559 Capitalized research and experimentation costs 5,172 — Other accrued liabilities 7,744 6,642 Other 5,475 5,190 Gross deferred tax assets 67,837 70,993 Less: Valuation allowance (18,276) (18,615) Total net deferred tax assets 49,561 52,378 Deferred tax liabilities LIFO reserve (26,010) (20,965) Amortizable intangibles (45,042) (52,952) Goodwill (17,094) (15,727) Property, plant, equipment (33,161) (38,175) Lease right-of-use assets (15,793) (14,103) Investments (26,959) (26,449) Other (3,223) (3,401) Total deferred tax liabilities (167,282) (171,772) Deferred net long-term income tax liability $ (117,721) $ (119,394) |
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 29, April 30, April 24, Tax at U.S. statutory rate $ 56,732 $ 55,912 $ 41,984 State tax provision, net of federal benefit 8,416 9,176 5,400 Effect of foreign taxes 2,853 3,199 2,594 ESOP (2,049) (2,121) (2,286) Other permanent differences 2,481 944 808 Other (4,870) (2,570) (3,678) Income tax expense $ 63,563 $ 64,540 $ 44,822 |
Summary of Changes in Gross Amounts of Unrecognized Tax Benefits | A summary of the changes in the gross amounts of unrecognized tax benefits is shown below. April 29, April 30, Balance at beginning of period $ 9,898 $ 10,866 Additions for tax positions related to the current year 1,158 1,001 Additions for tax positions of prior years 142 42 Reductions for tax positions of prior years (1,400) (77) Statute expirations (1,507) (1,527) Settlements — (407) Balance at end of period $ 8,291 $ 9,898 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Segment Reporting [Abstract] | |
Information about Reportable Segments | The following tables present information about our reportable segments and the geographic areas in which we operate: Fiscal Year Ended April 29, April 30, April 24, Consolidated net sales United States $ 5,423,931 $ 5,358,489 $ 4,877,070 United Kingdom 655,103 717,481 677,910 Canada 392,437 423,435 357,086 Total $ 6,471,471 $ 6,499,405 $ 5,912,066 Dental net sales United States $ 2,256,006 $ 2,259,579 $ 2,107,521 Canada 236,136 256,553 219,500 Total $ 2,492,142 $ 2,516,132 $ 2,327,021 Animal Health net sales United States $ 3,153,518 $ 3,098,511 $ 2,744,498 United Kingdom 655,103 717,481 677,910 Canada 156,301 166,882 137,586 Total $ 3,964,922 $ 3,982,874 $ 3,559,994 Corporate net sales United States $ 14,407 $ 399 $ 25,051 Total $ 14,407 $ 399 $ 25,051 Fiscal Year Ended April 29, April 30, April 24, Consolidated net sales Consumable $ 5,147,330 $ 5,248,040 $ 4,748,416 Equipment 950,403 920,424 822,063 Value-added services and other 373,738 330,941 341,587 Total $ 6,471,471 $ 6,499,405 $ 5,912,066 Dental net sales Consumable $ 1,358,823 $ 1,424,677 $ 1,314,236 Equipment 823,978 800,144 730,928 Value-added services and other 309,341 291,311 281,857 Total $ 2,492,142 $ 2,516,132 $ 2,327,021 Animal Health net sales Consumable $ 3,788,507 $ 3,823,363 $ 3,434,180 Equipment 126,425 120,280 91,135 Value-added services and other 49,990 39,231 34,679 Total $ 3,964,922 $ 3,982,874 $ 3,559,994 Corporate net sales Value-added services and other $ 14,407 $ 399 $ 25,051 Total $ 14,407 $ 399 $ 25,051 Fiscal Year Ended April 29, April 30, April 24, Operating income Dental $ 237,268 $ 180,212 $ 201,244 Animal Health 126,994 114,403 88,123 Corporate (88,291) (137,613) (78,760) Consolidated operating income $ 275,971 $ 157,002 $ 210,607 Depreciation and amortization Dental $ 14,051 $ 13,495 $ 7,774 Animal Health 44,644 44,561 45,771 Corporate 25,009 23,936 23,004 Consolidated depreciation and amortization $ 83,704 $ 81,992 $ 76,549 |
Information by Geographical Area | April 29, April 30, Property and equipment, net United States $ 177,163 $ 200,839 United Kingdom 21,033 6,045 Canada 14,087 6,256 Total property and equipment, net $ 212,283 $ 213,140 April 29, April 30, Total assets Dental $ 853,369 $ 851,746 Animal Health 1,570,760 1,459,450 Corporate 455,017 430,434 Total assets $ 2,879,146 $ 2,741,630 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Equity [Abstract] | |
Cash Dividends Declared and Paid | The following table presents our declared cash dividends per share on our common stock for the past three years. In fiscal 2023, 2022 and 2021, dividends were declared in the period presented and paid in the following quarter. Quarter Fiscal year 1 2 3 4 2023 $ 0.26 $ 0.26 $ 0.26 $ 0.26 2022 0.26 0.26 0.26 0.26 2021 0.26 0.26 0.26 0.26 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
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 29, April 30, April 24, Expected dividend yield 3.5 % 3.4 % 4.4 % Expected stock price volatility 38.8 % 38.1 % 34.6 % Risk-free interest rate 3.2 % 1.1 % 0.4 % Expected life (years) 6.0 6.0 6.0 Weighted average grant date fair value per share $ 8.82 $ 7.97 $ 4.60 |
Summary of Stock Options | The following is a summary of stock option activity: Number Weighted- Aggregate Intrinsic Balance as of April 30, 2022 2,737 $ 28.52 Granted 415 30.07 Exercised (687) 22.64 Canceled (445) 29.97 Balance as of April 29, 2023 2,020 $ 30.52 $ 5,065 Vested or expected to vest as of April 29, 2023 2,017 $ 30.52 $ 5,063 Exercisable as of April 29, 2023 1,575 $ 31.03 $ 4,742 |
Summary of Non-Vested Restricted Stock Awards and Performance Unit Awards | The following is a summary of restricted stock award activity: Restricted Stock Awards Shares Weighted- Outstanding at April 30, 2022 27 $ 31.86 Granted 37 27.23 Vested (27) 31.86 Forfeitures — — Outstanding at April 29, 2023 37 $ 27.23 The following is a summary of restricted stock unit activity: Restricted Stock Units Shares Weighted- Outstanding at April 30, 2022 1,002 $ 27.24 Granted 498 30.26 Vested (512) 26.89 Forfeitures (196) 28.16 Outstanding at April 29, 2023 792 $ 29.12 The following is a summary of performance unit award activity at target: Performance Unit Awards Shares Weighted- Outstanding at April 30, 2022 438 $ 26.14 Granted 224 28.46 Vested (203) 22.25 Forfeitures and cancellations (256) 30.12 Outstanding at April 29, 2023 203 $ 30.14 |
Summary of Weighted-Average Assumptions Under ESPP and CAP | We estimate the grant date fair value of shares purchased under our ESPP using the Black-Scholes option pricing valuation model with the following assumptions: Fiscal Year Ended April 29, April 30, April 24, Expected dividend yield 3.7 % 3.6 % 3.6 % Expected stock price volatility 31.5 % 28.6 % 51.7 % Risk-free interest rate 4.7 % 0.3 % 0.1 % Expected life (years) 0.6 0.6 0.6 Weighted average grant date fair value per share $ 6.89 $ 6.79 $ 8.77 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 12 Months Ended |
Apr. 29, 2023 | |
Equity [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in AOCL during fiscal 2023: Cash Flow Currency Total AOCL at April 30, 2022 $ (3,454) $ (78,062) $ (81,516) Other comprehensive loss before reclassifications — (8,788) (8,788) Amounts reclassified from AOCL 1,042 — 1,042 AOCL at April 29, 2023 $ (2,412) $ (86,850) $ (89,262) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Apr. 29, 2023 USD ($) Segment reportingUnit | Apr. 30, 2022 USD ($) | Apr. 24, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Number of reportable segments | Segment | 3 | ||
Maturity period of maximum (in days) | 90 days | ||
Inventories valued at LIFO as % of total inventories | 81% | 85% | |
Inventory, LIFO reserve | $ 146,915,000 | $ 130,959,000 | |
Property, Plant and Equipment [Line Items] | |||
Number of reporting units | reportingUnit | 2 | ||
Indefinite-lived intangible assets, impairment | $ 0 | 0 | $ 0 |
Goodwill impairment | 0 | 0 | 0 |
Amortization expense | 9,068,000 | 7,267,000 | 2,346,000 |
Contract assets | 1,338,000 | 134,000 | |
Contract liabilities | 36,850,000 | 38,581,000 | |
Contract liability, revenue recognized | $ 35,594,000 | ||
Liability for percentage of maximum potential amount that could be redeemed | 88% | ||
Advertising expense | $ 6,888,000 | 1,532,000 | $ 134,000 |
Deferred direct marketing expense, maximum amortization period | 1 year | ||
Deferred direct marketing costs | $ 0 | $ 0 | |
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 -Other Non-current Assets (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Accounting Policies [Abstract] | ||
Development costs of software to be sold, net | $ 71,467 | $ 64,513 |
Other | 49,272 | 42,995 |
Other non-current assets, net | $ 120,739 | $ 107,508 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Related Party Transactions (Details) - Equity Method - USD ($) | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Related Party Transaction [Line Items] | |||
Purchases | $ 198,712,000 | $ 193,625,000 | $ 111,339,000 |
Net sales | $ 123,271,000 | $ 117,347,000 | $ 93,577,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Accounting Policies [Abstract] | |||
Gain on interest rate swap agreements | $ 9,968 | $ 15,835 | $ 1,151 |
Investment income and other | 17,858 | 11,896 | 12,457 |
Other income (expense), net | $ 27,826 | $ 27,731 | $ 13,608 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Accounting Policies [Abstract] | |||
Income tax expense related to cash flow hedge losses | $ 321 | $ 321 | $ 321 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Earnings Per Share [Abstract] | |||
Denominator for basic earnings per share – weighted average shares (in shares) | 97,027 | 97,277 | 95,599 |
Effect of dilutive securities – stock options, restricted stock and stock purchase plans (in shares) | 788 | 1,237 | 1,065 |
Diluted (in shares) | 97,815 | 98,514 | 96,664 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 932 | 772 | 1,014 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Apr. 29, 2023 | Jan. 28, 2023 | Jan. 29, 2022 | Jul. 31, 2021 | Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Asset Acquisition [Line Items] | |||||||
Goodwill | $ 156,420 | $ 156,420 | $ 140,630 | ||||
Cash consideration paid | $ 33,280 | $ 19,793 | $ 0 | ||||
Series of Individually Immaterial Business Acquisitions | |||||||
Asset Acquisition [Line Items] | |||||||
Business acquisition cash paid | $ 37,535 | ||||||
Acquisition, holdbacks | $ 4,255 | ||||||
Acquisition, anniversary of closing dates | 24 months | ||||||
Working capital adjustments | $ 23 | ||||||
Total identifiable intangible assets | 17,300 | ||||||
Goodwill | 16,040 | ||||||
Tangible assets | $ 4,233 | ||||||
Goodwill increase (decrease) | $ 272 | ||||||
Miller Vet Holdings, LLC | |||||||
Asset Acquisition [Line Items] | |||||||
Total identifiable intangible assets | $ 14,000 | ||||||
Goodwill | 1,063 | ||||||
Tangible assets | 4,796 | ||||||
Goodwill increase (decrease) | $ (66) | ||||||
Cash consideration paid | 19,793 | ||||||
Liabilities assumed | $ 6,799 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash on hand | $ 111,892 | $ 138,828 |
Money market funds | 47,777 | 3,186 |
Total | 159,669 | 142,014 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 159,669 | 142,014 |
Unsettled Financing Arrangements | ||
Cash and Cash Equivalents [Abstract] | ||
Total | 33,072 | 39,106 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 33,072 | $ 39,106 |
Receivables Securitization Pr_3
Receivables Securitization Program (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Maximum available under Purchase Agreement | $ 200,000 | ||
Eligible receivables, amount utilized under Purchase Agreement | 200,000 | ||
Receivables transferred and derecognized, fair value | 429,853 | $ 396,443 | |
Proceeds from receivables sold | 302,851 | 426,188 | $ 401,535 |
Loss on sale of receivables | (11,403) | (3,247) | (3,338) |
Receivables Purchase Agreements | |||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | |||
Trade receivable sold under facility | 3,718,167 | 3,643,700 | 3,171,456 |
Proceeds from receivables sold | $ 3,684,412 | $ 3,632,145 | $ 3,094,060 |
Receivables Securitization Pr_4
Receivables Securitization Program - Activity in DPP Receivable (Details) - Receivables Purchase Agreements - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||||
Beginning DPP receivable balance | $ 195,764 | $ 183,999 | $ 117,327 | |
Non-cash additions to DPP receivable | $ 960,909 | 1,052,938 | 768,619 | |
Cash collections on DPP receivable | (928,727) | (1,041,173) | (701,947) | |
Ending DPP receivable balance | $ 227,946 | $ 227,946 | $ 195,764 | $ 183,999 |
Customer Financing (Details)
Customer Financing (Details) | 12 Months Ended | ||
Apr. 29, 2023 USD ($) contract | Apr. 30, 2022 USD ($) | Apr. 24, 2021 USD ($) | |
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 | $ 261,853,000 | $ 314,732,000 | $ 369,497,000 |
Loss on sale of financing contracts | (4,082,000) | (18,379,000) | (2,048,000) |
Proceeds from receivables sold | 302,851,000 | 426,188,000 | $ 401,535,000 |
Cash and cash equivalents | 159,669,000 | 142,014,000 | |
Current receivables of finance contracts not yet sold | 77,646,000 | 58,190,000 | |
Finance contracts receivable sold and outstanding | $ 555,763,000 | ||
Maximum bad debt write-offs (percentage) | 1% | ||
Unsettled Financing Arrangements | |||
Customer Financing [Line Items] | |||
Cash and cash equivalents | $ 33,072,000 | $ 39,106,000 | |
The Bank of Tokyo-Mitsubishi UFJ, Ltd. | |||
Customer Financing [Line Items] | |||
Percentage of principal amount of financing contracts held as collateral (at least) | 15% | ||
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) | 15% | ||
Capacity under agreement | $ 100,000,000 |
Customer Financing - Activity i
Customer Financing - Activity in DPP Receivables (Details) - Customer Finance Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Deferred Purchase Price Receivable [Roll Forward] | |||
Beginning DPP receivable balance | $ 125,332 | $ 227,967 | $ 228,019 |
Non-cash additions to DPP receivable | 47,832 | 69,689 | 131,959 |
Cash collections on DPP receivable | (70,185) | (172,324) | (132,011) |
Ending DPP receivable balance | $ 102,979 | $ 125,332 | $ 227,967 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | Mar. 25, 2015 | Jan. 31, 2014 | |
Derivative [Line Items] | ||||||
Gains or losses recognized in OCI on derivatives | $ 0 | $ 0 | $ 0 | |||
Hedge ineffectiveness recorded | 0 | 0 | $ 0 | |||
Cash flow hedge gain (loss) to be reclassified into earnings over the next twelve months | (1,363,000) | |||||
Interest Rate Cap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 525,000,000 | |||||
Interest Rate Cap, Funding II | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 100,000,000 | |||||
Interest Rate Swap Agreement | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 551,504,000 | 574,144,000 | $ 250,000,000 | |||
Percentage of senior notes | 5.17% | |||||
Payment for settlement of swap | $ 29,003,000 | $ 6,770,000 | ||||
Cash receipts from settlement of swap | (7,626,000) | |||||
Interest Rate Swap Agreement | Senior Notes 3.48% | ||||||
Derivative [Line Items] | ||||||
Percentage of senior notes | 3.48% | |||||
Aggregate principal amount | $ 250,000,000 | |||||
Interest Rate Swap Two | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 214,805,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Interest Rate Contracts Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | $ 29,085 | $ 23,746 |
Interest rate, liabilities, fair value | 13,260 | 10,263 |
Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | 13,260 | 10,263 |
Prepaid Expenses and Other Current Assets | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | 5,875 | 3,875 |
Other non-current assets | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts, assets, fair value | 23,210 | 19,871 |
Other accrued liabilities | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | 267 | 250 |
Other non-current liabilities | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate, liabilities, fair value | $ 12,993 | $ 10,013 |
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) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on interest rate swap agreements | $ 9,968 | $ 15,835 | $ 1,151 |
Interest rate contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) reclassified form Accumulated Other Comprehensive Loss | (1,363) | (1,363) | (1,363) |
Interest rate contracts | Other income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on interest rate swap agreements | $ 9,968 | $ 15,835 | $ 1,151 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Assets: | ||
Cash equivalents | $ 47,777 | $ 3,186 |
DPP receivable - receivables securitization program | 227,946 | 195,764 |
DPP receivable - customer financing | 102,979 | 125,332 |
Derivative instruments | 29,085 | 23,746 |
Total assets | 407,787 | 348,028 |
Liabilities: | ||
Derivative instruments | 13,260 | 10,263 |
Level 1 | ||
Assets: | ||
Cash equivalents | 47,777 | 3,186 |
DPP receivable - receivables securitization program | 0 | 0 |
DPP receivable - customer financing | 0 | 0 |
Derivative instruments | 0 | 0 |
Total assets | 47,777 | 3,186 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
DPP receivable - receivables securitization program | 0 | 0 |
DPP receivable - customer financing | 0 | 0 |
Derivative instruments | 29,085 | 23,746 |
Total assets | 29,085 | 23,746 |
Liabilities: | ||
Derivative instruments | 13,260 | 10,263 |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
DPP receivable - receivables securitization program | 227,946 | 195,764 |
DPP receivable - customer financing | 102,979 | 125,332 |
Derivative instruments | 0 | 0 |
Total assets | 330,925 | 321,096 |
Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Schedule of Investments [Line Items] | |||
Noncash gain on investment | $ 0 | $ 101,809 | $ 0 |
Gains on investments | 0 | 101,809 | $ 0 |
Estimated fair value of debt | 483,139 | 489,777 | |
Long-term debt | 487,231 | 488,554 | |
Vetsource | |||
Schedule of Investments [Line Items] | |||
Carrying value of investment sold | 25,814 | ||
Proceeds from sale of investment | 56,849 | ||
Gain on sale of investment | 31,035 | ||
Noncash gain on investment | 31,035 | ||
Investment | 56,849 | 56,849 | |
Gain on investment put option | 25,757 | ||
Carrying value of put option | 25,757 | ||
Gains on investments | 87,827 | ||
Vets Plus | |||
Schedule of Investments [Line Items] | |||
Carrying value of investment sold | 4,009,000 | ||
Proceeds from sale of investment | 17,101 | ||
Gain on sale of investment | 13,092 | ||
Investment | $ 2,299 | $ 2,355 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Details) $ in Thousands | 12 Months Ended |
Apr. 29, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 140,630 |
Acquisition Activity | 16,312 |
Foreign Currency Translation | (522) |
Ending Balance | 156,420 |
Operating Segments | Dental | |
Goodwill [Roll Forward] | |
Beginning Balance | 139,633 |
Acquisition Activity | 0 |
Foreign Currency Translation | (522) |
Ending Balance | 139,111 |
Operating Segments | Animal Health | |
Goodwill [Roll Forward] | |
Beginning Balance | 997 |
Acquisition Activity | 16,312 |
Foreign Currency Translation | 0 |
Ending Balance | $ 17,309 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Balances of Other Intangible Assets Excluding Goodwill (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Unamortized - indefinite lived: | ||
Trade name | $ 12,300 | $ 12,300 |
Amortized - definite lived: | ||
Gross | 569,001 | 565,722 |
Accumulated Amortization | (349,428) | (325,408) |
Net | 219,573 | 240,314 |
Total identifiable intangible assets, gross | 581,301 | 578,022 |
Total amortized intangible assets | 231,873 | 252,614 |
Customer relationships | ||
Amortized - definite lived: | ||
Gross | 380,205 | 366,969 |
Accumulated Amortization | (205,524) | (181,280) |
Net | 174,681 | 185,689 |
Trade names and trademarks | ||
Amortized - definite lived: | ||
Gross | 135,876 | 132,996 |
Accumulated Amortization | (107,519) | (95,903) |
Net | 28,357 | 37,093 |
Developed technology and other | ||
Amortized - definite lived: | ||
Gross | 52,920 | 65,757 |
Accumulated Amortization | (36,385) | (48,225) |
Net | $ 16,535 | $ 17,532 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | Apr. 29, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2024 | $ 38,545 |
2025 | 38,540 |
2026 | 28,730 |
2027 | 27,337 |
2028 | $ 26,770 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 9,687 | $ 11,341 |
Buildings | 98,174 | 106,957 |
Leasehold improvements | 31,712 | 31,395 |
Furniture and equipment | 204,754 | 187,093 |
Computer hardware and software | 250,805 | 254,205 |
Construction-in-progress | 32,233 | 30,502 |
Property and equipment, gross | 627,365 | 621,493 |
Accumulated depreciation | (415,082) | (408,353) |
Property and equipment, net | 212,283 | 213,140 |
Unamortized capitalized computer development | $ 10,661 | $ 8,585 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Apr. 29, 2023 USD ($) investment | Apr. 30, 2022 USD ($) | |
Leases [Abstract] | ||
Options to renew | investment | 1 | |
Lease cost | $ | $ 35,640 | $ 35,646 |
Leases - Future Maturities of L
Leases - Future Maturities of Lease Liabilities (Details) $ in Thousands | Apr. 29, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 31,482 |
2025 | 22,694 |
2026 | 15,337 |
2027 | 10,943 |
2028 | 5,903 |
After 2028 | 28,522 |
Total lease payments | 114,881 |
Less: imputed interest | (19,115) |
Operating lease liabilities | $ 95,766 |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 35,779 | $ 38,192 |
Lease assets obtained in exchange for new operating lease liabilities | $ 56,603 | $ 31,132 |
Weighted-average remaining lease term - operating leases | 6 years 6 months | 2 years 11 months 23 days |
Weighted-average discount rate - operating leases | 4.40% | 3.10% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 29, 2023 | Apr. 30, 2022 | |
Debt Instrument [Line Items] | ||
Less: Deferred debt issuance costs | $ (1,769) | $ (1,946) |
Total | 487,231 | 488,554 |
Less: current debt obligations | (36,000) | 0 |
Long-term debt | $ 451,231 | 488,554 |
Senior notes due fiscal 2024 | ||
Debt Instrument [Line Items] | ||
Fixed rate | 3.74% | |
Fixed rate senior notes | $ 33,000 | 33,000 |
Senior notes due fiscal 2025 | ||
Debt Instrument [Line Items] | ||
Fixed rate | 3.48% | |
Fixed rate senior notes | $ 117,500 | 117,500 |
Senior notes due fiscal 2028 | ||
Debt Instrument [Line Items] | ||
Fixed rate | 3.79% | |
Fixed rate senior notes | $ 40,000 | 40,000 |
Term loan due fiscal 2024 through 2028 | ||
Debt Instrument [Line Items] | ||
Fixed rate | 6.08% | |
Fixed rate senior notes | $ 298,500 | $ 300,000 |
Term loan due fiscal 2024 through 2028 | SOFR | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.10% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Thousands | Apr. 29, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 36,000 |
2025 | 122,750 |
2026 | 11,250 |
2027 | 15,000 |
2028 | 304,000 |
Thereafter | 0 |
Total | $ 489,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 |
Line of Credit Facility [Line Items] | |||
Outstanding debt | $ 489,000,000 | ||
Amended Credit Agreement | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 700,000,000 | $ 700,000,000 | |
Outstanding debt | $ 45,000,000 | $ 29,000,000 | |
Fixed rate | 5.93% | 1.54% | |
Amended Credit Agreement | Term Loan due February 2024 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 300,000,000 | ||
Amended Credit Agreement | Term Loan Due October 2027 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 300,000,000 | ||
Amended Credit Agreement | Term loan due fiscal 2024 through 2028 | |||
Line of Credit Facility [Line Items] | |||
Outstanding debt | $ 298,500,000 | $ 300,000,000 | |
Fixed rate | 6.08% | 1.89% |
Income Taxes - Components of In
Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 233,416 | $ 225,195 | $ 166,251 |
International | 36,745 | 41,059 | 33,680 |
Income before taxes | $ 270,161 | $ 266,254 | $ 199,931 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Current: | |||
Federal | $ 46,982 | $ 46,964 | $ 36,836 |
Foreign | 8,280 | 11,968 | 9,975 |
State | 10,294 | 10,326 | 8,771 |
Total current expense | 65,556 | 69,258 | 55,582 |
Deferred: | |||
Federal | (4,217) | (3,918) | (7,529) |
Foreign | 2,601 | (217) | (362) |
State | (377) | (583) | (2,869) |
Total deferred benefit | (1,993) | (4,718) | (10,760) |
Income tax expense | $ 63,563 | $ 64,540 | $ 44,822 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Apr. 29, 2023 | Apr. 30, 2022 |
Deferred tax assets: | ||
Employee compensation and benefits | $ 7,519 | $ 9,352 |
Inventory related items | 8,228 | 9,985 |
Foreign deferred assets, net | 9,551 | 11,812 |
Foreign tax credit | 7,003 | 7,037 |
Lease liability | 16,243 | 14,416 |
Accrued charitable contributions | 902 | 6,559 |
Capitalized research and experimentation costs | 5,172 | 0 |
Other accrued liabilities | 7,744 | 6,642 |
Other | 5,475 | 5,190 |
Gross deferred tax assets | 67,837 | 70,993 |
Less: Valuation allowance | (18,276) | (18,615) |
Total net deferred tax assets | 49,561 | 52,378 |
Deferred tax liabilities | ||
LIFO reserve | (26,010) | (20,965) |
Amortizable intangibles | (45,042) | (52,952) |
Goodwill | (17,094) | (15,727) |
Property, plant, equipment | (33,161) | (38,175) |
Lease right-of-use assets | (15,793) | (14,103) |
Investments | (26,959) | (26,449) |
Other | (3,223) | (3,401) |
Total deferred tax liabilities | (167,282) | (171,772) |
Deferred net long-term income tax liability | $ (117,721) | $ (119,394) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Foreign net operating loss carryforwards | $ 18,276 | ||
Gross unrecognized tax benefits | 8,291 | $ 9,898 | $ 10,866 |
Deferred tax assets, deductibility of gross liabilities | 1,741 | 1,786 | |
Interest and penalties | 1,617 | $ 1,583 | |
Increase in interest and penalties expense | $ 311 | ||
Foreign Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Expiration period | 3 years |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | $ 56,732 | $ 55,912 | $ 41,984 |
State tax provision, net of federal benefit | 8,416 | 9,176 | 5,400 |
Effect of foreign taxes | 2,853 | 3,199 | 2,594 |
ESOP | (2,049) | (2,121) | (2,286) |
Other permanent differences | 2,481 | 944 | 808 |
Other | (4,870) | (2,570) | (3,678) |
Income tax expense | $ 63,563 | $ 64,540 | $ 44,822 |
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. 29, 2023 | Apr. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 9,898 | $ 10,866 |
Additions for tax positions related to the current year | 1,158 | 1,001 |
Additions for tax positions of prior years | 142 | 42 |
Reductions for tax positions of prior years | (1,400) | (77) |
Statute expirations | (1,507) | (1,527) |
Settlements | 0 | (407) |
Balance at end of period | $ 8,291 | $ 9,898 |
Technology Partner Innovation_2
Technology Partner Innovations, LLC ("TPI") (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | Apr. 27, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Noncontrolling interest | $ 1,000 | $ 959 | ||
Net loss attributable to noncontrolling interest | 959 | 1,496 | $ 872 | |
Technology Partner Innovations, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net assets contributed | 1,000 | 1,000 | $ 4,000 | |
Net loss attributable to noncontrolling interest | 959 | 1,496 | $ 872 | |
Technology Partner Innovations, LLC | Cure Partners | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net assets contributed | $ 1,000 | $ 1,000 |
Segment and Geographic Data - A
Segment and Geographic Data - Additional Information (Details) | 12 Months Ended |
Apr. 29, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment and Geographic Data - N
Segment and Geographic Data - Net Sales Information by Geographic Area and Product (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 6,471,471 | $ 6,499,405 | $ 5,912,066 |
Consumable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 5,147,330 | 5,248,040 | 4,748,416 |
Equipment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 950,403 | 920,424 | 822,063 |
Value Added Services and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 373,738 | 330,941 | 341,587 |
Dental | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,492,142 | 2,516,132 | 2,327,021 |
Dental | Consumable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1,358,823 | 1,424,677 | 1,314,236 |
Dental | Equipment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 823,978 | 800,144 | 730,928 |
Dental | Value Added Services and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 309,341 | 291,311 | 281,857 |
Animal Health | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,964,922 | 3,982,874 | 3,559,994 |
Animal Health | Consumable | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,788,507 | 3,823,363 | 3,434,180 |
Animal Health | Equipment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 126,425 | 120,280 | 91,135 |
Animal Health | Value Added Services and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 49,990 | 39,231 | 34,679 |
Corporate | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 14,407 | 399 | 25,051 |
Corporate | Value Added Services and Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 14,407 | 399 | 25,051 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 5,423,931 | 5,358,489 | 4,877,070 |
United States | Dental | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2,256,006 | 2,259,579 | 2,107,521 |
United States | Animal Health | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3,153,518 | 3,098,511 | 2,744,498 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 655,103 | 717,481 | 677,910 |
United Kingdom | Animal Health | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 655,103 | 717,481 | 677,910 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 392,437 | 423,435 | 357,086 |
Canada | Dental | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 236,136 | 256,553 | 219,500 |
Canada | Animal Health | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 156,301 | $ 166,882 | $ 137,586 |
Segment and Geographic Data - I
Segment and Geographic Data - Information about Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Segment Reporting Information [Line Items] | |||
Operating income | $ 275,971 | $ 157,002 | $ 210,607 |
Depreciation and amortization | 83,704 | 81,992 | 76,549 |
Property and equipment, net | 212,283 | 213,140 | |
Total assets | 2,879,146 | 2,741,630 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 177,163 | 200,839 | |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 21,033 | 6,045 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 14,087 | 6,256 | |
Dental | |||
Segment Reporting Information [Line Items] | |||
Operating income | 237,268 | 180,212 | 201,244 |
Depreciation and amortization | 14,051 | 13,495 | 7,774 |
Total assets | 853,369 | 851,746 | |
Animal Health | |||
Segment Reporting Information [Line Items] | |||
Operating income | 126,994 | 114,403 | 88,123 |
Depreciation and amortization | 44,644 | 44,561 | 45,771 |
Total assets | 1,570,760 | 1,459,450 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Operating income | (88,291) | (137,613) | (78,760) |
Depreciation and amortization | 25,009 | 23,936 | $ 23,004 |
Total assets | $ 455,017 | $ 430,434 |
Stockholders' Equity - Cash Div
Stockholders' Equity - Cash Dividends Declared and Paid (Details) - $ / shares | 3 Months Ended | |||||||||||
Apr. 29, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | Apr. 24, 2021 | Jan. 23, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | |
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 | $ 0.26 | $ 0.26 | $ 0.26 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 108 Months Ended | |||||||
Sep. 30, 2006 | Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | Apr. 28, 2012 | Dec. 31, 2002 | Apr. 25, 2020 | Mar. 16, 2021 | Dec. 31, 1991 | |
Shareholders Equity [Line Items] | |||||||||
Common stock repurchased (in shares) | 2,020,000 | 1,032,000 | 0 | ||||||
Common stock repurchased | $ 55,492 | $ 35,000 | |||||||
Average cost of common shares repurchased (in usd per share) | $ 27.47 | $ 33.90 | |||||||
Shares authorized for repurchase under share repurchase program (in shares) | 500,000,000 | ||||||||
Remaining shares available under repurchase program (in shares) | 409,508,000 | ||||||||
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) | 9,236,000 | ||||||||
Number of shares allocated to ESOP, Fair value | $ 250,384 | ||||||||
ESOP share based compensation expense | $ 0 | $ 0 | $ 9,265 | ||||||
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) | 0 | ||||||||
Suspense shares (in shares) | 0 | ||||||||
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 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expense recognized | $ 15,543 | $ 23,805 | $ 21,223 | |
After-tax stock-based compensation expense | 12,353 | $ 18,686 | 16,387 | |
Compensation cost before income taxes related to non-vested awards yet to be recognized | $ 16,758 | |||
Total compensation cost expected to be recognized over a weighted average period | 1 year 3 months 18 days | |||
Number of shares outstanding (in shares) | 2,020,000 | 2,737,000 | ||
Weighted average remaining contractual lives of options outstanding | 5 years 9 months 18 days | |||
Weighted average remaining contractual lives of options exercisable | 4 years 10 months 24 days | |||
Stock options exercised, intrinsic value | $ 4,289 | $ 1,552 | 953 | |
Stock options exercised, cash received | 15,555 | 3,975 | 3,399 | |
Stock options exercised, tax benefit | $ 948 | 238 | 129 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Vesting period | 3 years | |||
Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock vesting period | 3 years | |||
Total fair value of restricted stock awards vested in period | $ 16,123 | $ 19,970 | $ 11,672 | |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum restriction period for restricted stock and restricted stock units | 1 year | |||
Number of performance units vested | 27,000 | |||
Performance Unit Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of performance units vested | 203,000 | |||
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) | 19,500,000 | |||
Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for awards (in shares) | 9,927,000 | |||
Prior Equity Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding (in shares) | 301,000 | |||
Total Shareholder Return | 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 | 6,220,000 | 0 | 4,227,000 | |
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) | 9,000,000 | |||
Number of shares available for awards (in shares) | 1,008,000 | |||
Percentage of fair market value of the common stock | 85% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Weighted-Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Director And Employee Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 3.50% | 3.40% | 4.40% |
Expected stock price volatility | 38.80% | 38.10% | 34.60% |
Risk-free interest rate | 3.20% | 1.10% | 0.40% |
Expected life (years) | 6 years | 6 years | 6 years |
Weighted average grant date fair value per share (in usd per share) | $ 8.82 | $ 7.97 | $ 4.60 |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 3.70% | 3.60% | 3.60% |
Expected stock price volatility | 31.50% | 28.60% | 51.70% |
Risk-free interest rate | 4.70% | 0.30% | 0.10% |
Expected life (years) | 7 months 6 days | 7 months 6 days | 7 months 6 days |
Weighted average grant date fair value per share (in usd per share) | $ 6.89 | $ 6.79 | $ 8.77 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Apr. 29, 2023 USD ($) $ / shares shares | |
Number of Options | |
Beginning balance (in shares) | shares | 2,737,000 |
Granted (in shares) | shares | 415,000 |
Exercised (in shares) | shares | (687,000) |
Canceled (in shares) | shares | (445,000) |
Ending balance (in shares) | shares | 2,020,000 |
Vested or expected to vest at end of year (in shares) | shares | 2,017,000 |
Exercisable at end of year (in shares) | shares | 1,575,000 |
Weighted- Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 28.52 |
Granted (in usd per share) | $ / shares | 30.07 |
Exercised (in usd per share) | $ / shares | 22.64 |
Canceled (in usd per share) | $ / shares | 29.97 |
Ending balance (in usd per share) | $ / shares | 30.52 |
Vested or expected to vest at end of year (in usd per share) | $ / shares | 30.52 |
Exercisable at end of year (in usd per share) | $ / shares | $ 31.03 |
Aggregate Intrinsic Value | |
Balance at end of year | $ | $ 5,065 |
Vested or expected to vest at end of year | $ | 5,063 |
Exercisable at end of year | $ | $ 4,742 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Non-Vested Restricted Stock Awards and Performance Unit Awards (Details) shares in Thousands | 12 Months Ended |
Apr. 29, 2023 $ / shares shares | |
Restricted Stock Awards | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 27 |
Granted (in shares) | shares | 37 |
Vested (in shares) | shares | (27) |
Forfeitures and cancellations (in shares) | shares | 0 |
Outstanding, Ending balance (in shares) | shares | 37 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 31.86 |
Granted (in usd per share) | $ / shares | 27.23 |
Vested (in usd per share) | $ / shares | 31.86 |
Forfeitures and cancellations (in usd per share) | $ / shares | 0 |
Ending balance (in usd per share) | $ / shares | $ 27.23 |
Restricted Stock Units | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 1,002 |
Granted (in shares) | shares | 498 |
Vested (in shares) | shares | (512) |
Forfeitures and cancellations (in shares) | shares | (196) |
Outstanding, Ending balance (in shares) | shares | 792 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 27.24 |
Granted (in usd per share) | $ / shares | 30.26 |
Vested (in usd per share) | $ / shares | 26.89 |
Forfeitures and cancellations (in usd per share) | $ / shares | 28.16 |
Ending balance (in usd per share) | $ / shares | $ 29.12 |
Performance Unit Awards | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 438 |
Granted (in shares) | shares | 224 |
Vested (in shares) | shares | (203) |
Forfeitures and cancellations (in shares) | shares | (256) |
Outstanding, Ending balance (in shares) | shares | 203 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 26.14 |
Granted (in usd per share) | $ / shares | 28.46 |
Vested (in usd per share) | $ / shares | 22.25 |
Forfeitures and cancellations (in usd per share) | $ / shares | 30.12 |
Ending balance (in usd per share) | $ / shares | $ 30.14 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss ("AOCL") - Summary of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended |
Apr. 29, 2023 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 1,041,676 |
Ending Balance | 1,117,535 |
Cash Flow Hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (3,454) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from AOCL | 1,042 |
Ending Balance | (2,412) |
Currency Translation Adjustment | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (78,062) |
Other comprehensive loss before reclassifications | (8,788) |
Amounts reclassified from AOCL | 0 |
Ending Balance | (86,850) |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (81,516) |
Other comprehensive loss before reclassifications | (8,788) |
Amounts reclassified from AOCL | 1,042 |
Ending Balance | $ (89,262) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss ("AOCL") - Additional Information (Details) $ in Thousands | 12 Months Ended |
Apr. 29, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Increase in interest expense | $ 1,363 |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from AOCI, tax | $ 321 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 29, 2023 | Apr. 30, 2022 | Apr. 24, 2021 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 5,913 | $ 6,138 | $ 5,123 |
Charged to Costs and Expenses | 3,450 | 2,769 | 2,559 |
Deductions | 5,696 | 2,994 | 1,544 |
Balance at End of Period | 3,667 | 5,913 | 6,138 |
Sales returns and allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 4,400 | 5,856 | 6,257 |
Charged to Costs and Expenses | 57,920 | 59,999 | 53,730 |
Deductions | 51,241 | 61,455 | 54,131 |
Balance at End of Period | 11,079 | 4,400 | 5,856 |
Total accounts receivable allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,313 | 11,994 | 11,380 |
Charged to Costs and Expenses | 61,370 | 62,768 | 56,289 |
Deductions | 56,937 | 64,449 | 55,675 |
Balance at End of Period | 14,746 | 10,313 | 11,994 |
LIFO inventory adjustment | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 130,959 | 120,775 | 99,726 |
Charged to Costs and Expenses | 15,956 | 10,184 | 21,049 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | 146,915 | 130,959 | 120,775 |
Inventory obsolescence reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 21,543 | 29,629 | 25,526 |
Charged to Costs and Expenses | 11,223 | 61,647 | 45,761 |
Deductions | 18,155 | 69,733 | 41,658 |
Balance at End of Period | 14,611 | 21,543 | 29,629 |
Total inventory reserve | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 152,502 | 150,404 | 125,252 |
Charged to Costs and Expenses | 27,179 | 71,831 | 66,810 |
Deductions | 18,155 | 69,733 | 41,658 |
Balance at End of Period | $ 161,526 | $ 152,502 | $ 150,404 |