HENRY SCHEIN INC, 10-K filed on 2/15/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
12 Months Ended
Dec. 25, 2021
Feb. 07, 2022
Jun. 26, 2021
Cover Page      
Entity Central Index Key 0001000228    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-25    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 25, 2021    
Document Transition Report false    
Entity Registrant Name HENRY SCHEIN INC    
Entity File Number 0-27078    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 11-3136595    
Entity Address, Address Line One 135 Duryea Road    
Entity Address, City or Town Melville    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 11747    
City Area Code 631    
Local Phone Number 843-5500    
Title of 12(b) Security Common Stock, par value $.01 per share    
Trading Symbol HSIC    
Security Exchange Name NASDAQ    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
Entity Public Float     $ 10,405,142,000
Entity Common Stock, Shares Outstanding   137,172,800  
Entity Voluntary Filers No    
Documents Incorporated by Reference Portions of the Registrant’s definitive proxy statement to be filed pursuant to Regulation 14A not later than 120 days after the end of the fiscal year (December 25, 2021) are incorporated by reference in Part III hereof.    
ICFR Auditor Attestation Flag true    
AuditorName BDO USA, LLP    
Auditor Firm Id 243    
Auditor Location New York, NY    
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 25, 2021
Dec. 26, 2020
Current assets:    
Cash and cash equivalents $ 117,965,000 $ 421,185,000
Accounts receivable, net of reserves of $67,168 and $88,030 1,451,829,000 1,424,787,000
Inventories, net 1,861,138,000 1,512,499,000
Prepaid expenses and other 413,103,000 432,944,000
Total current assets 3,844,035,000 3,791,415,000
Property and equipment, net 366,456,000 342,004,000
Operating lease right-of-use assets, net 324,950,000 288,847,000
Goodwill 2,854,150,000 2,504,392,000
Other intangibles, net 667,626,000 479,429,000
Investments and other 423,874,000 366,445,000
Total assets 8,481,091,000 7,772,532,000
Current liabilities:    
Accounts payable 1,053,934,000 1,005,655,000
Bank credit lines 50,530,000 73,366,000
Current maturities of long-term debt 10,640,000 109,836,000
Operating lease liabilities 76,393,000 64,716,000
Accrued expenses:    
Payroll and related 385,376,000 295,329,000
Taxes 136,919,000 138,671,000
Other 592,722,000 595,529,000
Total current liabilities 2,306,514,000 2,283,102,000
Long-term debt 811,346,000 515,773,000
Deferred income taxes 42,283,000 30,065,000
Operating lease liabilities 267,772,000 238,727,000
Other liabilities 376,672,000 392,781,000
Total liabilities 3,804,587,000 3,460,448,000
Redeemable noncontrolling interests 613,312,000 327,699,000
Stockholders' equity:    
Preferred stock, $.01 par value, 1,000,000 shares authorized, none outstanding 0 0
Common stock, $0.01 par value, 480,000,000 shares authorized, 137,145,558 outstanding on December 25, 2021 and 142,462,571 outstanding on December 26, 2020 1,371,000 1,425,000
Retained earnings 3,595,233,000 3,454,831,000
Accumulated other comprehensive loss (171,478,000) (108,084,000)
Total Henry Schein, Inc. stockholders' equity 3,425,126,000 3,348,172,000
Noncontrolling interests 638,066,000 636,213,000
Total stockholders' equity 4,063,192,000 3,984,385,000
Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 8,481,091,000 $ 7,772,532,000
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Current assets:    
Accounts receivable, reserves (in dollars) $ 67,168 $ 88,030
Stockholders' equity:    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 480,000,000 480,000,000
Common stock, shares outstanding (in shares) 137,145,558 142,462,571
v3.22.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Income Statement [Abstract]      
Net sales $ 12,401,021 $ 10,119,141 $ 9,985,803
Cost of sales 8,728,770 7,304,913 6,894,917
Gross profit 3,672,251 2,814,228 3,090,886
Operating expenses:      
Selling, general and administrative 2,812,656 2,246,832 2,357,920
Restructuring costs 7,939 32,093 14,705
Operating income 851,656 535,303 718,261
Other income (expense):      
Interest income 6,451 9,842 15,757
Interest expense (27,600) (41,377) (50,792)
Other, net 41 (3,873) (2,919)
Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests 830,548 499,895 680,307
Income taxes (197,349) (95,374) (159,515)
Equity in earnings of affiliates 20,009 12,344 17,900
Gain on sale of equity investments 7,318 1,572 186,769
Net income from continuing operations 660,526 418,437 725,461
Income (loss) from discontinued operations, net of tax 0 986 (6,323)
Net Income 660,526 419,423 719,138
Less: Net income attributable to noncontrolling interests (29,294) (15,629) (24,770)
Plus: Net loss attributable to noncontrolling interests from discontinued operations 0 0 366
Net income attributable to Henry Schein, Inc. 631,232 403,794 694,734
Amounts attributable to Henry Schein Inc.:      
Continuing Operations 631,232 402,808 700,691
Discontinued operations 0 986 (5,957)
Net income attributable to Henry Schein, Inc. $ 631,232 $ 403,794 $ 694,734
Earnings per share from continuing operations attributable to Henry Schein, Inc.:      
Basic (in dollars per share) $ 4.51 $ 2.83 $ 4.74
Diluted (in dollars per share) 4.45 2.81 4.69
Earnings (loss) per share from discontinued operations attributable to Henry Schein, Inc.:      
Basic (in dollars per share) 0 0.01 (0.04)
Diluted (in dollars per share) 0 0.01 (0.04)
Earnings per share attributable to Henry Schein, Inc.      
Basic (in dollars per share) 4.51 2.83 4.70
Diluted (in dollars per share) $ 4.45 $ 2.82 $ 4.65
Weighted-average common shares outstanding:      
Basic (in shares) 140,091 142,504 147,817
Diluted (in shares) 141,773 143,404 149,257
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Statement of Comprehensive Income [Abstract]      
Net Income $ 660,526 $ 419,423 $ 719,138
Other comprehensive income (loss), net of tax:      
Foreign currency translation gain (loss) (83,841) 63,094 (4,070)
Unrealized gain (loss) from foreign currency hedging activities 9,442 (7,456) (3,876)
Unrealized investment gain (loss) (9) (5) 12
Pension adjustment gain (loss) 5,186 143 (5,924)
Other comprehensive income (loss), net of tax (69,222) 55,776 (13,858)
Comprehensive income 591,304 475,199 705,280
Comprehensive income attributable to noncontrolling interests:      
Net income (29,294) (15,629) (24,404)
Foreign currency translation loss 5,828 3,513 1,848
Comprehensive income attributable to noncontrolling interests (23,466) (12,116) (22,556)
Comprehensive income attributable to Henry Schein, Inc. $ 567,838 $ 463,083 $ 682,724
v3.22.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
Common Stock [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-in Capital [Member]
Additional Paid-in Capital [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
Retained Earnings [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Noncontrolling Interests [Member]
Noncontrolling Interests [Member]
Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning Balance at Dec. 29, 2018 $ 3,541,788 $ (274) $ 1,514 $ 0 $ 0 $ 0 $ 3,208,589 $ (274) $ (248,771) $ 0 $ 580,456 $ 0
Beginning Balance (in shares) at Dec. 29, 2018     151,401,668                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests) 704,666   $ 0   0   694,734   0   9,932  
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) (2,327)   0   0   0   (2,222)   (105)  
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact (3,876)   0   0   0   (3,876)   0  
Unrealized investment gain (loss), net of tax impact 12   0   0   0   12   0  
Pension adjustment gain (loss), net of tax impact (5,924)   0   0   0   5,924   0  
Dividends paid (535)   0   0   0   0   (535)  
Other adjustments (3)   0   (3)   0   0   0  
Change in fair value of redeemable securities 7,300   0   7,300   0   0   0  
noncontrolling interests and adjustments related to business acquisitions 6,966   0   0   0   0   6,966  
Adjustment for Animal Health Spin-off, Value 1   $ 1   0   0   0   0  
Adjustment to stock for Spin-off transaction, Shares     87,629                  
Repurchase and retirement of common stock - Value (525,000)   $ (82)   (79,785)   (445,133)   0   0  
Repurchase and retirement of common stock - Shares     (8,173,912)                  
Stock issued upon exercise of stock options, Value 34   $ 0   34   0   0   0  
Stock issued upon exercise of stock options, shares     2,526                  
Stock-based compensation expense - Value 45,245   $ 2   45,243   0   0   0  
Stock-based compensation expense - Shares     215,408                  
Shares withheld for payroll taxes - Value (10,845)   $ (1)   (10,844)   0   0   0  
Shares withheld for payroll taxes - Shares     (179,860)                  
Settlement of stock-based compensation awards (160)   $ 0   (160)   0   0   0  
Share Sale related to Animal Health business 361,090   0   361,090   0   0   0  
Separation of Animal Health business (523,720)   0   (73,970)   (543,158)   93,408   0  
Transfer of charges in excess of capital 0   0   (201,457)   201,457   0   0  
Ending Balance at Dec. 28, 2019 3,630,137 (412) $ 1,434 0 47,768 0 3,116,215 (412) (167,373) 0 632,093 0
Ending Balance (in shares) at Dec. 28, 2019     143,353,459                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests) 406,060   $ 0   0   403,794   0   2,266  
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) 67,373   0   0   0   66,607   766  
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact (7,456)   0   0   0   (7,456)   0  
Unrealized investment gain (loss), net of tax impact (5)   0   0   0   (5)   0  
Pension adjustment gain (loss), net of tax impact 143   0   0   0   143   0  
Dividends paid (1,086)   0   0   0   0   (1,086)  
Purchase of noncontrolling interests (2,298)   0   (1,597)   0   0   (701)  
Change in fair value of redeemable securities (32,842)   0   (32,842)   0   0   0  
noncontrolling interests and adjustments related to business acquisitions 2,875   0   0   0   0   2,875  
Adjustment for Animal Health Spin-off, Value (73,789)   $ (12)   (10,949)   (62,828)   0   0  
Repurchase and retirement of common stock - Value 0       0   0   0   0  
Repurchase and retirement of common stock - Shares     (1,200,000)                  
Stock issued upon exercise of stock options, Value 8,788   $ 5   8,783   0   0   0  
Stock-based compensation expense - Value (14,477)   $ (2)   (14,475)   0   0   0  
Stock-based compensation expense - Shares     545,864                  
Shares withheld for payroll taxes - Shares     236,752                  
Settlement of stock-based compensation awards 275   $ 0   275   0   0   0  
Share Sale related to Animal Health business 0                      
Separation of Animal Health business 1,649   0   1,649   0   0   0  
Transfer of charges in excess of capital 0   0   1,938   (1,938)   0   0  
Ending Balance at Dec. 26, 2020 $ 3,984,385 0 $ 1,425 0 0 0 3,454,831 0 (108,084) 0 636,213 0
Ending Balance (in shares) at Dec. 26, 2020 142,462,571   142,462,571                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests)   637,168   0   0   631,232   0   5,936
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests)   (77,836)   0   0   0   (78,013)   177
Unrealized gain (loss) from foreign currency hedging activities, net of tax impact $ 9,442 9,442   0   0   0   9,442   0
Unrealized investment gain (loss), net of tax impact (9) (9)   0   0   0   (9)   0
Pension adjustment gain (loss), net of tax impact 5,186 (5,186)   0   0   0   (5,186)   0
Dividends paid   (11,226)   0   0   0   0   (11,226)
Change in fair value of redeemable securities   (160,279)   0   (160,279)   0   0   0
noncontrolling interests and adjustments related to business acquisitions 42,345   $ 0   0   0   0   42,345  
Repurchase and retirement of common stock - Value   (401,211)   $ (55)   (53,550)   (347,606)   0   0
Repurchase and retirement of common stock - Shares       (5,505,704)                
Stock issued upon exercise of stock options, Value   0   $ 0   0   0   0   0
Stock-based compensation expense - Value   78,415   $ 3   78,412   0   0   0
Stock-based compensation expense - Shares       303,643                
Shares withheld for payroll taxes - Value   (7,639)   $ (2)   (7,637)   0   0   0
Shares withheld for payroll taxes - Shares       (114,952)                
Settlement of stock-based compensation awards (170)   $ 0   $ (170)   $ 0   $ 0   $ 0  
Share Sale related to Animal Health business   0                    
Transfer of charges in excess of capital   0   $ 0   143,224   (143,224)   0   0
Ending Balance at Dec. 25, 2021 $ 4,063,192 $ 4,063,192   $ 1,371   $ 0   $ 3,595,233   $ (171,478)   $ 638,066
Ending Balance (in shares) at Dec. 25, 2021 137,145,558     137,145,558                
v3.22.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Statement of Stockholders' Equity [Abstract]      
Unrealized gain (loss) from foreign currency hedging activities, (tax benefit) tax $ 3,275,000 $ 2,768,000 $ 1,035,000
Unrealized investment gain (loss), tax benefit (tax) (3,000) 1,000 2,000
Pension adjustment gain (loss), tax benefit (tax) 2,426,000 (676,000) (1,806,000)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income attributable to redeemable noncontrolling interests 23,358,000 13,363,000  
Foreign currency translation (gain) loss $ 6,005,000 $ 4,279,000 2,335,000
Continuing Operations [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income attributable to redeemable noncontrolling interests     14,838,000
Discontinued Operations [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income attributable to redeemable noncontrolling interests     (366,000)
Foreign currency translation (gain) loss     $ 592,000
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Cash flows from operating activities:      
Net Income $ 660,526,000 $ 419,423,000 $ 719,138,000
Income (loss) from discontinued operations 0 986,000 (6,323,000)
Income from continuing operations 660,526,000 418,437,000 725,461,000
Adjustments to reconcile net income to net cash provided by operating activities: operating activities:      
Depreciation and amortization 209,528,000 185,538,000 184,942,000
Impairment charge on intangible assets 713,000 20,275,000 0
Gain on sale of equity investments (9,757,000) (2,096,000) (250,167,000)
Stock-based compensation expense 78,415,000 8,788,000 44,920,000
Provision for (benefits from) losses on trade and other accounts receivable (7,748,000) 35,137,000 12,612,000
Benefit from deferred income taxes (10,985,000) (52,977,000) (4,057,000)
Equity in earnings of affiliates (20,009,000) (12,344,000) (17,900,000)
Distributions from equity affiliates 17,762,000 16,002,000 71,469,000
Changes in unrecognized tax benefits (1,947,000) (24,881,000) 1,941,000
Benefit from transition tax 0 0 0
Other (9,717,000) 5,012,000 5,684,000
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable 4,162,000 (189,349,000) (72,689,000)
Inventories (295,131,000) (31,817,000) 14,702,000
Other current assets 9,060,000 (6,479,000) (57,291,000)
Accounts payable and accrued expenses 84,708,000 224,273,000 160,851,000
Net cash provided by operating activities from continuing operations 709,580,000 593,519,000 820,478,000
Net cash provided by (used in) operating activities from discontinued operations 0 5,391,000 (166,391,000)
Net cash provided by operating activities 709,580,000 598,910,000 654,087,000
Cash flows from investing activities:      
Purchases of fixed assets (79,015,000) (48,829,000) (76,219,000)
Payments related to equity investments and business acquisitions, net of cash acquired (570,558,000) (60,173,000) (655,879,000)
Proceeds from sale of equity investment 9,757,000 14,020,000 307,251,000
Proceeds from (repayments to) loan to affiliate (4,090,000) (1,243,000) 16,713,000
Other (33,311,000) (18,794,000) (14,175,000)
Net cash used in investing activities from continuing operations (677,217,000) (115,019,000) (422,309,000)
Net cash used in investing activities from discontinued operations 0 0 (2,064,000)
Net cash used in investing activities (677,217,000) (115,019,000) (424,373,000)
Cash flows from financing activities:      
Net change in bank borrowings (18,408,000) 45,082,000 (927,912,000)
Proceeds from issuance of long-term debt 305,000,000 501,421,000 741,000
Principal payments for long-term debt (122,270,000) (611,216,000) (260,944,000)
Debt issuance costs (2,893,000) (3,879,000) (391,000)
Debt extinguishment costs 0 (401,000) 0
Proceeds from issuance of stock upon exercise of stock options 0 0 34,000
Payments for repurchases of common stock (401,211,000) (73,789,000) (525,000,000)
Payments for taxes related to shares withheld for employee taxes (7,471,000) (14,299,000) (10,814,000)
Distribution received related to Animal Health Spin-off 0 0 1,120,000,000
Proceeds related to Animal Health Share Sale 0 0 361,090,000
Proceeds from (distributions to) noncontrolling stockholders (25,464,000) (7,886,000) 51,498,000
Acquisitions of noncontrolling interests in subsidiaries (60,240,000) (19,538,000) (2,358,000)
Proceeds from (payments) to Henry Schein Animal Health Business 0 2,711,000 (169,295,000)
Net cash used in financing activities from continuing operations (332,957,000) (181,794,000) (363,351,000)
Net cash provided by (used in) financing activities from discontinued operations 0 (5,391,000) 147,371,000
Net cash used in financing activities (332,957,000) (187,185,000) (215,980,000)
Effect of exchange rate changes on cash and cash equivalents from continuing operations (2,626,000) 18,382,000 14,394,000
Effect of exchange rate changes on cash and cash equivalents from discontinued operations 0 0 (2,240,000)
Net change in cash and cash equivalents from continuing operations (303,220,000) 315,088,000 49,212,000
Net change in cash and cash equivalents from discontinued operations 0 0 (23,324,000)
Cash and cash equivalents, beginning of period 421,185,000 106,097,000 56,885,000
Cash and cash equivalents, end of period $ 117,965,000 $ 421,185,000 $ 106,097,000
v3.22.0.1
Basis of Presentation and Significant Accounting Policies
12 Months Ended
Dec. 25, 2021
Basis of Presentation and Significant Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies

Note 1 –Basis of Presentation and Significant Accounting Policies

 

Nature of Operations

 

We distribute health care products and services primarily to office-based dental and medical practitioners, across dental practices, laboratories, physician practices, and ambulatory surgery centers, as well as government, institutional health care clinics and alternate care clinics. We also provide software, technology and other value-added services to health care practitioners. Our dental businesses serve office-based dental practitioners, dental laboratories, schools, government and other institutions. Our medical businesses serve physician offices, urgent care centers, ambulatory care sites, emergency medical technicians, dialysis centers, home health, federal and state governments and large enterprises, such as group practices and integrated delivery networks, among other providers across a wide range of specialties.

 

We have operations or affiliates in the United States, Australia, Austria, Belgium, Brazil, Canada, Chile, China, the Czech Republic, France, Germany, Hong Kong SAR, Ireland, Israel, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, United Arab Emirates and the United Kingdom.

Principles of Consolidation

 

Our consolidated financial statements include the accounts of Henry Schein, Inc. and all of our controlled subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated affiliates in which we have the ability to influence the operating or financial decisions, are accounted for under the equity method. Certain prior period amounts have been reclassified to conform to the current period presentation.

 

We consolidate the results of operations and financial position of a trade accounts receivable securitization which we consider a Variable Interest Entity (“VIE”) because we are the primary beneficiary, and we have the power to direct activities that most significantly affect the economic performance and have the obligation to absorb the majority of the losses or benefits. For this VIE, the trade accounts receivable transferred to the VIE are pledged as collateral to the related debt. The creditors have recourse to us for losses on these trade accounts receivable. At December 25, 2021 and December 26, 2020, certain trade accounts receivable that can only be used to settle obligations of this VIE were $138.0 million and $0.0 million, respectively and the liabilities of this VIE where the creditors have recourse to us were $105.0 million and $0.0 million, respectively.

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us 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.

 

In March 2020, the World Health Organization declared Novel Coronavirus Disease 2019 (“COVID-19”) a pandemic. The COVID-19 pandemic negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of global financial markets. In response, many countries implemented business closures and restrictions, stay-at-home and social distancing ordinances and similar measures to combat the pandemic, which significantly impacted global business and dramatically reduced demand for dental products and certain medical products in the second quarter of 2020. Demand increased in the second half of 2020 and continued throughout 2021 resulting in growth over the prior year.

 

Our consolidated financial statements reflect estimates and assumptions made by us that affect, among other things, our goodwill, long-lived asset and definite-lived intangible asset valuation; inventory valuation; equity investment valuation; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; the allowance for doubtful accounts; hedging activity; supplier rebates; measurement of compensation cost for certain share-based performance awards and cash bonus plans; and pension plan assumptions. Due to the significant uncertainty surrounding the future impact of COVID-19, our judgments regarding estimates and impairments could change in the future and may result in a material adverse effect on our financial condition and liquidity. However, the extent of the potential impact cannot be reasonably estimated at this time.

Fiscal Year

 

We report our results of operations and cash flows on a 52-53 week basis ending on the last Saturday of December. The years ended December 25, 2021, December 26, 2020 and December 28, 2019 consisted of 52 weeks.

Revenue Recognition

 

Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following:

 

• identify the contract(s) with a customer;

 

• identify the performance obligations in the contract;

 

• determine the transaction price;

 

• allocate the transaction price to the performance obligations in the contract; and

 

• recognize revenue when, or as, the entity satisfies a performance obligation.

 

We generate revenue from the sale of dental and medical consumable products, equipment (Health care distribution revenues), software products and services and other sources (Technology and value-added services revenues). Provisions for discounts, rebates to customers, customer returns and other contra revenue adjustments are included in the transaction price at contract inception by estimating the most likely amount based upon historical data and estimates and are provided for in the period in which the related sales are recognized.

Revenue derived from the sale of consumable products is recognized at a point in time when control transfers to the customer. Such sales typically entail high-volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating control has transferred to the customer because we have no post-shipment obligations and this is when legal title and risks and rewards of ownership transfer to the customer and the point at which we have an enforceable right to payment.

 

Revenue derived from the sale of equipment is recognized when control transfers to the customer. This occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Most equipment requires minimal installation, which is typically completed at the time of delivery. Our product generally carries standard warranty terms provided by the manufacturer, however, in instances where we provide warranty labor services, the warranty costs are accrued in accordance with Accounting Standards Codification (“ASC”) 460 “Guarantees”. At December 25, 2021 and December 26, 2020, we had accrued approximately $8.1 million and $6.9 million, respectively, for warranty costs.

 

Revenue derived from the sale of software products is recognized when products are delivered to customers or made available electronically. Such software is generally installed by customers and does not require extensive

training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support and/or training, is generally recognized over time using time elapsed as the input method that best depicts the transfer of control to the customer. Revenue derived from software sold on Software-as-a -Service basis is recognized ratably over the subscription period as control is transferred to the customer.

 

Revenue derived from other sources, including freight charges, equipment repairs and financial services, is recognized when the related product revenue is recognized or when the services are provided. We apply the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract.

 

Sales, value-add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.

 

Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations, which are accounted for separately. When we sell software products together with related services (i.e., training and technical support), we allocate revenue to software using the residual method, using an estimate of the standalone selling price to estimate the fair value of the undelivered elements. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available (i.e., we do not sell the goods or services separately), we use one of the following techniques to estimate the standalone selling price: adjusted market approach; cost-plus approach; or the residual method. There is no specific hierarchy for the use of these methods, but the estimated selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone basis taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions.

Cost of Sales

 

The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges.

 

Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. Total distribution network costs were $89.2 million, $71.7 million and $72.3 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

 

Sales Returns

 

Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as refund liability within current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liability based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability and we record an inventory asset (and a corresponding adjustment to cost of sales) for any products that we expect to be returned.

Supplier RebatesSupplier rebates are included as a reduction of cost of sales and are recognized over the period they are earned. The factors we consider in estimating supplier rebate accruals include forecasted inventory purchases and sales, in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume.

Direct Shipping and Handling Costs

 

Freight and other direct shipping costs are included in cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack and otherwise prepare, if necessary, merchandise for shipment to our customers are reflected in selling, general and administrative expenses. Direct handling costs were $96.7 million, $79.2 million and $73.8 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

Advertising and Promotional Costs

 

We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $45.9 million, $30.8 million and $25.2 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

Stock Compensation Costs

 

We measure stock-based compensation at the grant date, based on the estimated fair value of the award, and recognize the cost (net of estimated forfeitures) as compensation expense on a straight-line basis over the requisite service period for time-based restricted stock units and on a graded vesting basis for the option awards. For performance-based awards, the Company reassesses at each reporting date whether achievement of the performance condition is probable and accrues compensation expense when achievement of the performance condition is probable. Our stock-based compensation expense is reflected in selling, general and administrative expenses.

Cash and Cash Equivalents

 

We consider all highly liquid short-term investments with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value. Outstanding checks in excess of funds on deposit of $2.0 million and $1.3 million, primarily related to payments for inventory, were classified as accounts payable as of December 25, 2021 and December 26, 2020.

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.

 

Accounts Receivable and Allowance for Credit Losses

 

Accounts receivable are generally recognized when health care distribution and technology and value-added services revenues are recognized. In accordance with the “expected credit loss” model, the carrying amount of accounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that we do not expect to collect. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including types of customers and their credit worthiness, experience and historical data adjusted for current conditions and reasonable supportable forecasts.

 

We record allowances for credit losses based upon a specific review of all significant outstanding invoices. For those invoices not specifically reviewed, provisions are provided at differing rates, based upon the age of the receivable, the collection history associated with the geographic region that the receivable was recorded in, current economic trends and reasonable supportable forecasts. We write-off a receivable and charge it against its recorded allowance when we deem them uncollectible.

 

Contract Assets

 

Contract assets include amounts related to any conditional right to consideration for work completed but not billed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to accounts receivable when the right becomes unconditional. The contract assets primarily relate to our bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current contract assets are included in Prepaid expenses and other and the non-current contract assets are included in investments and other within our consolidated balance sheets. Current and non-current contract asset balances as of December 25, 2021 and December 26, 2020 were not material.

 

Contract Liabilities

 

Contract liabilities are comprised of advance payments and upfront payments for service arrangements provided over time that are accounted for as deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Current contract liabilities are included in accrued expenses: other and the non-current contract liabilities are included in other liabilities within our consolidated balance sheets. At December 26, 2020, the current portion of contract liabilities of $71.5 million was reported in accrued expenses: other, and $8.2 million related to non-current contract liabilities were reported in other liabilities. During the year ended December 25, 2021, we recognized substantially all of the current contract liability amounts that were previously deferred at December 26, 2020. At December 25, 2021, the current and non-current portion of contract liabilities were $89.2 million and $9.7 million, respectively.

Inventories and Reserves

 

Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high tech equipment. In accordance with our policy for inventory valuation, we consider many factors including the condition and salability of the inventory, historical sales, forecasted sales and market and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory.

Property and Equipment

 

Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is computed primarily under the straight-line method

Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term.

Capitalized Software Development Costs

 

Capitalized internal-use software costs consist of costs to purchase and develop software. For software to be used solely to meet internal needs and cloud-based applications used to deliver our services, we capitalize costs incurred during the application development stage and include such costs within property and equipment, net within our consolidated balance sheets. For software to be sold, leased, or marketed to external users, we capitalize software development costs when technological feasibility is reached and include such costs in Investments and other within our consolidated balance sheets.

Leases

 

We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in operating lease right-of-use (“ROU”) assets, operating lease liabilities, and non-current operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt, and long-term debt in our consolidated balance sheets.

 

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully collateralized and fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. When readily determinable, we use the implicit rate. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases and finance leases are included in “selling, general and administrative” and “interest expense”, respectively within our consolidated statement of income. Short-term leases with a term of 12 months or less are not capitalized. During the years ended December 25, 2021, December 26, 2020, and December 28, 2019, such short-term lease expense was $3.9 million, $1.9 million, and $0.9 million, respectively.

 

We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles, which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price.

Goodwill

 

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. Goodwill is subject to impairment analysis annually or more frequently if needed. Such impairment analyses for goodwill requires a comparison of the fair value to the carrying value of reporting units. We regard our reporting units to be our operating segments: global dental; global medical; and technology and value-added services. Goodwill was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis.

 

For the years ended December 25, 2021 and December 26, 2020 we tested goodwill for impairment, on the first day of the fourth quarter, using a quantitative analysis comparing the carrying value of our reporting units, including goodwill, to the estimated fair value of our reporting units using a discounted cash flow methodology. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, impairment loss would be equivalent to the excess of a reporting unit’s carrying value over its fair value limited to the total amount of goodwill allocated to that reporting unit.

 

Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities that are considered shared services to the reporting units, and ultimately the determination of the fair value of each reporting unit. The fair value of each reporting unit is calculated by applying the discounted cash flow methodology and confirming with a market approach. There are inherent uncertainties, however, related to fair value models, the inputs and our judgments in applying them to this analysis. The most significant inputs include estimation of future cash flows based on budget expectations, and determination of comparable companies to develop a weighted average cost of capital for each reporting unit.

 

For the years ended December 25, 2021 and December 26, 2020, the results of our goodwill impairment analysis did not result in any impairments.

Intangible Assets

 

Intangible assets, other than goodwill, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows to be derived from such assets.

 

Definite-lived intangible assets primarily consist of non-compete agreements, trademarks, trade names, customer lists, customer relationships and product development. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value.

 

During the years ended December 25, 2021 and December 26, 2020, we recorded total impairment charges, within selling, general and administrative expenses, on intangible assets of approximately $0.7 million and $20.3 million, nearly all of which was recorded in our technology and value-added services segment.

Income Taxes

 

We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We file a consolidated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries. In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220), which allows the reclassification of stranded income tax effects, resulting from U.S. tax reform, from accumulated other comprehensive income (AOCI) to retained earnings. The adoption of this ASU in the first quarter of 2019 did not have a material impact on our consolidated financial statements. We applied an individual item basis approach for releasing income tax effects from AOCI.

Redeemable Noncontrolling Interests

 

Some minority stockholders in certain of our consolidated subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted. Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. Adjustments to the carrying amount of a noncontrolling interests to

reflect a fair value redemption feature do not impact the calculation of earnings per share. Our net income is reduced by the portion of the subsidiaries’ net income that is attributable to redeemable noncontrolling interests.

 

Noncontrolling Interests

 

Non-controlling interest represents the ownership interests of certain minority owners of our consolidated subsidiaries. Our net income is reduced by the portion of the subsidiaries net income that is attributable to noncontrolling interests.

Comprehensive Income

 

Comprehensive income includes certain gains and losses that, under accounting principles generally accepted in the United States, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) from foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss).

Risk Management and Derivative Financial Instruments

 

We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our objective is to manage the impact that foreign currency exchange rate fluctuations could have on recognized asset and liability fair values, earnings and cash flows, as well as our net investments in foreign subsidiaries. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers and foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges.

 

Foreign currency forward agreements related to forecasted inventory purchase commitments with foreign suppliers and foreign currency swaps related to foreign currency denominated debt are designated as cash flow hedges. For derivatives that are designated and qualify as cash flow hedges, the changes in the fair value of the derivative is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item.

 

Foreign currency forward contracts related to our euro-denominated foreign operations are designated as net investment hedges. For derivatives that are designated and qualify as net investment hedges, the changes in the fair value of the derivative is recorded in the foreign currency translation gain (loss) component of Accumulated other comprehensive income in stockholders’ equity until the net investment is sold or substantially liquidated.

 

Our foreign currency forward agreements related to foreign currency balance sheet exposure provide economic hedges but are not designated as hedges for accounting purposes.

 

For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings.

 

Total return swaps are entered into for the purpose of economically hedging our unfunded non-qualified supplemental retirement plan (“SERP”) and our deferred compensation plan (“DCP”). This swap will offset changes in our SERP and DCP liabilities. This swap is expected to be renewed on an annual basis.

Foreign Currency Translation and Transactions

 

The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive income in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in earnings.

Accounting Pronouncements Adopted

 

On December 27, 2020 we adopted ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

 

Recently Issued Accounting Standards

 

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued because of reference rate reform. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”). ASU 2021-01 provides temporary optional expedients and exceptions to certain guidance in U.S. GAAP to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The guidance is effective upon issuance, on January 7, 2021, and can be applied through December 31, 2022. We do not expect that the requirements of this guidance will have a material impact on our consolidated financial statements.

 

In October 2021, the FASB issued ASU No. 2021 – 08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (Subtopic 805). ASU 2021 – 08 requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements. ASU 2021 – 08 is effective for fiscal year beginning after December 15, 2022. Early adoption is permitted. We expect to adopt this ASU on December 26, 2021. We do not expect that the requirements of this ASU will have a material impact on our consolidated financial statements.

 

 

v3.22.0.1
Revenue from Contracts with Customers
12 Months Ended
Dec. 25, 2021
Revenue from Contracts with Customers [Abstract]  
Revenue from Contracts with Customer Revenue (Net sales) is recognized in accordance with the policies discussed in

Disaggregation of Net sales

 

The following table disaggregates our Net sales by reportable segment and geographic area:

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 25, 2021

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

4,504,243

 

$

3,037,707

 

$

7,541,950

 

 

 

Medical

 

4,115,240

 

 

102,935

 

 

4,218,175

 

 

 

 

 

Total health care distribution

 

8,619,483

 

 

3,140,642

 

 

11,760,125

 

 

Technology and value-added services

 

554,123

 

 

86,773

 

 

640,896

 

 

Total excluding Corporate TSA revenues (1)

 

9,173,606

 

 

3,227,415

 

 

12,401,021

 

 

Corporate TSA revenues (1)

 

-

 

 

-

 

 

-

 

 

 

Total revenues

$

9,173,606

 

$

3,227,415

 

$

12,401,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 26, 2020

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

3,471,521

 

$

2,441,072

 

$

5,912,593

 

 

 

Medical

 

3,514,670

 

 

102,347

 

 

3,617,017

 

 

 

 

 

Total health care distribution

 

6,986,191

 

 

2,543,419

 

 

9,529,610

 

 

Technology and value-added services

 

446,830

 

 

67,428

 

 

514,258

 

 

Total excluding Corporate TSA revenues (1)

 

7,433,021

 

 

2,610,847

 

 

10,043,868

 

 

Corporate TSA revenues (1)

 

-

 

 

75,273

 

 

75,273

 

 

 

Total revenues

$

7,433,021

 

$

2,686,120

 

$

10,119,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 28, 2019

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

3,911,746

 

$

2,504,119

 

$

6,415,865

 

 

 

Medical

 

2,894,137

 

 

79,449

 

 

2,973,586

 

 

 

 

 

Total health care distribution

 

6,805,883

 

 

2,583,568

 

 

9,389,451

 

 

Technology and value-added services

 

445,317

 

 

69,768

 

 

515,085

 

 

Total excluding Corporate TSA revenues (1)

 

7,251,200

 

 

2,653,336

 

 

9,904,536

 

 

Corporate TSA revenues (1)

 

4,098

 

 

77,169

 

 

81,267

 

 

 

Total revenues

$

7,255,298

 

$

2,730,505

 

$

9,985,803

 

(1)

Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement

 

 

entered into in connection with the Animal Health Spin-off, which ended in December 2020.

 

v3.22.0.1
Segment and Geographic Data
12 Months Ended
Dec. 25, 2021
Segment and Geographic Data [Abstract]  
Segment and Geographic Data

Note 3 – Segment and Geographic Data

 

We conduct our business through two reportable segments: (i) health care distribution and (ii) technology and value-added services. These segments offer different products and services to the same customer base. Our global dental businesses serve office-based dental practitioners, dental laboratories, schools and other institutions. Our global medical businesses serve office-based medical practitioners, ambulatory surgery centers, other alternate-care settings and other institutions. Our global dental and medical groups serve practitioners in 32 countries worldwide.

 

The health care distribution reportable segment aggregates our global dental and medical operating segments. This segment distributes consumable products, dental specialty products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control product, PPE and vitamins.

 

Our global technology and value-added services reportable segment provides software, technology and other value-added services to health care practitioners. Our technology offerings include practice management software systems for dental and medical practitioners. Our value-added practice solutions include practice consultancy, education, revenue cycle management and financial services on a non-recourse basis, e-services, practice technology, network and hardware services, as well as continuing education services for practitioners.

 

The following tables present information about our reportable and operating segments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

 

2021

 

2020

 

2019

Net Sales:

 

 

 

 

 

 

 

 

 

 

Health care distribution (1)

 

 

 

 

 

 

 

 

 

 

 

Dental

 

$

7,541,950

 

$

5,912,593

 

$

6,415,865

 

 

Medical

 

 

4,218,175

 

 

3,617,017

 

 

2,973,586

 

 

Total health care distribution

 

 

11,760,125

 

 

9,529,610

 

 

9,389,451

 

Technology and value-added services (2)

 

 

640,896

 

 

514,258

 

 

515,085

 

 

Total excluding Corporate TSA revenues

 

 

12,401,021

 

 

10,043,868

 

 

9,904,536

 

Corporate TSA revenues (3)

 

 

-

 

 

75,273

 

 

81,267

 

 

Total

 

$

12,401,021

 

$

10,119,141

 

$

9,985,803

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, dental specialty products (including implant, orthodontic and endodontic products), diagnostic tests, infection-control products, PPE and vitamins.

(2) Consists of practice management software and other value-added products, which are distributed primarily to health care providers, practice consultancy, education, revenue cycle management and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services.

Corporate TSA revenues represents sales of certain products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which ended in December 2020.

 

 

 

 

Years ended

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Operating Income:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

728,041

 

$

436,173

 

$

591,404

 

Technology and value-added services

 

 

123,615

 

 

99,130

 

 

126,857

 

 

Total

 

$

851,656

 

$

535,303

 

$

718,261

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

 

 

 

 

 

 

 

 

 

 

and equity in earnings of affiliates:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

706,874

 

$

400,343

 

$

553,181

 

Technology and value-added services

 

 

123,674

 

 

99,552

 

 

127,126

 

 

Total

 

$

830,548

 

$

499,895

 

$

680,307

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

156,333

 

$

142,712

 

$

146,960

 

Technology and value-added services

 

 

53,195

 

 

42,826

 

 

37,982

 

 

Total

 

$

209,528

 

$

185,538

 

$

184,942

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

6,384

 

$

9,736

 

$

15,352

 

Technology and value-added services

 

 

67

 

 

106

 

 

405

 

 

Total

 

$

6,451

 

$

9,842

 

$

15,757

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

27,554

 

$

41,307

 

$

50,666

 

Technology and value-added services

 

 

46

 

 

70

 

 

126

 

 

Total

 

$

27,600

 

$

41,377

 

$

50,792

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

167,584

 

$

71,206

 

$

129,381

 

Technology and value-added services

 

 

29,765

 

 

24,168

 

 

30,134

 

 

Total

 

$

197,349

 

$

95,374

 

$

159,515

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of Fixed Assets:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

74,021

 

$

43,511

 

$

69,095

 

Technology and value-added services

 

 

4,994

 

 

5,318

 

 

7,124

 

 

Total

 

$

79,015

 

$

48,829

 

$

76,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Total Assets:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

7,157,025

 

$

6,503,089

 

$

5,821,468

 

Technology and value-added services

 

 

1,324,066

 

 

1,269,443

 

 

1,329,633

 

 

Total

 

$

8,481,091

 

$

7,772,532

 

$

7,151,101

The following table presents information about our operations by geographic area as of and for the three years ended December 25, 2021. Net sales by geographic area are based on the respective locations of our subsidiaries. No country, except for the United States, generated net sales greater than 10% of consolidated net sales. There were no material amounts of sales or transfers among geographic areas and there were no material amounts of export sales.

 

 

 

2021

 

2020

 

2019

 

 

 

Net Sales

 

Long-Lived Assets

 

Net Sales

 

Long-Lived Assets

 

Net Sales

 

Long-Lived Assets

United States

 

$

8,722,223

 

$

2,980,765

 

$

7,090,206

 

$

2,362,823

 

$

6,876,194

 

$

2,400,733

Other

 

 

3,678,798

 

 

1,232,417

 

 

3,028,935

 

 

1,251,849

 

 

3,109,609

 

 

1,195,947

 

Consolidated total

 

$

12,401,021

 

$

4,213,182

 

$

10,119,141

 

$

3,614,672

 

$

9,985,803

 

$

3,596,680

v3.22.0.1
Business Acquisitions and Divestitures
12 Months Ended
Dec. 25, 2021
Business Acquisitions and Divestitures [Abstract]  
Business Acquisitions and Divestitures

Note 4 – Business Acquisitions and Divestitures

 

Acquisitions

 

We account for business acquisitions and combinations under the acquisition method of accounting, where the net assets of acquired businesses are recorded at their fair value at the acquisition date and our consolidated financial statements include their results of operations from that date. Any excess of acquisition consideration over the fair value of identifiable net assets acquired is recorded as goodwill. Goodwill is an asset presenting the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized, such as future customers and technology, as well as the assembled workforce. Excluding goodwill, the major classes of assets and liabilities to which we generally allocate acquisition consideration include identifiable intangible assets (i.e., customer relationships and lists, trademarks and trade names, product development, and non-compete agreements), inventory and accounts receivable. The estimated fair value of identifiable intangible assets is based on critical judgments and assumptions derived from analysis of market conditions, including discount rates, projected revenue growth rates (which are based on historical trends and assessment of financial projections), estimated customer attrition and projected cash flows. These assumptions are forward-looking and could be affected by future economic and market conditions.

 

If certain financial targets are met after the date of acquisition, certain prior owners of acquired subsidiaries are eligible to receive additional purchase price cash consideration, or we may be entitled to recoup a portion of purchase price cash consideration if certain financial targets are met. We accrue the estimated fair value of such contingent consideration at the time of the acquisition, using the income approach, including a probability-weighted discounted cash flow method or an option pricing method, where applicable.

 

While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, within 12 months following the date of acquisition, or the measurement period, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill within our consolidated balance sheets. At the end of the measurement period or final determination of the values of such assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations.

 

We completed acquisitions during the year ended December 25, 2021, which were immaterial to our financial statements individually, and in which our ownership interests ranged from approximately 51% to 100%. Acquisitions within our health care distribution segment included companies that specialize in the distribution and manufacturing of dental and medical products, a provider of home medical supplies, and a provider of product kitting and sterile packaging. Within our technology and value-added services segment, we acquired companies that focus on dental marketing and website solutions, practice transition services, revenue cycle management, and

business analytics and intelligence software. Approximately half of the acquired goodwill is deductible for tax purposes.

 

The following table aggregates the estimated fair value, as of the date of acquisition, of consideration paid and net assets acquired for acquisitions during the year ended December 25, 2021.

Acquisition consideration:

 

 

Cash

$

578,819

Deferred consideration

 

11,233

Estimated fair value of contingent consideration receivable

 

(4,900)

Fair value of previously held equity method investment

 

7,500

Redeemable noncontrolling interests

 

181,236

Total consideration

$

773,888

 

 

 

Identifiable assets acquired and liabilities assumed:

 

 

Current assets

$

195,479

Intangible assets

 

316,855

Other noncurrent assets

 

51,244

Current liabilities

 

(93,492)

Deferred income taxes

 

(25,929)

Other noncurrent liabilities

 

(46,480)

Total identifiable net assets

 

397,677

Goodwill

 

376,211

Total net assets acquired

$

773,888

The following table summarizes the identifiable intangible assets acquired during the year ended December 25, 2021 and their estimated useful lives as of the date of the acquisition:

 

 

 

Estimated

 

 

 

Useful Lives

 

 

 

(in years)

Trademark / Tradename

$

58,208

5-12

Non-compete agreements

 

4,688

3-5

Customer relationships and lists

 

220,454

5-12

Product development

 

19,274

5-10

Other

 

14,231

18

 

$

316,855

 

At December 25, 2021 we have recorded a contingent consideration receivable of $4.9 million relating to the timing of government approval of a certain product.

 

The accounting for certain of our acquisitions during the year ended December 25, 2021 has not been completed in several areas, including but not limited to pending assessments of accounts receivable, inventory, operating leases, accrued and contingent liabilities and income and non-income based taxes.

 

The pro forma financial information has not been presented because the impact of the acquisitions during the year ended December 25, 2021 to our consolidated financial statements was immaterial.

 

We completed acquisitions during the year ended December 26, 2020, which were immaterial to our financial statements individually. In the aggregate, these transactions resulted in consideration of $57.8 million in 2020 related to business combinations, for net assets amounting to $32.8 million. As of December 26, 2020, we had recorded $36.9 million of identifiable intangibles, $23.9 million of goodwill and $26.4 million of non-controlling interest, related to these acquisitions.

 

We completed acquisitions during the year ended December 28, 2019, which were immaterial to our financial statements individually. In the aggregate, these transactions resulted in consideration of $652.9 million in 2019 related to business combinations, for net assets amounting to $19.7 million. As of December 28, 2019, we had recorded $310.4 million identifiable intangibles, $395.3 million of goodwill and $72.5 million of non-controlling interest, related to these acquisitions.

 

For the years ended December 25, 2021, December 26, 2020 and December 28, 2019, there were no material adjustments recorded in our consolidated balance sheets relating to accounting for acquisitions incomplete in prior periods, or in our consolidated statements of income relating to changes in estimated contingent consideration assets or liabilities.

 

During the years ended December 25, 2021, December 26, 2020, and December 28, 2019 we incurred $6.6 million, $5.9 million and $4.5 million in acquisition costs reported within income from continuing operations.

 

Divestitures

 

During the fourth quarter of 2019, we sold an equity investment in Hu-Friedy Mfg. Co., LLC, a manufacturer of dental instruments and infection prevention solutions. Our investment was non-controlling, we were not involved in running the business and had no representation on the board of directors. During the fourth quarter of 2019, we also sold certain other equity investments. In the aggregate, the sales of these investments resulted in a pre-tax gain of approximately $250.2 million, net of taxes of approximately $63.4 million.

 

In the third quarter of 2021 we received contingent proceeds of $9.8 million from the 2019 sale of Hu-Friedy resulting in the recognition of an additional after-tax gain of $7.3 million. During the fourth quarter of 2020 we received contingent proceeds of $2.1 million from the 2019 sale of Hu-Friedy resulting in the recognition of an additional after-tax gain of $1.6 million. For the year ended December 28, 2019 we recognized approximately $6.0 million of equity in earnings from these affiliates. We do expect to receive any additional proceeds from the sale of Hu-Friedy.

v3.22.0.1
Property and Equipment, Net
12 Months Ended
Dec. 25, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

Note 5 – Property and Equipment, Net

 

Property and equipment, including related estimated useful lives, consisted of the following:

 

 

 

 

December 25,

 

December 26,

 

 

 

 

2021

 

2020

Land

 

$

21,115

 

$

20,297

Buildings and permanent improvements

 

 

140,062

 

 

145,160

Leasehold improvements

 

 

97,909

 

 

107,753

Machinery and warehouse equipment

 

 

152,952

 

 

142,437

Furniture, fixtures and other

 

 

119,693

 

 

108,041

Computer equipment and software

 

 

385,011

 

 

344,494

 

 

 

 

 

916,742

 

 

868,182

Less accumulated depreciation

 

 

(550,286)

 

 

(526,178)

 

Property and equipment, net

 

$

366,456

 

$

342,004

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Useful

 

 

 

 

 

 

 

Lives (in years)

 

 

 

Buildings and permanent improvements

 

40

 

 

 

Machinery and warehouse equipment

 

5-10

 

 

 

Furniture, fixtures and other

 

3-10

 

 

 

Computer equipment and software

 

3-10

 

 

 

Amortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term.

 

Property and equipment related depreciation expense for the years ended December 25, 2021, December 26, 2020 and December 28, 2019 was $70.4 million, $64.3 million and $64.4 million.
v3.22.0.1
Leases
12 Months Ended
Dec. 25, 2021
Leases [Abstract]  
Leases

Note 6 – Leases

 

We have operating and finance leases for corporate offices, office space, distribution and other facilities, vehicles, and certain equipment. Our leases have remaining terms of less than one year to approximately 20 years, some of which may include options to extend the leases for up to 10 years. The components of lease expense were as follows:

 

 

 

 

 

Years Ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

 

Operating lease cost: (1) (2)

 

$

103,459

 

$

86,800

 

$

88,246

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

 

2,882

 

 

2,209

 

 

1,154

 

 

Interest on lease liabilities

 

 

114

 

 

115

 

 

131

 

Total finance lease cost

 

$

2,996

 

$

2,324

 

$

1,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes variable lease expenses.

 

(2)

Operating lease cost for the years ended December 25, 2021, December 26, 2020, and December 28, 2019, include amortization of right-of-use assets of $0.0 million, $0.6 million, and $0.6 million, respectively, related to facility leases recorded in “Restructuring costs” within our consolidated statements of income.

 

Supplemental balance sheet information related to leases is as follows:

 

 

 

 

 

Years Ended

 

 

 

 

 

 

December 25,

 

December 26,

 

 

 

 

 

 

2021

 

2020

 

Operating Leases:

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

324,950

 

$

288,847

 

 

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

 

76,393

 

 

64,716

 

Non-current operating lease liabilities

 

 

267,772

 

 

238,727

 

 

Total operating lease liabilities

 

$

344,165

 

$

303,443

 

 

 

 

 

 

 

 

 

 

 

 

Finance Leases:

 

 

 

 

 

 

 

Property and equipment, at cost

 

$

12,580

 

$

10,683

 

Accumulated depreciation

 

 

(5,325)

 

 

(4,277)

 

 

Property and equipment, net of accumulated depreciation

 

$

7,255

 

$

6,406

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

3,216

 

$

2,420

 

Long-term debt

 

 

3,960

 

 

3,541

 

 

Total finance lease liabilities

 

$

7,176

 

$

5,961

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term in Years:

 

 

 

 

 

 

 

 

Operating leases

 

 

7.3

 

 

7.5

 

 

Finance leases

 

 

3.6

 

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

2.4

%

 

2.8

%

 

Finance leases

 

 

1.7

%

 

1.9

%

Supplemental cash flow information related to leases is as follows:

 

 

 

 

 

Years Ended

 

 

 

 

 

 

December 25,

 

December 26,

 

 

 

 

 

 

2021

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

85,123

 

 

76,985

 

 

Operating cash flows for finance leases

 

 

95

 

 

101

 

 

Financing cash flows for finance leases

 

 

2,602

 

 

2,148

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

120,732

 

 

120,148

 

 

Finance leases

 

 

3,868

 

 

2,947

 

 

 

 

 

 

 

 

 

 

 

 

Maturities of lease liabilities are as follows:

 

 

 

 

 

December 25, 2021

 

 

 

 

 

 

 

Operating

 

 

Finance

 

 

 

 

 

 

 

Leases

 

 

Leases

 

2022

 

$

82,920

 

$

3,303

 

2023

 

 

60,061

 

 

1,815

 

2024

 

 

45,992

 

 

953

 

2025

 

 

40,880

 

 

432

 

2026

 

 

32,814

 

 

308

 

Thereafter

 

 

113,667

 

 

576

 

Total future lease payments

 

 

376,334

 

 

7,387

 

Less imputed interest

 

 

(32,169)

 

 

(211)

 

Total

 

$

344,165

 

$

7,176

 

As of December 25, 2021, we have additional operating leases with total lease payments of $7.3 million for buildings and vehicles that have not yet commenced. These operating leases will commence subsequent to December 25, 2021, with lease terms of two years to five years.
v3.22.0.1
Goodwill and Other Intangibles, Net
12 Months Ended
Dec. 25, 2021
Goodwill and other Intangibles, Net Disclosure [Abstract]  
Goodwill and Other Intangibles, Net

Note 7 – Goodwill and Other Intangibles, Net

 

The changes in the carrying amount of goodwill for the years ended December 25, 2021 and December 26, 2020 were as follows:

 

 

 

 

Health Care Distribution

 

Technology and Value-Added Services

 

Total

Balance as of December 28, 2019

 

$

1,476,719

 

$

985,776

 

$

2,462,495

 

Adjustments to goodwill:

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

14,230

 

 

12,101

 

 

26,331

 

 

Foreign currency translation

 

 

9,888

 

 

5,678

 

 

15,566

Balance as of December 26, 2020

 

 

1,500,837

 

 

1,003,555

 

 

2,504,392

 

Adjustments to goodwill:

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

359,093

 

 

24,252

 

 

383,345

 

 

Foreign currency translation

 

 

(29,343)

 

 

(4,244)

 

 

(33,587)

Balance as of December 25, 2021

 

$

1,830,587

 

$

1,023,563

 

$

2,854,150

Other intangible assets consisted of the following:

 

December 25, 2021

 

December 26, 2020

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Accumulated

 

 

 

Cost

 

Amortization

 

Net

 

Cost

 

Amortization

 

Net

Customer relationships and lists

$

852,689

 

$

(353,457)

 

$

499,232

 

$

652,605

 

$

(283,469)

 

$

369,136

Trademarks / trade names - definite lived

 

129,061

 

 

(43,921)

 

 

85,140

 

 

95,382

 

 

(50,893)

 

 

44,489

Product Development

 

113,777

 

 

(70,316)

 

 

43,461

 

 

94,216

 

 

(54,451)

 

 

39,765

Non-compete agreements

 

25,364

 

 

(5,987)

 

 

19,377

 

 

30,993

 

 

(11,480)

 

 

19,513

Other

 

28,303

 

 

(7,887)

 

 

20,416

 

 

14,188

 

 

(7,662)

 

 

6,526

Total

$

1,149,194

 

$

(481,568)

 

$

667,626

 

$

887,384

 

$

(407,955)

 

$

479,429

Trademarks, trade names, customer lists and customer relationships were established through business acquisitions. Definite-lived trademarks and trade names are amortized on a straight-line basis over a weighted-average period of approximately 8.4 years as of December 25, 2021. Customer lists and customer relationships are definite-lived intangible assets that are amortized on a straight-line basis over a weighted-average period of approximately 10.0 years as of December 25, 2021. Product development is a definite-lived intangible asset that is amortized on a straight-line basis over a weighted-average period of approximately 7.9 years as of December 25, 2021.

 

Non-compete agreements represent amounts paid primarily to prior owners of acquired businesses, as well as certain sales persons, in exchange for placing restrictions on their ability to pose a competitive risk to us. Such amounts are amortized, on a straight-line basis over the respective non-compete period, which generally commences upon termination of employment or separation from us. The weighted-average non-compete period for agreements currently being amortized was approximately 5.2 years as of December 25, 2021.

 

Amortization expense related to definite-lived intangible assets for the years ended December 25, 2021, December 26, 2020 and December 28, 2019 was $123.8 million, $105.9 million and $108.3 million. During the years ended December 25, 2021 and December 26, 2020, we recorded total impairment charges on intangible assets of approximately $0.7 million and $20.3 million, respectively. The annual amortization expense expected to be recorded for existing intangibles assets for the years 2022 through 2026 is $122.8 million, $114.5 million, $91.5 million, $80.1 million and $63.4 million.

v3.22.0.1
Investments and Other
12 Months Ended
Dec. 25, 2021
Investments And Other [Abstract]  
Investments and Other

Note 8 – Investments and Other

 

Investments and other consisted of the following:

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Investment in unconsolidated affiliates

 

$

168,118

 

$

169,382

Non-current deferred foreign, state and local income taxes

 

 

34,607

 

 

42,594

Notes receivable (1)

 

 

35,748

 

 

34,760

Capitalized costs for software to be sold, leased or marketed to external users

 

 

65,349

 

 

47,650

Security deposits

 

 

2,225

 

 

1,752

Acquisition-related indemnification

 

 

65,638

 

 

49,401

Other long-term assets

 

 

52,189

 

 

20,906

 

Total

 

$

423,874

 

$

366,445

 

 

 

 

 

 

 

 

(1)

Long-term notes receivable carry interest rates ranging from 3.0% to 14.2% and are due in varying installments through

 

September 30, 2027.

Amortization expense, primarily related to capitalized costs for software to be sold, leased, or marketed to external users, for the years ended December 25, 2021, December 26, 2020 and December 28, 2019 was $15.3 million, $15.3 million and $12.3 million.
v3.22.0.1
Fair Value Measurements
12 Months Ended
Dec. 25, 2021
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 9 – Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).

 

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described as follows:

 

• Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

 

• Level 2— Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

• Level 3— Inputs that are unobservable for the asset or liability.

 

The following section describes the fair values of our financial instruments and the methodologies that we used to measure their fair values.

 

Investments and notes receivable

 

There are no quoted market prices available for investments in unconsolidated affiliates and notes receivable; however, we believe the carrying amounts are a reasonable estimate of fair value based on the interest rates in the applicable markets.

 

Debt

 

The fair value of our debt (including bank credit lines) is classified as Level 3 within the fair value hierarchy as of December 25, 2021 and December 26, 2020 was estimated at $872.5 million and $699.0 million, respectively. Factors that we considered when estimating the fair value of our debt include market conditions, such as interest rates and credit spreads.

 

Derivative contracts

 

Derivative contracts are valued using quoted market prices and significant other observable inputs. We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers, foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges and a total return swap for the purpose of economically hedging our unfunded non-qualified SERP and our DCP.

 

The fair values for the majority of our foreign currency derivative contracts are obtained by comparing our contract rate to a published forward price of the underlying market rates, which is based on market rates for comparable transactions and are classified within Level 2 of the fair value hierarchy.

Redeemable noncontrolling interests

 

The values for Redeemable noncontrolling interests are classified within Level 3 of the fair value hierarchy and are based on recent transactions and/or implied multiples of earnings.The following table presents our assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 25, 2021 and December 26, 2020:

 

 

 

 

December 25, 2021

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

7,859

 

$

-

 

$

7,859

 

Derivative contracts undesignated

 

 

-

 

 

640

 

 

-

 

 

640

 

Total return swap

 

 

-

 

 

1,404

 

 

-

 

 

1,404

 

 

Total assets

 

$

-

 

$

9,903

 

$

-

 

$

9,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

650

 

$

-

 

$

650

 

Derivative contracts undesignated

 

 

-

 

 

1,503

 

 

-

 

 

1,503

 

 

Total liabilities

 

$

-

 

$

2,153

 

$

-

 

$

2,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

-

 

$

-

 

$

613,312

 

$

613,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 26, 2020

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

453

 

$

-

 

$

453

 

Derivative contracts undesignated

 

 

-

 

 

1,415

 

 

-

 

 

1,415

 

Total return swap

 

 

-

 

 

1,565

 

 

-

 

 

1,565

 

 

Total assets

 

$

-

 

$

3,433

 

$

-

 

$

3,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

10,880

 

$

-

 

$

10,880

 

Derivative contracts undesignated

 

 

-

 

 

885

 

 

-

 

 

885

 

 

Total liabilities

 

$

-

 

$

11,765

 

$

-

 

$

11,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

-

 

$

-

 

$

327,699

 

$

327,699

v3.22.0.1
Concentrations of Risk
12 Months Ended
Dec. 25, 2021
Concentrations of Risk [Abstract]  
Concentrations of Risk

Note 10 – Concentrations of Risk

 

Certain financial instruments potentially subject us to concentrations of credit risk. These financial instruments consist primarily of cash equivalents, trade receivables, long-term investments, notes receivable and derivative instruments. In all cases, our maximum exposure to loss from credit risk equals the gross fair value of the financial instruments. We routinely maintain cash balances at financial institutions in excess of insured amounts. We have not experienced any loss in such accounts and we manage this risk through maintaining cash deposits and other highly liquid investments in high quality financial institutions. We continuously assess the need for reserves for such losses, which have been within our expectations. We do not require collateral or other security to support financial instruments subject to credit risk, except for long-term notes receivable.

 

We limit our credit risk with respect to our cash equivalents, short-term and long-term investments and derivative instruments, by monitoring the credit worthiness of the financial institutions who are the counter-parties to such financial instruments. As a risk management policy, we limit the amount of credit exposure by diversifying and utilizing numerous investment grade counter-parties.

 

With respect to our trade receivables, our credit risk is somewhat limited due to a relatively large customer base and its dispersion across different types of health care professionals and geographic areas. For each of the years ended December 25, 2021, and December 26, 2020, two customers accounted for approximately 3% of our net sales. With respect to our sources of supply, our top 10 health care distribution suppliers and our single largest supplier accounted for approximately 30% and 4%, respectively, of our aggregate purchases in each of the years ended December 25, 2021 and December 26, 2020.

 

Our long-term notes receivable primarily represent strategic financing arrangements with certain affiliates. Generally, these notes are secured by certain assets of the counterparty; however, in most cases our security is subordinate to other commercial financial institutions. While we have exposure to credit loss in the event of non-performance by these counter-parties, we conduct ongoing assessments of their financial and operational performance.

v3.22.0.1
Derivatives and Hedging Activities
12 Months Ended
Dec. 25, 2021
Derivatives and Hedging Activities [Abstract]  
Derivatives and Hedging Activities

Note 11 – Derivatives and Hedging Activities

 

We are exposed to market risks as well as changes in foreign currency exchange rates as measured against the U.S. dollar and each other, and changes to the credit risk of the derivative counterparties. We attempt to minimize these risks by primarily using foreign currency forward contracts and by maintaining counter-party credit limits. These hedging activities provide only limited protection against currency exchange and credit risks. Factors that could influence the effectiveness of our hedging programs include currency markets and availability of hedging instruments and liquidity of the credit markets. All foreign currency forward contracts that we enter into are components of hedging programs and are entered into for the sole purpose of hedging an existing or anticipated currency exposure. We do not enter into such contracts for speculative purposes and we manage our credit risks by diversifying our counterparties, maintaining a strong balance sheet and having multiple sources of capital.

 

During 2019 we entered into foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges. These net investment hedges offset the change in the U.S. dollar value of our investment in certain euro-functional currency subsidiaries due to fluctuating foreign exchange rates. Gains and losses related to these net investment hedges are recorded in accumulated other comprehensive loss within our consolidated balance sheets. Amounts excluded from the assessment of hedge effectiveness are included in interest expense within our consolidated statements of income. The aggregate notional value of this net investment hedge, which matures on November 16, 2023, is approximately €200 million. During the years ended December 25, 2021 and December 26, 2020, we recorded gains (losses) of ($11.4) million and $13.9 million, respectively, within other comprehensive income related to these foreign currency forward contracts.On March 20, 2020, we entered into a total return swap for the purpose of economically hedging our unfunded non-qualified SERP and our DCP. This swap will offset changes in our SERP and DCP liabilities. At the inception, the notional value of the investments in these plans was $43.4 million. At December 25, 2021, the notional value of the investments in these plans was $88.7 million. At December 25, 2021, the financing blended rate for this swap was based on LIBOR of 0.09% plus 0.46%, for a combined rate of 0.55%. For the years ended December 25, 2021 ended and December 26, 2020, we have recorded a gain, within selling, general and administrative in our consolidated statement of income, of approximately $12.1 million and $21.2 million, respectively, net of transaction costs, related to this undesignated swap. During the years ended December 25, 2021 and December 26, 2020, the swap resulted in a neutral impact to our results of operations. This swap is expected to be renewed on an annual basis after its current expiration date of March 29, 2022, and is expected to result in a neutral impact to our results of operations.Fluctuations in the value of certain foreign currencies as compared to the U.S. dollar may positively or negatively affect our revenues, gross margins, operating expenses and retained earnings, all of which are expressed in U.S. dollars. Where we deem it prudent, we engage in hedging programs using primarily foreign currency forward contracts aimed at limiting the impact of foreign currency exchange rate fluctuations on earnings. We purchase short-term (i.e., generally 18 months or less) foreign currency forward contracts to protect against currency exchange risks associated with intercompany loans due from our international subsidiaries and the payment of merchandise purchases to our foreign suppliers. We do not hedge the translation of foreign currency profits into U.S. dollars, as we regard this as an accounting exposure, not an economic exposure. Amounts related to our hedging activities are recorded in prepaid expenses and other and/or accrued expenses: other within our consolidated balance sheets. Our hedging activities have historically not had a material impact on our consolidated financial statements. Accordingly, additional disclosures related to derivatives and hedging activities required by ASC 815 have been omitted.
v3.22.0.1
Debt
12 Months Ended
Dec. 25, 2021
Debt [Abstract]  
Debt Note 12 – DebtAs of December 25, 2021, the aggregate amounts of long-term debt, including finance lease obligations and net of deferred debt issuance costs of $1.0 million, maturing in each of the next five years and thereafter are as follows:

 

2022

$

10,640

 

 

2023

 

5,108

 

 

2024

 

205,924

 

 

2025

 

412

 

 

2026

 

295

 

 

Thereafter

 

599,607

 

 

 

Total

$

821,986

 

Bank Credit Lines

 

Bank credit lines consisted of the following:

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Revolving credit agreement

 

$

-

 

$

-

Other short-term bank credit lines

 

 

50,530

 

 

73,366

Total

 

$

50,530

 

$

73,366

Revolving Credit Agreement

 

On August 20, 2021, we entered into a new $1 billion revolving credit agreement (the “Credit Agreement”). This facility, which matures on August 20, 2026, replaced our $750 million revolving credit facility, which was scheduled to mature in April 2022. The interest rate is based on the USD LIBOR plus a spread based on our leverage ratio at the end of each financial reporting quarter. We expect most LIBOR rates to be discontinued immediately after December 31, 2021, while the remaining LIBOR rates will be discontinued immediately after June 30, 2023. We do not expect the discontinuation of LIBOR as a reference rate in our debt agreements to have a material adverse effect on our financial position or to materially affect our interest expense. The Credit Agreement also requires, among other things, that we maintain certain maximum leverage ratios. Additionally, the Credit Agreement contains customary representations, warranties and affirmative covenants as well as customary negative covenants, subject to negotiated exceptions, on liens, indebtedness, significant corporate changes (including mergers), dispositions and certain restrictive agreements. As of December 25, 2021, and December 26, 2020, we had no borrowings under this revolving credit facility. As of December 25, 2021, and December 26, 2020, there were $9.1 million and $9.5 million of letters of credit, respectively, provided to third parties under the credit facility.

 

364-Day Credit Agreement

 

On March 4, 2021, we repaid the outstanding obligations and terminated the lender commitments under our $700 million 364-day credit agreement, which was entered into on April 17, 2020. This facility was originally scheduled to mature on April 16, 2021.

 

Other Short-Term Credit Lines

 

As of December 25, 2021 and December 26, 2020, we had various other short-term bank credit lines available, of which $50.5 million and $73.4 million, respectively, were outstanding. At December 25, 2021 and December 26, 2020, borrowings under all of these credit lines had a weighted average interest rate of 10.44% and 4.14%, respectively.

Long-term debt

 

Long-term debt consisted of the following:

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Private placement facilities

 

$

706,186

 

$

613,498

U.S. trade accounts receivable securitization

 

 

105,000

 

 

-

Note payable due in 2025 with an interest rate of 3.1%

 

 

 

 

 

 

 

at December 26, 2020

 

 

-

 

 

1,554

Various collateralized and uncollateralized loans payable with interest,

 

 

 

 

 

 

 

in varying installments through 2023 at interest rates

 

 

 

 

 

 

 

ranging from 2.45% to 4.27% at December 25, 2021 and

 

 

 

 

 

 

 

ranging from 2.62% to 4.27% at December 26, 2020

 

 

3,624

 

 

4,596

Finance lease obligations (see Note 6)

 

 

7,176

 

 

5,961

Total

 

 

821,986

 

 

625,609

Less current maturities of long-term debt

 

 

(10,640)

 

 

(109,836)

 

Total long-term debt

 

$

811,346

 

$

515,773

Private Placement Facilities

 

Our private placement facilities were amended on October 20, 2021, to include four (previously three) insurance companies, have a total facility amount of $1.5 billion (previously $1.0 billion), and are available on an uncommitted basis at fixed rate economic terms to be agreed upon at the time of issuance, from time to time through October 20, 2026 (previously June 23, 2023). The facilities allow us to issue senior promissory notes to the lenders at a fixed rate based on an agreed upon spread over applicable treasury notes at the time of issuance. The term of each possible issuance will be selected by us and can range from five to 15 years (with an average life no longer than 12 years). The proceeds of any issuances under the facilities will be used for general corporate purposes, including working capital and capital expenditures, to refinance existing indebtedness, and/or to fund potential acquisitions. The agreements provide, among other things, that we maintain certain maximum leverage ratios, and contain restrictions relating to subsidiary indebtedness, liens, affiliate transactions, disposal of assets and certain changes in ownership. These facilities contain make-whole provisions in the event that we pay off the facilities prior to the applicable due dates.

 

On March 5, 2021, we amended the private placement facilities to, among other things, (a) modify the financial covenant from being based on a net leverage ratio to a total leverage ratio and (b) restore the maximum maintenance total leverage ratio to 3.25x and remove the 1.00% interest rate increase triggered if the net leverage ratio were to exceed 3.0x.

The components of our private placement facility borrowings as of December 25, 2021 are presented in the following table (in thousands):

 

 

Amount of

 

 

 

 

 

Date of

 

Borrowing

 

Borrowing

 

 

Borrowing

 

Outstanding

 

Rate

 

Due Date

January 20, 2012 (1)

 

$

7,143

 

3.09

%

 

January 20, 2022

January 20, 2012

 

 

50,000

 

3.45

 

 

January 20, 2024

December 24, 2012

 

 

50,000

 

3.00

 

 

December 24, 2024

June 16, 2017

 

 

100,000

 

3.42

 

 

June 16, 2027

September 15, 2017

 

 

100,000

 

3.52

 

 

September 15, 2029

January 2, 2018

 

 

100,000

 

3.32

 

 

January 2, 2028

September 2, 2020

 

 

100,000

 

2.35

 

 

September 2, 2030

June 2, 2021

 

 

100,000

 

2.48

 

 

June 2, 2031

June 2, 2021

 

 

100,000

 

2.58

 

 

June 2, 2033

Less: Deferred debt issuance costs

 

 

(957)

 

 

 

 

 

 

 

$

706,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016.

U.S. Trade Accounts Receivable Securitization

 

We have a facility agreement, based on the securitization of our U.S. trade accounts receivable that is structured as an asset-backed securitization program with pricing committed for up to three years. Our current facility, which had a purchase limit of $350 million, was scheduled to expire on April 29, 2022. On October 20, 2021, we amended our U.S. trade accounts receivable securitization facility to increase the purchase limit to $450 million with two banks as agents and extend the expiration date to October 18, 2024. As of December 25, 2021 and December 26, 2020, the borrowings outstanding under this securitization facility were $105 million and $0, respectively. At December 25, 2021, the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate of 0.19% plus 0.75%, for a combined rate of 0.94%. At December 26, 2020, the interest rate on borrowings under this facility was based on the asset-backed commercial paper rate of 0.22% plus 0.95%, for a combined rate of 1.17%.

 

If our accounts receivable collection pattern changes due to customers either paying late or not making payments, our ability to borrow under this facility may be reduced.

 

We are required to pay a commitment fee of 30 to 35 basis points depending upon program utilization.

v3.22.0.1
Income Taxes
12 Months Ended
Dec. 25, 2021
Income Taxes [Abstract]  
Income Taxes

Note 13 – Income Taxes

 

Income before taxes and equity in earnings of affiliates was as follows:

 

 

Years ended

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Domestic

$

593,137

 

$

430,838

 

$

507,003

Foreign

 

237,411

 

 

69,057

 

 

173,304

 

Total

$

830,548

 

$

499,895

 

$

680,307

The provisions for income taxes were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended

 

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

 

2021

 

2020

 

2019

Current income tax expense:

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

128,328

 

$

82,912

 

$

93,418

 

State and local

 

 

37,255

 

 

24,640

 

 

28,150

 

Foreign

 

 

42,751

 

 

40,799

 

 

42,004

 

 

Total current

 

 

208,334

 

 

148,351

 

 

163,572

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

(12,115)

 

 

(18,032)

 

 

5,633

 

State and local

 

 

(2,567)

 

 

(4,889)

 

 

1,597

 

Foreign

 

 

3,697

 

 

(30,056)

 

 

(11,287)

 

 

Total deferred

 

 

(10,985)

 

 

(52,977)

 

 

(4,057)

 

 

 

Total provision

 

$

197,349

 

$

95,374

 

$

159,515

The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

December 25,

 

December 26,

 

 

 

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Deferred income tax asset:

 

 

 

 

 

 

 

Net operating losses and other carryforwards

 

$

54,651

 

$

64,297

 

Inventory, premium coupon redemptions and accounts receivable

 

 

 

 

 

 

 

 

valuation allowances

 

 

46,219

 

 

56,668

 

Stock-based compensation

 

 

12,543

 

 

4,858

 

Uniform capitalization adjustment to inventories

 

 

10,422

 

 

6,895

 

Operating lease right of use asset

 

 

78,719

 

 

74,674

 

Other asset

 

 

41,090

 

 

42,966

 

Total deferred income tax asset

 

 

243,644

 

 

250,358

 

Valuation allowance for deferred tax assets (1)

 

 

(35,982)

 

 

(40,496)

 

Net deferred income tax asset

 

 

207,662

 

 

209,862

Deferred income tax liability

 

 

 

 

 

 

 

Intangibles amortization

 

 

(134,023)

 

 

(118,165)

 

Operating lease liability

 

 

(73,952)

 

 

(71,343)

 

Property and equipment

 

 

(7,363)

 

 

(7,820)

 

Total deferred tax liability

 

 

(215,338)

 

 

(197,328)

Net deferred income tax asset (liability)

 

$

(7,676)

 

$

12,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Primarily relates to operating losses, the benefits of which are uncertain. Any future reductions of such valuation allowances will be reflected as a reduction of income tax expense.

The assessment of the amount of value assigned to our deferred tax assets under the applicable accounting rules is judgmental. We are required to consider all available positive and negative evidence in evaluating the likelihood that we will be able to realize the benefit of our deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and the results of recent operations. Since this evaluation requires consideration of events that may occur some years into the future, there is an element of judgment involved. Realization of our deferred tax assets is dependent on generating sufficient taxable income in future periods. We believe that it is more likely than not that future taxable income will be sufficient to allow us to recover substantially all of the value assigned to our deferred tax assets. However, if future events cause us to conclude that it is not more likely than not that we will be able to recover all of the value assigned to our deferred tax assets, we will be required to adjust our valuation allowance accordingly.

 

As of December 25, 2021, we had federal, state, and foreign net operating loss carryforwards of approximately $32.7 million, $35.6 million and $170.7 million, respectively. The federal, state and foreign net operating loss carryforwards will begin to expire in various years from 2024 through 2039. The amounts of state and foreign net operating losses that can be carried forward indefinitely are $9.5 million and $169.6 million, respectively.

 

The tax provisions differ from the amount computed using the federal statutory income tax rate as follows:

 

 

 

Years ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Income tax provision at federal statutory rate

 

$

174,415

 

$

104,977

 

$

142,865

State income tax provision, net of federal income tax effect

 

 

21,245

 

 

13,015

 

 

16,539

Foreign income tax provision (benefit)

 

 

5,669

 

 

(428)

 

 

(4,580)

Pass-through noncontrolling interest

 

 

(4,479)

 

 

(2,681)

 

 

(3,931)

Valuation allowance

 

 

(5,533)

 

 

659

 

 

(79)

Unrecognized tax benefits and audit settlements

 

 

6,981

 

 

(17,722)

 

 

3,671

Interest expense related to loans

 

 

(10,917)

 

 

(11,098)

 

 

(5,498)

Tax on global intangible low-taxed income ("GILTI")

 

 

4,895

 

 

2,365

 

 

3,917

Tax benefit related to legal entity reorganization outside the U.S.

 

 

-

 

 

(5,823)

 

 

-

Tax credit related to reorganization of legal entities

 

 

 

 

 

 

 

 

 

completed in preparation for the Animal Health spin-off

 

 

 

 

 

-

 

 

(1,333)

Other

 

 

5,073

 

 

12,110

 

 

7,944

 

Total income tax provision

 

$

197,349

 

$

95,374

 

$

159,515

For the year ended December 25, 2021, our effective tax rate was 23.8% compared to 19.1% for the prior year period. In 2021, our effective tax rate was primarily impacted by state and foreign income taxes and interest expense. In 2020, our effective tax rate of 19.1% was primarily impacted by an Advance Pricing Agreement with the U.S Internal Revenue Service (the “IRS”) in the U.S., other audit resolutions, state and foreign income taxes and interest expense. In 2019, our effective tax rate of 23.4% was primarily impacted by state and foreign income taxes and interest expense.

 

The American Rescue Plan Act of 2021 (“ARPA”) was signed into law on March 11, 2021. The ARPA included a corporate income tax provision to further limit the deductibility of compensation under Section 162(m) for tax years starting after December 31, 2026. Section 162(m) generally limits the deductibility of compensation paid to covered employees of publicly held corporations. Covered employees include the CEO, CFO and the three highest paid officers. The ARPA expands the group of covered employees to additionally include five of the highest paid employees.

 

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act includes, but is not limited to, certain income tax provisions that modify the Section 163(j) limitation of business interest and net operating loss carryover and carryback rules. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income for years beginning in 2019 and 2020. The CARES Act eliminated the NOL income limitation for years beginning before 2021 and it extended the carryback period to five years for losses incurred in 2018, 2019 and 2020. We have analyzed the income tax provisions of the CARES Act and have accounted for the impact in the year ended December 26, 2020, which did not have a material impact on our consolidated financial statements. There are certain other non-income tax benefits available to us under the CARES Act that require further clarification or interpretation that may affect our consolidated financial statements in the future. On December 27, 2020, the Consolidated Appropriations Act was enacted into law and extended certain non-income tax benefits under the CARES Act.

 

On July 20, 2020, the IRS issued final regulations related to the Tax Cuts and Jobs Act enacted in 2017 (the “Act”). The final regulations concern the global intangible low-taxed income (“GILTI”) and subpart F income provisions of the Tax Act. To provide flexibility to taxpayers, the IRS is permitting the application of these final

regulations to prior tax years, if the taxpayer elects to do so. We have analyzed the final regulations, which do not have a material impact to our consolidated financial statements.

 

On December 22, 2017, the U.S. government passed the Tax Act, which requires U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S. The transition tax is payable over eight years. Within our consolidated balance sheets, transition tax of $14.1 million and $9.9 million were included in “accrued taxes” for 2021 and 2020, respectively, and $42.4 million and $74.5 million were included in “other liabilities” for 2021 and 2020, respectively.

The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. We recorded a current tax expense for the GILTI provision of $4.9 million, $2.4 million, and $3.9 million for 2021, 2020, and 2019, respectively.

 

Due to the one-time transition tax and the imposition of the GILTI provisions, all previously unremitted earnings will no longer be subject to U.S. federal income tax; however, there could be U.S., state, and/or foreign withholding taxes upon distribution of such unremitted earnings. Determination of the amount of unrecognized deferred tax liability with respect to such earnings is not practicable.

 

ASC 740 prescribes the accounting for uncertainty in income taxes recognized in the financial statements in accordance with other provisions contained within this guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate audit settlement. In the normal course of business, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities for uncertain tax positions taken in respect to certain tax matters.

 

The total amount of unrecognized tax benefits, which are included in “other liabilities” within our consolidated balance sheets, as of December 25, 2021 and December 26, 2020 was approximately $83.5 million and $84.0 million, respectively of which $69.0 million and $70.1 million, respectively would affect the effective tax rate if recognized. It is possible that the amount of unrecognized tax benefits will change in the next 12 months, which may result in a material impact on our consolidated statements of income.

 

All tax returns audited by the IRS are officially closed through 2016. The tax years subject to examination by the IRS include years 2017 and forward. During the quarter ended December 25, 2021, we were notified by the IRS that tax year 2019 was selected for examination. During the quarter ended June 26, 2021 we reached a resolution with the Appellate Division for all remaining outstanding issues for 2012 and 2013.

 

Regarding transfer pricing matters, in the quarter ended December 28, 2019, we reached a settlement with the U.S. Competent Authority to resolve transfer pricing matters related to 2012 and 2013. During the quarter ended September 26, 2020 we reached an agreement with the Advanced Pricing Division on an appropriate transfer pricing methodology for the years 2014-2025. The objective of this resolution was to mitigate future transfer pricing audit adjustments.

 

In the fourth quarter of 2020, we reached a resolution with the IRS for the 2014-2016 audit cycle.

 

The total amounts of interest and penalties are classified as a component of the provision for income taxes. The amount of tax interest expense (credit) was approximately $(0.4) million, $(3.3) million, and $2.2 million in 2021,

2020 and 2019, respectively. The total amount of accrued interest is included in “other liabilities”, and was approximately $12.4 million as of December 25, 2021 and $14.0 million as of December 26, 2020. No penalties were accrued for the periods presented.

The following table provides a reconciliation of unrecognized tax benefits:

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Balance, beginning of period

 

$

70,000

 

$

91,100

 

$

77,800

Additions based on current year tax positions

 

 

3,300

 

 

4,900

 

 

4,900

Additions based on prior year tax positions

 

 

10,800

 

 

7,900

 

 

17,300

Reductions based on prior year tax positions

 

 

(1,000)

 

 

(1,000)

 

 

(1,000)

Reductions resulting from settlements with taxing authorities

 

 

(9,500)

 

 

(18,600)

 

 

(4,200)

Reductions resulting from lapse in statutes of limitations

 

 

(2,500)

 

 

(14,300)

 

 

(3,700)

Balance, end of period

 

$

71,100

 

$

70,000

 

$

91,100

v3.22.0.1
Commitments and Contingencies
12 Months Ended
Dec. 25, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 14 – Commitments and Contingencies

 

Purchase Commitments

 

In our health care distribution business, we sometimes enter into long-term purchase commitments to ensure the availability of products for distribution. Future minimum annual payments for inventory purchase commitments as of December 25, 2021 were:

2022

 

$

111,696

2023

 

 

488

Total minimum inventory purchase commitment payments

 

$

112,184

Employment, Consulting and Non-Compete Agreements

 

We have employment, consulting and non-compete agreements that have varying base aggregate annual payments for the years 2022 through 2026 and thereafter of approximately $24.6 million, $4.7 million, $0.9 million, $0.8 million, $0.8 million, and $0.0 million, respectively. We also have lifetime consulting agreements that provide for current compensation of $0.4 million per year, increasing $25 every fifth year with the next increase in 2022. In addition, some agreements have provisions for additional incentives and compensation.

Litigation

 

Henry Schein has been named as a defendant in multiple lawsuits (currently less than one-hundred and seventy-five (175); in less than half of those cases one or more of Schein’s affiliated companies is also named as a defendant), which allege that manufacturers of prescription opioid drugs engaged in a false advertising campaign to expand the market for such drugs and their own market share and that the entities in the supply chain (including Henry Schein, Inc.) reaped financial rewards by refusing or otherwise failing to monitor appropriately and restrict the improper distribution of those drugs. These actions consist of some that have been consolidated within the MultiDistrict Litigation (“MDL”) proceeding In Re National Prescription Opiate Litigation (MDL No. 2804; Case No. 17-md-2804) and are currently abated for discovery purposes, and others which remain pending in state courts and are proceeding independently and outside of the MDL. At this time, the only cases set for trial are: the action filed by Mobile County Board of Health, et al., in Alabama state court, which is currently set for a jury trial on January 9, 2023; and the action filed by DCH Health Care Authority, et al. in Alabama state court, which is currently scheduled for a jury trial on March 20, 2023. The court for the pending cases filed by hospitals in West Virginia

has indicated it intends to set trials for all defendants in 2022. However, as of this filing, the West Virginia hospital cases against Henry Schein have not been set for trial. Of Henry Schein’s 2021 revenue of approximately $12.4 billion from continuing operations, sales of opioids represented less than two-tenths of 1 percent. Opioids represent a negligible part of our business. We intend to defend ourselves vigorously against these actions.

 

On February 5, 2021, Jack Garnsey filed a putative shareholder derivative action on behalf of Covetrus, Inc. in the U.S. District Court for the Eastern District of New York, naming as defendants Benjamin Shaw, Christine T. Komola, Steven Paladino, Betsy Atkins, Deborah G. Ellinger, Sandra L. Helton, Philip A. Laskaway, Mark J. Manoff, Edward M. McNamara, Ravi Sachdev, David E. Shaw, Benjamin Wolin, and Henry Schein, Inc., with Covetrus, Inc. named as a nominal defendant. The complaint alleges that the individual defendants breached their fiduciary duties under state law in connection with the same allegations asserted in the City of Hollywood securities class action described in our prior filings with the SEC and further alleges that Henry Schein aided and abetted such breaches. The complaint also asserts claims for contribution under the federal securities laws against Henry Schein and other defendants, also arising out of the allegations in the City of Hollywood lawsuit. The complaint seeks declaratory, injunctive, and monetary relief. A second similar complaint, Stegmann v. Wolin, was filed in the same court on March 30, 2021, which did not name the Company as a defendant. Plaintiffs agreed to dismiss Henry Schein from the consolidated amended complaint without prejudice; and the court “so ordered” the stipulation dismissing Henry Schein as a defendant on December 13, 2021.

 

From time to time, we may become a party to other legal proceedings, including, without limitation, product liability claims, employment matters, commercial disputes, governmental inquiries and investigations (which may in some cases involve our entering into settlement arrangements or consent decrees), and other matters arising out of the ordinary course of our business. While the results of any legal proceeding cannot be predicted with certainty, in our opinion none of these other pending matters are currently anticipated to have a material adverse effect on our consolidated financial position, liquidity or results of operations.

 

As of December 25, 2021, we had accrued our best estimate of potential losses relating to claims that were probable to result in liability and for which we were able to reasonably estimate a loss. This accrued amount, as well as related expenses, was not material to our financial position, results of operations or cash flows. Our method for determining estimated losses considers currently available facts, presently enacted laws and regulations and other factors, including probable recoveries from third parties.

v3.22.0.1
Stock Based Compensation
12 Months Ended
Dec. 25, 2021
Stock Based Compensation [Abstract]  
Stock Based Compensation

Note 15 – Stock-Based Compensation

 

Stock-based awards are provided to certain employees and non-employee directors under the terms of our 2020 Stock Incentive Plan and our 2015 Non-Employee Director Stock Incentive Plan (together, the “Plans”). The Plans are administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Historically, equity-based awards have been granted solely in the form of time-based and performance-based restricted stock units (“RSUs”). However, beginning in 2021, our equity-based awards have been granted in the form of time-based RSUs and non-qualified stock options. As of December 25, 2021, there were 70,943 shares authorized and 9,368 shares available to be granted under the 2020 Stock Incentive Plan and 1,893 shares authorized and 229 shares available to be granted under the 2015 Non-Employee Director Stock Incentive Plan.

 

Grants of RSUs are stock-based awards granted to recipients with specified vesting provisions. In the case of RSUs, common stock is generally delivered on or following satisfaction of vesting conditions. We issue RSUs that vest solely based on the recipient’s continued service over time (primarily four-year cliff vesting, except for grants made under the 2015 Non-Employee Director Stock Incentive Plan, which are primarily 12-month cliff vesting), and RSUs that vest based on our achieving specified performance measurements and the recipient’s continued service over time (primarily three-year cliff vesting). For these RSUs, we recognize the cost as compensation expense on a straight-line basis.

 

With respect to time-based RSUs, we estimate the fair value on the date of grant based on our closing stock price at time of grant. With respect to performance-based RSUs, the number of shares that ultimately vest and are received by the recipient is based upon our performance as measured against specified targets over a specified period, as determined by the Compensation Committee. Although there is no guarantee that performance targets will be achieved, we estimate the fair value of performance-based RSUs based on our closing stock price at time of grant.

 

The Plans provide for adjustments to the performance-based RSU targets for significant events, including, without limitation, acquisitions, divestitures, new business ventures, certain capital transactions (including share repurchases), restructuring costs, if any, certain litigation settlements or payments, if any, changes in accounting principles or in applicable laws or regulations, changes in income tax rates in certain markets and foreign exchange fluctuations. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense is adjusted upward or downward based upon our estimation of achieving such performance targets. The ultimate number of shares delivered to recipients and the related compensation cost recognized as an expense will be based on our actual performance metrics as defined under the Plans.

 

During the three months ended March 27, 2021, as a result of the continuing economic risk and uncertainty resulting from the ongoing COVID-19 pandemic, the Compensation Committee decided to adjust the form of awards granted under our 2021 long-term incentive program for our 2021 fiscal year in a manner that focuses on our long-term value by granting non-qualified stock options and time-based RSUs rather than performance-based RSUs. Stock options are awards that allow the recipient to purchase shares of our common stock at a fixed price following vesting of the stock options. Stock options are granted at an exercise price equal to our closing stock price on the date of grant. Stock options issued during 2021 vest one-third per year based on the recipient’s continued service, subject to the terms and conditions of the Plans, are fully vested three years from the grant date and have a contractual term of ten years from the grant date, subject to earlier termination of the term upon certain events. Compensation expense for these stock options is recognized using a graded vesting method. We estimate the fair value of stock options using the Black-Scholes valuation model.

 

In addition to equity-based awards under the 2021 long-term incentive program under the 2020 Stock Incentive Plan, the Compensation Committee granted a Special Pandemic Recognition Award under the 2020 Stock Incentive Plan to recipients of performance-based RSUs under the 2018 long-term incentive program. These time-based RSU awards vest 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date, based on the recipient’s continued service and subject to the terms and conditions of the Plans, and are recorded as compensation expense using a graded vesting method.

 

Our accompanying consolidated statements of income reflect pre-tax share-based compensation expense of $78.4 million ($59.8 million after-tax), $8.8 million ($7.1 million after-tax) and $44.9 million ($34.4 million after-tax) for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

 

Total unrecognized compensation cost related to non-vested awards as of December 25, 2021 was $79.8 million, which is expected to be recognized over a weighted-average period of approximately 2.0 years.

 

The weighted-average grant date fair value of stock-based awards granted before forfeitures was $62.72, $60.23 and $56.83 per share during the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

 

Certain stock-based compensation granted may require us to settle in the form of a cash payment. During the year ended December 25, 2021, we recorded a liability of $0.9 million relating to the grant date fair value of stock-based compensation to be settled in cash.

 

We record deferred income tax assets for awards that will result in future deductions on our income tax returns based on the amount of compensation cost recognized and our statutory tax rate in the jurisdiction in which we will receive a deduction.

 

Our accompanying consolidated statements of cash flows present our stock-based compensation expense as an adjustment to reconcile net income to net cash provided by operating activities for all periods presented. In the accompanying consolidated statements of cash flows, there were no benefits associated with tax deductions in excess of recognized compensation as a cash inflow from financing activities for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

The following weighted-average assumptions were used in determining the most recent fair values of stock options using the Black-Scholes valuation model:

 

2021

 

 

Expected dividend yield

0.0

%

 

 

Expected stock price volatility

27.10

%

 

 

Risk-free interest rate

1.33

%

 

 

Expected life of options (years)

6.00

 

 

 

We have not declared cash dividends on our stock in the past and we do not anticipate declaring cash dividends in the foreseeable future. The expected stock price volatility is based on implied volatilities from traded options on our stock, historical volatility of our stock, and other factors. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant in conjunction with considering the expected life of options. The six-year expected life of the options was determined using the simplified method for estimating the expected term as permitted under SAB Topic 14. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by recipients of stock options, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by us.The following table summarizes the stock option activity for the year ended December 25, 2021:

 

 

 

 

 

 

Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

Remaining

 

 

 

 

 

 

Average

Weighted Average

Aggregate

 

 

 

 

 

Exercise

Remaining Contractual

Intrinsic

 

 

 

Shares

 

Price

Life in Years

Value

 

Outstanding at beginning of year

 

-

 

$

-

 

 

 

Granted

 

817

 

 

63.21

 

 

 

Forfeited

 

(50)

 

 

62.75

 

 

 

Outstanding at end of year

 

767

 

$

63.24

9.2

$9,027

 

 

 

 

 

 

 

 

 

 

Options exercisable at end of year

 

1

 

$

62.71

6.1

$8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

Aggregate

 

 

 

Number of

 

 

Average

 

 

Remaining

 

 

Intrinsic

 

 

 

Options

 

 

Exercise

 

 

Contractual

 

 

Value

 

 

 

(in thousands)

 

 

Price

 

 

Life (in years)

 

 

(in thousands)

Vested or expected to vest

 

 

736

 

$

63.26

 

 

9.2

 

$

8,642

 

 

 

 

 

 

 

 

 

 

 

 

Time-Based Restricted Stock Units

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

Grant Date Fair

 

 

Intrinsic Value

 

 

Shares/Units

 

Value Per Share

 

 

Per Share

Outstanding at beginning of period

 

1,459

 

$

57.61

 

 

 

 

Granted

 

843

 

 

63.38

 

 

 

 

Vested

 

(269)

 

 

66.85

 

 

 

 

Forfeited

 

(87)

 

 

60.55

 

 

 

 

Outstanding at end of period

 

1,946

 

$

58.79

 

 

$

74.93

 

 

 

 

 

 

 

 

 

 

 

 

Performance-Based Restricted Stock Units

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

Grant Date Fair

 

 

Intrinsic Value

 

 

Shares/Units

 

Value Per Share

 

 

Per Share

Outstanding at beginning of period

 

136

 

$

53.52

 

 

 

 

Granted

 

669

 

 

59.29

 

 

 

 

Vested

 

(84)

 

 

52.49

 

 

 

 

Forfeited

 

(46)

 

 

59.72

 

 

 

 

Outstanding at end of period

 

675

 

$

59.63

 

 

$

74.93

 

 

 

 

 

 

 

 

 

 

The total intrinsic value per share of RSUs that vested was $73.99, $61.49 and $64.31 during the years ended December 25, 2021, December 26, 2020 and December 28, 2019.
v3.22.0.1
Employee Benefit Plans
12 Months Ended
Dec. 25, 2021
Employee Benefit Plans [Abstract]  
Employee Benefit Plans

Note 16 – Employee Benefit Plans

 

Defined benefit plans

 

Certain of our employees in our international markets participate in various noncontributory defined benefit plans. These plans are managed to provide pension benefits to covered employees in accordance with local regulations and practices. Our unfunded liability for these plans are recorded in accrued expenses: other and other liabilities within our consolidated balance sheets. The following table presents the changes in projected benefit obligations, plan assets, and the funded status of our defined benefit pension plans:

 

 

 

Years Ended

 

 

 

December 25,

 

 

December 26,

 

 

 

2021

 

 

2020

Obligation and funded status:

 

 

 

 

 

Change in benefit obligation

 

 

 

 

 

Projected benefit obligation, beginning of period

$

130,095

 

$

120,622

Service costs

 

3,692

 

 

3,186

Interest cost

 

421

 

 

518

Past service cost

 

5,348

 

 

-

Actuarial gain (loss)

 

(5,451)

 

 

569

Benefits (paid) received (1)

 

422

 

 

(3,685)

Participant contributions

 

936

 

 

839

Settlements

 

(2,256)

 

 

(2,143)

Effect of foreign currency translation

 

(5,011)

 

 

10,189

Projected benefit obligation, end of period

$

128,196

 

$

130,095

 

 

 

 

 

 

 

Change in plan assets

 

 

 

 

 

Fair value of plan assets at beginning of period

$

64,708

 

$

60,090

Actual return on plan assets

 

5,091

 

 

1,772

Employer contributions

 

1,713

 

 

1,545

Plan participant contributions

 

936

 

 

839

Expected return on plan assets

 

3,988

 

 

987

Benefit (paid) received (1)

 

1,990

 

 

(1,988)

Settlements

 

(2,256)

 

 

(2,143)

Effect of foreign currency translation

 

(1,111)

 

 

3,606

Fair value of plan assets at end of period

$

75,059

 

$

64,708

 

 

 

 

 

 

 

Unfunded status at end of period

$

53,137

 

$

65,387

 

 

 

 

 

 

 

Includes regular benefit payments and amounts transferred in by new participants.The majority of our defined benefit plans are unfunded, with the exception of one plan in one country where the amount of assets exceeds the projected benefit obligation by approximately $5.8 million.The following table provides the amounts recognized in our consolidated balance sheets for our defined benefit pension plans:

 

 

 

 

 

 

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

2021

 

 

2020

Current liabilities

$

991

 

$

1,031

Non-Current liabilities

 

52,146

 

 

64,356

Accumulated other comprehensive loss, pre-tax

 

20,456

 

 

29,798

The following table provides the net periodic pension cost for our defined benefit plans:

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

December 28,

 

 

2021

 

 

2020

 

 

2019

Service cost

$

3,692

 

$

3,186

 

$

1,655

Interest cost

 

421

 

 

518

 

 

899

Expected return on plan assets

 

(451)

 

 

(421)

 

 

(337)

Employee contributions

 

(483)

 

 

(371)

 

 

-

Amortization of prior service credit

 

871

 

 

785

 

 

300

Recognized net actuarial loss

 

252

 

 

447

 

 

92

Settlements

 

98

 

 

155

 

 

373

Net periodic pension cost

$

4,400

 

$

4,299

 

$

2,982

The following tables present the weighted-average actuarial assumptions used to determine our pension benefit obligation and our net periodic pension cost for the periods presented:

 

Years Ended

 

December 25,

 

 

December 26,

 

Pension Benefit Obligation

2021

 

 

2020

 

Weighted average discount rate

0.87

%

 

0.54

%

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

December 28,

 

Net Periodic Pension Cost

 

2021

 

 

2020

 

 

2019

 

Discount rate-pension benefit

 

0.56

%

 

0.51

%

 

1.14

%

Expected return on plan assets

 

0.71

%

 

0.87

%

 

0.87

%

Rate of compensation increase

 

1.95

%

 

1.97

%

 

2.20

%

Pension increase rate

 

0.72

%

 

0.67

%

 

0.77

%

The following table presents the estimated pension benefit payments that are payable to the plan’s participants as of December 25, 2021:

 

Year

 

 

 

 

2022

 

$

5,503

 

2023

 

 

6,109

 

2024

 

 

5,837

 

2025

 

 

5,174

 

2026

 

 

5,162

 

2027 to 2031

 

 

32,857

 

Total

 

$

60,642

401(k) Plans

 

We offer qualified 401(k) plans to substantially all our domestic full-time employees. As determined by our Board of Directors, matching contributions to these plans generally do not exceed 100% of the participants’ contributions up to 7% of their base compensation, subject to applicable legal limits. Matching contributions consist of cash and were allocated entirely to the participants’ investment elections on file, subject to a 20% allocation limit to the Henry Schein Stock Fund. Due to the impact of COVID-19, as part of our initiative to generate cash savings, we suspended the matching contribution for the second half of 2020. The matching contribution has been reinstated for 2021. Forfeitures attributable to participants whose employment terminates prior to becoming fully vested are used to reduce our matching contributions and offset administrative expenses of the 401(k) plans.

 

Assets of the 401(k) and other defined contribution plans are held in self-directed accounts enabling participants to choose from various investment fund options. Matching contributions related to these plans charged to operations during the years ended December 25, 2021, December 26, 2020 and December 28, 2019 amounted to $37.5 million, $20.5 million and $35.4 million, respectively.

 

Supplemental Executive Retirement Plan

 

We offer an unfunded, non-qualified SERP to eligible employees. This plan generally covers officers and certain highly compensated employees after they have reached the maximum IRS allowed pre-tax 401(k) contribution limit. Our contributions to this plan are equal to the 401(k) employee-elected contribution percentage applied to base compensation for the portion of the year in which such employees are not eligible to make pre-tax contributions to the 401(k) plan. Due to the impact of COVID-19, as part of our initiative to generate cash savings, we suspended contributions under the SERP for the second half of 2020. Contributions to the SERP were restored in 2021. The amounts charged to operations during the years ended December 25, 2021, December 26, 2020 and December 28, 2019 amounted to $2.4 million, $2.8 million and $4.0 million, respectively. Please see Note 11 – Derivatives and Hedging Activities for additional information.

 

Deferred Compensation Plan

 

During 2011, we began to offer DCP to a select group of management or highly compensated employees of the Company and certain subsidiaries. This plan allows for the elective deferral of base salary, bonus and/or commission compensation by eligible employees. The amounts charged to operations during the years ended December 25, 2021, December 26, 2020 and December 28, 2019 were approximately $8.4 million, $7.8 million and $8.3 million, respectively. Please see Note 11 – Derivatives and Hedging Activities for additional information.

v3.22.0.1
Redeemable Noncontrolling Interests
12 Months Ended
Dec. 25, 2021
Redeemable Noncontrolling Interests [Abstract]  
Redeemable Noncontrolling Interests

Note 17 – Redeemable Noncontrolling Interests

 

Some minority stockholders in certain of our consolidated subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. ASC 480-10 is applicable for noncontrolling interests where we are or may be required to purchase all or a portion of the outstanding interest in a consolidated subsidiary from the noncontrolling interest holder under the terms of a put option contained in contractual agreements. The components of the change in the redeemable noncontrolling interests for the years ended December 25, 2021, December 26, 2020 and December 28, 2019 are presented in the following table:

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Balance, beginning of period

 

$

327,699

 

$

287,258

 

$

219,724

Decrease in redeemable noncontrolling interests due to acquisitions of

 

 

 

 

 

 

 

 

 

 

noncontrolling interests in subsidiaries

 

 

(60,240)

 

 

(17,241)

 

 

(2,270)

Increase in redeemable noncontrolling interests due to

 

 

 

 

 

 

 

 

 

 

business acquisitions

 

 

188,977

 

 

28,387

 

 

74,865

Net income attributable to redeemable noncontrolling interests

 

 

23,358

 

 

13,363

 

 

14,838

Dividends declared

 

 

(20,756)

 

 

(12,631)

 

 

(10,264)

Effect of foreign currency translation loss attributable to

 

 

 

 

 

 

 

 

 

 

redeemable noncontrolling interests

 

 

(6,005)

 

 

(4,279)

 

 

(2,335)

Change in fair value of redeemable securities

 

 

160,279

 

 

32,842

 

 

(7,300)

Balance, end of period

 

$

613,312

 

$

327,699

 

$

287,258

v3.22.0.1
Comprehensive Income
12 Months Ended
Dec. 25, 2021
Comprehensive Income [Abstract]  
Comprehensive Income

Note 18 – Comprehensive Income

 

Comprehensive income includes certain gains and losses that, under U.S. GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity.

 

The following table summarizes our Accumulated other comprehensive loss, net of applicable taxes as of:

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Attributable to Redeemable noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

(30,622)

 

$

(24,617)

 

$

(20,338)

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

412

 

$

235

 

$

(531)

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to Henry Schein, Inc.:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

(154,578)

 

$

(76,565)

 

$

(143,172)

 

Unrealized loss from foreign currency hedging activities

 

 

(2,046)

 

 

(11,488)

 

 

(4,032)

 

Unrealized investment gain (loss)

 

 

(8)

 

 

1

 

 

6

 

Pension adjustment loss

 

 

(14,846)

 

 

(20,032)

 

 

(20,175)

 

 

Accumulated other comprehensive loss

 

$

(171,478)

 

$

(108,084)

 

$

(167,373)

 

 

 

 

 

 

 

 

 

 

 

 

Total Accumulated other comprehensive loss

 

$

(201,688)

 

$

(132,466)

 

$

(188,242)

The following table summarizes the components of comprehensive income, net of applicable taxes as follows:

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Net income

 

$

660,526

 

$

419,423

 

$

719,138

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

(83,841)

 

 

63,094

 

 

(4,070)

Tax effect

 

 

-

 

 

-

 

 

-

Foreign currency translation gain (loss)

 

 

(83,841)

 

 

63,094

 

 

(4,070)

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) from foreign currency hedging activities

 

 

12,717

 

 

(10,224)

 

 

(4,911)

Tax effect

 

 

(3,275)

 

 

2,768

 

 

1,035

Unrealized gain (loss) from foreign currency hedging activities

 

 

9,442

 

 

(7,456)

 

 

(3,876)

 

 

 

 

 

 

 

 

 

 

Unrealized investment gain (loss)

 

 

(12)

 

 

(6)

 

 

14

Tax effect

 

 

3

 

 

1

 

 

(2)

Unrealized investment gain (loss)

 

 

(9)

 

 

(5)

 

 

12

 

 

 

 

 

 

 

 

 

 

Pension adjustment gain (loss)

 

 

7,612

 

 

(533)

 

 

(7,730)

Tax effect

 

 

(2,426)

 

 

676

 

 

1,806

Pension adjustment gain (loss)

 

 

5,186

 

 

143

 

 

(5,924)

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

591,304

 

$

475,199

 

$

705,280

Our financial statements are denominated in the U.S. Dollar currency. Fluctuations in the value of foreign currencies as compared to the U.S. Dollar may have a significant impact on our comprehensive income. The foreign currency translation gain (loss) during the years ended December 25, 2021, December 26, 2020 and December 28, 2019 was primarily impacted by changes in foreign currency exchange rates of theThe following table summarizes our total comprehensive income, net of applicable taxes as follows:

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

Henry Schein, Inc.

 

$

567,838

 

$

463,083

 

$

682,724

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 

6,113

 

 

3,032

 

 

9,827

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

17,353

 

 

9,084

 

 

12,729

Comprehensive income

 

$

591,304

 

$

475,199

 

$

705,280

v3.22.0.1
Discontinued Operations
12 Months Ended
Dec. 25, 2021
Discontinued Operations [Abstract]  
Discontinued Operations

Note 19 – Discontinued Operations

 

Animal Health Spin-off

 

On February 7, 2019 (the “Distribution Date”), we completed the separation (the “Separation”) and subsequent merger (“Merger”) of our animal health business (the “Henry Schein Animal Health Business”) with Direct Vet Marketing, Inc. (d/b/a Vets First Choice, “Vets First Choice”). This was accomplished by a series of transactions among us, Vets First Choice, Covetrus, Inc. (f/k/a HS Spinco, Inc. “Covetrus”), a wholly owned subsidiary of ours prior to the Distribution Date, and HS Merger Sub, Inc., a wholly owned subsidiary of Covetrus (“Merger Sub”). In connection with the Separation, we contributed, assigned and transferred to Covetrus certain applicable assets, liabilities and capital stock or other ownership interests relating to the Henry Schein Animal Health Business. On the Distribution Date, we received a tax-free distribution of $1,120 million from Covetrus pursuant to certain debt financing incurred by Covetrus. On the Distribution Date and prior to the Animal Health Spin-off, Covetrus issued shares of Covetrus common stock to certain institutional accredited investors (the “Share Sale Investors”) for $361.1 million (the “Share Sale”). The proceeds of the Share Sale were paid to Covetrus and distributed to us. Subsequent to the Share Sale, we distributed, on a pro rata basis, all of the shares of the common stock of Covetrus held by us to our stockholders of record as of the close of business on January 17, 2019 (the “Animal Health Spin-off”). After the Share Sale and Animal Health Spin-off, Merger Sub consummated the Merger whereby it merged with and into Vets First Choice, with Vets First Choice surviving the Merger as a wholly owned subsidiary of Covetrus. Immediately following the consummation of the Merger, on a fully diluted basis, (i) approximately 63% of the shares of Covetrus common stock were (a) owned by our stockholders and the Share Sale Investors, and (b) held by certain employees of the Henry Schein Animal Health Business (in the form of certain equity awards), and (ii) approximately 37% of the shares of Covetrus common stock were (a) owned by stockholders of Vets First Choice immediately prior to the Merger, and (b) held by certain employees of Vets First Choice (in the form of certain equity awards). After the Separation and the Merger, we no longer beneficially owned any shares of Covetrus common stock and, following the Distribution Date, will not consolidate the financial results of Covetrus for the purpose of our financial reporting. Following the Separation and the Merger, Covetrus was an independent, publicly traded company on the Nasdaq Global Select Market.

 

In connection with the completion of the Animal Health Spin-off, we entered into a transition services agreement, which ended in December 2020, with Covetrus under which we agreed to provide certain transition services for up to twenty-four months in areas such as information technology, finance and accounting, human resources, supply chain, and real estate and facility services.

 

As a result of the Separation, the financial position and results of operations of the Henry Schein Animal Health Business are presented as discontinued operations and have been excluded from continuing operations and segment results for all periods presented. The accompanying notes to the consolidated financial statements have been revised to reflect the effect of the Separation and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the Separation and instead reflect the Separation as an adjustment to the balances at December 26, 2020.

 

In February 2019, we completed the Animal Health Spin-off. During the years ended December 26, 2020 and December 28, 2019, we incurred $0.1 million and $23.6 million in transaction costs associated with this transaction. All transaction costs related to the Animal Health Spin-off have been included in results from discontinued operations.

Our restructuring activities under this initiative are now complete and we do not expect to report any restructuring costs separately in 2022.Summarized financial information for our discontinued operations is as follows:

 

 

 

 

 

Years Ended

 

 

 

 

December 26,

 

 

December 28,

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

$

-

 

$

319,522

Cost of goods sold

 

 

 

 

-

 

 

260,097

Gross profit

 

 

 

 

-

 

 

59,425

Selling, general and administrative

 

 

 

 

2,347

 

 

68,919

Operating loss

 

 

 

 

(2,347)

 

 

(9,494)

Income tax benefit

 

 

 

 

(3,333)

 

 

(2,181)

Income (loss) from discontinued operations

 

 

 

 

986

 

 

(6,323)

Net loss attributable to noncontrolling interests

 

 

 

 

-

 

 

366

Net income (loss) from discontinued operations

 

 

 

 

 

 

 

 

attributable to Henry Schein, Inc.

 

 

 

 

986

 

 

(5,957)

The operating loss from discontinued operations for the year ended December 26, 2020 was primarily attributable to costs directly related to the Animal Health Spin-off.

The net income from discontinued operations for the year ended December 26, 2020 was primarily attributable to a reduction in a liability for tax indemnification and a tax refund received during 2020 by a holding company previously part of our Animal Health legal structure and other favorable tax resolutions.

 

The financial information above, for the year ended December 28, 2019, represents activity of the discontinued operations during year-to-date through the Distribution Date. The loss from discontinued operations for the year ended December 28, 2019 was primarily attributable to the inclusion of the transaction costs directly related to the Animal Health Spin-off.

v3.22.0.1
Plans of Restructuring
12 Months Ended
Dec. 25, 2021
Restructuring and Related Activities [Abstract]  
Plans of Restructuring Note 20 – Plans of Restructuring

On November 20, 2019, we committed to a contemplated restructuring initiative intended to mitigate stranded costs associated with the Animal Health Spin-off and to rationalize operations and to provide expense efficiencies. These activities were originally expected to be completed by the end of 2020. In light of the changes to the business environment brought on by the COVID-19 pandemic, we extended such activities to the end of 2021.

 

During the years ended December 25, 2021, December 26, 2020, and December 28, 2019 we recorded restructuring charges of $7.9 million, $32.1 million and $14.7 million, respectively. The restructuring costs for these periods included costs for severance benefits and facility exit costs. The costs associated with these restructurings are included in a separate line item, “Restructuring costs” within our consolidated statements of income.

The following table shows the net amounts expensed and paid for restructuring costs that were incurred during our 2021, 2020 and 2019 fiscal years and the remaining accrued balance of restructuring costs as of December 25, 2021, which is included in accrued expenses: other within our consolidated balance sheets:

 

 

 

 

 

Facility

 

 

 

 

 

 

 

Severance

 

Closing

 

 

 

 

 

 

 

Costs

 

Costs

 

Other

 

Total

Balance, December 29, 2018

 

$

29,964

 

$

1,603

 

$

158

 

$

31,725

Provision

 

 

13,741

 

 

937

 

 

27

 

 

14,705

Payments and other adjustments

 

 

(30,794)

 

 

(1,714)

 

 

(112)

 

 

(32,620)

Balance, December 28, 2019

 

$

12,911

 

$

826

 

$

73

 

$

13,810

Provision

 

 

25,855

 

 

5,878

 

 

360

 

 

32,093

Payments and other adjustments

 

 

(26,152)

 

 

(6,309)

 

 

(329)

 

 

(32,790)

Balance, December 26, 2020

 

$

12,614

 

$

395

 

$

104

 

$

13,113

Provision

 

 

7,717

 

 

(111)

 

 

333

 

 

7,939

Payments and other adjustments

 

 

(16,072)

 

 

(226)

 

 

(434)

 

 

(16,732)

Balance, December 25, 2021

 

$

4,259

 

$

58

 

$

3

 

$

4,320

The following table shows, by reportable segment, the amounts expensed and paid for restructuring costs that were incurred during our 2021, 2020 and 2019 fiscal years and the remaining accrued balance of restructuring costs as of December 25, 2021:

 

 

 

 

 

 

Technology and

 

 

 

 

 

Health Care

 

Value-Added

 

 

 

 

 

 

Distribution

 

Services

 

Total

Balance, December 29, 2018

 

$

30,291

 

$

1,434

 

$

31,725

Provision

 

 

13,935

 

 

770

 

 

14,705

Payments and other adjustments

 

 

(30,853)

 

 

(1,767)

 

 

(32,620)

Balance, December 28, 2019

 

$

13,373

 

$

437

 

$

13,810

Provision

 

 

30,935

 

 

1,158

 

 

32,093

Payments and other adjustments

 

 

(31,484)

 

 

(1,306)

 

 

(32,790)

Balance, December 26, 2020

 

$

12,824

 

$

289

 

$

13,113

Provision

 

 

5,939

 

 

2,000

 

 

7,939

Payments and other adjustments

 

 

(15,692)

 

 

(1,040)

 

 

(16,732)

Balance, December 25, 2021

 

$

3,071

 

$

1,249

 

$

4,320

v3.22.0.1
Earnings Per Share
12 Months Ended
Dec. 25, 2021
Earnings Per Share [Abstract]  
Earnings Per Share

Note 21 – Earnings Per Share

 

Basic earnings per share is computed by dividing net income attributable to Henry Schein, Inc. by the weighted-average number of common shares outstanding for the period. Our diluted earnings per share is computed similarly to basic earnings per share, except that it reflects the effect of common shares issuable for presently unvested restricted stock and RSUs and upon exercise of stock options using the treasury stock method in periods in which they have a dilutive effect.

 

A reconciliation of shares used in calculating earnings per basic and diluted share follows:

 

 

 

Years Ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Basic

 

140,091

 

142,504

 

147,817

Effect of dilutive securities:

 

 

 

 

 

 

 

Stock options, restricted stock and restricted stock units

 

1,682

 

900

 

1,440

 

Diluted

 

141,773

 

143,404

 

149,257

v3.22.0.1
Supplemental Cash Flow Information
12 Months Ended
Dec. 25, 2021
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Information

Note 22 – Supplemental Cash Flow Information

 

Cash paid for interest and income taxes was:

 

 

Years ended

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Interest

 

$

29,455

 

$

43,123

 

$

54,685

Income taxes

 

 

241,887

 

 

206,796

 

 

177,277

For the years ended December 25, 2021, December 26, 2020 and December 28, 2019, we had $12.7 million, $(10.2) million and $(4.9) million of non-cash net unrealized gains (losses) related to foreign currency hedging activities, respectively.
v3.22.0.1
Related Party Transactions
12 Months Ended
Dec. 25, 2021
Related Party Transactions  
Related Party Transactions

Note 23 – Related Party Transactions

 

In connection with the completion of the Animal Health Spin-off during our 2019 fiscal year, we entered into a transition services agreement with Covetrus under which we agreed to provide certain transition services for up to twenty-four months in areas such as information technology, finance and accounting, human resources, supply chain, and real estate and facility services.

For the years ended December 26, 2020 and December 28, 2019, we recorded approximately $13.0 million and $17.5 million of fees for these services, respectively. Pursuant to the transition services agreement, Covetrus purchased certain products from us. During the years ended December 26, 2020 and December 28, 2019, net sales to Covetrus under the transition services agreement were approximately $75.3 million and $81.3 million, respectively. Sales to Covetrus under the transition services agreement ended in December 2020. At December 26, 2020 we had $0.3 million payable to Covetrus under this transition services agreement.

 

In connection with the formation of Henry Schein One, LLC, our joint venture with Internet Brands, which was formed on July 1, 2018, we entered into a ten-year royalty agreement with Internet Brands whereby we will pay Internet Brands approximately $31.0 million annually for the use of their intellectual property. During 2021, 2020, and 2019, we recorded $31.0 million, $31.0 million, and $31.0 million, respectively in connection with costs related to this royalty agreement. As of December 25, 2021 and December 26, 2020, Henry Schein One, LLC had a net receivable balance due from Internet Brands of $9.2 million and $7.7 million, respectively, comprised of amounts related to results of operations and the royalty agreement. The components of this net receivable are recorded with prepaid and other and accrued expenses: other within our consolidated balance sheets.

 

During our normal course of business, we have interests in entities that we account for under the equity accounting method. During our fiscal years ended 2021, 2020, and 2019, we recorded net sales of $66.6 million, $54.5 million, and $88.3 respectively, to such entities. During our fiscal years ended 2021, 2020 and 2019, we purchased $21.8 million, $17.2 million, and $11.8 million respectively, from such entities. At December 25, 2021 and December 26, 2020, we had in aggregate $44.7 million and $36.4 million, due from our equity affiliates, and $9.0 million and $8.6 million due to our equity affiliates, respectively.

v3.22.0.1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Dec. 25, 2021
Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

(in thousands)

 

 

 

 

 

 

Additions (Reductions)

 

 

 

 

 

 

 

 

 

 

 

 

Charged

 

Charged

 

 

 

 

 

 

 

 

 

 

Balance at

 

(credited) to

 

(credited) to

 

 

 

 

Balance at

 

 

 

 

beginning of

 

statement of

 

other

 

 

 

 

end of

Description

 

period

 

income (1)

 

accounts (2)

 

Deductions (3)

 

period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 25, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and other

 

$

88,030

 

$

(7,748)

 

$

(4,624)

 

$

(8,490)

 

$

67,168

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 26, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and other

 

$

60,002

 

$

35,137

 

$

730

 

$

(7,839)

 

$

88,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 28, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful accounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and other

 

$

53,121

 

$

12,612

 

$

134

 

$

(5,865)

 

$

60,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Represents amounts charged (credited) to bad debt expense.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Amounts charged (credited) to other accounts primarily relate to provision for late fees and the impact of foreign currency exchange rates and the adoption of ASU No. 2016-13 effective December 29, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Deductions primarily consist of fully reserved accounts receivable that have been written off.

v3.22.0.1
Basis of Presentation and Significant Accounting Policies (Policies)
12 Months Ended
Dec. 25, 2021
Basis of Presentation and Significant Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

 

Our consolidated financial statements include the accounts of Henry Schein, Inc. and all of our controlled subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. Investments in unconsolidated affiliates in which we have the ability to influence the operating or financial decisions, are accounted for under the equity method. Certain prior period amounts have been reclassified to conform to the current period presentation.

 

We consolidate the results of operations and financial position of a trade accounts receivable securitization which we consider a Variable Interest Entity (“VIE”) because we are the primary beneficiary, and we have the power to direct activities that most significantly affect the economic performance and have the obligation to absorb the majority of the losses or benefits. For this VIE, the trade accounts receivable transferred to the VIE are pledged as collateral to the related debt. The creditors have recourse to us for losses on these trade accounts receivable. At December 25, 2021 and December 26, 2020, certain trade accounts receivable that can only be used to settle obligations of this VIE were $138.0 million and $0.0 million, respectively and the liabilities of this VIE where the creditors have recourse to us were $105.0 million and $0.0 million, respectively.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us 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.

 

In March 2020, the World Health Organization declared Novel Coronavirus Disease 2019 (“COVID-19”) a pandemic. The COVID-19 pandemic negatively impacted the global economy, disrupted global supply chains and created significant volatility and disruption of global financial markets. In response, many countries implemented business closures and restrictions, stay-at-home and social distancing ordinances and similar measures to combat the pandemic, which significantly impacted global business and dramatically reduced demand for dental products and certain medical products in the second quarter of 2020. Demand increased in the second half of 2020 and continued throughout 2021 resulting in growth over the prior year.

 

Our consolidated financial statements reflect estimates and assumptions made by us that affect, among other things, our goodwill, long-lived asset and definite-lived intangible asset valuation; inventory valuation; equity investment valuation; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; the allowance for doubtful accounts; hedging activity; supplier rebates; measurement of compensation cost for certain share-based performance awards and cash bonus plans; and pension plan assumptions. Due to the significant uncertainty surrounding the future impact of COVID-19, our judgments regarding estimates and impairments could change in the future and may result in a material adverse effect on our financial condition and liquidity. However, the extent of the potential impact cannot be reasonably estimated at this time.

Fiscal Year

Fiscal Year

 

We report our results of operations and cash flows on a 52-53 week basis ending on the last Saturday of December. The years ended December 25, 2021, December 26, 2020 and December 28, 2019 consisted of 52 weeks.

Cost of Sales & Sales Returns

Cost of Sales

 

The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier chargebacks and rebates) and inbound and outbound freight charges.

 

Costs related to purchasing, receiving, inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in selling, general and administrative expenses along with other operating costs. Total distribution network costs were $89.2 million, $71.7 million and $72.3 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

 

Sales Returns

 

Sales returns are recognized as a reduction of revenue by the amount of expected returns and are recorded as refund liability within current liabilities. We estimate the amount of revenue expected to be reversed to calculate the sales return liability based on historical data for specific products, adjusted as necessary for new products. The allowance for returns is presented gross as a refund liability and we record an inventory asset (and a corresponding adjustment to cost of sales) for any products that we expect to be returned.

Revenue Recognition

Revenue Recognition

 

Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we do the following:

 

• identify the contract(s) with a customer;

 

• identify the performance obligations in the contract;

 

• determine the transaction price;

 

• allocate the transaction price to the performance obligations in the contract; and

 

• recognize revenue when, or as, the entity satisfies a performance obligation.

 

We generate revenue from the sale of dental and medical consumable products, equipment (Health care distribution revenues), software products and services and other sources (Technology and value-added services revenues). Provisions for discounts, rebates to customers, customer returns and other contra revenue adjustments are included in the transaction price at contract inception by estimating the most likely amount based upon historical data and estimates and are provided for in the period in which the related sales are recognized.

Revenue derived from the sale of consumable products is recognized at a point in time when control transfers to the customer. Such sales typically entail high-volume, low-dollar orders shipped using third-party common carriers. We believe that the shipment date is the most appropriate point in time indicating control has transferred to the customer because we have no post-shipment obligations and this is when legal title and risks and rewards of ownership transfer to the customer and the point at which we have an enforceable right to payment.

 

Revenue derived from the sale of equipment is recognized when control transfers to the customer. This occurs when the equipment is delivered. Such sales typically entail scheduled deliveries of large equipment primarily by equipment service technicians. Most equipment requires minimal installation, which is typically completed at the time of delivery. Our product generally carries standard warranty terms provided by the manufacturer, however, in instances where we provide warranty labor services, the warranty costs are accrued in accordance with Accounting Standards Codification (“ASC”) 460 “Guarantees”. At December 25, 2021 and December 26, 2020, we had accrued approximately $8.1 million and $6.9 million, respectively, for warranty costs.

 

Revenue derived from the sale of software products is recognized when products are delivered to customers or made available electronically. Such software is generally installed by customers and does not require extensive

training due to the nature of its design. Revenue derived from post-contract customer support for software, including annual support and/or training, is generally recognized over time using time elapsed as the input method that best depicts the transfer of control to the customer. Revenue derived from software sold on Software-as-a -Service basis is recognized ratably over the subscription period as control is transferred to the customer.

 

Revenue derived from other sources, including freight charges, equipment repairs and financial services, is recognized when the related product revenue is recognized or when the services are provided. We apply the practical expedient to treat shipping and handling activities performed after the customer obtains control as fulfillment activities, rather than a separate performance obligation in the contract.

 

Sales, value-add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.

 

Certain of our revenue is derived from bundled arrangements that include multiple distinct performance obligations, which are accounted for separately. When we sell software products together with related services (i.e., training and technical support), we allocate revenue to software using the residual method, using an estimate of the standalone selling price to estimate the fair value of the undelivered elements. Bundled arrangements that include elements that are not considered software consist primarily of equipment and the related installation service. We allocate revenue for such arrangements based on the relative selling prices of the goods or services. If an observable selling price is not available (i.e., we do not sell the goods or services separately), we use one of the following techniques to estimate the standalone selling price: adjusted market approach; cost-plus approach; or the residual method. There is no specific hierarchy for the use of these methods, but the estimated selling price reflects our best estimate of what the selling prices of each deliverable would be if it were sold regularly on a standalone basis taking into consideration the cost structure of our business, technical skill required, customer location and other market conditions.

Supplier Rebates

 

Supplier rebates are included as a reduction of cost of sales and are recognized over the period they are earned. The factors we consider in estimating supplier rebate accruals include forecasted inventory purchases and sales, in conjunction with supplier rebate contract terms, which generally provide for increasing rebates based on either increased purchase or sales volume.

Direct Shipping and Handling Costs

 

Freight and other direct shipping costs are included in cost of sales. Direct handling costs, which represent primarily direct compensation costs of employees who pick, pack and otherwise prepare, if necessary, merchandise for shipment to our customers are reflected in selling, general and administrative expenses. Direct handling costs were $96.7 million, $79.2 million and $73.8 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

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.

 

Accounts Receivable and Allowance for Credit Losses

 

Accounts receivable are generally recognized when health care distribution and technology and value-added services revenues are recognized. In accordance with the “expected credit loss” model, the carrying amount of accounts receivable is reduced by a valuation allowance that reflects our best estimate of the amounts that we do not expect to collect. In addition to reviewing delinquent accounts receivable, we consider many factors in estimating our reserve, including types of customers and their credit worthiness, experience and historical data adjusted for current conditions and reasonable supportable forecasts.

 

We record allowances for credit losses based upon a specific review of all significant outstanding invoices. For those invoices not specifically reviewed, provisions are provided at differing rates, based upon the age of the receivable, the collection history associated with the geographic region that the receivable was recorded in, current economic trends and reasonable supportable forecasts. We write-off a receivable and charge it against its recorded allowance when we deem them uncollectible.

 

Contract Assets

 

Contract assets include amounts related to any conditional right to consideration for work completed but not billed as of the reporting date and generally represent amounts owed to us by customers, but not yet billed. Contract assets are transferred to accounts receivable when the right becomes unconditional. The contract assets primarily relate to our bundled arrangements for the sale of equipment and consumables and sales of term software licenses. Current contract assets are included in Prepaid expenses and other and the non-current contract assets are included in investments and other within our consolidated balance sheets. Current and non-current contract asset balances as of December 25, 2021 and December 26, 2020 were not material.

 

Contract Liabilities

 

Contract liabilities are comprised of advance payments and upfront payments for service arrangements provided over time that are accounted for as deferred revenue amounts. Contract liabilities are transferred to revenue once the performance obligation has been satisfied. Current contract liabilities are included in accrued expenses: other and the non-current contract liabilities are included in other liabilities within our consolidated balance sheets. At December 26, 2020, the current portion of contract liabilities of $71.5 million was reported in accrued expenses: other, and $8.2 million related to non-current contract liabilities were reported in other liabilities. During the year ended December 25, 2021, we recognized substantially all of the current contract liability amounts that were previously deferred at December 26, 2020. At December 25, 2021, the current and non-current portion of contract liabilities were $89.2 million and $9.7 million, respectively.

Advertising and Promotional Costs

Advertising and Promotional Costs

 

We generally expense advertising and promotional costs as incurred. Total advertising and promotional expenses were $45.9 million, $30.8 million and $25.2 million for the years ended December 25, 2021, December 26, 2020 and December 28, 2019.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

We consider all highly liquid short-term investments with an original maturity of three months or less to be cash equivalents. Due to the short-term maturity of such investments, the carrying amounts are a reasonable estimate of fair value. Outstanding checks in excess of funds on deposit of $2.0 million and $1.3 million, primarily related to payments for inventory, were classified as accounts payable as of December 25, 2021 and December 26, 2020.

Inventories and Reserves

Inventories and Reserves

 

Inventories consist primarily of finished goods and are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method for merchandise or actual cost for large equipment and high tech equipment. In accordance with our policy for inventory valuation, we consider many factors including the condition and salability of the inventory, historical sales, forecasted sales and market and economic trends. From time to time, we adjust our assumptions for anticipated changes in any of these or other factors expected to affect the value of inventory.

Property and Equipment

Property and Equipment

 

Property and equipment are stated at cost, net of accumulated depreciation or amortization. Depreciation is computed primarily under the straight-line methodAmortization of leasehold improvements is computed using the straight-line method over the lesser of the useful life of the assets or the lease term.

Capitalized Software Development Costs

 

Capitalized internal-use software costs consist of costs to purchase and develop software. For software to be used solely to meet internal needs and cloud-based applications used to deliver our services, we capitalize costs incurred during the application development stage and include such costs within property and equipment, net within our consolidated balance sheets. For software to be sold, leased, or marketed to external users, we capitalize software development costs when technological feasibility is reached and include such costs in Investments and other within our consolidated balance sheets.

Leases

Leases

 

We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in operating lease right-of-use (“ROU”) assets, operating lease liabilities, and non-current operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, current maturities of long-term debt, and long-term debt in our consolidated balance sheets.

 

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully collateralized and fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. When readily determinable, we use the implicit rate. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases and finance leases are included in “selling, general and administrative” and “interest expense”, respectively within our consolidated statement of income. Short-term leases with a term of 12 months or less are not capitalized. During the years ended December 25, 2021, December 26, 2020, and December 28, 2019, such short-term lease expense was $3.9 million, $1.9 million, and $0.9 million, respectively.

 

We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles, which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price.

Goodwill

Goodwill

 

Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. Goodwill is subject to impairment analysis annually or more frequently if needed. Such impairment analyses for goodwill requires a comparison of the fair value to the carrying value of reporting units. We regard our reporting units to be our operating segments: global dental; global medical; and technology and value-added services. Goodwill was allocated to such reporting units, for the purposes of preparing our impairment analyses, based on a specific identification basis.

 

For the years ended December 25, 2021 and December 26, 2020 we tested goodwill for impairment, on the first day of the fourth quarter, using a quantitative analysis comparing the carrying value of our reporting units, including goodwill, to the estimated fair value of our reporting units using a discounted cash flow methodology. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. Conversely, impairment loss would be equivalent to the excess of a reporting unit’s carrying value over its fair value limited to the total amount of goodwill allocated to that reporting unit.

 

Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities that are considered shared services to the reporting units, and ultimately the determination of the fair value of each reporting unit. The fair value of each reporting unit is calculated by applying the discounted cash flow methodology and confirming with a market approach. There are inherent uncertainties, however, related to fair value models, the inputs and our judgments in applying them to this analysis. The most significant inputs include estimation of future cash flows based on budget expectations, and determination of comparable companies to develop a weighted average cost of capital for each reporting unit.

 

For the years ended December 25, 2021 and December 26, 2020, the results of our goodwill impairment analysis did not result in any impairments.

Income Taxes

Income Taxes

 

We account for income taxes under an asset and liability approach that requires the recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in tax laws or rates. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We file a consolidated U.S. federal income tax return with our 80% or greater owned U.S. subsidiaries. In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220), which allows the reclassification of stranded income tax effects, resulting from U.S. tax reform, from accumulated other comprehensive income (AOCI) to retained earnings. The adoption of this ASU in the first quarter of 2019 did not have a material impact on our consolidated financial statements. We applied an individual item basis approach for releasing income tax effects from AOCI.

On December 22, 2017, the U.S. government passed the Tax Act, which requires U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S. The transition tax is payable over eight years. Within our consolidated balance sheets, transition tax of $14.1 million and $9.9 million were included in “accrued taxes” for 2021 and 2020, respectively, and $42.4 million and $74.5 million were included in “other liabilities” for 2021 and 2020, respectively.

The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. We recorded a current tax expense for the GILTI provision of $4.9 million, $2.4 million, and $3.9 million for 2021, 2020, and 2019, respectively.

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

 

Some minority stockholders in certain of our consolidated subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Their interests in these subsidiaries are classified outside permanent equity on our consolidated balance sheets and are carried at the estimated redemption amounts. The redemption amounts have been estimated based on expected future earnings and cash flow and, if such earnings and cash flow are not achieved, the value of the redeemable noncontrolling interests might be impacted. Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are reflected at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests cannot go below the floor level. Adjustments to the carrying amount of a noncontrolling interests to

reflect a fair value redemption feature do not impact the calculation of earnings per share. Our net income is reduced by the portion of the subsidiaries’ net income that is attributable to redeemable noncontrolling interests.

 

Noncontrolling Interests

 

Non-controlling interest represents the ownership interests of certain minority owners of our consolidated subsidiaries. Our net income is reduced by the portion of the subsidiaries net income that is attributable to noncontrolling interests.

Comprehensive Income

Comprehensive Income

 

Comprehensive income includes certain gains and losses that, under accounting principles generally accepted in the United States, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency translation gain (loss), unrealized gain (loss) from foreign currency hedging activities, unrealized investment gain (loss) and pension adjustment gain (loss).

Risk Management and Derivative Financial Instruments

Risk Management and Derivative Financial Instruments

 

We use derivative instruments to minimize our exposure to fluctuations in foreign currency exchange rates. Our objective is to manage the impact that foreign currency exchange rate fluctuations could have on recognized asset and liability fair values, earnings and cash flows, as well as our net investments in foreign subsidiaries. Our risk management policy requires that derivative contracts used as hedges be effective at reducing the risks associated with the exposure being hedged and be designated as a hedge at the inception of the contract. We do not enter into derivative instruments for speculative purposes. Our derivative instruments primarily include foreign currency forward agreements related to certain intercompany loans, certain forecasted inventory purchase commitments with foreign suppliers and foreign currency forward contracts to hedge a portion of our euro-denominated foreign operations which are designated as net investment hedges.

 

Foreign currency forward agreements related to forecasted inventory purchase commitments with foreign suppliers and foreign currency swaps related to foreign currency denominated debt are designated as cash flow hedges. For derivatives that are designated and qualify as cash flow hedges, the changes in the fair value of the derivative is recorded as a component of Accumulated other comprehensive income in stockholders’ equity and subsequently reclassified into earnings in the period(s) during which the hedged transaction affects earnings. We classify the cash flows related to our hedging activities in the same category on our consolidated statements of cash flows as the cash flows related to the hedged item.

 

Foreign currency forward contracts related to our euro-denominated foreign operations are designated as net investment hedges. For derivatives that are designated and qualify as net investment hedges, the changes in the fair value of the derivative is recorded in the foreign currency translation gain (loss) component of Accumulated other comprehensive income in stockholders’ equity until the net investment is sold or substantially liquidated.

 

Our foreign currency forward agreements related to foreign currency balance sheet exposure provide economic hedges but are not designated as hedges for accounting purposes.

 

For agreements not designated as hedges, changes in the value of the derivative, along with the transaction gain or loss on the hedged item, are recorded in earnings.

 

Total return swaps are entered into for the purpose of economically hedging our unfunded non-qualified supplemental retirement plan (“SERP”) and our deferred compensation plan (“DCP”). This swap will offset changes in our SERP and DCP liabilities. This swap is expected to be renewed on an annual basis.

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

 

The financial position and results of operations of our foreign subsidiaries are determined using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate in effect at each year-end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from the use of differing exchange rates from period to period are included in Accumulated other comprehensive income in stockholders’ equity. Gains and losses resulting from foreign currency transactions are included in earnings.

Intangible Assets

Intangible Assets

 

Intangible assets, other than goodwill, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows to be derived from such assets.

 

Definite-lived intangible assets primarily consist of non-compete agreements, trademarks, trade names, customer lists, customer relationships and product development. For long-lived assets used in operations, impairment losses are only recorded if the asset’s carrying amount is not recoverable through its undiscounted, probability-weighted future cash flows. We measure the impairment loss based on the difference between the carrying amount and the estimated fair value. When an impairment exists, the related assets are written down to fair value.

 

During the years ended December 25, 2021 and December 26, 2020, we recorded total impairment charges, within selling, general and administrative expenses, on intangible assets of approximately $0.7 million and $20.3 million, nearly all of which was recorded in our technology and value-added services segment.

Short-term Leases Short-term leases with a term of 12 months or less are not capitalized.
Separation of Lease and Nonlease Components We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component, except non-lease components for leases of vehicles, which are accounted for separately. When a vehicle lease contains both lease and non-lease components, we allocate the transaction price based on the relative standalone selling price.
Accounting Pronouncements Adopted

Accounting Pronouncements Adopted

 

On December 27, 2020 we adopted ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. Our adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Standards

 

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued because of reference rate reform. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”). ASU 2021-01 provides temporary optional expedients and exceptions to certain guidance in U.S. GAAP to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The guidance is effective upon issuance, on January 7, 2021, and can be applied through December 31, 2022. We do not expect that the requirements of this guidance will have a material impact on our consolidated financial statements.

 

In October 2021, the FASB issued ASU No. 2021 – 08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (Subtopic 805). ASU 2021 – 08 requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements. ASU 2021 – 08 is effective for fiscal year beginning after December 15, 2022. Early adoption is permitted. We expect to adopt this ASU on December 26, 2021. We do not expect that the requirements of this ASU will have a material impact on our consolidated financial statements.

 

v3.22.0.1
Revenue from Contracts with Customers (Tables)
12 Months Ended
Dec. 25, 2021
Revenue from Contracts with Customers [Abstract]  
Disaggregation of Revenue

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 25, 2021

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

4,504,243

 

$

3,037,707

 

$

7,541,950

 

 

 

Medical

 

4,115,240

 

 

102,935

 

 

4,218,175

 

 

 

 

 

Total health care distribution

 

8,619,483

 

 

3,140,642

 

 

11,760,125

 

 

Technology and value-added services

 

554,123

 

 

86,773

 

 

640,896

 

 

Total excluding Corporate TSA revenues (1)

 

9,173,606

 

 

3,227,415

 

 

12,401,021

 

 

Corporate TSA revenues (1)

 

-

 

 

-

 

 

-

 

 

 

Total revenues

$

9,173,606

 

$

3,227,415

 

$

12,401,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 26, 2020

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

3,471,521

 

$

2,441,072

 

$

5,912,593

 

 

 

Medical

 

3,514,670

 

 

102,347

 

 

3,617,017

 

 

 

 

 

Total health care distribution

 

6,986,191

 

 

2,543,419

 

 

9,529,610

 

 

Technology and value-added services

 

446,830

 

 

67,428

 

 

514,258

 

 

Total excluding Corporate TSA revenues (1)

 

7,433,021

 

 

2,610,847

 

 

10,043,868

 

 

Corporate TSA revenues (1)

 

-

 

 

75,273

 

 

75,273

 

 

 

Total revenues

$

7,433,021

 

$

2,686,120

 

$

10,119,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended

 

 

 

 

 

 

 

December 28, 2019

 

 

 

 

 

 

 

North America

 

International

 

Global

 

Revenues:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

 

 

 

 

 

 

 

 

 

 

Dental

$

3,911,746

 

$

2,504,119

 

$

6,415,865

 

 

 

Medical

 

2,894,137

 

 

79,449

 

 

2,973,586

 

 

 

 

 

Total health care distribution

 

6,805,883

 

 

2,583,568

 

 

9,389,451

 

 

Technology and value-added services

 

445,317

 

 

69,768

 

 

515,085

 

 

Total excluding Corporate TSA revenues (1)

 

7,251,200

 

 

2,653,336

 

 

9,904,536

 

 

Corporate TSA revenues (1)

 

4,098

 

 

77,169

 

 

81,267

 

 

 

Total revenues

$

7,255,298

 

$

2,730,505

 

$

9,985,803

 

(1)

Corporate TSA revenues represents sales of certain animal health products to Covetrus under the transition services agreement

 

 

entered into in connection with the Animal Health Spin-off, which ended in December 2020.

 

v3.22.0.1
Segment and Geographic Data (Tables)
12 Months Ended
Dec. 25, 2021
Segment and Geographic Data [Abstract]  
Business segment information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

 

2021

 

2020

 

2019

Net Sales:

 

 

 

 

 

 

 

 

 

 

Health care distribution (1)

 

 

 

 

 

 

 

 

 

 

 

Dental

 

$

7,541,950

 

$

5,912,593

 

$

6,415,865

 

 

Medical

 

 

4,218,175

 

 

3,617,017

 

 

2,973,586

 

 

Total health care distribution

 

 

11,760,125

 

 

9,529,610

 

 

9,389,451

 

Technology and value-added services (2)

 

 

640,896

 

 

514,258

 

 

515,085

 

 

Total excluding Corporate TSA revenues

 

 

12,401,021

 

 

10,043,868

 

 

9,904,536

 

Corporate TSA revenues (3)

 

 

-

 

 

75,273

 

 

81,267

 

 

Total

 

$

12,401,021

 

$

10,119,141

 

$

9,985,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Operating Income:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

728,041

 

$

436,173

 

$

591,404

 

Technology and value-added services

 

 

123,615

 

 

99,130

 

 

126,857

 

 

Total

 

$

851,656

 

$

535,303

 

$

718,261

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes

 

 

 

 

 

 

 

 

 

 

and equity in earnings of affiliates:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

706,874

 

$

400,343

 

$

553,181

 

Technology and value-added services

 

 

123,674

 

 

99,552

 

 

127,126

 

 

Total

 

$

830,548

 

$

499,895

 

$

680,307

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

156,333

 

$

142,712

 

$

146,960

 

Technology and value-added services

 

 

53,195

 

 

42,826

 

 

37,982

 

 

Total

 

$

209,528

 

$

185,538

 

$

184,942

 

 

 

 

 

 

 

 

 

 

 

 

Interest Income:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

6,384

 

$

9,736

 

$

15,352

 

Technology and value-added services

 

 

67

 

 

106

 

 

405

 

 

Total

 

$

6,451

 

$

9,842

 

$

15,757

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

27,554

 

$

41,307

 

$

50,666

 

Technology and value-added services

 

 

46

 

 

70

 

 

126

 

 

Total

 

$

27,600

 

$

41,377

 

$

50,792

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

167,584

 

$

71,206

 

$

129,381

 

Technology and value-added services

 

 

29,765

 

 

24,168

 

 

30,134

 

 

Total

 

$

197,349

 

$

95,374

 

$

159,515

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of Fixed Assets:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

74,021

 

$

43,511

 

$

69,095

 

Technology and value-added services

 

 

4,994

 

 

5,318

 

 

7,124

 

 

Total

 

$

79,015

 

$

48,829

 

$

76,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Total Assets:

 

 

 

 

 

 

 

 

 

 

Health care distribution

 

$

7,157,025

 

$

6,503,089

 

$

5,821,468

 

Technology and value-added services

 

 

1,324,066

 

 

1,269,443

 

 

1,329,633

 

 

Total

 

$

8,481,091

 

$

7,772,532

 

$

7,151,101

Operations by geographic area

 

 

 

2021

 

2020

 

2019

 

 

 

Net Sales

 

Long-Lived Assets

 

Net Sales

 

Long-Lived Assets

 

Net Sales

 

Long-Lived Assets

United States

 

$

8,722,223

 

$

2,980,765

 

$

7,090,206

 

$

2,362,823

 

$

6,876,194

 

$

2,400,733

Other

 

 

3,678,798

 

 

1,232,417

 

 

3,028,935

 

 

1,251,849

 

 

3,109,609

 

 

1,195,947

 

Consolidated total

 

$

12,401,021

 

$

4,213,182

 

$

10,119,141

 

$

3,614,672

 

$

9,985,803

 

$

3,596,680

v3.22.0.1
Business Acquisitions and Divestitures (Tables)
12 Months Ended
Dec. 25, 2021
Business Acquisitions and Divestitures [Abstract]  
Acquisition Consideration

Acquisition consideration:

 

 

Cash

$

578,819

Deferred consideration

 

11,233

Estimated fair value of contingent consideration receivable

 

(4,900)

Fair value of previously held equity method investment

 

7,500

Redeemable noncontrolling interests

 

181,236

Total consideration

$

773,888

 

 

 

Identifiable assets acquired and liabilities assumed:

 

 

Current assets

$

195,479

Intangible assets

 

316,855

Other noncurrent assets

 

51,244

Current liabilities

 

(93,492)

Deferred income taxes

 

(25,929)

Other noncurrent liabilities

 

(46,480)

Total identifiable net assets

 

397,677

Goodwill

 

376,211

Total net assets acquired

$

773,888

Intangible Assets

 

 

 

Estimated

 

 

 

Useful Lives

 

 

 

(in years)

Trademark / Tradename

$

58,208

5-12

Non-compete agreements

 

4,688

3-5

Customer relationships and lists

 

220,454

5-12

Product development

 

19,274

5-10

Other

 

14,231

18

 

$

316,855

 

v3.22.0.1
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 25, 2021
Property, Plant and Equipment [Abstract]  
Property and equipment, including related estimated useful lives

 

 

 

 

December 25,

 

December 26,

 

 

 

 

2021

 

2020

Land

 

$

21,115

 

$

20,297

Buildings and permanent improvements

 

 

140,062

 

 

145,160

Leasehold improvements

 

 

97,909

 

 

107,753

Machinery and warehouse equipment

 

 

152,952

 

 

142,437

Furniture, fixtures and other

 

 

119,693

 

 

108,041

Computer equipment and software

 

 

385,011

 

 

344,494

 

 

 

 

 

916,742

 

 

868,182

Less accumulated depreciation

 

 

(550,286)

 

 

(526,178)

 

Property and equipment, net

 

$

366,456

 

$

342,004

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Useful

 

 

 

 

 

 

 

Lives (in years)

 

 

 

Buildings and permanent improvements

 

40

 

 

 

Machinery and warehouse equipment

 

5-10

 

 

 

Furniture, fixtures and other

 

3-10

 

 

 

Computer equipment and software

 

3-10

 

 

 

v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 25, 2021
Leases [Abstract]  
Components of lease expense, supplemental cash flow, and supplemental balance sheet information

 

 

 

 

 

Years Ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

 

Operating lease cost: (1) (2)

 

$

103,459

 

$

86,800

 

$

88,246

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

 

2,882

 

 

2,209

 

 

1,154

 

 

Interest on lease liabilities

 

 

114

 

 

115

 

 

131

 

Total finance lease cost

 

$

2,996

 

$

2,324

 

$

1,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes variable lease expenses.

 

(2)

Operating lease cost for the years ended December 25, 2021, December 26, 2020, and December 28, 2019, include amortization of right-of-use assets of $0.0 million, $0.6 million, and $0.6 million, respectively, related to facility leases recorded in “Restructuring costs” within our consolidated statements of income.

 

 

 

 

 

 

Years Ended

 

 

 

 

 

 

December 25,

 

December 26,

 

 

 

 

 

 

2021

 

2020

 

Operating Leases:

 

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

324,950

 

$

288,847

 

 

 

 

 

 

 

 

 

 

 

 

Current operating lease liabilities

 

 

76,393

 

 

64,716

 

Non-current operating lease liabilities

 

 

267,772

 

 

238,727

 

 

Total operating lease liabilities

 

$

344,165

 

$

303,443

 

 

 

 

 

 

 

 

 

 

 

 

Finance Leases:

 

 

 

 

 

 

 

Property and equipment, at cost

 

$

12,580

 

$

10,683

 

Accumulated depreciation

 

 

(5,325)

 

 

(4,277)

 

 

Property and equipment, net of accumulated depreciation

 

$

7,255

 

$

6,406

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

3,216

 

$

2,420

 

Long-term debt

 

 

3,960

 

 

3,541

 

 

Total finance lease liabilities

 

$

7,176

 

$

5,961

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term in Years:

 

 

 

 

 

 

 

 

Operating leases

 

 

7.3

 

 

7.5

 

 

Finance leases

 

 

3.6

 

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Discount Rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

2.4

%

 

2.8

%

 

Finance leases

 

 

1.7

%

 

1.9

%

 

 

 

 

 

Years Ended

 

 

 

 

 

 

December 25,

 

December 26,

 

 

 

 

 

 

2021

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows for operating leases

 

$

85,123

 

 

76,985

 

 

Operating cash flows for finance leases

 

 

95

 

 

101

 

 

Financing cash flows for finance leases

 

 

2,602

 

 

2,148

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

120,732

 

 

120,148

 

 

Finance leases

 

 

3,868

 

 

2,947

 

 

 

 

 

 

 

 

 

 

 

 

Finance And Operating Lease, Liability, Fiscal Year Maturity [Table Text Block]

 

 

 

 

 

December 25, 2021

 

 

 

 

 

 

 

Operating

 

 

Finance

 

 

 

 

 

 

 

Leases

 

 

Leases

 

2022

 

$

82,920

 

$

3,303

 

2023

 

 

60,061

 

 

1,815

 

2024

 

 

45,992

 

 

953

 

2025

 

 

40,880

 

 

432

 

2026

 

 

32,814

 

 

308

 

Thereafter

 

 

113,667

 

 

576

 

Total future lease payments

 

 

376,334

 

 

7,387

 

Less imputed interest

 

 

(32,169)

 

 

(211)

 

Total

 

$

344,165

 

$

7,176

 

v3.22.0.1
Goodwill and Other Intangibles, Net (Tables)
12 Months Ended
Dec. 25, 2021
Goodwill and other Intangibles, Net Disclosure [Abstract]  
Changes in the carrying amount of goodwill

 

 

 

 

Health Care Distribution

 

Technology and Value-Added Services

 

Total

Balance as of December 28, 2019

 

$

1,476,719

 

$

985,776

 

$

2,462,495

 

Adjustments to goodwill:

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

14,230

 

 

12,101

 

 

26,331

 

 

Foreign currency translation

 

 

9,888

 

 

5,678

 

 

15,566

Balance as of December 26, 2020

 

 

1,500,837

 

 

1,003,555

 

 

2,504,392

 

Adjustments to goodwill:

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

 

359,093

 

 

24,252

 

 

383,345

 

 

Foreign currency translation

 

 

(29,343)

 

 

(4,244)

 

 

(33,587)

Balance as of December 25, 2021

 

$

1,830,587

 

$

1,023,563

 

$

2,854,150

Other intangible assets - finite-lived

 

December 25, 2021

 

December 26, 2020

 

 

 

 

Accumulated

 

 

 

 

 

 

 

Accumulated

 

 

 

Cost

 

Amortization

 

Net

 

Cost

 

Amortization

 

Net

Customer relationships and lists

$

852,689

 

$

(353,457)

 

$

499,232

 

$

652,605

 

$

(283,469)

 

$

369,136

Trademarks / trade names - definite lived

 

129,061

 

 

(43,921)

 

 

85,140

 

 

95,382

 

 

(50,893)

 

 

44,489

Product Development

 

113,777

 

 

(70,316)

 

 

43,461

 

 

94,216

 

 

(54,451)

 

 

39,765

Non-compete agreements

 

25,364

 

 

(5,987)

 

 

19,377

 

 

30,993

 

 

(11,480)

 

 

19,513

Other

 

28,303

 

 

(7,887)

 

 

20,416

 

 

14,188

 

 

(7,662)

 

 

6,526

Total

$

1,149,194

 

$

(481,568)

 

$

667,626

 

$

887,384

 

$

(407,955)

 

$

479,429

v3.22.0.1
Investments and Other (Tables)
12 Months Ended
Dec. 25, 2021
Investments And Other [Abstract]  
Investments and other

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Investment in unconsolidated affiliates

 

$

168,118

 

$

169,382

Non-current deferred foreign, state and local income taxes

 

 

34,607

 

 

42,594

Notes receivable (1)

 

 

35,748

 

 

34,760

Capitalized costs for software to be sold, leased or marketed to external users

 

 

65,349

 

 

47,650

Security deposits

 

 

2,225

 

 

1,752

Acquisition-related indemnification

 

 

65,638

 

 

49,401

Other long-term assets

 

 

52,189

 

 

20,906

 

Total

 

$

423,874

 

$

366,445

 

 

 

 

 

 

 

 

(1)

Long-term notes receivable carry interest rates ranging from 3.0% to 14.2% and are due in varying installments through

 

September 30, 2027.

v3.22.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 25, 2021
Fair Value Measurements [Abstract]  
Fair value - assets and liabilities measured and recognized on a recurring basis

 

 

 

 

December 25, 2021

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

7,859

 

$

-

 

$

7,859

 

Derivative contracts undesignated

 

 

-

 

 

640

 

 

-

 

 

640

 

Total return swap

 

 

-

 

 

1,404

 

 

-

 

 

1,404

 

 

Total assets

 

$

-

 

$

9,903

 

$

-

 

$

9,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

650

 

$

-

 

$

650

 

Derivative contracts undesignated

 

 

-

 

 

1,503

 

 

-

 

 

1,503

 

 

Total liabilities

 

$

-

 

$

2,153

 

$

-

 

$

2,153

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

-

 

$

-

 

$

613,312

 

$

613,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 26, 2020

 

 

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

453

 

$

-

 

$

453

 

Derivative contracts undesignated

 

 

-

 

 

1,415

 

 

-

 

 

1,415

 

Total return swap

 

 

-

 

 

1,565

 

 

-

 

 

1,565

 

 

Total assets

 

$

-

 

$

3,433

 

$

-

 

$

3,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts designated as hedges

 

$

-

 

$

10,880

 

$

-

 

$

10,880

 

Derivative contracts undesignated

 

 

-

 

 

885

 

 

-

 

 

885

 

 

Total liabilities

 

$

-

 

$

11,765

 

$

-

 

$

11,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

$

-

 

$

-

 

$

327,699

 

$

327,699

v3.22.0.1
Debt (Tables)
12 Months Ended
Dec. 25, 2021
Debt [Abstract]  
Bank credit lines

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Revolving credit agreement

 

$

-

 

$

-

Other short-term bank credit lines

 

 

50,530

 

 

73,366

Total

 

$

50,530

 

$

73,366

Schedule of long-term debt

 

 

 

December 25,

 

December 26,

 

 

 

2021

 

2020

Private placement facilities

 

$

706,186

 

$

613,498

U.S. trade accounts receivable securitization

 

 

105,000

 

 

-

Note payable due in 2025 with an interest rate of 3.1%

 

 

 

 

 

 

 

at December 26, 2020

 

 

-

 

 

1,554

Various collateralized and uncollateralized loans payable with interest,

 

 

 

 

 

 

 

in varying installments through 2023 at interest rates

 

 

 

 

 

 

 

ranging from 2.45% to 4.27% at December 25, 2021 and

 

 

 

 

 

 

 

ranging from 2.62% to 4.27% at December 26, 2020

 

 

3,624

 

 

4,596

Finance lease obligations (see Note 6)

 

 

7,176

 

 

5,961

Total

 

 

821,986

 

 

625,609

Less current maturities of long-term debt

 

 

(10,640)

 

 

(109,836)

 

Total long-term debt

 

$

811,346

 

$

515,773

Private placement facilities

 

 

Amount of

 

 

 

 

 

Date of

 

Borrowing

 

Borrowing

 

 

Borrowing

 

Outstanding

 

Rate

 

Due Date

January 20, 2012 (1)

 

$

7,143

 

3.09

%

 

January 20, 2022

January 20, 2012

 

 

50,000

 

3.45

 

 

January 20, 2024

December 24, 2012

 

 

50,000

 

3.00

 

 

December 24, 2024

June 16, 2017

 

 

100,000

 

3.42

 

 

June 16, 2027

September 15, 2017

 

 

100,000

 

3.52

 

 

September 15, 2029

January 2, 2018

 

 

100,000

 

3.32

 

 

January 2, 2028

September 2, 2020

 

 

100,000

 

2.35

 

 

September 2, 2030

June 2, 2021

 

 

100,000

 

2.48

 

 

June 2, 2031

June 2, 2021

 

 

100,000

 

2.58

 

 

June 2, 2033

Less: Deferred debt issuance costs

 

 

(957)

 

 

 

 

 

 

 

$

706,186

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Annual repayments of approximately $7.1 million for this borrowing commenced on January 20, 2016.

Schedule of long-term debt maturities

 

2022

$

10,640

 

 

2023

 

5,108

 

 

2024

 

205,924

 

 

2025

 

412

 

 

2026

 

295

 

 

Thereafter

 

599,607

 

 

 

Total

$

821,986

 

v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 25, 2021
Income Taxes [Abstract]  
Income before taxes, equity in earnings of affiliates and loss on sale of equity investment

 

 

Years ended

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Domestic

$

593,137

 

$

430,838

 

$

507,003

Foreign

 

237,411

 

 

69,057

 

 

173,304

 

Total

$

830,548

 

$

499,895

 

$

680,307

Provision for income taxes attributable to continuing operations

The provisions for income taxes were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended

 

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

 

2021

 

2020

 

2019

Current income tax expense:

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

$

128,328

 

$

82,912

 

$

93,418

 

State and local

 

 

37,255

 

 

24,640

 

 

28,150

 

Foreign

 

 

42,751

 

 

40,799

 

 

42,004

 

 

Total current

 

 

208,334

 

 

148,351

 

 

163,572

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense (benefit):

 

 

 

 

 

 

 

 

 

 

U.S. Federal

 

 

(12,115)

 

 

(18,032)

 

 

5,633

 

State and local

 

 

(2,567)

 

 

(4,889)

 

 

1,597

 

Foreign

 

 

3,697

 

 

(30,056)

 

 

(11,287)

 

 

Total deferred

 

 

(10,985)

 

 

(52,977)

 

 

(4,057)

 

 

 

Total provision

 

$

197,349

 

$

95,374

 

$

159,515

Tax effects of temporary differences to deferred income tax asset (liability)

The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

December 25,

 

December 26,

 

 

 

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Deferred income tax asset:

 

 

 

 

 

 

 

Net operating losses and other carryforwards

 

$

54,651

 

$

64,297

 

Inventory, premium coupon redemptions and accounts receivable

 

 

 

 

 

 

 

 

valuation allowances

 

 

46,219

 

 

56,668

 

Stock-based compensation

 

 

12,543

 

 

4,858

 

Uniform capitalization adjustment to inventories

 

 

10,422

 

 

6,895

 

Operating lease right of use asset

 

 

78,719

 

 

74,674

 

Other asset

 

 

41,090

 

 

42,966

 

Total deferred income tax asset

 

 

243,644

 

 

250,358

 

Valuation allowance for deferred tax assets (1)

 

 

(35,982)

 

 

(40,496)

 

Net deferred income tax asset

 

 

207,662

 

 

209,862

Deferred income tax liability

 

 

 

 

 

 

 

Intangibles amortization

 

 

(134,023)

 

 

(118,165)

 

Operating lease liability

 

 

(73,952)

 

 

(71,343)

 

Property and equipment

 

 

(7,363)

 

 

(7,820)

 

Total deferred tax liability

 

 

(215,338)

 

 

(197,328)

Net deferred income tax asset (liability)

 

$

(7,676)

 

$

12,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Primarily relates to operating losses, the benefits of which are uncertain. Any future reductions of such valuation allowances will be reflected as a reduction of income tax expense.

Reconciliation of income tax provision at federal statutory rate to total income tax provision

 

 

 

Years ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Income tax provision at federal statutory rate

 

$

174,415

 

$

104,977

 

$

142,865

State income tax provision, net of federal income tax effect

 

 

21,245

 

 

13,015

 

 

16,539

Foreign income tax provision (benefit)

 

 

5,669

 

 

(428)

 

 

(4,580)

Pass-through noncontrolling interest

 

 

(4,479)

 

 

(2,681)

 

 

(3,931)

Valuation allowance

 

 

(5,533)

 

 

659

 

 

(79)

Unrecognized tax benefits and audit settlements

 

 

6,981

 

 

(17,722)

 

 

3,671

Interest expense related to loans

 

 

(10,917)

 

 

(11,098)

 

 

(5,498)

Tax on global intangible low-taxed income ("GILTI")

 

 

4,895

 

 

2,365

 

 

3,917

Tax benefit related to legal entity reorganization outside the U.S.

 

 

-

 

 

(5,823)

 

 

-

Tax credit related to reorganization of legal entities

 

 

 

 

 

 

 

 

 

completed in preparation for the Animal Health spin-off

 

 

 

 

 

-

 

 

(1,333)

Other

 

 

5,073

 

 

12,110

 

 

7,944

 

Total income tax provision

 

$

197,349

 

$

95,374

 

$

159,515

Reconciliation of unrecognized tax benefits excluding the effect of deferred taxes

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Balance, beginning of period

 

$

70,000

 

$

91,100

 

$

77,800

Additions based on current year tax positions

 

 

3,300

 

 

4,900

 

 

4,900

Additions based on prior year tax positions

 

 

10,800

 

 

7,900

 

 

17,300

Reductions based on prior year tax positions

 

 

(1,000)

 

 

(1,000)

 

 

(1,000)

Reductions resulting from settlements with taxing authorities

 

 

(9,500)

 

 

(18,600)

 

 

(4,200)

Reductions resulting from lapse in statutes of limitations

 

 

(2,500)

 

 

(14,300)

 

 

(3,700)

Balance, end of period

 

$

71,100

 

$

70,000

 

$

91,100

v3.22.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 25, 2021
Commitments and Contingencies Disclosure [Abstract]  
Purchase commitments

2022

 

$

111,696

2023

 

 

488

Total minimum inventory purchase commitment payments

 

$

112,184

v3.22.0.1
Stock Based Compensation (Tables)
12 Months Ended
Dec. 25, 2021
Stock Based Compensation [Abstract]  
Valuation Model

 

2021

 

 

Expected dividend yield

0.0

%

 

 

Expected stock price volatility

27.10

%

 

 

Risk-free interest rate

1.33

%

 

 

Expected life of options (years)

6.00

 

 

 

Summary of the stock option activity under the plans

 

 

 

 

 

 

Stock Options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

Remaining

 

 

 

 

 

 

Average

Weighted Average

Aggregate

 

 

 

 

 

Exercise

Remaining Contractual

Intrinsic

 

 

 

Shares

 

Price

Life in Years

Value

 

Outstanding at beginning of year

 

-

 

$

-

 

 

 

Granted

 

817

 

 

63.21

 

 

 

Forfeited

 

(50)

 

 

62.75

 

 

 

Outstanding at end of year

 

767

 

$

63.24

9.2

$9,027

 

 

 

 

 

 

 

 

 

 

Options exercisable at end of year

 

1

 

$

62.71

6.1

$8

 

Intrinsic values

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

Aggregate

 

 

 

Number of

 

 

Average

 

 

Remaining

 

 

Intrinsic

 

 

 

Options

 

 

Exercise

 

 

Contractual

 

 

Value

 

 

 

(in thousands)

 

 

Price

 

 

Life (in years)

 

 

(in thousands)

Vested or expected to vest

 

 

736

 

$

63.26

 

 

9.2

 

$

8,642

Status of non-vested restricted shares/units

 

 

 

 

 

 

 

 

 

 

 

 

Time-Based Restricted Stock Units

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

Grant Date Fair

 

 

Intrinsic Value

 

 

Shares/Units

 

Value Per Share

 

 

Per Share

Outstanding at beginning of period

 

1,459

 

$

57.61

 

 

 

 

Granted

 

843

 

 

63.38

 

 

 

 

Vested

 

(269)

 

 

66.85

 

 

 

 

Forfeited

 

(87)

 

 

60.55

 

 

 

 

Outstanding at end of period

 

1,946

 

$

58.79

 

 

$

74.93

 

 

 

 

 

 

 

 

 

 

 

 

Performance-Based Restricted Stock Units

 

 

 

 

Weighted Average

 

 

 

 

 

 

 

Grant Date Fair

 

 

Intrinsic Value

 

 

Shares/Units

 

Value Per Share

 

 

Per Share

Outstanding at beginning of period

 

136

 

$

53.52

 

 

 

 

Granted

 

669

 

 

59.29

 

 

 

 

Vested

 

(84)

 

 

52.49

 

 

 

 

Forfeited

 

(46)

 

 

59.72

 

 

 

 

Outstanding at end of period

 

675

 

$

59.63

 

 

$

74.93

 

 

 

 

 

 

 

 

 

 

v3.22.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 25, 2021
Employee Benefit Plans [Abstract]  
Obligation and Funded Status

 

 

 

Years Ended

 

 

 

December 25,

 

 

December 26,

 

 

 

2021

 

 

2020

Obligation and funded status:

 

 

 

 

 

Change in benefit obligation

 

 

 

 

 

Projected benefit obligation, beginning of period

$

130,095

 

$

120,622

Service costs

 

3,692

 

 

3,186

Interest cost

 

421

 

 

518

Past service cost

 

5,348

 

 

-

Actuarial gain (loss)

 

(5,451)

 

 

569

Benefits (paid) received (1)

 

422

 

 

(3,685)

Participant contributions

 

936

 

 

839

Settlements

 

(2,256)

 

 

(2,143)

Effect of foreign currency translation

 

(5,011)

 

 

10,189

Projected benefit obligation, end of period

$

128,196

 

$

130,095

 

 

 

 

 

 

 

Change in plan assets

 

 

 

 

 

Fair value of plan assets at beginning of period

$

64,708

 

$

60,090

Actual return on plan assets

 

5,091

 

 

1,772

Employer contributions

 

1,713

 

 

1,545

Plan participant contributions

 

936

 

 

839

Expected return on plan assets

 

3,988

 

 

987

Benefit (paid) received (1)

 

1,990

 

 

(1,988)

Settlements

 

(2,256)

 

 

(2,143)

Effect of foreign currency translation

 

(1,111)

 

 

3,606

Fair value of plan assets at end of period

$

75,059

 

$

64,708

 

 

 

 

 

 

 

Unfunded status at end of period

$

53,137

 

$

65,387

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

2021

 

 

2020

Current liabilities

$

991

 

$

1,031

Non-Current liabilities

 

52,146

 

 

64,356

Accumulated other comprehensive loss, pre-tax

 

20,456

 

 

29,798

Net Periodic Pension Cost

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

December 28,

 

 

2021

 

 

2020

 

 

2019

Service cost

$

3,692

 

$

3,186

 

$

1,655

Interest cost

 

421

 

 

518

 

 

899

Expected return on plan assets

 

(451)

 

 

(421)

 

 

(337)

Employee contributions

 

(483)

 

 

(371)

 

 

-

Amortization of prior service credit

 

871

 

 

785

 

 

300

Recognized net actuarial loss

 

252

 

 

447

 

 

92

Settlements

 

98

 

 

155

 

 

373

Net periodic pension cost

$

4,400

 

$

4,299

 

$

2,982

Assumptions

 

Years Ended

 

December 25,

 

 

December 26,

 

Pension Benefit Obligation

2021

 

 

2020

 

Weighted average discount rate

0.87

%

 

0.54

%

 

 

Years Ended

 

 

December 25,

 

 

December 26,

 

 

December 28,

 

Net Periodic Pension Cost

 

2021

 

 

2020

 

 

2019

 

Discount rate-pension benefit

 

0.56

%

 

0.51

%

 

1.14

%

Expected return on plan assets

 

0.71

%

 

0.87

%

 

0.87

%

Rate of compensation increase

 

1.95

%

 

1.97

%

 

2.20

%

Pension increase rate

 

0.72

%

 

0.67

%

 

0.77

%

Estimated Payments

 

Year

 

 

 

 

2022

 

$

5,503

 

2023

 

 

6,109

 

2024

 

 

5,837

 

2025

 

 

5,174

 

2026

 

 

5,162

 

2027 to 2031

 

 

32,857

 

Total

 

$

60,642

v3.22.0.1
Redeemable Noncontrolling Interests (Tables)
12 Months Ended
Dec. 25, 2021
Redeemable Noncontrolling Interests [Abstract]  
Change in fair value of redeemable noncontrolling interests

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Balance, beginning of period

 

$

327,699

 

$

287,258

 

$

219,724

Decrease in redeemable noncontrolling interests due to acquisitions of

 

 

 

 

 

 

 

 

 

 

noncontrolling interests in subsidiaries

 

 

(60,240)

 

 

(17,241)

 

 

(2,270)

Increase in redeemable noncontrolling interests due to

 

 

 

 

 

 

 

 

 

 

business acquisitions

 

 

188,977

 

 

28,387

 

 

74,865

Net income attributable to redeemable noncontrolling interests

 

 

23,358

 

 

13,363

 

 

14,838

Dividends declared

 

 

(20,756)

 

 

(12,631)

 

 

(10,264)

Effect of foreign currency translation loss attributable to

 

 

 

 

 

 

 

 

 

 

redeemable noncontrolling interests

 

 

(6,005)

 

 

(4,279)

 

 

(2,335)

Change in fair value of redeemable securities

 

 

160,279

 

 

32,842

 

 

(7,300)

Balance, end of period

 

$

613,312

 

$

327,699

 

$

287,258

v3.22.0.1
Comprehensive Income (Tables)
12 Months Ended
Dec. 25, 2021
Comprehensive Income [Abstract]  
Accumulated other comprehensive income, net of applicable taxes

 

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

 

2021

 

2020

 

2019

Attributable to Redeemable noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

(30,622)

 

$

(24,617)

 

$

(20,338)

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

412

 

$

235

 

$

(531)

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to Henry Schein, Inc.:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

$

(154,578)

 

$

(76,565)

 

$

(143,172)

 

Unrealized loss from foreign currency hedging activities

 

 

(2,046)

 

 

(11,488)

 

 

(4,032)

 

Unrealized investment gain (loss)

 

 

(8)

 

 

1

 

 

6

 

Pension adjustment loss

 

 

(14,846)

 

 

(20,032)

 

 

(20,175)

 

 

Accumulated other comprehensive loss

 

$

(171,478)

 

$

(108,084)

 

$

(167,373)

 

 

 

 

 

 

 

 

 

 

 

 

Total Accumulated other comprehensive loss

 

$

(201,688)

 

$

(132,466)

 

$

(188,242)

Components of comprehensive income, net of applicable taxes

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Net income

 

$

660,526

 

$

419,423

 

$

719,138

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

(83,841)

 

 

63,094

 

 

(4,070)

Tax effect

 

 

-

 

 

-

 

 

-

Foreign currency translation gain (loss)

 

 

(83,841)

 

 

63,094

 

 

(4,070)

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) from foreign currency hedging activities

 

 

12,717

 

 

(10,224)

 

 

(4,911)

Tax effect

 

 

(3,275)

 

 

2,768

 

 

1,035

Unrealized gain (loss) from foreign currency hedging activities

 

 

9,442

 

 

(7,456)

 

 

(3,876)

 

 

 

 

 

 

 

 

 

 

Unrealized investment gain (loss)

 

 

(12)

 

 

(6)

 

 

14

Tax effect

 

 

3

 

 

1

 

 

(2)

Unrealized investment gain (loss)

 

 

(9)

 

 

(5)

 

 

12

 

 

 

 

 

 

 

 

 

 

Pension adjustment gain (loss)

 

 

7,612

 

 

(533)

 

 

(7,730)

Tax effect

 

 

(2,426)

 

 

676

 

 

1,806

Pension adjustment gain (loss)

 

 

5,186

 

 

143

 

 

(5,924)

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

591,304

 

$

475,199

 

$

705,280

Total comprehensive income, net of applicable taxes

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

Henry Schein, Inc.

 

$

567,838

 

$

463,083

 

$

682,724

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 

6,113

 

 

3,032

 

 

9,827

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

17,353

 

 

9,084

 

 

12,729

Comprehensive income

 

$

591,304

 

$

475,199

 

$

705,280

v3.22.0.1
Discontinued Operations (Tables)
12 Months Ended
Dec. 25, 2021
Discontinued Operations [Abstract]  
Summarized financial information for discontinued operations Summarized financial information for our discontinued operations is as follows:

 

 

 

 

 

Years Ended

 

 

 

 

December 26,

 

 

December 28,

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

$

-

 

$

319,522

Cost of goods sold

 

 

 

 

-

 

 

260,097

Gross profit

 

 

 

 

-

 

 

59,425

Selling, general and administrative

 

 

 

 

2,347

 

 

68,919

Operating loss

 

 

 

 

(2,347)

 

 

(9,494)

Income tax benefit

 

 

 

 

(3,333)

 

 

(2,181)

Income (loss) from discontinued operations

 

 

 

 

986

 

 

(6,323)

Net loss attributable to noncontrolling interests

 

 

 

 

-

 

 

366

Net income (loss) from discontinued operations

 

 

 

 

 

 

 

 

attributable to Henry Schein, Inc.

 

 

 

 

986

 

 

(5,957)

v3.22.0.1
Plans of Restructuring (Tables)
12 Months Ended
Dec. 25, 2021
Restructuring and Related Activities [Abstract]  
Schedule of restructuring reserve by type of cost

 

 

 

 

 

Facility

 

 

 

 

 

 

 

Severance

 

Closing

 

 

 

 

 

 

 

Costs

 

Costs

 

Other

 

Total

Balance, December 29, 2018

 

$

29,964

 

$

1,603

 

$

158

 

$

31,725

Provision

 

 

13,741

 

 

937

 

 

27

 

 

14,705

Payments and other adjustments

 

 

(30,794)

 

 

(1,714)

 

 

(112)

 

 

(32,620)

Balance, December 28, 2019

 

$

12,911

 

$

826

 

$

73

 

$

13,810

Provision

 

 

25,855

 

 

5,878

 

 

360

 

 

32,093

Payments and other adjustments

 

 

(26,152)

 

 

(6,309)

 

 

(329)

 

 

(32,790)

Balance, December 26, 2020

 

$

12,614

 

$

395

 

$

104

 

$

13,113

Provision

 

 

7,717

 

 

(111)

 

 

333

 

 

7,939

Payments and other adjustments

 

 

(16,072)

 

 

(226)

 

 

(434)

 

 

(16,732)

Balance, December 25, 2021

 

$

4,259

 

$

58

 

$

3

 

$

4,320

Schedule of restructuring reserve by segment

 

 

 

 

 

 

Technology and

 

 

 

 

 

Health Care

 

Value-Added

 

 

 

 

 

 

Distribution

 

Services

 

Total

Balance, December 29, 2018

 

$

30,291

 

$

1,434

 

$

31,725

Provision

 

 

13,935

 

 

770

 

 

14,705

Payments and other adjustments

 

 

(30,853)

 

 

(1,767)

 

 

(32,620)

Balance, December 28, 2019

 

$

13,373

 

$

437

 

$

13,810

Provision

 

 

30,935

 

 

1,158

 

 

32,093

Payments and other adjustments

 

 

(31,484)

 

 

(1,306)

 

 

(32,790)

Balance, December 26, 2020

 

$

12,824

 

$

289

 

$

13,113

Provision

 

 

5,939

 

 

2,000

 

 

7,939

Payments and other adjustments

 

 

(15,692)

 

 

(1,040)

 

 

(16,732)

Balance, December 25, 2021

 

$

3,071

 

$

1,249

 

$

4,320

v3.22.0.1
Earnings Per Share (Tables)
12 Months Ended
Dec. 25, 2021
Earnings Per Share [Abstract]  
Reconciliation of basic and diluted shares used to calculate earnings per share

 

 

 

Years Ended

 

 

 

December 25,

 

December 26,

 

December 28,

 

 

 

2021

 

2020

 

2019

Basic

 

140,091

 

142,504

 

147,817

Effect of dilutive securities:

 

 

 

 

 

 

 

Stock options, restricted stock and restricted stock units

 

1,682

 

900

 

1,440

 

Diluted

 

141,773

 

143,404

 

149,257

v3.22.0.1
Supplemental Cash Flow Information (Tables)
12 Months Ended
Dec. 25, 2021
Supplemental Cash Flow Elements [Abstract]  
Cash paid for interest and income taxes

 

 

Years ended

 

 

December 25,

 

December 26,

 

December 28,

 

 

2021

 

2020

 

2019

Interest

 

$

29,455

 

$

43,123

 

$

54,685

Income taxes

 

 

241,887

 

 

206,796

 

 

177,277

v3.22.0.1
Significant Accounting Policies - Narrative (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Operating Leases      
Lessee, Operating Lease, Option to Extend Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.    
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Fiscal year duration 364 days 364 days 364 days
Outstanding checks in excess of funds on deposit classified as accounts payable $ 2,000,000.0 $ 1,300,000  
Costs of goods sold 8,728,770,000 7,304,913,000 $ 6,894,917,000
Advertising and promotional costs 45,900,000 30,800,000 25,200,000
Impairment charge on intangible assets 713,000 20,275,000 0
Goodwill impairment loss 0 0  
Total distribution network costs 89,200,000 71,700,000 72,300,000
Pledged assets 138,000,000.0 0.0  
Liabilities of VIE 105,000,000.0 0.0  
Contract with Customer, Liability, Current 89,200,000 71,500,000  
Contract with Customer, Liability, Noncurrent 9,700,000 8,200,000  
Extended Product Warranty Accrual 8,100,000 6,900,000  
Short Term Lease Cost 3,900,000 1,900,000 900,000
Technology And Value Added Services [Member]      
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Impairment charge on intangible assets 700,000 20,300,000  
Direct shipping and handling costs [Member]      
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Costs of goods sold $ 96,700,000 $ 79,200,000 $ 73,800,000
Minimum [Member]      
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Fiscal year duration 364 days    
Maximum [Member]      
Operating Leases      
Lessee, Operating Lease, Option to Extend P10Y    
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Fiscal year duration 371 days    
v3.22.0.1
Revenue from Contracts with Customers - Disaggregation of Net sales (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 28, 2019
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Disaggregation of Revenue [Abstract]        
Net sales $ 9,985,803 $ 12,401,021 $ 10,119,141 $ 9,985,803
North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 7,255,298 9,173,606 7,433,021  
International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,730,505 3,227,415 2,686,120  
Total excluding Corporate TSA revenues        
Disaggregation of Revenue [Abstract]        
Net sales 9,904,536 12,401,021 10,043,868 9,904,536
Total excluding Corporate TSA revenues | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 7,251,200 9,173,606 7,433,021  
Total excluding Corporate TSA revenues | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,653,336 3,227,415 2,610,847  
Healthcare Distribution [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 9,389,451 11,760,125 9,529,610 9,389,451
Healthcare Distribution [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 6,805,883 8,619,483 6,986,191  
Healthcare Distribution [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,583,568 3,140,642 2,543,419  
Healthcare Distribution [Member] | Dental [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 6,415,865 7,541,950 5,912,593 6,415,865
Healthcare Distribution [Member] | Dental [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 3,911,746 4,504,243 3,471,521  
Healthcare Distribution [Member] | Dental [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,504,119 3,037,707 2,441,072  
Healthcare Distribution [Member] | Medical [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,973,586 4,218,175 3,617,017 2,973,586
Healthcare Distribution [Member] | Medical [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 2,894,137 4,115,240 3,514,670  
Healthcare Distribution [Member] | Medical [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 79,449 102,935 102,347  
Technology and Value-Added Services [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 515,085 640,896 514,258 515,085
Technology and Value-Added Services [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 445,317 554,123 446,830  
Technology and Value-Added Services [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 69,768 86,773 67,428  
Corporate TSA [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 81,267 0 75,273 $ 81,267
Corporate TSA [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales 4,098      
Corporate TSA [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales $ 77,169      
Corporate TSA [Member] | Animal Health [Member]        
Disaggregation of Revenue [Abstract]        
Net sales   0 75,273  
Corporate TSA [Member] | Animal Health [Member] | North America [Member]        
Disaggregation of Revenue [Abstract]        
Net sales   0 0  
Corporate TSA [Member] | Animal Health [Member] | International [Member]        
Disaggregation of Revenue [Abstract]        
Net sales   $ 0 $ 75,273  
v3.22.0.1
Segment and Geographic Data (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 28, 2019
USD ($)
Dec. 25, 2021
USD ($)
number
countries
Dec. 26, 2020
USD ($)
Dec. 28, 2019
USD ($)
Segment Reporting Information [Line Items]        
Number of reportable segments | number   2    
Number of countries served globally | countries   32    
Net sales $ 9,985,803 $ 12,401,021 $ 10,119,141 $ 9,985,803
Operating income   851,656 535,303 718,261
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment   830,548 499,895 680,307
Depreciation and amortization   209,528 185,538 184,942
Interest income   6,451 9,842 15,757
Interest expense   27,600 41,377 50,792
Income taxes   197,349 95,374 159,515
Purchases of fixed assets   79,015 48,829 76,219
Total assets   8,481,091 7,772,532 7,151,101
Total excluding Corporate TSA revenues        
Segment Reporting Information [Line Items]        
Net sales 9,904,536 12,401,021 10,043,868 9,904,536
Health Care Distribution [Member]        
Segment Reporting Information [Line Items]        
Net sales 9,389,451 11,760,125 9,529,610 9,389,451
Operating income   728,041 436,173 591,404
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment   706,874 400,343 553,181
Depreciation and amortization   156,333 142,712 146,960
Interest income   6,384 9,736 15,352
Interest expense   27,554 41,307 50,666
Income taxes   167,584 71,206 129,381
Purchases of fixed assets   74,021 43,511 69,095
Total assets   7,157,025 6,503,089 5,821,468
Health Care Distribution [Member] | Dental [Member]        
Segment Reporting Information [Line Items]        
Net sales 6,415,865 7,541,950 5,912,593 6,415,865
Health Care Distribution [Member] | Medical [Member]        
Segment Reporting Information [Line Items]        
Net sales 2,973,586 4,218,175 3,617,017 2,973,586
Technology and Value-Added Services [Member]        
Segment Reporting Information [Line Items]        
Net sales 515,085 640,896 514,258 515,085
Operating income   123,615 99,130 126,857
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment   123,674 99,552 127,126
Depreciation and amortization   53,195 42,826 37,982
Interest income   67 106 405
Interest expense   46 70 126
Income taxes   29,765 24,168 30,134
Purchases of fixed assets   4,994 5,318 7,124
Total assets   1,324,066 1,269,443 1,329,633
Corporate TSA [Member]        
Segment Reporting Information [Line Items]        
Net sales $ 81,267 0 75,273 $ 81,267
Corporate TSA [Member] | Animal Health [Member]        
Segment Reporting Information [Line Items]        
Net sales   $ 0 $ 75,273  
v3.22.0.1
Segment and Geographic Data - Net Sales and Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 28, 2019
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]        
Net sales $ 9,985,803 $ 12,401,021 $ 10,119,141 $ 9,985,803
Long-Lived Assets   4,213,182 3,614,672 3,596,680
United States [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Net sales   8,722,223 7,090,206 6,876,194
Long-Lived Assets   $ 2,980,765 2,362,823 2,400,733
United States [Member] | Geographic Concentration Risk [Member] | Sales revenue, net [Member] | Minimum [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Concentration risk percentage (as a percent)   10.00%    
Locations other than the United States [Member]        
Revenues from External Customers and Long-Lived Assets [Line Items]        
Net sales   $ 3,678,798 3,028,935 3,109,609
Long-Lived Assets   $ 1,232,417 $ 1,251,849 $ 1,195,947
v3.22.0.1
Business Acquisitions and Divestitures (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Sep. 28, 2019
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Business Acquisition [Line Items]              
Business acquisition allocated, goodwill   $ 2,504,392 $ 2,462,495   $ 2,854,150 $ 2,504,392 $ 2,462,495
Pretax gain on sale of equity investments         7,318 1,572 186,769
Income taxes         197,349 95,374 159,515
Equity in earnings of affiliates         20,009 12,344 17,900
Proceeds from sale of equity investment         9,757 14,020 307,251
Business Acquisition, Transaction Costs   5,900 4,500   6,600 5,900 4,500
Net sales       $ 9,985,803 12,401,021 10,119,141 9,985,803
Hu-Friedy Mfg. Co., LLC [Member]              
Business Acquisition [Line Items]              
Pretax gain on sale of equity investments $ 7,300 1,600 250,200        
Income taxes     63,400        
Equity in earnings of affiliates             6,000
Proceeds from sale of equity investment $ 9,800 2,100          
Technology and Value-Added Services [Member]              
Business Acquisition [Line Items]              
Business acquisition allocated, goodwill   1,003,555 985,776   1,023,563 1,003,555 985,776
Income taxes         29,765 24,168 30,134
Net sales       $ 515,085 640,896 514,258 515,085
Series of Individually Immaterial Business Acquisitions [Member]              
Business Acquisition [Line Items]              
Payments to Acquire Businesses         578,819    
Net assets         397,677    
Intangible Assets         316,855    
Business acquisition allocated, goodwill         376,211    
Noncontrolling Interest, Increase from Business Combination         181,236    
Business Combination Contingent Consideration Asset         4,900    
Business Combination Consideration Transferred 1         $ 773,888    
Acquisitions Completed In Current Year [Member] | Minimum [Member]              
Business Acquisition [Line Items]              
Acquired equity interest (as a percent)         51.00%    
Acquisitions Completed In Current Year [Member] | Maximum [Member]              
Business Acquisition [Line Items]              
Acquired equity interest (as a percent)         100.00%    
Acquisitions Completed In Prior Year [Member]              
Business Acquisition [Line Items]              
Net assets   32,800       32,800  
Intangible Assets   36,900       36,900  
Business acquisition allocated, goodwill   23,900       23,900  
Business Combination Contingent Consideration Asset   $ 26,400       26,400  
Business Combination Consideration Transferred 1           $ 57,800  
Acquisitions Completed, Two Years Prior [Member]              
Business Acquisition [Line Items]              
Net assets     19,700       19,700
Intangible Assets     310,400       310,400
Business acquisition allocated, goodwill     395,300       395,300
Business Combination Contingent Consideration Asset     $ 72,500       72,500
Business Combination Consideration Transferred 1             $ 652,900
v3.22.0.1
Business Acquisitions and Divestitures (Acquisition Consideration) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Business Acquisition [Line Items]      
Goodwill $ 2,854,150 $ 2,504,392 $ 2,462,495
Series of Individually Immaterial Business Acquisitions [Member]      
Business Acquisition [Line Items]      
Cash 578,819    
Deferred consideration 11,233    
Estimated fair value of contingent consideration receivable (4,900)    
Fair value of previously held equity method investment 7,500    
Redeemable noncontrolling interests 181,236    
Total 773,888    
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets 195,479    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 316,855    
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Other Noncurrent Assets 51,244    
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities (93,492)    
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Liabilities (25,929)    
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Other (46,480)    
Total 397,677    
Goodwill 376,211    
Total $ 773,888    
v3.22.0.1
Business Acquisitions and Divestitures (Intangible Assets) (Details) - Series of Individually Immaterial Business Acquisitions [Member]
$ in Thousands
12 Months Ended
Dec. 25, 2021
USD ($)
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 316,855
Trademark And Tradename [Member]  
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 58,208
Trademark And Tradename [Member] | Minimum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years
Trademark And Tradename [Member] | Maximum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 12 years
Noncompete Agreements [Member]  
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 4,688
Noncompete Agreements [Member] | Minimum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 3 years
Noncompete Agreements [Member] | Maximum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years
Customer Lists [Member]  
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 220,454
Customer Lists [Member] | Minimum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years
Customer Lists [Member] | Maximum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 12 years
Product Development [Member]  
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 19,274
Product Development [Member] | Minimum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years
Product Development [Member] | Maximum [Member]  
Business Acquisition [Line Items]  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 10 years
Other Intangible Assets [Member]  
Business Acquisition [Line Items]  
Finitelived Intangible Assets Acquired 1 $ 14,231
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 18 years
v3.22.0.1
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 916,742 $ 868,182  
Less accumulated depreciation (550,286) (526,178)  
Property and equipment, net 366,456 342,004  
Property and equipment related depreciation expense 70,400 64,300 $ 64,400
Land [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 21,115 20,297  
Buildings and permanent improvements [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 140,062 145,160  
Property and equipment, average useful life (in years) 40 years    
Leasehold improvements [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 97,909 107,753  
Machinery and warehouse equipment [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 152,952 142,437  
Machinery and warehouse equipment [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 5 years    
Machinery and warehouse equipment [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 10 years    
Furniture, fixtures and other [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 119,693 108,041  
Furniture, fixtures and other [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 3 years    
Furniture, fixtures and other [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 10 years    
Computer equipment and software [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 385,011 $ 344,494  
Computer equipment and software [Member] | Minimum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 3 years    
Computer equipment and software [Member] | Maximum [Member]      
Property, Plant and Equipment [Line Items]      
Property and equipment, average useful life (in years) 10 years    
v3.22.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Lessee, Lease, Description [Line Items]      
Lessee, Operating Lease, Option to Extend Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.    
Operating lease assets, Lease not yet commenced $ 7.3    
Operating Lease, Right-of-Use Asset, Amortization Expense including Operating lease credits $ 0.0 $ 0.6 $ 0.6
Minimum [Member]      
Lessee, Lease, Description [Line Items]      
Lessee operating lease, remaining lease term 1 year    
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract 2 years    
Minimum [Member] | Property Owned By Employees And Shareholders [Member]      
Lessee, Lease, Description [Line Items]      
Lessee Operating Lease Term Of Contract 6 months    
Maximum [Member]      
Lessee, Lease, Description [Line Items]      
Lessee operating lease, remaining lease term 20 years    
Lessee, Operating Lease, Option to Extend P10Y    
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract 5 years    
Maximum [Member] | Property Owned By Employees And Shareholders [Member]      
Lessee, Lease, Description [Line Items]      
Lessee Operating Lease Term Of Contract 10 years    
v3.22.0.1
Leases - Components of lease expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Leases [Abstract]      
Operating lease cost $ 103,459 $ 86,800 $ 88,246
Finance lease cost:      
Amortization of right-of-use assets 2,882 2,209 1,154
Interest on lease liabilities 114 115 131
Finance lease cost $ 2,996 $ 2,324 $ 1,285
v3.22.0.1
Leases - Supplemental balance sheet information (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Operating Leases    
Operating lease right-of-use assets, net $ 324,950 $ 288,847
Current operating lease liabilities 76,393 64,716
Non-current operating lease liabilities 267,772 238,727
Total operating lease liabilities 344,165 303,443
Finance leases    
Property and equipment, at cost 12,580 10,683
Accumulated depreciation (5,325) (4,277)
Property and equipment, net of accumulated depreciation 7,255 6,406
Current maturities of long-term debt 3,216 2,420
Long-term debt 3,960 3,541
Total finance lease liabilities $ 7,176 $ 5,961
Weighted Average Remaining Lease Term, in years, Operating Lease 7 years 3 months 18 days 7 years 6 months
Weighted Average Remaining Lease Term, in years, Finance Lease 3 years 7 months 6 days 4 years 3 months 18 days
Weighted Average Discount Rate, Percent, Operating Lease 2.40% 2.80%
Weighted Average Discount Rate, Percent, Finance Lease 1.70% 1.90%
v3.22.0.1
Leases - Supplemental cash flow information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Cash paid for amounts included in the measurement of lease liabilities    
Operating cash flows for operating leases $ 85,123 $ 76,985
Operating cash flows for finance leases 95 101
Financing cash flows for finance leases 2,602 2,148
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases 120,732 120,148
Finance leases $ 3,868 $ 2,947
v3.22.0.1
Leases - Maturities of lease liabilities (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Operating Leases    
2021 $ 82,920  
2022 60,061  
2023 45,992  
2024 40,880  
2025 32,814  
Thereafter 113,667  
Total future lease payments 376,334  
Less imputed interest (32,169)  
Total operating lease liabilities 344,165 $ 303,443
Finance Leases    
2021 3,303  
2022 1,815  
2023 953  
2024 432  
2025 308  
Thereafter 576  
Total future lease payments 7,387  
Less imputed interest (211)  
Total finance lease liabilities $ 7,176 $ 5,961
v3.22.0.1
Goodwill and Other Intangibles, Net - Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Goodwill [Roll Forward]    
Beginning balance $ 2,504,392 $ 2,462,495
Adjustments to goodwill: Acquisitions 383,345 26,331
Adjustments to goodwill: foreign currency translation (33,587) 15,566
Ending balance 2,854,150 2,504,392
Health Care Distribution [Member]    
Goodwill [Roll Forward]    
Beginning balance 1,500,837 1,476,719
Adjustments to goodwill: Acquisitions 359,093 14,230
Adjustments to goodwill: foreign currency translation (29,343) 9,888
Ending balance 1,830,587 1,500,837
Technology and Value-Added Services [Member]    
Goodwill [Roll Forward]    
Beginning balance 1,003,555 985,776
Adjustments to goodwill: Acquisitions 24,252 12,101
Adjustments to goodwill: foreign currency translation (4,244) 5,678
Ending balance $ 1,023,563 $ 1,003,555
v3.22.0.1
Goodwill and Other Intangibles, Net - Other Intangibles (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Other intangible assets cost $ 1,149,194 $ 887,384
Other intangible assets net 667,626 479,429
Finite-Lived Intangible Assets, Net [Abstract]    
Accumulated amortization (481,568) (407,955)
Non-compete agreements [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 25,364 30,993
Accumulated amortization (5,987) (11,480)
Net $ 19,377 19,513
Non-compete agreements [Member] | Weighted average [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Average useful life (in years) 5 years 2 months 12 days  
Trademarks and tradenames, finite lived [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost $ 129,061 95,382
Accumulated amortization (43,921) (50,893)
Net $ 85,140 44,489
Trademarks and tradenames, finite lived [Member] | Weighted average [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Average useful life (in years) 8 years 4 months 24 days  
Customer relationships and lists [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost $ 852,689 652,605
Accumulated amortization (353,457) (283,469)
Net $ 499,232 369,136
Customer relationships and lists [Member] | Weighted average [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Average useful life (in years) 10 years  
Product development [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost $ 113,777 94,216
Accumulated amortization (70,316) (54,451)
Net $ 43,461 39,765
Product development [Member] | Weighted average [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Average useful life (in years) 7 years 10 months 24 days  
Other intangibles assets [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost $ 28,303 14,188
Accumulated amortization (7,887) (7,662)
Net $ 20,416 $ 6,526
v3.22.0.1
Goodwill and Other Intangibles, Net - Amortization (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Goodwill and other Intangibles, Net Disclosure [Abstract]      
Amortization expense related to definite-lived intangible assets $ 123,800,000 $ 105,900,000 $ 108,300,000
Annual amortization expense expected for 2021 122,800,000    
Annual amortization expense expected for 2022 114,500,000    
Annual amortization expense expected for 2023 91,500,000    
Annual amortization expense expected for 2024 80,100,000    
Annual amortization expense expected for 2025 63,400,000    
Impairment of Intangible Assets (Excluding Goodwill) $ 713,000 $ 20,275,000 $ 0
v3.22.0.1
Investments and Other (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Investments And Other [Abstract]      
Investments in unconsolidated affiliates $ 168,118 $ 169,382  
Non-current deferred foreign, state and local income taxes 34,607 42,594  
Notes receivable 35,748 34,760  
Capitalized costs for internally generated software for resale 65,349 47,650  
Security deposits 2,225 1,752  
Acquisition related indemnification 65,638 49,401  
Other long-term assets 52,189 20,906  
Total 423,874 366,445  
Amortization of other long-term assets $ 15,300 $ 15,300 $ 12,300
v3.22.0.1
Investments and Other - Long-term notes receivable (Details) - Financing Receivable [Member]
12 Months Ended
Dec. 25, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Latest maturity date of varying installments of long-term notes receivable Sep. 30, 2027
Minimum [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Long-term notes receivable interest rate (as a percent) 3.00%
Maximum [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Long-term notes receivable interest rate (as a percent) 14.20%
v3.22.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Dec. 29, 2018
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests $ 613,312 $ 327,699 $ 287,258 $ 219,724
Estimate of Fair Value Measurement [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Fair value of debt 872,500 699,000    
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps 1,404 1,565    
Total assets   3,433    
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 7,859 453    
Liabilities [Abstract]        
Derivative contracts - liabilities 650 10,880    
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 640 1,415    
Liabilities [Abstract]        
Derivative contracts - liabilities 1,503 885    
Fair value, measurements, recurring [Member]        
Assets [Abstract]        
Total assets 9,903      
Liabilities [Abstract]        
Total liabilities 2,153 11,765    
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests 613,312 327,699    
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps 0 0    
Total assets   0    
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 0 0    
Liabilities [Abstract]        
Derivative contracts - liabilities 0 0    
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 0 0    
Liabilities [Abstract]        
Derivative contracts - liabilities 0 0    
Fair value, measurements, recurring [Member] | Level 1 [Member]        
Assets [Abstract]        
Total assets 0      
Liabilities [Abstract]        
Total liabilities 0 0    
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests 0 0    
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps 1,404 1,565    
Total assets   3,433    
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 7,859 453    
Liabilities [Abstract]        
Derivative contracts - liabilities 650 10,880    
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 640 1,415    
Liabilities [Abstract]        
Derivative contracts - liabilities 1,503 885    
Fair value, measurements, recurring [Member] | Level 2 [Member]        
Assets [Abstract]        
Total assets 9,903      
Liabilities [Abstract]        
Total liabilities 2,153 11,765    
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests 0 0    
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps 0 0    
Total assets   0    
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 0 0    
Liabilities [Abstract]        
Derivative contracts - liabilities 0 0    
Fair value, measurements, recurring [Member] | Level 3 [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 0      
Liabilities [Abstract]        
Derivative contracts - liabilities 0 0    
Fair value, measurements, recurring [Member] | Level 3 [Member]        
Assets [Abstract]        
Total assets 0      
Liabilities [Abstract]        
Total liabilities 0 0    
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests $ 613,312 $ 327,699    
v3.22.0.1
Concentrations of Risk (Details)
12 Months Ended
Dec. 25, 2021
Top customer concentration risk [Member] | Sales revenue, net [Member] | Any two customers [Member] | Maximum [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 3.00%
Supplier concentration risk [Member] | Purchases [Member] | Top ten health care distribution suppliers [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 30.00%
Supplier concentration risk [Member] | Purchases [Member] | Single largest supplier [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 4.00%
v3.22.0.1
Derivatives and Hedging Activities (Details)
€ in Millions, $ in Millions
12 Months Ended
Dec. 25, 2021
USD ($)
Dec. 26, 2020
USD ($)
Dec. 25, 2021
EUR (€)
Dec. 25, 2021
USD ($)
Mar. 20, 2020
USD ($)
Other Comprehensive Income [Member] | Foreign Exchange Forward [Member]          
Derivative [Line Items]          
Derivative Gain Loss On Derivative Net $ (11.4) $ 13.9      
Total Return Swap [Member] | SERP and DCP [Member]          
Derivative [Line Items]          
Derivative, Notional Amount       $ 88.7 $ 43.4
Derivative, Inception Date Mar. 20, 2020        
Derivative, Variable Interest Rate     0.55% 0.55%  
Derivative, Basis Spread on Variable Rate     0.09% 0.09%  
Gain on derivatives net of transaction costs $ 12.1 $ 21.2      
Derivative Fixed Interest Rate     0.46% 0.46%  
Net Investment Hedging [Member] | Forward Contracts [Member]          
Derivative [Line Items]          
Derivative, Notional Amount | €     € 200    
Derivative, Maturity Dates Nov. 16, 2023        
v3.22.0.1
Debt - Bank Credit Lines (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Line of Credit Facility [Line Items]    
Bank credit lines $ 50,530 $ 73,366
Other short-term bank credit lines [Member]    
Line of Credit Facility [Line Items]    
Bank credit lines 50,500 73,400
Committed Loan Associated with Animal Health Spin-off [Member]    
Line of Credit Facility [Line Items]    
Bank credit lines $ 50,530 $ 73,366
v3.22.0.1
Debt - Revolving Credit Agreement 364 Day Credit Agreement and Other Short-Term Credit Lines - Narrative (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Line of Credit Facility [Line Items]    
Short-term borrowings $ 50,530,000 $ 73,366,000
Revolving Credit Facility [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Initiation Date Aug. 20, 2021  
Line of Credit Facility, Maximum Borrowing Capacity $ 1,000,000,000  
Line of Credit Facility, Expiration Date Aug. 20, 2026  
Long-term Line of Credit $ 0 0
Letters of Credit Outstanding, Amount 9,100,000 9,500,000
RevolvingCreditFacilityApril2022[Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity 750,000,000  
Various Bank Credit Lines [Member]    
Line of Credit Facility [Line Items]    
Short-term borrowings $ 50,500,000 $ 73,400,000
Line of Credit Facility, Interest Rate at Period End 10.44% 4.14%
Three Hundred Sixty Four Day Credit Agreement [Member]    
Line of Credit Facility [Line Items]    
Line of Credit Facility, Initiation Date Apr. 17, 2020  
Extinguishment of Debt, Amount $ 700,000,000  
Line of Credit Facility, Expiration Date Apr. 16, 2021  
v3.22.0.1
Debt - Long-term Debt (Details) - USD ($)
Dec. 25, 2021
Dec. 26, 2020
Debt Instrument [Line Items]    
Total Long-term debt $ 821,986,000 $ 625,609,000
Less current maturities (10,640,000) (109,836,000)
Finance lease obligations 7,176,000 5,961,000
Total debt 811,346,000 515,773,000
Private Placement Facilities [Member]    
Debt Instrument [Line Items]    
Total Long-term debt 706,186,000 613,498,000
U.S. trade accounts receivable securitization [Member]    
Debt Instrument [Line Items]    
Total Long-term debt 105,000,000 0
Notes payable due 2025 at a weighted average interest rate of 3.1% [Member]    
Debt Instrument [Line Items]    
Total Long-term debt $ 0 1,554,000
Debt instrument, interest rate, stated percentage 3.10%  
Debt Instrument, Maturity Date, Description 2025  
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member]    
Debt Instrument [Line Items]    
Total Long-term debt $ 3,624,000 $ 4,596,000
Debt Instrument, Maturity Date, Description 2023  
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Debt instrument, interest rate, stated percentage 2.45% 2.62%
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Debt instrument, interest rate, stated percentage 4.27% 4.27%
v3.22.0.1
Debt - Private Placement Facilities - Narrative (Details) - Private placement facilities [Member]
$ in Millions
12 Months Ended
Dec. 25, 2021
USD ($)
Dec. 26, 2020
USD ($)
Debt Instrument [Line Items]    
Line of Credit Facility, Maximum Borrowing Capacity $ 1.5 $ 1,000.0
Debt Instrument, Maturity Date Oct. 20, 2026 Jun. 23, 2023
Average term of issuances under private placement facilities 12 years  
Increase in maximum maintenance leverage ratio 1.00%  
Net leverage ratio 0.030  
Debt Instrument, Issuance Date Oct. 20, 2021  
Minimum [Member]    
Debt Instrument [Line Items]    
Term of issuances under private placement facilities 5 years  
Maximum [Member]    
Debt Instrument [Line Items]    
Term of issuances under private placement facilities 15 years  
Net leverage ratio 0.0325  
v3.22.0.1
Debt - Private Placement Facility Borrowings (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Debt Instrument [Line Items]    
Less: Deferred debt issuance costs $ (1,000)  
Long-term Debt and finance Lease Obligations, Including Current Maturities $ 821,986 $ 625,609
Private placement facilities [Member]    
Debt Instrument [Line Items]    
Date of borrowing Oct. 20, 2021  
Less: Deferred debt issuance costs $ (957)  
Long-term Debt and finance Lease Obligations, Including Current Maturities $ 706,186 $ 613,498
Due date Oct. 20, 2026 Jun. 23, 2023
Private placement facilities [Member] | Private placement facilities maturing in January 2022 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jan. 20, 2012  
Amount of borrowing outstanding $ 7,143  
Borrowing Rate 3.09%  
Due date Jan. 20, 2022  
Private placement facility, repayment frequency Annual  
Private placement facility, annual payment $ 7,100  
Debt Instrument, Date of First Required Payment Jan. 20, 2016  
Private placement facilities [Member] | Private placement facilities maturing in January 2024 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jan. 20, 2012  
Amount of borrowing outstanding $ 50,000  
Borrowing Rate 3.45%  
Due date Jan. 20, 2024  
Private placement facilities [Member] | Private placement facilities maturing in December 2024 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Dec. 24, 2012  
Amount of borrowing outstanding $ 50,000  
Borrowing Rate 3.00%  
Due date Dec. 24, 2024  
Private placement facilities [Member] | Private placement facilities maturing in June 2021 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jun. 16, 2017  
Due date Jun. 16, 2027  
Private placement facilities [Member] | Private Placement facilities maturing in June 2027 [Member]    
Debt Instrument [Line Items]    
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 3.42%  
Private placement facilities [Member] | Private Placement Facilities maturing in September 2029 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Sep. 15, 2017  
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 3.52%  
Due date Sep. 15, 2029  
Private placement facilities [Member] | Private Placement facilities maturing in January 2028 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jan. 02, 2018  
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 3.32%  
Due date Jan. 02, 2028  
Private placement facilities [Member] | Private placement facilities maturing in September 2030 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Sep. 02, 2020  
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 2.35%  
Due date Sep. 02, 2030  
Private placement facilities [Member] | Private placement facilities maturing in June 2031 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jun. 02, 2021  
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 2.48%  
Due date Jun. 02, 2031  
Private placement facilities [Member] | Private placement facilities maturing in June 2031 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jun. 02, 2021  
Amount of borrowing outstanding $ 100,000  
Borrowing Rate 2.58%  
Due date Jun. 02, 2033  
v3.22.0.1
Debt - U.S. Trade Accounts Receivable Securitization - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Debt Instrument [Line Items]    
Long-term Debt and finance Lease Obligations, Including Current Maturities $ 821,986 $ 625,609
U.S. trade accounts receivable securitization [Member]    
Debt Instrument [Line Items]    
Pricing commitment period 3 years  
Debt Instrument, Maturity Date Apr. 29, 2022  
Line of Credit Facility, Maximum Borrowing Capacity $ 450,000 350,000
Long-term Debt and finance Lease Obligations, Including Current Maturities $ 105,000 $ 0
Commitment fee for facility usage - facility limit greater than or equal to fifty percent usage (as a percent) 0.30%  
Commitment fee for facility usage - facility limit less than fifty percent usage (as a percent) 0.35%  
U.S. trade accounts receivable securitization [Member] | Average Asset Backed Commercial Paper Rate [Member]    
Debt Instrument [Line Items]    
Debt Instrument Variable Rate Basis At Period End 0.19% 0.22%
Debt instrument, basis spread on variable rate 0.75% 0.95%
Debt instrument, interest rate at period end 0.94% 1.17%
v3.22.0.1
Debt - Maturities (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Maturities of Long-term Debt [Abstract]    
2022 $ 10,640  
2023 5,108  
2024 205,924  
2025 412  
2026 295  
Thereafter 599,607  
Total Long-term debt 821,986 $ 625,609
Debt Instrument [Line Items]    
Debt Issuance Costs, Gross 1,000  
Private Placement Facilities [Member]    
Maturities of Long-term Debt [Abstract]    
Total Long-term debt 706,186 $ 613,498
Debt Instrument [Line Items]    
Debt Issuance Costs, Gross $ 957  
v3.22.0.1
Income Taxes (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Income Taxes [Abstract]      
Effective tax rate (in hundredths) 23.80% 19.10% 23.40%
Allowable business interest deduction rate before modification to Section 163(j) 30.00%    
Allowable business interest deduction rate after modification to Section 163(j) 50.00%    
Effect of Tax Cuts and Jobs Act [Abstract]      
Benefit from transition tax $ 0 $ 0 $ 0
Tax on global intangible low-taxed income ("GILTI") 4,895,000 2,365,000 3,917,000
Unrecognized tax benefits 83,500,000 69,000,000.0  
Total interest 12,400,000 14,000,000.0  
Total penalties 0 0 0
Accrued Taxes [Member]      
Income Tax Examination [Line Items]      
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Liability Current 14,100,000 9,900,000  
OtherLiabilitiesMember      
Income Tax Examination [Line Items]      
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Liability Current 42,400,000 74,500,000  
Domestic Tax Authority [Member]      
Income Tax Examination [Line Items]      
Operating Loss Carryforwards 32,700,000    
Foreign Tax Authority [Member]      
Income Tax Examination [Line Items]      
Operating Loss Carryforwards 170,700,000    
Operating Loss Carryforwards Not Subject To Expiration 169,600,000    
State and Local Jurisdiction [Member]      
Income Tax Examination [Line Items]      
Operating Loss Carryforwards 35,600,000    
Operating Loss Carryforwards Not Subject To Expiration 9,500,000    
Internal Revenue Service (IRS) [Member]      
Income Tax Examination [Line Items]      
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority $ (400,000) $ (3,300,000) $ 2,200,000
v3.22.0.1
Income Taxes - Income before Taxes and Equity in Earnings of Affiliates and Provisions for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Income before equity method investments, income taxes and loss on sale of equity investment [Abstract]      
Domestic $ 593,137 $ 430,838 $ 507,003
Foreign 237,411 69,057 173,304
Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests $ 830,548 $ 499,895 $ 680,307
v3.22.0.1
Income Taxes - Provisions for income taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Current income tax expense:      
U.S. Federal $ 128,328 $ 82,912 $ 93,418
State and local 37,255 24,640 28,150
Foreign 42,751 40,799 42,004
Total current 208,334 148,351 163,572
Deferred income tax expense (benefit):      
U.S. Federal (12,115) (18,032) 5,633
State and local (2,567) (4,889) 1,597
Foreign 3,697 (30,056) (11,287)
Total deferred (10,985) (52,977) (4,057)
Total income tax provision $ 197,349 $ 95,374 $ 159,515
v3.22.0.1
Income Taxes - Deferred Income Tax Asset (Liabilty) (Details) - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Deferred income tax asset:    
Net operating losses and other carryforwards $ 54,651 $ 64,297
Inventory, premium coupon redemptions and accounts receivable valuation allowances 46,219 56,668
Stock-based compensation 12,543 4,858
Uniform capitalization adjustment to inventories 10,422 6,895
Operating lease right of use asset 78,719 74,674
Other asset 41,090 42,966
Total deferred income tax asset 243,644 250,358
Valuation allowance for non-current deferred tax assets (35,982) (40,496)
Net deferred income tax asset 207,662 209,862
Deferred income tax liability    
Intangibles amortization (134,023) (118,165)
Operating lease liability (73,952) (71,343)
Property and equipment (7,363) (7,820)
Total deferred tax liability (215,338) (197,328)
Net deferred income tax asset (liability) $ (7,676) $ 12,534
v3.22.0.1
Income Taxes - Operating Loss Carryforwards (Details)
$ in Millions
Dec. 25, 2021
USD ($)
Foreign tax authority [Member]  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards not subject to expiration $ 169.6
State and Local Jurisdiction [Member]  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards not subject to expiration $ 9.5
v3.22.0.1
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Income tax provision at federal statutory rate $ 174,415 $ 104,977 $ 142,865
State income tax provision, net of federal income tax effect 21,245 13,015 16,539
Foreign income tax benefit 5,669 (428) (4,580)
Pass through noncontrolling interest (4,479) (2,681) (3,931)
Valuation allowance (5,533) 659 (79)
Unrecognized tax benefits and audit settlements 6,981 (17,722) 3,671
Interest expense related to loans (10,917) (11,098) (5,498)
Transition tax on deemed repatriation of foreign earnings 0 0 0
Tax on global intangible low-taxed income ("GILTI") 4,895 2,365 3,917
Tax benefit related to legal entity reorganization outside the U.S. 0 (5,823) 0
Tax charge related to reorganization of legal entities completed in preparation for the Animal Health spin-off   0 (1,333)
Other 5,073 12,110 7,944
Total income tax provision $ 197,349 $ 95,374 $ 159,515
v3.22.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of period $ 70,000 $ 91,100 $ 77,800
Additions based on current year tax positions 3,300 4,900 4,900
Additions based on prior year tax positions 10,800 7,900 17,300
Reductions based on prior year tax positions (1,000) (1,000) (1,000)
Reductions resulting from settlements with taxing authorities (9,500) (18,600) (4,200)
Reductions resulting from lapse in statutes of limitations (2,500) (14,300) (3,700)
Balance, end of period $ 71,100 $ 70,000 $ 91,100
v3.22.0.1
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligation (Details)
$ in Thousands
Dec. 25, 2021
USD ($)
Unrecorded Unconditional Purchase Obligation [Abstract]  
2022 $ 111,696
2023 488
2024 0
2025 0
2026 0
Thereafter 0
Total minimum inventory purchase commitment payments $ 112,184
v3.22.0.1
Commitments and Contingencies - Other Commitments (Details)
$ in Thousands
12 Months Ended
Dec. 25, 2021
USD ($)
Employment, consulting and non-compete agreements [Member]  
Other Commitment, Fiscal Year Maturity [Abstract]  
2022 $ 24,600
2023 4,700
2024 900
2025 800
2026 800
Thereafter 0
Life-time consulting agreement [Member]  
Other Commitment, Fiscal Year Maturity [Abstract]  
Current compensation paid under lifetime consulting agreement 400
Amount of increase effective every fifth year on lifetime consulting agreement $ 25
v3.22.0.1
Commitments and Contingencies - Litigation (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 28, 2019
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Loss Contingency, Information about Litigation Matters [Abstract]        
Net sales $ 9,985,803 $ 12,401,021 $ 10,119,141 $ 9,985,803
Actions consolidated in the MultiDistrict Litigation [Member] | Maximum [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Maximum sales of opioids in North America during the year, percentage   1.00%    
Actions consolidated in the MultiDistrict Litigation [Member] | Continuing Operations [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Net sales   $ 12,400,000    
v3.22.0.1
Stock Based Compensation - Valuation Model (Details)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Stock Based Compensation [Abstract]      
Expected dividend yield 0.00% 0.00% 0.00%
Expected stock price volatility 27.10% 0.00% 0.00%
Risk-free interest rate 1.33% 0.00% 0.00%
Expected life of options (years) 6 years    
v3.22.0.1
Stock Based Compensation - Stock-Based Compensation (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax share-based compensation expense $ 78,400,000 $ 8,800,000 $ 44,900,000
After-tax share-based compensation expense 59,800,000 7,100,000 34,400,000
Excess tax benefits 0 $ 0 $ 0
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) 900,000    
Total unrecognized compensation cost related to non-vested awards $ 79,800,000    
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards (in years) 2 years    
Long-term Incentive Program [Member] | Time-based restricted stock/units [Member] | Share Based Compensation Award Tranche One [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage 50.00%    
Long-term Incentive Program [Member] | Time-based restricted stock/units [Member] | Share Based Compensation Award Tranche Two [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights Percentage 50.00%    
2015 Non-Employee Director Stock Incentive Plan [Member] | Restricted stock/units [Member] | Share Based Compensation Award Tranche One [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 4 years    
2015 Non-Employee Director Stock Incentive Plan [Member] | Restricted stock/units [Member] | Share Based Compensation Award Tranche Two [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 12 months    
2015 Non-Employee Director Stock Incentive Plan [Member] | Restricted stock/units [Member] | Share Based Compensation Award Tranche Three [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 3 years    
v3.22.0.1
Stock Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Employee and director stock options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]      
Outstanding at beginning of period (in shares) 0    
Granted (in shares) 817,000    
Exercised (in shares) 0    
Forfeited (in shares) (50,000)    
Outstanding at end of period (in shares) 767,000    
Ending balance, options exercisable (in shares) 1,000    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Outstanding at beginning of period (in dollars per share) $ 0    
Granted (in dollars per share) 63.21    
Exercised (in dollars per share) 0    
Forfeited (in dollars per share) 62.75    
Outstanding at end of period (in dollars per share) 63.24    
Ending balance, options exercisable (in dollars per share) 62.71    
Restricted stock/units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Intrinsic value (in dollars per share) $ 73.99 $ 61.49 $ 64.31
Time-based restricted stock/units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Beginning balance outstanding (in shares) 1,459,000    
Granted (in shares) 843,000    
Vested (in shares) (269,000)    
Forfeited (in shares) (87,000)    
Ending balance outstanding (in shares) 1,946,000    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Beginning balance outstanding (in dollars per share) $ 57.61    
Granted (in dollars per share) 63.38    
Vested (in dollars per share) 66.85    
Forfeited (in dollars per share) 60.55    
Ending balance outstanding (in dollars per share) 58.79    
Intrinsic value (in dollars per share) $ 74.93    
Performance-based restricted stock/units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Beginning balance outstanding (in shares) 136,000    
Granted (in Shares) 669,000    
Vested (in shares) (84,000)    
Forfeited (in shares) (46,000)    
Ending balance outstanding (in shares) 675,000    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Beginning balance outstanding (in dollars per share) $ 53.52    
Granted (in dollars per share) 59.29    
Vested (in dollars per share) 52.49    
Forfeited (in dollars per share) 59.72    
Ending balance outstanding (in dollars per share) 59.63    
Intrinsic value (in dollars per share) $ 74.93    
Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]      
Stock option outstanding aggregate intrinsic value as of period end $ 9,027    
Stock option exercisable aggregate intrinsic value as of period end $ 8    
Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term 2 9 years 2 months 12 days    
Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Remaining Contractual Term 2 6 years 1 month 6 days    
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest [Abstract]      
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number 736,000    
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price $ 63.26    
Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term 1 9 years 2 months 12 days    
Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value $ 8,642    
Long-term Incentive Program [Member] | Employee and director stock options [Member] | Henry Schein Animal Health Business [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Outstanding at beginning of period (in dollars per share) $ 0    
2020 (formerly known as 2013) Stock Incentive Plan, as amended [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be granted (in shares) 70,943,000    
Shares available to be granted (in shares) 9,368,000    
2015 Non-Employee Director Stock Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be granted (in shares) 1,893,000    
Shares available to be granted (in shares) 229,000    
v3.22.0.1
Employee Benefit Plans (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Management [Member] | Deferred compensation bonus and commission plan [Member]      
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]      
Deferred compensation plan fair market value amount charged (credited) to operations $ 8.4 $ 7.8 $ 8.3
Qualified 401K plan [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Maximum matching contributions as a percentage of participants' contributions (as a percent) 100.00%    
Maximum participants' contributions as a percentage of their base compensation (as a percent) 7.00%    
Allowable maximum percentage of contributions allocated to Henry Schein Stock Fund (as a percent) 20.00%    
Amounts charged (credited) to operations $ 37.5 20.5 35.4
Supplemental executive retirement plan [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Amounts charged (credited) to operations $ 2.4 $ 2.8 $ 4.0
v3.22.0.1
Employee Benefit Plans (Obligation and Funded Status) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Defined Benefit Plan Disclosure [Line Items]      
Balance $ 130,095 $ 120,622  
Defined Benefit Plan Service Cost 3,692 3,186 $ 1,655
Defined Benefit Plan Interest Cost 421 518 899
Defined Benefit Plan, Benefit Obligation, Past Service (Cost) and Credit 5,348 0  
Defined Benefit Plan Actuarial Gain Loss (5,451) 569  
Defined Benefit Plan Benefit Obligation Benefits Paid 422 (3,685)  
Defined Benefit Plan Benefit Obligation Contributions By Plan Participant 936 839  
Defined Benefit Plan Settlements Benefit Obligation (2,256) (2,143)  
Defined Benefit Plan Foreign Currency Exchange Rate Changes Benefit Obligation (5,011) 10,189  
Balance 128,196 130,095 120,622
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Balance 64,708 60,090  
Defined Benefit Plan Actual Return On Plan Assets 5,091 1,772  
Defined Benefit Plan Contributions By Employer 1,713 1,545  
Defined Benefit Plan Plan Assets Contributions By Plan Participant 936 839  
Defined Benefit Plan, Plan Assets, Expected Return (Loss) on Plan Assets 3,988 987  
Defined Benefit Plan Plan Assets Benefits Paid 1,990 (1,988)  
Defined Benefit Plan Settlements Plan Assets (2,256) (2,143)  
Defined Benefit Plan Plan Assets Foreign Currency Translation Gain Loss (1,111) 3,606  
Balance 75,059 64,708 $ 60,090
Unfunded Plan [Member]      
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Defined Benefit Plan Funded Status Of Plan 53,137 $ 65,387  
Funded Plan [Member]      
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Defined Benefit Plan Funded Status Of Plan $ 5,800    
v3.22.0.1
Employee Benefit Plans (Balance Sheet) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Thousands
Dec. 25, 2021
Dec. 26, 2020
Defined Benefit Plan Disclosure [Line Items]    
Pension And Other Postretirement Defined Benefit Plans Current Liabilities $ 991 $ 1,031
Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent 52,146 64,356
Defined Benefit Plan Accumulated Other Comprehensive Income Before Tax $ 20,456 $ 29,798
v3.22.0.1
Employee Benefit Plans (Net Periodic Pension Cost) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan Service Cost $ 3,692 $ 3,186 $ 1,655
Defined Benefit Plan Interest Cost 421 518 899
Defined Benefit Plan Expected Return On Plan Assets (451) (421) (337)
Defined Benefit Plan, Employee Contributions (483) (371) 0
Defined Benefit Plan Amortization Of Prior Service Cost Credit 871 785 300
Defined Benefit Plan Actuarial Gain Loss Immediate Recognition As Component In Net Periodic Benefit Cost Credit 252 447 92
Settlements 98 155 373
Total $ 4,400 $ 4,299 $ 2,982
v3.22.0.1
Employee Benefit Plans (Assumptions) (Details) - Pension Plans Defined Benefit [Member]
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate 0.87% 0.54%  
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract]      
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Discount Rate 0.56% 0.51% 1.14%
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets 0.71% 0.87% 0.87%
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase 1.95% 1.97% 2.20%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Pension Rate 0.72% 0.67% 0.77%
v3.22.0.1
Employee Benefit Plans (Estimated Payments) (Details) - Pension Plans Defined Benefit [Member]
$ in Thousands
Dec. 25, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months $ 5,503
Defined Benefit Plan Expected Future Benefit Payments Year Two 6,109
Defined Benefit Plan Expected Future Benefit Payments Year Three 5,837
Defined Benefit Plan Expected Future Benefit Payments Year Four 5,174
Defined Benefit Plan Expected Future Benefit Payments Year Five 5,162
Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter 32,857
Total $ 60,642
v3.22.0.1
Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Components of the change in the redeemable noncontrolling interests [Abstract]      
Balance, beginning of period $ 327,699 $ 287,258 $ 219,724
Decrease in redeemable noncontrolling interests due to redemptions (60,240) (17,241) (2,270)
Increase in redeemable noncontrolling interests due to business acquisitions 188,977 28,387 74,865
Net income attributable to redeemable noncontrolling interests 23,358 13,363 14,838
Dividends declared (20,756) (12,631) (10,264)
Effect of foreign currency translation gain (loss) attributable to redeemable noncontrolling interests (6,005) (4,279) (2,335)
Change in fair value of redeemable securities (160,279) (32,842) 7,300
Balance, end of period $ 613,312 $ 327,699 $ 287,258
v3.22.0.1
Comprehensive Income - Accumulated Other Comprehensive Income and Comprehensive Income Components (Details) - USD ($)
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Attributable to Redeemable noncontrolling interests:      
Foreign currency translation adjustment $ (30,622,000) $ (24,617,000) $ (20,338,000)
Attributable to noncontrolling interests:      
Foreign currency translation adjustment 412,000 235,000 (531,000)
Attributable to Henry Schein, Inc.:      
Foreign currency translation gain (loss) (154,578,000) (76,565,000) (143,172,000)
Unrealized gain (loss) from foreign currency hedging activities (2,046,000) (11,488,000) (4,032,000)
Unrealized investment gain (loss) (8,000) 1,000 6,000
Pension adjustment gain (loss) (14,846,000) (20,032,000) (20,175,000)
Accumulated other comprehensive income (loss) (171,478,000) (108,084,000) (167,373,000)
Total Accumulated other comprehensive income (loss) (201,688,000) (132,466,000) (188,242,000)
Components of comprehensive income [Abstract]      
Net Income 660,526,000 419,423,000 719,138,000
Foreign currency translation gain (loss) (83,841,000) 63,094,000 (4,070,000)
Tax effect 0 0 0
Foreign currency translation gain (loss) (83,841,000) 63,094,000 (4,070,000)
Unrealized gain (loss) from foreign currency hedging activities 12,717,000 (10,224,000) (4,911,000)
Tax effect 3,275,000 2,768,000 1,035,000
Unrealized gain (loss) from foreign currency hedging activities 9,442,000 (7,456,000) (3,876,000)
Unrealized investment gain (loss) (12,000) (6,000) 14,000
Tax effect 3,000 (1,000) (2,000)
Unrealized investment gain (loss) (9,000) (5,000) 12,000
Pension adjustment gain (loss) (7,612,000) 533,000 7,730,000
Tax effect (2,426,000) 676,000 1,806,000
Pension adjustment gain (loss) (5,186,000) (143,000) 5,924,000
Comprehensive income $ 591,304,000 $ 475,199,000 $ 705,280,000
v3.22.0.1
Comprehensive Income - Total Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Comprehensive Income Net Of Applicable Taxes [Abstract]      
Comprehensive income attributable to Henry Schein, Inc. $ 567,838 $ 463,083 $ 682,724
Comprehensive income (loss) attributable to noncontrolling interests 6,113 3,032 9,827
Comprehensive income (loss) attributable to Redeemable noncontrolling interests 17,353 9,084 12,729
Comprehensive income (loss) $ 591,304 $ 475,199 $ 705,280
v3.22.0.1
Discontinued Operations - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Feb. 07, 2019
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Distribution received related to Animal Health Spin-off   $ 0 $ 0 $ 1,120,000
Proceeds related to Animal Health Share Sale   $ 0 0 361,090
Henry Schein Animal Health Business [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Transaction costs related to Animal Health spin-off     $ 100 $ 23,600
Henry Schein Animal Health Business [Member] | Covetrus, Inc. [Member] | Henry Schein stockholders and the Share Sale Investors [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Noncontrolling Interest, Ownership Percentage by Parent 37.00%      
Henry Schein Animal Health Business [Member] | Covetrus, Inc. [Member] | Vets First Corp [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Distribution received related to Animal Health Spin-off $ 1,120,000      
Proceeds related to Animal Health Share Sale $ 361,100      
Noncontrolling Interest, Ownership Percentage by Parent 63.00%      
v3.22.0.1
Discontinued Operations - Summarized financial information for our discontinued operations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Summarized financial information for our discontinued operations      
Costs of goods sold $ 8,728,770 $ 7,304,913 $ 6,894,917
Selling, general and administrative 2,812,656 2,246,832 2,357,920
Income (loss) from discontinued operations 0 986 (6,323)
Net (income) loss attributable to noncontrolling interests 0 0 (366)
Net income attributable to Henry Schein, Inc. $ 631,232 403,794 694,734
Henry Schein Animal Health Business [Member]      
Summarized financial information for our discontinued operations      
Net sales   0 319,522
Costs of goods sold   0 260,097
Gross Profit   0 59,425
Selling, general and administrative   2,347 68,919
Operating income (loss)   (2,347) (9,494)
Income tax expense (benefit)   (3,333) (2,181)
Income (loss) from discontinued operations   986 (6,323)
Net (income) loss attributable to noncontrolling interests   0 366
Net income attributable to Henry Schein, Inc.   $ 986 $ (5,957)
v3.22.0.1
Plans of Restructuring (Narrative) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges, pre-tax $ 7,939 $ 32,093 $ 14,705
Employee severance pay and benefits [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges, pre-tax 7,717 25,855 13,741
Facility Closing [Member]      
Restructuring Cost and Reserve [Line Items]      
Restructuring Charges, pre-tax $ (111) $ 5,878 $ 937
v3.22.0.1
Plans of Restructuring - Restructuring Reserve Roll Forward by Expense and Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance $ 13,113 $ 13,810 $ 31,725
Provision 7,939 32,093 14,705
Payments and other adjustments (16,732) (32,790) (32,620)
Restructuring Reserve, ending balance 4,320 13,113 13,810
Health Care Distribution [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance 12,824 13,373 30,291
Provision 5,939 30,935 13,935
Payments and other adjustments (15,692) (31,484) (30,853)
Restructuring Reserve, ending balance 3,071 12,824 13,373
Technology and Value-Added Services [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance 289 437 1,434
Provision 2,000 1,158 770
Payments and other adjustments (1,040) (1,306) (1,767)
Restructuring Reserve, ending balance 1,249 289 437
Severance costs [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance 12,614 12,911 29,964
Provision 7,717 25,855 13,741
Payments and other adjustments (16,072) (26,152) (30,794)
Restructuring Reserve, ending balance 4,259 12,614 12,911
Facility closing costs [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance 395 826 1,603
Provision (111) 5,878 937
Payments and other adjustments (226) (6,309) (1,714)
Restructuring Reserve, ending balance 58 395 826
Other [Member]      
Restructuring Reserve [Roll Forward]      
Restructuring Reserve, beginning balance 104 73 158
Provision 333 360 27
Payments and other adjustments (434) (329) (112)
Restructuring Reserve, ending balance $ 3 $ 104 $ 73
v3.22.0.1
Earnings Per Share (Details) - shares
shares in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Weighted-average common shares outstanding:      
Basic (in shares) 140,091 142,504 147,817
Effect of dilutive securities:      
Stock options, restricted stock and restricted stock units (in shares) 1,682 900 1,440
Diluted (in shares) 141,773 143,404 149,257
v3.22.0.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Supplemental Cash Flow Information [Abstract]      
Interest $ 29,455 $ 43,123 $ 54,685
Income taxes 241,887 206,796 177,277
Unrealized gain (loss) from foreign currency hedging activities $ 12,717 $ (10,224) $ (4,911)
v3.22.0.1
Related Party Transactions (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Related Party Transaction [Line Items]      
Due from Related Parties $ 44.7 $ 36.4  
Due to Related Parties 9.0 8.6  
Covetrus, Inc. [Member]      
Related Party Transaction [Line Items]      
Related Party Transaction, Expenses from Transactions with Related Party   13.0 $ 17.5
Revenue from Related Parties   75.3 81.3
Due to Related Parties   0.3  
Internet Brands Inc [Member]      
Related Party Transaction [Line Items]      
Due from Related Parties 9.2 7.7  
Internet Brands Inc [Member] | Royalty Agreements [Member]      
Related Party Transaction [Line Items]      
Related Party Transaction, Expenses from Transactions with Related Party 31.0 31.0 31.0
Internet Brands Inc [Member] | Scenario, Plan [Member] | Royalty Agreements [Member]      
Related Party Transaction [Line Items]      
Related Party Transaction, Amounts of Transaction 31.0    
Equity Method Investee [Member]      
Related Party Transaction [Line Items]      
Related Party Transaction, Purchases from Related Party 21.8 17.2 11.8
Revenue from Related Parties $ 66.6 $ 54.5 $ 88.3
v3.22.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance For Doubtful Accounts And Other [Member] - USD ($)
$ in Thousands
12 Months Ended
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 88,030 $ 60,002 $ 53,121
Charged to statement of income (7,748) 35,137 12,612
Charged (credited) to other accounts (4,624) 730 134
Deductions (8,490) (7,839) (5,865)
Balance at end of period $ 67,168 $ 88,030 $ 60,002