HENRY SCHEIN INC, 10-K filed on 2/21/2023
Annual Report
v3.22.4
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2022
Feb. 07, 2023
Jun. 25, 2022
Cover Page      
Entity Central Index Key 0001000228    
Amendment Flag false    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
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     $ 10,463,590,000
Entity Common Stock, Shares Outstanding   131,283,515  
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 31, 2022) 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    
v3.22.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Current assets:    
Cash and cash equivalents $ 117 $ 118
Accounts receivable, net of reserves of $65 and $67 1,442 1,452
Inventories, net 1,963 1,861
Prepaid expenses and other 466 413
Total current assets 3,988 3,844
Property and equipment, net 383 366
Operating lease right-of-use assets 284 325
Goodwill 2,893 2,854
Other intangibles, net 587 668
Investments and other 472 424
Total assets 8,607 8,481
Current liabilities:    
Accounts payable 1,004 1,054
Bank credit lines 103 51
Current maturities of long-term debt 6 11
Operating lease liabilities 73 76
Accrued expenses:    
Payroll and related 314 385
Taxes 132 137
Other 592 593
Total current liabilities 2,224 2,307
Long-term debt 1,040 811
Deferred income taxes 36 42
Operating lease liabilities 275 268
Other liabilities 361 377
Total liabilities 3,936 3,805
Redeemable noncontrolling interests 576 613
Commitments and contingencies
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, 131,792,817 outstanding on December 31, 2022 and 137,145,558 outstanding on December 25, 2021 1 1
Additional paid-in capital 0 0
Retained earnings 3,678 3,595
Accumulated other comprehensive loss (233) (171)
Total Henry Schein, Inc. stockholders' equity 3,446 3,425
Noncontrolling interests 649 638
Total stockholders' equity 4,095 4,063
Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 8,607 $ 8,481
v3.22.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Current assets:    
Accounts receivable, reserves (in dollars) $ 65 $ 67
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) 131,792,817 137,145,558
v3.22.4
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Income Statement [Abstract]      
Net sales $ 12,647 $ 12,401 $ 10,119
Cost of sales 8,816 8,727 7,303
Gross profit 3,831 3,674 2,816
Operating expenses:      
Selling, general and administrative 2,771 2,634 2,086
Depreciation and amortization 182 180 163
Restructuring and integration costs 131 8 32
Operating income 747 852 535
Other income (expense):      
Interest income 17 7 10
Interest expense (44) (28) (41)
Other, net 1 0 (4)
Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests 721 831 500
Income taxes (170) (198) (95)
Equity in earnings of affiliates 15 20 12
Gain on sale of equity investment 0 7 2
Net income from continuing operations 566 660 419
Income from discontinued operations, net of tax 0 0 1
Net Income 566 660 420
Less: Net income attributable to noncontrolling interests (28) (29) (16)
Net income attributable to Henry Schein, Inc. 538 631 404
Amounts attributable to Henry Schein Inc.:      
Continuing Operations 538 631 403
Discontinued operations 0 0 1
Net income attributable to Henry Schein, Inc. $ 538 $ 631 $ 404
Earnings per share from continuing operations attributable to Henry Schein, Inc.:      
Basic (in dollars per share) $ 3.95 $ 4.51 $ 2.83
Diluted (in dollars per share) 3.91 4.45 2.81
Earnings per share from discontinued operations attributable to Henry Schein, Inc.:      
Basic (in dollars per share) 0 0 0.01
Diluted (in dollars per share) 0 0 0.01
Earnings per share attributable to Henry Schein, Inc.      
Basic (in dollars per share) 3.95 4.51 2.83
Diluted (in dollars per share) $ 3.91 $ 4.45 $ 2.82
Weighted-average common shares outstanding:      
Basic (in shares) 136,064,221 140,090,889 142,504,193
Diluted (in shares) 137,755,670 141,772,781 143,403,682
v3.22.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Statement of Comprehensive Income [Abstract]      
Net Income $ 566 $ 660 $ 420
Other comprehensive income, net of tax:      
Foreign currency translation gain (loss) (88) (84) 63
Unrealized gain (loss) from foreign currency hedging activities 7 9 (7)
Pension adjustment gain 12 6 0
Other comprehensive income (loss), net of tax (69) (69) 56
Comprehensive income 497 591 476
Comprehensive income attributable to noncontrolling interests:      
Net income (28) (29) (16)
Foreign currency translation loss 7 6 3
Comprehensive income attributable to noncontrolling interests (21) (23) (13)
Comprehensive income attributable to Henry Schein, Inc. $ 476 $ 568 $ 463
v3.22.4
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
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. 28, 2019 $ 3,630   $ 1   $ 48   $ 3,116   $ (167)   $ 632  
Beginning Balance (in shares) at Dec. 28, 2019     143,353,459                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests) 406   $ 0   0   404   0   2  
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) 67   0   0   0   66   1  
Unrealized gain (loss) from foreign currency hedging activities, net of tax expense (benefit) (7)   0   0   0   (7)   0  
Pension adjustment gain (loss), net of tax impact 0                      
Dividends paid (1)   0   0   0   0   (1)  
Purchase of noncontrolling interests (3)   0   (2)   0   0   (1)  
Change in fair value of redeemable securities (33)   0   (33)   0   0   0  
Noncontrolling interests and adjustments related to business acquisitions 3   0   0   0   0   3  
Repurchase and retirement of common stock - Value (74)   $ 0   (11)   (63)   0   0  
Repurchase and retirement of common stock - Shares     (1,200,000)                  
Stock-based compensation expense - Value 9   $ 0   9   0   0   0  
Stock-based compensation expense - Shares     545,864                  
Shares withheld for payroll taxes - Value (15)   $ 0   (15)   0   0   0  
Shares withheld for payroll taxes - Shares     (236,752)                  
Separation of Animal Health business 2   $ 0   2   0   0   0  
Transfer of charges in excess of capital 0   0   2   (2)   0   0  
Ending Balance at Dec. 26, 2020 3,984   $ 1   0   3,455   (108)   636  
Ending Balance (in shares) at Dec. 26, 2020     142,462,571                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests) 637   $ 0   0   631   0   6  
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests) (78)   0   0   0   (78)   0  
Unrealized gain (loss) from foreign currency hedging activities, net of tax expense (benefit) 9   0   0   0   9   0  
Pension adjustment gain (loss), net of tax impact 6   0   0   0   6   0  
Dividends paid (11)   0   0   0   0   (11)  
Change in fair value of redeemable securities (160)   0   (160)   0   0   0  
Noncontrolling interests and adjustments related to business acquisitions 7   0   0   0   0   7  
Repurchase and retirement of common stock - Value (401)   $ 0   (53)   (348)   0   0  
Repurchase and retirement of common stock - Shares     (5,505,704)                  
Stock-based compensation expense - Value 78   $ 0   78   0   0   0  
Stock-based compensation expense - Shares     303,643                  
Shares withheld for payroll taxes - Value (8)   $ 0   (8)   0   0   0  
Shares withheld for payroll taxes - Shares     (114,952)                  
Transfer of charges in excess of capital 0   $ 0   (143)   143   0   0  
Ending Balance at Dec. 25, 2021 $ 4,063   $ 1   0   3,595   (171)   638  
Ending Balance (in shares) at Dec. 25, 2021 137,145,558   137,145,558                  
Net income (excluding amounts attributable to Redeemable noncontrolling interests)   $ 545   $ 0   $ 0   $ 538   $ 0   $ 7
Foreign currency translation gain (loss) (excluding amounts attributable to Redeemable noncontrolling interests)   (82)   0   0   0   (81)   (1)
Unrealized gain (loss) from foreign currency hedging activities, net of tax expense (benefit) $ 7 7   0   0   0   7   0
Pension adjustment gain (loss), net of tax impact 12 12   0   0   0   12   0
Dividends paid   (1)   0   0   0   0   (1)
Purchase of noncontrolling interests (7)   $ 0   0   0   0   (7)  
Change in fair value of redeemable securities   4   0   4   0   0   0
Noncontrolling interests and adjustments related to business acquisitions 13   0   0   0   0   13  
Repurchase and retirement of common stock - Value   (485)   $ 0   (65)   (420)   0   0
Repurchase and retirement of common stock - Shares       (6,111,676)                
Stock issued upon exercise of stock options, Value 2   $ 0   2   0   0   0  
Stock issued upon exercise of stock options, shares     35,792                  
Stock-based compensation expense - Value   54   $ 0   54   0   0   0
Stock-based compensation expense - Shares       1,102,108                
Shares withheld for payroll taxes - Value   (32)   $ 0   (32)   0   0   0
Shares withheld for payroll taxes - Shares       (376,034)                
Settlement of stock-based compensation awards 2   $ 0   $ 2   $ 0   $ 0   $ 0  
Settlement of stock-based compensation awards, shares     (2,931)                  
Transfer of charges in excess of capital   0   $ 0   35   (35)   0   0
Ending Balance at Dec. 31, 2022 $ 4,095 $ 4,095   $ 1   $ 0   $ 3,678   $ (233)   $ 649
Ending Balance (in shares) at Dec. 31, 2022 131,792,817     131,792,817                
v3.22.4
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Statement of Stockholders' Equity [Abstract]      
Unrealized gain (loss) from foreign currency hedging activities, tax expense (benefit) $ (3) $ (3) $ 3
Unrealized investment gain (loss), tax benefit (tax) 0 0 0
Pension adjustment gain (loss), tax benefit (tax) 4 2 0
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net income attributable to redeemable noncontrolling interests 21 23  
Foreign currency translation (gain) loss $ 6 $ 6 4
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
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     $ 0
v3.22.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Cash flows from operating activities:      
Net Income $ 566 $ 660 $ 420
Income from discontinued operations 0 0 1
Income from continuing operations 566 660 419
Adjustments to reconcile net income to net cash provided by operating activities: operating activities:      
Depreciation and amortization 212 210 186
Impairment charge on intangible assets 34 1 20
Non-cash restructuring charges 93 0 0
Gain on sale of equity investment 0 (10) (2)
Stock-based compensation expense 54 78 9
Provision for (benefits from) losses on trade and other accounts receivable 5 (8) 35
Benefit from deferred income taxes (73) (11) (53)
Equity in earnings of affiliates (15) (20) (12)
Distributions from equity affiliates 15 18 16
Changes in unrecognized tax benefits 12 (2) (25)
Other (20) (10) 32
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable (7) 4 (189)
Inventories (126) (295) (32)
Other current assets (52) 9 (6)
Accounts payable and accrued expenses (96) 86 196
Net cash provided by operating activities from continuing operations 602 710 594
Net cash provided by operating activities from discontinued operations 0 0 5
Net cash provided by operating activities 602 710 599
Cash flows from investing activities:      
Purchases of fixed assets (96) (79) (49)
Payments related to equity investments and business acquisitions, net of cash acquired (158) (571) (60)
Proceeds from sale of equity investment 0 10 14
Proceeds from (repayments to) loan to affiliate 11 (4) (1)
Other (33) (33) (19)
Net cash used in investing activities (276) (677) (115)
Cash flows from financing activities:      
Net change in bank borrowings 48 (18) 45
Proceeds from issuance of long-term debt 270 305 501
Principal payments for long-term debt (59) (122) (611)
Debt issuance costs 0 (3) (4)
Proceeds from issuance of stock upon exercise of stock options 2 0 0
Payments for repurchases of common stock (485) (401) (74)
Payments for taxes related to shares withheld for employee taxes (32) (8) (14)
Distributions to noncontrolling stockholders (21) (26) (8)
Acquisitions of noncontrolling interests in subsidiaries (38) (60) (19)
Proceeds from Henry Schein Animal Health Business 0 0 2
Net cash used in financing activities from continuing operations (315) (333) (182)
Net cash provided by (used in) financing activities from discontinued operations 0 0 (5)
Net cash used in financing activities (315) (333) (187)
Effect of exchange rate changes on cash and cash equivalents from continuing operations (12) (3) 18
Net change in cash and cash equivalents from continuing operations (1) (303) 315
Cash and cash equivalents, beginning of period 118 421 106
Cash and cash equivalents, end of period $ 117 $ 118 $ 421
v3.22.4
Basis of Presentation and Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
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.
Basis of Presentation
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.
 
These reclassifications, individually and in the aggregate, did
 
not have a material impact on our
consolidated financial condition, results of operations or cash flows.
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 31, 2022 and December 25, 2021, certain trade accounts receivable that
 
can only be used to settle
obligations of this VIE were $
327
 
million and $
138
 
million, respectively, and the liabilities of this VIE where the
creditors have recourse to us were $
255
 
million and $
105
 
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 the 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 for these non-PPE products increased in the
second half of 2020 and continued throughout the years ended December 25,
 
2021 and December 31, 2022,
resulting in growth over the prior years.
 
Demand for PPE products declined during the year ended
 
December 31,
2022.
 
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.
 
There is an ongoing risk that the COVID-19
pandemic may again have a material adverse effect on our business, results of operations
 
and cash flows 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 year ended December 31, 2022 consisted of
53
 
weeks, and the years ended, December 25, 2021 and December
26, 2020 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 31, 2022 and December 25, 2021, we had
accrued approximately $
8
 
million and $
8
 
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.
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.
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 $
103
 
million, $
89
 
million and $
72
 
million for the years ended December 31,
2022, December 25, 2021 and December 26, 2020.
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
 
million, $
97
 
million and $
79
 
million for the years ended December 31, 2022, December 25, 2021
 
and
December 26, 2020.
Advertising and Promotional Costs
We generally expense advertising and promotional costs as incurred.
 
Total advertising and promotional expenses
were $
47
 
million, $
48
 
million and $
32
 
million for the years ended December 31, 2022, December 25, 2021
 
and
December 26, 2020.
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, at each reporting date, we reassess whether achievement
 
of the performance condition
is probable and accrue compensation expense when achievement of
 
the performance condition is probable.
 
Our
stock-based compensation expense is reflected in selling, general and administrative
 
expenses.
Employment Benefit Plans and other Postretirement Benefit Plans
Certain of our employees in our international markets participate
 
in various noncontributory defined benefit plans.
 
We recognize the funded status, measured as the difference between the fair value of plan assets and the benefit
obligation, of each applicable plan, within accumulated other comprehensive
 
income in the consolidated balance
sheets, whereby each unfunded plan is recognized as a liability and
 
each funded plan is recognized as either an
asset or liability based on its funded status.
 
We measure our plan assets and liabilities at the end of our fiscal year.
Net periodic pension costs and valuations are dependent on assumptions
 
used by third-party actuaries in calculating
those amounts.
 
These assumptions include discount rates, expected return on plan
 
assets, rate of future
compensation levels, retirement rates, mortality rates, and other factors.
 
We record the service cost component of
net pension cost in selling, general and administrative expenses within
 
our consolidated statements of income.
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 $
54
 
million and $
2
 
million, primarily related to
payments for inventory, were classified as accounts payable as of December 31, 2022 and December 25, 2021.
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.
Our allowance for doubtful accounts was $
65
 
million, $
67
 
million and $
88
 
million as of December 31, 2022,
December 25, 2021 and December 26, 2020, respectively.
 
Additions to the allowance for the years ended
December 31, 2022, December 25, 2021 and December 26, 2020 were $
8
 
million, $
0
 
million and $
36
 
million.
 
Deductions to the allowance for the years ended December 31, 2022, December
 
25, 2021 and December 26, 2020
were $
10
 
million, $
21
 
million and $
8
 
million.
 
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 31, 2022 and December 25, 2021 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 25, 2021, the current portion of contract liabilities of $
89
 
million was reported in accrued expenses:
Other, and $
10
 
million related to non-current contract liabilities was reported
 
in other liabilities.
 
During the year
ended December 31, 2022,
 
we recognized substantially all of the current contract liability amounts
 
that were
previously deferred at December 25, 2021.
 
At December 31, 2022, the current and non-current portion of contract
liabilities were $
86
 
million and $
8
 
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 31, 2022, December
25, 2021 and December 26, 2020, such short-term lease expense was
 
$
7
 
million, $
4
 
million, and $
2
 
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 31, 2022 and December 25, 2021, 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 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 year ended December 31, 2022, we recorded a $
20
 
million impairment of goodwill relating to the disposal
of an unprofitable business whose estimated fair value was lower than
 
its carrying value.
 
The disposal of this
business is part of our restructuring initiative as more fully discussed
 
in
For the year ended December 25, 2021, the results of our goodwill
 
impairment analysis did
no
t
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 31, 2022, December 25, 2021
 
and December 26, 2020, we recorded total
impairment charges on intangible assets of $
34
 
million, $
1
 
million and $
20
 
million, respectively, as more fully
discussed in
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
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 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 and pension adjustment gain.
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 other, net, within our consolidated statements of income.
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 and is
 
recorded
in selling, general, and administrative expenses within our consolidated
 
statements of income.
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 26, 2021 we adopted Accounting Standards Update
 
(“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 ASU No. 2014 - 09, “Revenue from Contracts with Customers”
 
(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.
 
Our adoption of ASU 2021 - 08 did not have a material impact on
our consolidated financial statements.
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 September 2022, the FASB issued ASU No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-
50): Disclosure of Supplier Finance Program Obligations” which will
 
increase transparency of supplier finance
programs by requiring entities that use such programs in connection with
 
the purchase of goods and services to
disclose certain qualitative and quantitative information about such
 
programs.
 
ASU 2022-04 is effective for fiscal
years beginning after December 15, 2022, including interim periods within
 
those fiscal years, except for amended
rollforward information, which is effective for fiscal years beginning after December
 
15, 2023.
 
We do not expect
that the requirements of this guidance will have a material impact on our consolidated
 
financial statements.
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 became effective upon issuance, on January 7, 2021, and can
 
be applied through December 31,
2022.
 
In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of
the Sunset Date of Topic 848,” which extends the period of application of temporary optional expedients from
December 21, 2022 to December 31, 2024.
 
We do not expect that the requirements of this guidance will have a
material impact on our consolidated financial statements.
v3.22.4
Net Sales from Contracts with Customers
12 Months Ended
Dec. 31, 2022
Net Sales from Contracts with Customers [Abstract]  
Net Sales from Contracts with Customers
Note 2 – Net Sales from Contracts with Customers
Net sales is recognized in accordance with policies disclosed in
Disaggregation of Net sales
The following table disaggregates our Net sales by reportable segment and
 
geographic area:
Year
 
Ended
 
December 31, 2022
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
4,628
$
2,845
$
7,473
Medical
 
4,375
76
4,451
Total health care distribution
9,003
2,921
11,924
Technology
 
and value-added services
633
90
723
Net sales
$
9,636
$
3,011
$
12,647
Year
 
Ended
December 25, 2021
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
4,506
$
3,038
$
7,544
Medical
 
4,107
103
4,210
Total health care distribution
8,613
3,141
11,754
Technology
 
and value-added services
560
87
647
Net sales
$
9,173
$
3,228
$
12,401
Year
 
Ended
December 26, 2020
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
3,472
$
2,441
$
5,913
Medical
 
3,515
102
3,617
Total health care distribution
6,987
2,543
9,530
Technology
 
and value-added services
447
67
514
Total excluding
 
Corporate TSA net sales
 
(1)
7,434
2,610
10,044
Corporate TSA net sales
 
(1)
-
75
75
Net sales
$
7,434
$
2,685
$
10,119
(1)
Corporate TSA net sales 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.
v3.22.4
Segment and Geographic Data
12 Months Ended
Dec. 31, 2022
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, 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.
 
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 products, 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 31,
December 25,
December 26,
2022
2021
2020
Net Sales:
Health care distribution
(1)
Dental
 
$
7,473
$
7,544
$
5,913
Medical
 
4,451
4,210
3,617
Total health care distribution
11,924
11,754
9,530
Technology
 
and value-added services
(2)
723
647
514
Total excluding
 
Corporate TSA net sales
12,647
12,401
10,044
Corporate TSA net sales
(3)
-
-
75
Total
 
$
12,647
$
12,401
$
10,119
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.
(3)
Corporate TSA net sales 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 31,
December 25,
December 26,
2022
2021
2020
Operating Income:
Health care distribution
 
$
619
$
727
$
436
Technology
 
and value-added services
 
128
125
99
Total
 
$
747
$
852
$
535
Income from continuing operations before
 
taxes
 
 
and equity in earnings of affiliates:
Health care distribution
 
$
592
$
706
$
400
Technology
 
and value-added services
 
129
125
100
Total
 
$
721
$
831
$
500
Depreciation and Amortization:
Health care distribution
 
$
160
$
157
$
143
Technology
 
and value-added services
 
52
53
43
Total
 
$
212
$
210
$
186
Interest Income:
Health care distribution
 
$
16
$
7
$
10
Technology
 
and value-added services
 
1
-
-
Total
 
$
17
$
7
$
10
Interest Expense:
Health care distribution
 
$
44
$
28
$
41
Total
 
$
44
$
28
$
41
Income Tax
 
Expense:
Health care distribution
 
$
141
$
168
$
71
Technology
 
and value-added services
 
29
30
24
Total
 
$
170
$
198
$
95
Purchases of Fixed Assets:
Health care distribution
 
$
86
$
74
$
44
Technology
 
and value-added services
 
10
5
5
Total
 
$
96
$
79
$
49
As of
December 31,
December 25,
December 26,
2022
2021
2020
Total
 
Assets:
Health care distribution
 
$
7,287
$
7,157
$
6,503
Technology
 
and value-added services
 
1,320
1,324
1,270
Total
 
$
8,607
$
8,481
$
7,773
The following table presents information about our operations by geographic
 
area as of and for the three years
ended December 31, 2022.
 
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.
2022
2021
2020
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
United States
 
$
9,190
$
2,891
$
8,722
$
2,981
$
7,090
$
2,363
Other
 
3,457
1,256
3,679
1,232
3,029
1,252
Consolidated total
 
$
12,647
$
4,147
$
12,401
$
4,213
$
10,119
$
3,615
v3.22.4
Business Acquisitions and Divestitures
12 Months Ended
Dec. 31, 2022
Business Acquisitions and Divestitures [Abstract]  
Business Acquisitions and Divestitures
Note 4 – Business Acquisitions and Divestiture
 
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 representing 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.
 
Some 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
have accrued liabilities for the estimated fair value of additional purchase
 
price 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.
 
Any adjustments to these accrual amounts are recorded
 
in selling, general and
administrative expenses within our consolidated statements of income.
 
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.
2022 Acquisitions
We completed several acquisitions during the year ended December 31, 2022, which were immaterial to our
consolidated financial statements. Our acquired ownership interest ranged between
55
% to
100
%.
 
Acquisitions
within our health care distribution segment included companies that
 
specialize in the distribution of dental products.
Within our technology and value-added services segment, we acquired a company that educates and
 
connects
dental office managers, practice administrators and dental business leaders across
 
North America.
 
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 31, 2022.
 
Approximately half of the acquired
goodwill is deductible for tax purposes.
2022
Acquisition consideration:
Cash
$
158
Deferred consideration
2
Fair value of previously held equity method investment
16
Redeemable noncontrolling interests
17
Total consideration
$
193
Identifiable assets acquired and liabilities assumed:
Current assets
$
41
Intangible assets
96
Other noncurrent assets
13
Current liabilities
(29)
Deferred income taxes
(6)
Other noncurrent liabilities
(8)
Total identifiable
 
net assets
107
Goodwill
86
Total net assets acquired
$
193
The following table summarizes the identifiable intangible assets acquired during
 
the year ended December 31,
2022 and their estimated useful lives as of the date of the acquisition:
Estimated
Useful Lives
2022
(in years)
Customer relationships and lists
81
8
-
12
Trademark / Tradename
9
5
Non-compete agreements
3
2
-
5
Other
3
10
$
96
The accounting for certain of our acquisitions during the year ended December
 
31, 2022 had not been completed in
several areas, including but not limited to pending assessments of accounts
 
receivable, inventory, intangible assets,
right-of-use lease assets,
 
accrued 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 31, 2022 to our consolidated financial statements was immaterial.
2021 Acquisitions
We completed several acquisitions during the year ended December 25, 2021, which were immaterial to our
financial statements.
 
Our acquired ownership interests ranged from between 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.
2021
Acquisition consideration:
Cash
$
579
Deferred consideration
11
Estimated fair value of contingent consideration receivable
(5)
Fair value of previously held equity method investment
8
Redeemable noncontrolling interests
181
Total consideration
$
774
Identifiable assets acquired and liabilities assumed:
Current assets
$
195
Intangible assets
317
Other noncurrent assets
51
Current liabilities
(93)
Deferred income taxes
(26)
Other noncurrent liabilities
(46)
Total identifiable
 
net assets
398
Goodwill
376
Total net assets acquired
$
774
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
2021
(in years)
Customer relationships and lists
$
220
5
-
12
Trademark / Tradename
58
5
-
12
Product development
19
5
-
10
Non-compete agreements
5
3
-
5
Other
15
18
$
317
2020 Acquisitions
We completed several acquisitions during the year ended December 26, 2020, which were immaterial to our
financial statements.
 
Our acquired ownership interests ranged from between approximately
51
% to
100
%.
 
Acquisitions within our health care distribution segment included companies
 
that manufacture endodontic files and
companies that distribute dental supplies.
 
Within our technology and value-added services segment, we acquired
companies that focus on practice management software and provide software
 
as a solution for dental practices.
 
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 26, 2020:
2020
Acquisition consideration:
Cash
$
52
Deferred consideration
6
Fair value of previously held equity method investment
9
Redeemable noncontrolling interests
26
Total consideration
$
93
Identifiable assets acquired and liabilities assumed:
Current assets
$
36
Intangible assets
38
Other noncurrent assets
22
Current liabilities
(21)
Deferred income taxes
(4)
Other noncurrent liabilities
(1)
Total identifiable
 
net assets
70
Goodwill
23
Total net assets acquired
$
93
The following table summarizes the identifiable intangible assets acquired during
 
the year ended December 26,
2020 and their estimated useful lives as of the date of the acquisition:
Estimated
Useful Lives
2020
(in years)
Customer relationships and lists
$
23
10
-
12
Product development
9
7
-
10
Trademark / Tradename
4
5
Non-compete agreements
2
5
$
38
For the years ended December 31, 2022, December 25, 2021 and December 26,
 
2020, there were no material
adjustments recorded in our consolidated balance sheets relating to
 
accounting for acquisitions incomplete in prior
periods.
 
At December 25, 2021 we recorded an estimated contingent
 
consideration receivable of $
5
 
million, which
was subsequently increased by additional $
5
 
million during 2022 based on delays in timing of government approval
of a certain product.
 
During the years ended December 31, 2022, December 25, 2021
 
and December 26, 2020 we incurred $
9
 
million, $
7
million and $
6
 
million in acquisition costs reported within income from continuing
 
operations.
 
Divestiture
 
In the third quarter of 2021 we received contingent proceeds of $
10
 
million from the 2019 sale of Hu-Friedy,
resulting in the recognition of an additional after-tax gain of $
7
 
million.
 
During the fourth quarter of 2020 we
received contingent proceeds of $
2
 
million from the 2019 sale of Hu-Friedy, resulting in the recognition of an
additional after-tax gain of $
2
 
million.
 
We do expect to receive any additional proceeds from the sale of Hu-Friedy.
v3.22.4
Property and Equipment, Net
12 Months Ended
Dec. 31, 2022
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 31,
December 25,
2022
2021
Land
 
$
20
$
21
Buildings and permanent improvements
 
135
140
Leasehold improvements
 
94
98
Machinery and warehouse equipment
 
169
153
Furniture, fixtures and other
 
127
119
Computer equipment and software
 
411
385
956
916
Less accumulated depreciation
 
(573)
(550)
Property and equipment, net
 
$
383
$
366
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 31, 2022, December 25, 2021
and December 26, 2020 was $
68
 
million, $
71
 
million
 
and $
64
 
million, respectively.
v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
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
19
 
years, some of
which may include options to extend the leases for up to
15
 
years.
 
The components of lease expense were as
follows:
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Operating lease cost:
 
(1) (2)
$
150
$
103
$
87
Finance
 
lease cost:
Amortization of right-of-use assets
 
3
3
2
Total finance
 
lease cost
$
3
$
3
$
2
(1)
Includes variable lease expenses.
(2)
Operating lease cost for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, include accelerated
amortization of right-of-use assets of $
42
 
million, $
0
 
million and $
0
 
million, respectively, related to facility leases recorded in
“Restructuring and integration costs” within our consolidated statements of income.
Further, for the years ended December 31, 2022,
 
December 25, 2021 and December 26, 2020, we recognized
impairment of right-of-use assets of $
3
 
million, $
0
 
million, and $
4
 
million respectively, related to facility leases
recorded in “Restructuring and integration costs” within our consolidated
 
statement of income.
Supplemental balance sheet information related to leases is as follows:
Years
 
Ended
December 31,
December 25,
2022
2021
Operating Leases:
Operating lease right-of-use assets
$
284
$
325
Current operating lease liabilities
73
76
Non-current operating lease liabilities
275
268
Total operating lease liabilities
$
348
$
344
Finance Leases:
Property and equipment, at cost
$
16
$
13
Accumulated depreciation
(6)
(5)
Property and equipment, net of accumulated depreciation
$
10
$
8
Current maturities of long-term debt
$
4
$
3
Long-term debt
6
4
Total finance
 
lease liabilities
$
10
$
7
Weighted Average
 
Remaining Lease Term in
 
Years:
Operating leases
6.7
7.3
Finance leases
3.1
3.6
Weighted
 
Average Discount
 
Rate:
Operating leases
2.8
%
2.4
%
Finance leases
3.3
%
1.7
%
Supplemental cash flow information related to leases is as follows:
Years
 
Ended
December 31,
December 25,
2022
2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$
87
85
Financing cash flows for finance leases
3
3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
 
$
88
121
Finance leases
6
4
Maturities of lease liabilities are as follows:
December 31, 2022
Operating
Finance
Leases
Leases
2023
$
82
$
5
2024
66
3
2025
56
1
2026
46
1
2027
33
-
Thereafter
98
1
Total future
 
lease payments
381
11
Less imputed interest
(33)
(1)
Total
$
348
$
10
As of December 31, 2022, we have additional operating leases with
 
total lease payments of $
8
 
million for buildings
and vehicles that have not yet commenced.
 
These operating leases will commence subsequent to December 31,
2022, with lease terms of
two years
 
to
five years
.
Certain of our facilities related to our acquisitions are leased from
 
employees and minority shareholders.
 
These
leases are classified as operating leases and have a remaining lease term
 
ranging from
4 months
 
to
9 years
.
 
As of
December 31, 2022, current and non-current liabilities associated with
 
related party operating leases were $
4
million and $
14
 
million, respectively.
 
Related party leases represented
5.0
% and
5.3
% of the total current and non-
current operating lease liabilities, respectively.
 
The present value of lease payments under these related party
 
leases
is not material to our consolidated financial statements.
v3.22.4
Goodwill and Other Intangibles, Net
12 Months Ended
Dec. 31, 2022
Goodwill and Other Intangibles, Net [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
 
31, 2022 and December 25, 2021
were as follows:
Health Care
Distribution
Technology
 
and
Value-Added
Services
Total
Balance as of December 26, 2020
 
$
1,501
$
1,003
$
2,504
Adjustments to goodwill:
Acquisitions
 
359
24
383
Foreign currency translation
 
(29)
(4)
(33)
Balance as of December 25, 2021
 
1,831
1,023
2,854
Adjustments to goodwill:
Acquisitions
 
86
(1)
85
Impairment
(20)
-
(20)
Foreign currency translation
 
(22)
(4)
(26)
Balance as of December 31, 2022
 
$
1,875
$
1,018
$
2,893
For the year
 
ended December 31,
 
2022, we recorded
 
a $
20
 
million impairment of
 
goodwill relating to
 
the disposal
of
 
an
 
unprofitable
 
business
 
whose
 
estimated
 
fair
 
value
 
was
 
lower
 
than
 
its
 
carrying
 
value.
 
The
 
disposal
 
of
 
this
business
 
is
 
part
 
of
 
our
 
restructuring
 
initiative
 
as
 
more
 
fully
 
discussed
 
in
Other intangible assets consisted of the following:
December 31, 2022
December 25, 2021
Accumulated
Accumulated
Cost
Amortization
Net
Cost
Amortization
Net
Customer lists and relationships
$
826
$
(387)
$
439
$
853
$
(353)
$
500
Trademarks / trade names - definite lived
 
125
(51)
74
129
(44)
85
Product Development
90
(56)
34
114
(70)
44
Non-compete agreements
 
25
(6)
19
25
(6)
19
Other
 
31
(10)
21
28
(8)
20
 
Total
 
$
1,097
$
(510)
$
587
$
1,149
$
(481)
$
668
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 31, 2022.
 
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 31, 2022.
 
Product development is a definite-lived intangible asset that is amortized
 
on a
straight-line basis over a weighted-average period of approximately
8.6
 
years as of December 31, 2022.
 
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
5.3
 
years as of December 31, 2022.
Amortization expense, excluding impairment charges, related to definite-lived intangible assets
 
for the years ended
December 31, 2022, December 25, 2021 and December 26, 2020 was $
126
 
million, $
124
 
million and $
106
 
million.
 
During the year ended December 31, 2022, we recorded $
49
 
million of impairment charges related to businesses
within our health care distribution segment, represented by an intangible asset
 
impairment of $
15
 
million related to
the disposal of an unprofitable business and a $
34
 
million impairment of customer lists and relationships
attributable to customer attrition rates being higher than expected in certain other
 
businesses.
 
Our impairment loss
was calculated as the difference between the carrying value and the estimated
 
fair value of the intangible assets,
using a discounted estimate of future cash flows.
During the year ended December 25, 2021, we recorded a $
1
 
million impairment charge related ratably to a
business within our health care distribution segment and a business within
 
our technology and value-added services
segment.
During the year ended December 26, 2020, we recorded a $
20
 
million impairment charge related to businesses
within our technology and value-added services segment due to customer
 
attrition rates being higher than expected.
The above intangible asset impairment charges were recorded within selling, general
 
and administrative expenses;
and restructuring and integration charges in our consolidated statement of income.
The annual amortization expense expected to be recorded for existing
 
intangibles assets for the years 2023 through
2027 is $
120
 
million, $
96
 
million, $
84
 
million, $
68
 
million and $
55
 
million.
v3.22.4
Investments and Other
12 Months Ended
Dec. 31, 2022
Investments And Other [Abstract]  
Investments and Other
Note 8 – Investments and Other
 
Investments and other consisted of the following:
December 31,
December 25,
2022
2021
Investment in unconsolidated affiliates
 
$
161
$
168
Non-current deferred foreign, state and local income taxes
 
88
35
Notes receivable
(1)
28
36
Capitalized costs for software to be sold, leased or marketed to external
 
users
79
65
Security deposits
 
3
2
Acquisition-related indemnification
 
59
66
Non-current pension assets
8
-
Other long-term assets
46
52
Total
 
$
472
$
424
(1)
Long-term notes receivable carry interest rates ranging from
3.0
% to
7.5
% and are due in varying installments through
May 11, 2028
.
Amortization expense, primarily related to capitalized costs for software to
 
be sold, leased or marketed to external
users, for the years ended December 31, 2022, December 25, 2021 and
 
December 26, 2020 was $
18
 
million, $
15
million and $
16
 
million, respectively.
v3.22.4
Fair Value Measurements
12 Months Ended
Dec. 31, 2022
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.
 
Certain of our notes receivable contain variable interest rates.
 
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, current maturities
 
of long-term debt and long-term debt) is
classified as Level 3 within the fair value hierarchy, and as of December 31, 2022 and December 25, 2021 was
estimated at $
1,149
 
million and $
873
 
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.
Total
 
Return Swaps
The fair value for the Total Return Swap is measured by valuing the underlying ETFs of the swap using market-on-
close pricing by industry providers as of the valuation date 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.
Assets measured on a non-recurring basis at fair value include Goodwill
 
and Other intangibles, net, and are
classified as Level 3 within the fair value hierarchy.
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 31, 2022 and
 
December 25, 2021:
December 31, 2022
Level 1
Level 2
Level 3
Total
Assets:
Derivative contracts designated as hedges
$
-
$
23
$
-
$
23
Derivative contracts undesignated
-
4
-
4
Total assets
 
$
-
$
27
$
-
$
27
Liabilities:
Derivative contracts designated as hedges
$
-
$
1
$
-
$
1
Derivative contracts undesignated
-
3
-
3
Total return
 
swaps
-
3
-
3
Total liabilities
 
$
-
$
7
$
-
$
7
Redeemable noncontrolling interests
 
$
-
$
-
$
576
$
576
December 25, 2021
Level 1
Level 2
Level 3
Total
Assets:
Derivative contracts designated as hedges
$
-
$
8
$
-
$
8
Derivative contracts undesignated
-
1
-
1
Total return
 
swap
-
1
-
1
Total assets
 
$
-
$
10
$
-
$
10
Liabilities:
Derivative contracts designated as hedges
$
-
$
1
$
-
$
1
Derivative contracts undesignated
-
2
-
2
Total liabilities
 
$
-
$
3
$
-
$
3
Redeemable noncontrolling interests
 
$
-
$
-
$
613
$
613
v3.22.4
Concentrations of Risk
12 Months Ended
Dec. 31, 2022
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.
 
No single customer
accounted for more than
2
% of our net sales in 2022 or 2021.
 
With respect to our sources of supply, our top 10
health care distribution suppliers and our single largest supplier accounted for approximately
28
% and
4
%,
respectively, of our aggregate purchases in each of the years ended December 31, 2022 and December 25, 2021.
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.
v3.22.4
Derivatives and Hedging Activities
12 Months Ended
Dec. 31, 2022
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 31, 2022 and December 25, 2021, we
 
recorded losses of $
9
 
million and $
11
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
 
million.
 
At December 31, 2022, the notional value of the
investments in these plans was $
78
 
million.
 
At December 31, 2022, the financing blended rate for
 
this swap was
based on the Secured Overnight Financing Rate (“SOFR”) of
4.03
% plus
0.55
%, for a combined rate of
4.58
%.
 
For
the years ended December 31, 2022 and December 25, 2021, we have
 
recorded a gain/(loss), within selling, general
and administrative in our consolidated statement of income, of approximately
 
($
17
) million and $
12
 
million,
respectively, net of transaction costs, related to this undesignated swap.
 
During the years ended December 31, 2022
and December 25, 2021, 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 31, 2023,
 
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.
v3.22.4
Debt
12 Months Ended
Dec. 31, 2022
Debt [Abstract]  
Debt
Note 12 – Debt
Bank Credit Lines
Bank credit lines consisted of the following:
December 31,
December 25,
2022
2021
Revolving credit agreement
$
-
$
-
Other short-term bank credit lines
103
51
Total
$
103
$
51
Revolving Credit Agreement
On
August 20, 2021
, we entered into a $
1.0
 
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.
 
Most LIBOR rates have been discontinued 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 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 31, 2022 and December 25, 2021, we had
no
 
borrowings under this
revolving credit facility.
 
As of December 31, 2022 and December 25, 2021, there
 
were $
9
 
million and $
9
 
million
of letters of credit, respectively, provided to third parties under the credit facility.
Other Short-Term Bank Credit
 
Lines
As of December 31, 2022 and December 25, 2021, we had various other short-term
 
bank credit lines available, with
a maximum borrowing capacity of $
402
 
million as of December 31, 2022, of which $
103
 
million and $
51
 
million,
respectively, were outstanding.
 
At December 31, 2022 and December 25, 2021, borrowings under
 
all of these
credit lines had a weighted average interest rate of
10.11
% and
10.44
%, respectively.
Long-term debt
 
Long-term debt consisted of the following:
December 31,
December 25,
2022
2021
Private placement facilities
 
$
699
$
706
U.S. trade accounts receivable securitization
330
105
Various
 
collateralized and uncollateralized loans payable with interest,
in varying installments through 2023 at interest rates
ranging from
0.00
% to
3.50
% at December 31, 2022 and
ranging from
2.62
% to
4.27
% at December 25, 2021
7
4
Finance lease obligations
10
7
Total
 
1,046
822
Less current maturities
(6)
(11)
Total long-term debt
 
$
1,040
$
811
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
3.25
x and remove the
1.00
% interest rate increase triggered if the net leverage
ratio were to exceed
3.0
x.
The components of our private placement facility borrowings, which
 
have a weighted average interest rate of
2.99
%, as of December 31, 2022 are presented in the following table:
Amount of
Date of
 
Borrowing
Borrowing
 
Borrowing
Outstanding
Rate
Due Date
January 20, 2012
$
50
3.45
%
January 20, 2024
December 24, 2012
50
3.00
December 24, 2024
June 16, 2017
100
3.42
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
Less: Deferred debt issuance costs
(1)
Total
$
699
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
.
 
On December 15, 2022, we
extended the expiration date of this facility agreement to
December 15, 2025
 
(the previous maturity date was
October 18, 2024
) and maintained the purchase limit under the facility as
 
$
450
 
million with
two
 
banks as agents.
As of December 31, 2022 and December 25, 2021, the borrowings outstanding
 
under this securitization facility
were $
330
 
million and $
105
 
million, respectively.
 
At December 31, 2022, the interest rate on borrowings under
this facility was based on the asset-backed commercial paper rate of
4.58
% plus
0.75
%, for a combined rate of
5.33
%.
 
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
%.
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.
As of December 31, 2022,
 
the aggregate amounts of long-term debt, including finance lease obligations
 
and net of
deferred debt issuance costs of $
1
 
million, maturing in each of the next five years and thereafter
 
are as follows:
2023
 
$
6
2024
 
109
2025
 
331
2026
 
-
2027
 
100
Thereafter
 
500
Total
 
$
1,046
v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Taxes [Abstract]  
Income Taxes
Note 13 – Income Taxes
 
Income before taxes and equity in earnings of affiliates was as follows:
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Domestic
 
$
506
$
593
$
431
Foreign
 
215
238
69
Total
 
$
721
$
831
$
500
The provisions for income taxes were as follows:
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Current income tax expense:
U.S. Federal
 
$
150
$
129
$
83
State and local
 
49
37
24
Foreign
 
44
43
41
Total current
 
243
209
148
Deferred income tax expense (benefit):
U.S. Federal
 
(48)
(12)
(18)
State and local
 
(13)
(3)
(5)
Foreign
 
(12)
4
(30)
Total deferred
 
(73)
(11)
(53)
Total provision
 
$
170
$
198
$
95
The tax effects of temporary differences that give rise to our deferred income tax asset (liability) were
 
as follows:
Years
 
Ended
December 31,
December 25,
2022
2021
Deferred income tax asset:
Net operating losses and other carryforwards
$
64
$
55
Inventory, premium
 
coupon redemptions and accounts receivable
valuation allowances
 
57
46
Stock-based compensation
 
11
13
Uniform capitalization adjustment to inventories
11
10
Operating lease liability
77
79
Other asset
 
48
41
Total deferred income
 
tax asset
 
268
244
Valuation
 
allowance for deferred tax assets
(1)
(36)
(36)
Net deferred income tax asset
232
208
Deferred income tax liability
Intangibles amortization
(112)
(134)
Operating lease right-of-use asset
(61)
(74)
Property and equipment
(7)
(7)
Total deferred tax
 
liability
(180)
(215)
Net deferred income tax asset (liability)
$
52
$
(7)
(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 reversals
of deferred tax liabilities and projected future taxable income.
 
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 the value assigned to our deferred tax assets, we
 
will be required to adjust our
valuation allowance accordingly.
As of December 31, 2022, we had federal, state and foreign net operating
 
loss carryforwards of approximately
$
30
 
million, $
31
 
million and $
220
 
million, respectively.
 
The federal, state and foreign net operating loss
carryforwards will begin to expire in various years from 2023 through
 
2041.
 
The amounts of federal, state and
foreign net operating losses that can be carried forward indefinitely are $
21
 
million, $
4
 
million and $
218
 
million,
respectively.
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Income tax provision at federal statutory rate
 
$
151
$
175
$
105
State income tax provision, net of federal income tax effect
 
20
21
13
Foreign income tax provision
4
6
-
Pass-through noncontrolling interest
 
(4)
(4)
(3)
Valuation
 
allowance
 
(2)
(6)
1
Unrecognized tax benefits and audit settlements
11
7
(18)
Interest expense related to loans
 
(12)
(11)
(11)
Tax benefit related
 
to legal entity reorganization outside the U.S.
-
-
(6)
Other
 
2
10
14
Total income
 
tax provision
 
$
170
$
198
$
95
For the year ended December 31, 2022, our effective tax rate was
23.5
%, compared to
23.8
% for the prior year
period.
 
In 2022, the difference between our effective tax rate and the federal statutory tax rate primarily
 
relates to
state and foreign income taxes and interest expense.
 
In 2021, the difference between our effective tax rate and the
federal statutory tax rate was primarily due to state and foreign income
 
taxes and interest expense.
 
In 2020, our
effective tax rate was
19.1
%.
 
The difference between our effective tax rate and the federal statutory tax rate was
primarily due to 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.
 
On August 16, 2022, the Inflation Reduction Act (H.R. 5376) (“IRA”) was
 
signed into law in the United States.
 
Among other things, the IRA imposes a 15% corporate alternative minimum
 
tax for tax years beginning after
December 31, 2022 and levies a 1% excise tax on net stock repurchases after
 
December 31, 2022.
 
We are still in
the process of analyzing the provisions of the IRA.
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 “Tax
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 $
19
 
million and
$
14
 
million were included in “accrued taxes” for 2022 and 2021, respectively, and $
23
 
million and $
42
 
million
were included in “other liabilities” for 2022 and 2021, 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 has a 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 of certain
tax matters.
The total amount of unrecognized tax benefits, which are included in “other
 
liabilities” within our consolidated
balance sheets, as of December 31, 2022 and December 25, 2021 was approximately
 
$
94
 
million and $
84
 
million,
respectively, of which $
80
 
million and $
69
 
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 2018.
 
The tax years subject to examination by the
IRS include years 2019 and forward.
 
In addition, limited positions reported in the 2017 tax year are subject
 
to IRS
examination.
 
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.
 
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
 
million, $
0
 
million and $(
3
) million in 2022, 2021
and 2020, respectively.
 
The total amount of accrued interest is included in “other liabilities”,
 
and was
approximately $
12
 
million as of December 31, 2022 and $
12
 
million as of December 25, 2021.
 
The amount of
penalties accrued for during the periods presented were not material
 
to our consolidated financial statements.
The following table provides a reconciliation of unrecognized tax benefits:
December 31,
December 25,
December 26,
2022
2021
2020
Balance, beginning of period
 
$
71
$
70
$
91
Additions based on current year tax positions
 
14
3
5
Additions based on prior year tax positions
 
8
11
8
Reductions based on prior year tax positions
 
-
(1)
(1)
Reductions resulting from settlements with taxing authorities
 
(1)
(9)
(19)
Reductions resulting from lapse in statutes of limitations
 
(10)
(3)
(14)
Balance, end of period
 
$
82
$
71
$
70
v3.22.4
Plans of Restructuring and Integration Costs
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Plans of Restructuring
Note 14 – Plans of Restructuring
On August 1, 2022, we committed to a restructuring plan focused on
 
funding the priorities of the strategic plan and
streamlining operations and other initiatives to increase efficiency.
 
We expect this initiative to extend through
2023.
 
We are currently unable in good faith to make a determination of an estimate of the amount or range of
amounts expected to be incurred in connection with these activities, both with
 
respect to each major type of cost
associated therewith and with respect to the total cost, or an estimate of the
 
amount or range of amounts that will
result in future cash expenditures.
During the year ended December 31, 2022, we recorded restructuring charges of $
128
 
million primarily related to
severance and employee-related costs, accelerated amortization of right-of-use
 
lease assets, impairment of other
long-lived assets and lease exit costs.
 
During the three months ended December 31, 2022, in connection with our
 
restructuring plan, we vacated
one
 
of
the buildings at our corporate headquarters in Melville NY, which resulted in an accelerated amortization of right-
of-use lease asset of $
34
 
million.
 
We also initiated the disposal of a non-profitable US business and recorded
related costs of $
49
 
million which primarily consisted of impairment of intangible assets
 
and goodwill, inventory
impairment, and severance and employee-related costs.
 
These expenses are included in the $
128
 
million of
restructuring charges discussed above.
 
The disposal is expected to be completed in the first quarter of 2023.
 
On August 26, 2022, we acquired Midway Dental Supply.
 
In connection with this acquisition, during the year
ended December 31, 2022, we recorded integration costs of $
3
 
million related to one-time employee and other
costs, as well as restructuring charges of $
9
 
million, which are included in the $
128
 
million of restructuring charges
discussed above.
On November 20, 2019, we committed to a contemplated restructuring
 
initiative intended to mitigate stranded costs
associated with the spin-off of our animal health business and to rationalize operations
 
and provide expense
efficiencies.
 
These activities were originally expected to be completed by
 
the end of 2020 but we extended them to
the end of 2021 in light of the changes to the business environment brought
 
on by the COVID-19 pandemic.
 
The
restructuring activities under this prior initiative were completed
 
in 2021.
Restructuring and integration costs recorded during our 2022, 2021 and
 
2020 fiscal years consisted of the
following:
Year
 
Ended December 31, 2022
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
25
$
-
$
4
$
-
$
29
Impairment and accelerated depreciation and
amortization of right-of-use lease assets and
other long-lived assets
47
-
-
-
47
Exit and other related costs
3
-
-
-
3
Loss on disposal of a business
49
-
49
Integration employee-related and other costs
-
3
-
-
3
Total restructuring and integration costs
$
124
$
3
$
4
$
-
$
131
Year
 
Ended December 25, 2021
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
6
$
-
$
2
$
-
$
8
Total restructuring and integration costs
$
6
$
-
$
2
$
-
$
8
Year
 
Ended December 26, 2020
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
25
$
-
$
1
$
-
$
26
Impairment and accelerated depreciation and
amortization of right-of-use lease assets and
other long-lived assets
4
-
-
-
4
Exit and other related costs
2
-
-
-
2
Total restructuring and integration costs
$
31
$
-
$
1
$
-
$
32
The following table summarizes, by reportable segment, the activity related
 
to the liabilities associated with our
restructuring initiatives for the year ended December 31, 2022.
 
The remaining accrued balance of restructuring
costs as of December 31, 2022 is included in accrued expenses: other within
 
our condensed consolidated balance
sheet.
Technology
 
and
Health Care
Value-Added
Distribution
Services
Total
Balance, December 25, 2021
 
$
3
$
1
$
4
Restructuring charges
124
4
128
Non-cash asset impairment and accelerated depreciation and
amortization of right-of-use lease assets and other long-lived
assets
(47)
-
(47)
Non-cash impairment on disposal of a business
(46)
-
(46)
Cash payments and other adjustments
 
(13)
(2)
(15)
Balance, December 31, 2022
 
$
21
$
3
$
24
v3.22.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 15 – 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 31, 2022 were:
2023
 
$
5
2024
 
4
2025
 
4
2026
 
4
2027
 
4
Thereafter
 
-
Total minimum
 
inventory purchase commitment payments
$
21
Employment, Consulting and Non-Compete Agreements
We have employment, consulting and non-compete agreements that have varying base aggregate annual payments
for the years 2023 through 2027 and thereafter of approximately $
23
 
million, $
7
 
million, $
5
 
million, $
0
 
million, $
0
million, and $
0
 
million, respectively.
 
We also have lifetime consulting agreements that provide for current
compensation of
four-hundred thousand
 
dollars per year, increasing
twenty-five thousand
 
dollars every fifth year
with the next increase in 2026.
 
In addition, some agreements have provisions for additional
 
incentives and
compensation.
Litigation
 
Henry Schein, Inc. has been named as a defendant in multiple opioid
 
related lawsuits (currently less than one-
hundred and fifty (
150
); in approximately half of those cases one or more of Henry Schein, Inc.’s subsidiaries is
also named as a defendant).
 
Generally, the lawsuits allege that the 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. and
 
its affiliated companies) 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 stayed, and
others which remain pending in state courts and are proceeding independently
 
and outside of the MDL.
 
At this
time, the following cases are set for trial: the action filed by DCH Health
 
Care Authority, et al. in Alabama state
court, which has been designated a bellwether with
eight
 
of
thirty-eight
 
plaintiffs set for a jury trial on July 24,
2023; and the action filed by Florida Health Sciences Center, Inc. (and
38
 
other hospitals located throughout the
State of Florida) in Florida state court, which is currently scheduled for a jury
 
trial in October 2024.
 
In December
2022, we settled
seven
 
cases filed in Utah (plus one case in which we were not yet
 
named a defendant) by
nineteen
plaintiffs for a total amount of
sixty thousand
 
dollars.
 
The
seven
 
cases have been dismissed.
 
Of Henry Schein’s
2022 net sales of approximately $
12.6
 
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.
In August 2022, Henry Schein received a Grand Jury Subpoena from the United
 
States Attorney’s Office for the
Western District of Virginia,
 
seeking documents in connection with an investigation of possible
 
violations of the
Federal Food, Drug & Cosmetic Act by Butler Animal Health Supply, LLC (“Butler”), a former subsidiary of
Henry Schein.
 
The investigation relates to the sale of veterinary prescription drugs
 
to certain customers.
 
In
October 2022, Henry Schein received a second Grand Jury Subpoena from
 
the United States Attorney’s Office for
the Western District of Virginia.
 
The October Subpoena seeks documents relating to payments Henry
 
Schein
received from Butler or Covetrus, Inc. (“Covetrus”).
 
Butler was spun off into a separate company and became a
subsidiary of Covetrus in 2019 and is no longer owned by Henry Schein.
 
We are cooperating with the
investigation.
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 31, 2022, 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.
v3.22.4
Stock Based Compensation
12 Months Ended
Dec. 31, 2022
Stock Based Compensation [Abstract]  
Stock Based Compensation
Note 16 – Stock-Based Compensation
 
Stock-based awards are provided to certain employees under the terms of our
 
2020 Stock Incentive Plan and to
non-employee directors under the terms of 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 to our employees have been granted solely in the
form of time-based and performance-based restricted stock units
 
(“RSUs”).
 
However, for our 2021 fiscal year, in
light of the COVID-19 pandemic, the Compensation Committee determined
 
it would be difficult for management
to set a meaningful three-year cumulative earnings per share target as the goal applicable
 
to performance-based
RSU awards as it had done in prior years.
 
Instead, the Compensation Committee set our equity-based awards
 
to
employees for fiscal 2021 in the form of time-based RSUs and non-qualified
 
stock options which focus on stock
value appreciation and retention instead of pre-established performance goals.
 
Our non-employee directors
continued to receive equity-based awards for fiscal 2021 solely in the form of time-based
 
RSUs.
 
In March 2022,
the Compensation Committee reinstated performance-based RSUs
 
for equity-based awards to employees for fiscal
2022 and awarded grants in the form of performance-based RSUs,
 
time-based RSUs and non-qualified stock
options.
 
As of December 31, 2022, there were
70,942,657
 
shares authorized and
8,034,696
 
shares available to be granted
under the 2020 Stock Incentive Plan and
1,892,657
 
shares authorized and
192,400
 
shares available to be granted
under the 2015 Non-Employee Director Stock Incentive Plan.
RSUs are stock-based awards granted to recipients with specified vesting provisions.
 
In the case of RSUs, common
stock is delivered on or following satisfaction of vesting conditions.
 
We issue RSUs to employees that primarily
vest (i) solely based on the recipient’s continued service over time, primarily with
four
-year cliff vesting and/or (ii)
based on achieving specified performance measurements and the recipient’s continued service over time, primarily
with
three
-year cliff vesting.
 
RSUs granted under the 2015 Non-Employee Director Stock Incentive
 
Plan primarily
are granted with
12
-month 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
the 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.
Each of the Plans provide for certain adjustments to the performance
 
measurement in connection with awards under
the Plans.
 
With respect to the performance-based RSUs granted under our 2020 Stock Incentive Plan, such
performance measurement adjustments relate to significant events, including,
 
without limitation, acquisitions,
divestitures, new business ventures, certain capital transactions (including share
 
repurchases), differences in
budgeted average outstanding shares (other than those resulting from capital
 
transactions referred to above),
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, foreign exchange fluctuations, the
financial impact of certain products and unforeseen events or circumstances affecting us.
 
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.
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 beginning in 2021 vest
one-third
 
per year based on the recipient’s continued
service, subject to the terms and conditions of the 2020 Stock Incentive Plan,
 
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 granted in fiscal 2021 under the long-term
 
incentive program, 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.
 
The payout under the performance-based
restricted stock units granted under the fiscal 2018 long-term incentive program
 
(the “2018 LTIP”) was negatively
impacted by the global COVID-19 pandemic.
 
Given the significance of the impact of the pandemic on our
three
-
year EPS goal under such equity awards and the contributions made by our employees
 
(including those who
received such awards), on March 3, 2021, the Compensation Committee granted
 
a Special Pandemic Recognition
Award to recipients of performance-based restricted stock units under the 2018 LTIP who were employed by us on
the grant date of the Special Pandemic Recognition Award.
 
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 2020 Stock Incentive
 
Plan, and are recorded as
compensation expense using a graded vesting method.
 
The combination of the
20
% payout based on actual
performance of the 2018 LTIP and the one-time Special Pandemic Recognition Award granted in 2021 will
generate a cumulative payout of
75
% of each recipient’s original number of performance-based restricted stock
units awarded in 2018 if the recipient satisfies the
two
-year vesting schedule commencing on the grant date.
Our accompanying consolidated statements of income reflect pre-tax share-based
 
compensation expense of $
54
million ($
41
 
million after-tax), $
78
 
million ($
60
 
million after-tax) and $
9
 
million ($
7
 
million after-tax) for the years
ended December 31, 2022, December 25, 2021 and December 26, 2020.
Total unrecognized compensation cost related to non-vested awards as of December 31, 2022 was $
75
 
million,
which is expected to be recognized over a weighted-average period of
 
approximately
2.1
 
years.
 
The weighted-average grant date fair value of stock-based awards granted
 
before forfeitures was $
85.51
, $
62.72
and $
60.23
 
per share during the years ended December 31, 2022, December 25,
 
2021 and December 26, 2020.
 
Certain stock-based compensation granted may require us to settle in
 
the form of a cash payment.
 
During the year
ended December 31, 2022, we recorded a liability of $
0.4
 
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 31,
2022, December 25, 2021 and December 26, 2020.
The following weighted-average assumptions were used in determining
 
the most recent fair values of stock options
using the Black-Scholes valuation model:
2022
Expected dividend yield
 
0.00
%
Expected stock price volatility
 
27.80
%
Risk-free interest rate
 
3.62
%
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 31, 2022:
Stock Options
Weighted
 
Remaining
Average
 
Weighted Average
Aggregate
Exercise
Remaining Contractual
Intrinsic
Shares
Price
Life in Years
Value
Outstanding at beginning of year
 
767,717
$
63.24
Granted
 
420,075
85.81
Exercised
 
(36,150)
62.92
Forfeited
 
(34,068)
74.84
Outstanding at end of year
 
1,117,574
$
71.38
8.5
$
12
Options exercisable at end of year
 
220,688
$
63.35
Weighted
Weighted Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Price
Life (in years)
Value
Vested
 
or expected to vest
885,428
$
73.50
8.7
$
8
The following tables summarize the activity of our unvested RSUs for
 
the year ended December 31, 2022:
Time-Based Restricted Stock Units
Performance-Based Restricted Stock Units
Weighted Average
 
Weighted Average
 
Grant Date Fair
Intrinsic Value
Grant Date Fair
Intrinsic Value
Shares/Units
Value Per Share
Per Share
Shares/Units
Value Per Share
Per Share
Outstanding at beginning of period
 
1,945,862
$
58.79
674,753
$
59.63
Granted
 
471,840
85.49
267,865
82.35
Vested
 
(566,887)
55.46
(396,220)
59.21
Forfeited
 
(94,771)
67.87
(25,482)
67.65
Outstanding at end of period
 
1,756,044
$
66.59
$
79.87
520,916
$
60.23
$
79.87
The total intrinsic value per share of RSUs that vested was $
78.74
, $
73.99
 
and $
61.49
 
during the years ended
December 31, 2022, December 25, 2021 and December 26, 2020.
v3.22.4
Employee Benefit Plans
12 Months Ended
Dec. 31, 2022
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
Note 17 – 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 net 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 31,
December 25,
2022
2021
Obligation and funded status:
Change in benefit obligation
Projected benefit obligation, beginning of period
$
128
$
130
Service costs
3
4
Interest cost
1
-
Past service cost
-
5
Actuarial loss
(19)
(5)
Benefits paid
 
(1)
(1)
-
Participant contributions
1
1
Settlements
(1)
(2)
Effect of foreign currency translation
(4)
(5)
Projected benefit obligation, end of period
$
108
$
128
Change in plan assets
Fair value of plan assets at beginning of period
$
75
$
65
Actual return on plan assets
(3)
5
Employer contributions
2
2
Plan participant contributions
1
1
Expected return on plan assets
1
4
Benefit received
 
(1)
-
2
Settlements
(1)
(3)
Effect of foreign currency translation
(2)
(1)
Fair value of plan assets at end of period
$
73
$
75
Unfunded status at end of period
$
35
$
53
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
 
$
6
 
million and $
6
 
million as of
December 31, 2022 and December 25, 2021, respectively.
The following table provides the amounts recognized in our consolidated
 
balance sheets for our defined benefit
pension plans:
Years
 
Ended
December 31,
December 25,
2022
2021
Non-current assets
$
25
$
22
Current liabilities
(1)
(1)
Non-current liabilities
(59)
(74)
Accumulated other comprehensive loss, pre-tax
4
21
The following table provides the net periodic pension cost for our
 
defined benefit plans:
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Service cost
$
3
$
4
$
3
Interest cost
1
-
-
Expected return on plan assets
(1)
(1)
-
Employee contributions
-
-
-
Amortization of prior service credit
1
1
1
Recognized net actuarial loss
-
-
-
Settlements
-
-
-
Net periodic pension cost
$
4
$
4
$
4
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 31,
December 25,
Pension Benefit Obligation
2022
2021
Weighted average
 
discount rate
1.67
%
0.87
%
Years
 
Ended
December 31,
December 25,
December 26,
Net Periodic Pension Cost
2022
2021
2020
Discount rate-pension benefit
1.25
%
0.56
%
0.51
%
Expected return on plan assets
0.81
%
0.71
%
0.87
%
Rate of compensation increase
1.68
%
1.95
%
1.97
%
Pension increase rate
0.61
%
0.72
%
0.67
%
The following table presents the estimated pension benefit payments that
 
are payable to the plan’s participants as of
December 31, 2022:
Year
2023
$
6
2024
6
2025
5
2026
5
2027
7
2028 to 2032
38
Total
$
67
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 was reinstated in
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 31, 2022, December 25, 2021 and December
 
26, 2020 amounted to $
45
 
million,
$
38
 
million and $
21
 
million, respectively.
 
Within our consolidated statements of income, $
37
 
million is included
in selling, general and administrative expenses; and $
8
 
million is included in cost of goods sold.
Supplemental Executive Retirement Plan (“SERP”)
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 31,
 
2022, December 25, 2021 and
December 26, 2020 amounted to $
(1)
 
million, $
2
 
million and $
3
 
million, respectively.
 
The charges are included in
selling, general and administrative expenses line item within our consolidated
 
statements of income.
Deferred Compensation Plan (“DCP”)
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 31, 2022, December 25, 2021 and December 26, 2020 were approximately
 
$
(11)
 
million, $
8
 
million and
$
8
 
million, respectively.
 
The charges are included in selling, general and administrative expenses line
 
item within
our consolidated statements of income.
v3.22.4
Redeemable Noncontrolling Interests
12 Months Ended
Dec. 31, 2022
Redeemable Noncontrolling Interests [Abstract]  
Redeemable Noncontrolling Interests
Note 18 – Redeemable Noncontrolling Interests
 
Some minority stockholders in certain of our 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 31, 2022,
December 25, 2021 and December 26, 2020 are presented in the following table:
December 31,
December 25,
December 26,
2022
2021
2020
Balance, beginning of period
 
$
613
$
328
$
287
Decrease in redeemable noncontrolling interests due to acquisitions of
noncontrolling interests in subsidiaries
(31)
(60)
(17)
Increase in redeemable noncontrolling interests due to business
acquisitions
4
189
28
Net income attributable to redeemable noncontrolling interests
21
23
14
Dividends declared
 
(21)
(21)
(13)
Effect of foreign currency translation loss attributable to redeemable
noncontrolling interests
(6)
(6)
(4)
Change in fair value of redeemable securities
 
(4)
160
33
Balance, end of period
 
$
576
$
613
$
328
v3.22.4
Comprehensive Income
12 Months Ended
Dec. 31, 2022
Comprehensive Income [Abstract]  
Comprehensive Income
Note 19 – 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 31,
December 25,
December 26,
2022
2021
2020
Attributable to Redeemable noncontrolling interests:
Foreign currency translation adjustment
 
$
(37)
$
(31)
$
(25)
Attributable to noncontrolling interests:
Foreign currency translation adjustment
 
$
(1)
$
-
$
-
Attributable to Henry Schein, Inc.:
Foreign currency translation adjustment
$
(236)
$
(155)
$
(77)
Unrealized gain (loss) from foreign currency hedging activities
 
5
(2)
(11)
Pension adjustment loss
 
(2)
(14)
(20)
Accumulated other comprehensive loss
 
$
(233)
$
(171)
$
(108)
Total Accumulated
 
other comprehensive loss
 
$
(271)
$
(202)
$
(133)
The following table summarizes the components of comprehensive income, net of
 
applicable taxes as follows:
December 31,
December 25,
December 26,
2022
2021
2020
Net income
 
$
566
$
660
$
420
Foreign currency translation gain (loss)
(88)
(84)
63
Tax effect
 
-
-
-
Foreign currency translation gain (loss)
(88)
(84)
63
Unrealized gain (loss) from foreign currency hedging activities
 
10
12
(10)
Tax effect
 
(3)
(3)
3
Unrealized gain (loss) from foreign currency hedging activities
 
7
9
(7)
Pension adjustment gain
16
8
-
Tax effect
 
(4)
(2)
-
Pension adjustment gain
12
6
-
Comprehensive income
 
$
497
$
591
$
476
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
 
31, 2022, December 25, 2021 and
December 26, 2020 was primarily due to changes in foreign currency exchange
 
rates of the Euro, British Pound,
Australian Dollar, Brazilian Real, New Zealand Dollar and Canadian Dollar.
 
The foreign currency translation gain
(loss) during the years ended December 31, 2022, December 25, 2021
 
and December 26, 2020 was primarily
attributable to a net investment hedge that was entered into during 2019.
The following table summarizes our total comprehensive income, net of
 
applicable taxes as follows:
December 31,
December 25,
December 26,
2022
2021
2020
Comprehensive income attributable to
Henry Schein, Inc.
 
$
476
$
568
$
463
Comprehensive income attributable to
noncontrolling interests
 
6
6
3
Comprehensive income attributable to
Redeemable noncontrolling interests
 
15
17
10
Comprehensive income
 
$
497
$
591
$
476
v3.22.4
Discontinued Operations
12 Months Ended
Dec. 31, 2022
Discontinued Operations [Abstract]  
Discontinued Operations
Note 20 – 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
 
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 year ended December 26, 2020, we
incurred $
0
 
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.
Summarized financial information for our discontinued operations
 
is as follows:
Year
 
Ended
December 26,
2020
Selling, general and administrative
2
Operating loss
 
(2)
Income tax benefit
(3)
Income from discontinued operations
 
1
Net income from discontinued operations attributable to Henry Schein,
 
Inc.
 
1
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.
v3.22.4
Earnings Per Share
12 Months Ended
Dec. 31, 2022
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 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 31,
December 25,
December 26,
2022
2021
2020
Basic
 
136,064,221
140,090,889
142,504,193
Effect of dilutive securities:
Stock options and restricted stock units
 
1,691,449
1,681,892
899,489
Diluted
 
137,755,670
141,772,781
143,403,682
The number of antidilutive securities that were excluded from the calculation
 
of diluted weighted average common
shares outstanding are as follows:
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Stock options
342,716
611,869
-
Restricted stock units
19,466
1,048
2,398
Total anti-dilutive
 
securities excluded from EPS computation
362,182
612,917
2,398
v3.22.4
Supplemental Cash Flow Information
12 Months Ended
Dec. 31, 2022
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 31,
December 25,
December 26,
2022
2021
2020
Interest
 
$
47
$
29
$
43
Income taxes
 
265
242
207
For the years ended December 31, 2022, December 25, 2021 and December
 
26, 2020, we had $
10
 
million, $
12
million and $
(10)
 
million of non-cash net unrealized gains (losses) related to foreign
 
currency hedging activities,
respectively.
v3.22.4
Related Party Transactions
12 Months Ended
Dec. 31, 2022
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 year ended December 26, 2020, we recorded approximately $
13
 
million of fees for these services.
 
Pursuant
to the transition services agreement, Covetrus purchased
 
certain products from us.
 
During the year December 26,
2020, net sales to Covetrus under the transition services agreement were
 
approximately $
75
 
million.
 
Sales to
Covetrus under the transition services agreement ended in December 2020.
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
 
million annually for the use of their intellectual property.
 
During the years
ended December 31, 2022, December 25, 2021 and December 26, 2020, we recorded
 
$
31
 
million, $
31
 
million and
$
31
 
million, respectively in connection with costs related to this royalty
 
agreement.
 
As of December 31, 2022 and
December 25, 2021, Henry Schein One, LLC had a net receivable (payable)
 
balance from (to) Internet Brands of
($
8
) million and $
9
 
million, respectively, comprised of amounts related to results of operations and the royalty
agreement.
 
The components of this receivable and payable are recorded within
 
prepaid expenses and other; and
accrued expenses: other, respectively, 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 the years ended December 31, 2022, December
 
25, 2021 and December 26, 2020, we recorded net
sales of $
46
 
million, $
48
 
million, and $
38
 
respectively, to such entities.
 
During our fiscal years ended 2022, 2021
and 2020, we purchased $
9
 
million, $
15
 
million and $
12
 
million respectively, from such entities.
 
At December 31,
2022 and December 25, 2021, we had in aggregate $
36
 
million and $
44
 
million, due from our equity affiliates, and
$
6
 
million and $
7
 
million due to our equity affiliates, respectively.
Certain of our facilities related to our acquisitions are leased from employees
 
and minority shareholders.
v3.22.4
Basis of Presentation and Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2022
Basis of Presentation and Significant Accounting Policies [Abstract]  
Nature of Operations
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.
Basis of Presentation
Basis of Presentation
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.
 
These reclassifications, individually and in the aggregate, did
 
not have a material impact on our
consolidated financial condition, results of operations or cash flows.
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 31, 2022 and December 25, 2021, certain trade accounts receivable that
 
can only be used to settle
obligations of this VIE were $
327
 
million and $
138
 
million, respectively, and the liabilities of this VIE where the
creditors have recourse to us were $
255
 
million and $
105
 
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 the 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 for these non-PPE products increased in the
second half of 2020 and continued throughout the years ended December 25,
 
2021 and December 31, 2022,
resulting in growth over the prior years.
 
Demand for PPE products declined during the year ended
 
December 31,
2022.
 
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.
 
There is an ongoing risk that the COVID-19
pandemic may again have a material adverse effect on our business, results of operations
 
and cash flows 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 year ended December 31, 2022 consisted of
53
 
weeks, and the years ended, December 25, 2021 and December
26, 2020 consisted of
52
 
weeks.
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 31, 2022 and December 25, 2021, we had
accrued approximately $
8
 
million and $
8
 
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.
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.
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 $
103
 
million, $
89
 
million and $
72
 
million for the years ended December 31,
2022, December 25, 2021 and December 26, 2020.
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
 
million, $
97
 
million and $
79
 
million for the years ended December 31, 2022, December 25, 2021
 
and
December 26, 2020.
Advertising and Promotional Costs
Advertising and Promotional Costs
We generally expense advertising and promotional costs as incurred.
 
Total advertising and promotional expenses
were $
47
 
million, $
48
 
million and $
32
 
million for the years ended December 31, 2022, December 25, 2021
 
and
December 26, 2020.
Stock Compensation Costs
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, at each reporting date, we reassess whether achievement
 
of the performance condition
is probable and accrue compensation expense when achievement of
 
the performance condition is probable.
 
Our
stock-based compensation expense is reflected in selling, general and administrative
 
expenses.
Employment Benefit Plans and other Postretirement Benefit Plans
Employment Benefit Plans and other Postretirement Benefit Plans
Certain of our employees in our international markets participate
 
in various noncontributory defined benefit plans.
 
We recognize the funded status, measured as the difference between the fair value of plan assets and the benefit
obligation, of each applicable plan, within accumulated other comprehensive
 
income in the consolidated balance
sheets, whereby each unfunded plan is recognized as a liability and
 
each funded plan is recognized as either an
asset or liability based on its funded status.
 
We measure our plan assets and liabilities at the end of our fiscal year.
Net periodic pension costs and valuations are dependent on assumptions
 
used by third-party actuaries in calculating
those amounts.
 
These assumptions include discount rates, expected return on plan
 
assets, rate of future
compensation levels, retirement rates, mortality rates, and other factors.
 
We record the service cost component of
net pension cost in selling, general and administrative expenses within
 
our consolidated statements of income.
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 $
54
 
million and $
2
 
million, primarily related to
payments for inventory, were classified as accounts payable as of December 31, 2022 and December 25, 2021.
Contract Balances
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.
Our allowance for doubtful accounts was $
65
 
million, $
67
 
million and $
88
 
million as of December 31, 2022,
December 25, 2021 and December 26, 2020, respectively.
 
Additions to the allowance for the years ended
December 31, 2022, December 25, 2021 and December 26, 2020 were $
8
 
million, $
0
 
million and $
36
 
million.
 
Deductions to the allowance for the years ended December 31, 2022, December
 
25, 2021 and December 26, 2020
were $
10
 
million, $
21
 
million and $
8
 
million.
 
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 31, 2022 and December 25, 2021 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 25, 2021, the current portion of contract liabilities of $
89
 
million was reported in accrued expenses:
Other, and $
10
 
million related to non-current contract liabilities was reported
 
in other liabilities.
 
During the year
ended December 31, 2022,
 
we recognized substantially all of the current contract liability amounts
 
that were
previously deferred at December 25, 2021.
 
At December 31, 2022, the current and non-current portion of contract
liabilities were $
86
 
million and $
8
 
million, respectively.
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 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
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 31, 2022, December
25, 2021 and December 26, 2020, such short-term lease expense was
 
$
7
 
million, $
4
 
million, and $
2
 
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 31, 2022 and December 25, 2021, 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 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 year ended December 31, 2022, we recorded a $
20
 
million impairment of goodwill relating to the disposal
of an unprofitable business whose estimated fair value was lower than
 
its carrying value.
 
The disposal of this
business is part of our restructuring initiative as more fully discussed
 
in
For the year ended December 25, 2021, the results of our goodwill
 
impairment analysis did
no
t
result in any impairments.
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 31, 2022, December 25, 2021
 
and December 26, 2020, we recorded total
impairment charges on intangible assets of $
34
 
million, $
1
 
million and $
20
 
million, respectively, as more fully
discussed in
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
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 $
19
 
million and
$
14
 
million were included in “accrued taxes” for 2022 and 2021, respectively, and $
23
 
million and $
42
 
million
were included in “other liabilities” for 2022 and 2021, 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 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 and pension adjustment gain.
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 other, net, within our consolidated statements of income.
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 and is
 
recorded
in selling, general, and administrative expenses within our consolidated
 
statements of income.
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.
Accounting Pronouncements Adopted
Accounting Pronouncements Adopted
 
On December 26, 2021 we adopted Accounting Standards Update
 
(“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 ASU No. 2014 - 09, “Revenue from Contracts with Customers”
 
(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.
 
Our adoption of ASU 2021 - 08 did not have a material impact on
our consolidated financial statements.
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 September 2022, the FASB issued ASU No. 2022-04, “Liabilities – Supplier Finance Programs (Subtopic 405-
50): Disclosure of Supplier Finance Program Obligations” which will
 
increase transparency of supplier finance
programs by requiring entities that use such programs in connection with
 
the purchase of goods and services to
disclose certain qualitative and quantitative information about such
 
programs.
 
ASU 2022-04 is effective for fiscal
years beginning after December 15, 2022, including interim periods within
 
those fiscal years, except for amended
rollforward information, which is effective for fiscal years beginning after December
 
15, 2023.
 
We do not expect
that the requirements of this guidance will have a material impact on our consolidated
 
financial statements.
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 became effective upon issuance, on January 7, 2021, and can
 
be applied through December 31,
2022.
 
In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of
the Sunset Date of Topic 848,” which extends the period of application of temporary optional expedients from
December 21, 2022 to December 31, 2024.
 
We do not expect that the requirements of this guidance will have a
material impact on our consolidated financial statements.
v3.22.4
Net Sales from Contracts with Customers (Tables)
12 Months Ended
Dec. 31, 2022
Net Sales from Contracts with Customers [Abstract]  
Disaggregation of Revenue
Year
 
Ended
 
December 31, 2022
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
4,628
$
2,845
$
7,473
Medical
 
4,375
76
4,451
Total health care distribution
9,003
2,921
11,924
Technology
 
and value-added services
633
90
723
Net sales
$
9,636
$
3,011
$
12,647
Year
 
Ended
December 25, 2021
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
4,506
$
3,038
$
7,544
Medical
 
4,107
103
4,210
Total health care distribution
8,613
3,141
11,754
Technology
 
and value-added services
560
87
647
Net sales
$
9,173
$
3,228
$
12,401
Year
 
Ended
December 26, 2020
North America
International
Global
Net Sales:
Health care distribution
Dental
 
$
3,472
$
2,441
$
5,913
Medical
 
3,515
102
3,617
Total health care distribution
6,987
2,543
9,530
Technology
 
and value-added services
447
67
514
Total excluding
 
Corporate TSA net sales
 
(1)
7,434
2,610
10,044
Corporate TSA net sales
 
(1)
-
75
75
Net sales
$
7,434
$
2,685
$
10,119
(1)
Corporate TSA net sales 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.
v3.22.4
Segment and Geographic Data (Tables)
12 Months Ended
Dec. 31, 2022
Segment and Geographic Data [Abstract]  
Business Segment Information
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Net Sales:
Health care distribution
(1)
Dental
 
$
7,473
$
7,544
$
5,913
Medical
 
4,451
4,210
3,617
Total health care distribution
11,924
11,754
9,530
Technology
 
and value-added services
(2)
723
647
514
Total excluding
 
Corporate TSA net sales
12,647
12,401
10,044
Corporate TSA net sales
(3)
-
-
75
Total
 
$
12,647
$
12,401
$
10,119
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.
(3)
Corporate TSA net sales 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 31,
December 25,
December 26,
2022
2021
2020
Operating Income:
Health care distribution
 
$
619
$
727
$
436
Technology
 
and value-added services
 
128
125
99
Total
 
$
747
$
852
$
535
Income from continuing operations before
 
taxes
 
 
and equity in earnings of affiliates:
Health care distribution
 
$
592
$
706
$
400
Technology
 
and value-added services
 
129
125
100
Total
 
$
721
$
831
$
500
Depreciation and Amortization:
Health care distribution
 
$
160
$
157
$
143
Technology
 
and value-added services
 
52
53
43
Total
 
$
212
$
210
$
186
Interest Income:
Health care distribution
 
$
16
$
7
$
10
Technology
 
and value-added services
 
1
-
-
Total
 
$
17
$
7
$
10
Interest Expense:
Health care distribution
 
$
44
$
28
$
41
Total
 
$
44
$
28
$
41
Income Tax
 
Expense:
Health care distribution
 
$
141
$
168
$
71
Technology
 
and value-added services
 
29
30
24
Total
 
$
170
$
198
$
95
Purchases of Fixed Assets:
Health care distribution
 
$
86
$
74
$
44
Technology
 
and value-added services
 
10
5
5
Total
 
$
96
$
79
$
49
As of
December 31,
December 25,
December 26,
2022
2021
2020
Total
 
Assets:
Health care distribution
 
$
7,287
$
7,157
$
6,503
Technology
 
and value-added services
 
1,320
1,324
1,270
Total
 
$
8,607
$
8,481
$
7,773
Operations by Geographic Area
2022
2021
2020
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
United States
 
$
9,190
$
2,891
$
8,722
$
2,981
$
7,090
$
2,363
Other
 
3,457
1,256
3,679
1,232
3,029
1,252
Consolidated total
 
$
12,647
$
4,147
$
12,401
$
4,213
$
10,119
$
3,615
v3.22.4
Business Acquisitions and Divestitures (Tables)
12 Months Ended
Dec. 31, 2022
Business Acquisitions and Divestitures [Abstract]  
Acquisition Consideration
2022
Acquisition consideration:
Cash
$
158
Deferred consideration
2
Fair value of previously held equity method investment
16
Redeemable noncontrolling interests
17
Total consideration
$
193
Identifiable assets acquired and liabilities assumed:
Current assets
$
41
Intangible assets
96
Other noncurrent assets
13
Current liabilities
(29)
Deferred income taxes
(6)
Other noncurrent liabilities
(8)
Total identifiable
 
net assets
107
Goodwill
86
Total net assets acquired
$
193
2021
Acquisition consideration:
Cash
$
579
Deferred consideration
11
Estimated fair value of contingent consideration receivable
(5)
Fair value of previously held equity method investment
8
Redeemable noncontrolling interests
181
Total consideration
$
774
Identifiable assets acquired and liabilities assumed:
Current assets
$
195
Intangible assets
317
Other noncurrent assets
51
Current liabilities
(93)
Deferred income taxes
(26)
Other noncurrent liabilities
(46)
Total identifiable
 
net assets
398
Goodwill
376
Total net assets acquired
$
774
2020
Acquisition consideration:
Cash
$
52
Deferred consideration
6
Fair value of previously held equity method investment
9
Redeemable noncontrolling interests
26
Total consideration
$
93
Identifiable assets acquired and liabilities assumed:
Current assets
$
36
Intangible assets
38
Other noncurrent assets
22
Current liabilities
(21)
Deferred income taxes
(4)
Other noncurrent liabilities
(1)
Total identifiable
 
net assets
70
Goodwill
23
Total net assets acquired
$
93
Intangible Assets
Estimated
Useful Lives
2022
(in years)
Customer relationships and lists
81
8
-
12
Trademark / Tradename
9
5
Non-compete agreements
3
2
-
5
Other
3
10
$
96
Estimated
Useful Lives
2021
(in years)
Customer relationships and lists
$
220
5
-
12
Trademark / Tradename
58
5
-
12
Product development
19
5
-
10
Non-compete agreements
5
3
-
5
Other
15
18
$
317
Estimated
Useful Lives
2020
(in years)
Customer relationships and lists
$
23
10
-
12
Product development
9
7
-
10
Trademark / Tradename
4
5
Non-compete agreements
2
5
$
38
v3.22.4
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and equipment, including related estimated useful lives
December 31,
December 25,
2022
2021
Land
 
$
20
$
21
Buildings and permanent improvements
 
135
140
Leasehold improvements
 
94
98
Machinery and warehouse equipment
 
169
153
Furniture, fixtures and other
 
127
119
Computer equipment and software
 
411
385
956
916
Less accumulated depreciation
 
(573)
(550)
Property and equipment, net
 
$
383
$
366
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
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Components of Lease Expense, Supplemental Cash Flow and Supplemental Balance Sheet Information
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Operating lease cost:
 
(1) (2)
$
150
$
103
$
87
Finance
 
lease cost:
Amortization of right-of-use assets
 
3
3
2
Total finance
 
lease cost
$
3
$
3
$
2
(1)
Includes variable lease expenses.
(2)
Operating lease cost for the years ended December 31, 2022, December 25, 2021, and December 26, 2020, include accelerated
amortization of right-of-use assets of $
42
 
million, $
0
 
million and $
0
 
million, respectively, related to facility leases recorded in
“Restructuring and integration costs” within our consolidated statements of income.
Years
 
Ended
December 31,
December 25,
2022
2021
Operating Leases:
Operating lease right-of-use assets
$
284
$
325
Current operating lease liabilities
73
76
Non-current operating lease liabilities
275
268
Total operating lease liabilities
$
348
$
344
Finance Leases:
Property and equipment, at cost
$
16
$
13
Accumulated depreciation
(6)
(5)
Property and equipment, net of accumulated depreciation
$
10
$
8
Current maturities of long-term debt
$
4
$
3
Long-term debt
6
4
Total finance
 
lease liabilities
$
10
$
7
Weighted Average
 
Remaining Lease Term in
 
Years:
Operating leases
6.7
7.3
Finance leases
3.1
3.6
Weighted
 
Average Discount
 
Rate:
Operating leases
2.8
%
2.4
%
Finance leases
3.3
%
1.7
%
Years
 
Ended
December 31,
December 25,
2022
2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$
87
85
Financing cash flows for finance leases
3
3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
 
$
88
121
Finance leases
6
4
Maturities of Finance and Operating Lease Liabilities
December 31, 2022
Operating
Finance
Leases
Leases
2023
$
82
$
5
2024
66
3
2025
56
1
2026
46
1
2027
33
-
Thereafter
98
1
Total future
 
lease payments
381
11
Less imputed interest
(33)
(1)
Total
$
348
$
10
v3.22.4
Goodwill and Other Intangibles, Net (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Other Intangibles, Net [Abstract]  
Changes in the Carrying Amount of Goodwill
Health Care
Distribution
Technology
 
and
Value-Added
Services
Total
Balance as of December 26, 2020
 
$
1,501
$
1,003
$
2,504
Adjustments to goodwill:
Acquisitions
 
359
24
383
Foreign currency translation
 
(29)
(4)
(33)
Balance as of December 25, 2021
 
1,831
1,023
2,854
Adjustments to goodwill:
Acquisitions
 
86
(1)
85
Impairment
(20)
-
(20)
Foreign currency translation
 
(22)
(4)
(26)
Balance as of December 31, 2022
 
$
1,875
$
1,018
$
2,893
Other Intangible Assets - Finite-Lived
December 31, 2022
December 25, 2021
Accumulated
Accumulated
Cost
Amortization
Net
Cost
Amortization
Net
Customer lists and relationships
$
826
$
(387)
$
439
$
853
$
(353)
$
500
Trademarks / trade names - definite lived
 
125
(51)
74
129
(44)
85
Product Development
90
(56)
34
114
(70)
44
Non-compete agreements
 
25
(6)
19
25
(6)
19
Other
 
31
(10)
21
28
(8)
20
 
Total
 
$
1,097
$
(510)
$
587
$
1,149
$
(481)
$
668
v3.22.4
Investments and Other (Tables)
12 Months Ended
Dec. 31, 2022
Investments And Other [Abstract]  
Investments and Other
December 31,
December 25,
2022
2021
Investment in unconsolidated affiliates
 
$
161
$
168
Non-current deferred foreign, state and local income taxes
 
88
35
Notes receivable
(1)
28
36
Capitalized costs for software to be sold, leased or marketed to external
 
users
79
65
Security deposits
 
3
2
Acquisition-related indemnification
 
59
66
Non-current pension assets
8
-
Other long-term assets
46
52
Total
 
$
472
$
424
(1)
Long-term notes receivable carry interest rates ranging from
3.0
% to
7.5
% and are due in varying installments through
May 11, 2028
.
v3.22.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Measurements [Abstract]  
Fair value - assets and liabilities measured and recognized on a recurring basis
December 31, 2022
Level 1
Level 2
Level 3
Total
Assets:
Derivative contracts designated as hedges
$
-
$
23
$
-
$
23
Derivative contracts undesignated
-
4
-
4
Total assets
 
$
-
$
27
$
-
$
27
Liabilities:
Derivative contracts designated as hedges
$
-
$
1
$
-
$
1
Derivative contracts undesignated
-
3
-
3
Total return
 
swaps
-
3
-
3
Total liabilities
 
$
-
$
7
$
-
$
7
Redeemable noncontrolling interests
 
$
-
$
-
$
576
$
576
December 25, 2021
Level 1
Level 2
Level 3
Total
Assets:
Derivative contracts designated as hedges
$
-
$
8
$
-
$
8
Derivative contracts undesignated
-
1
-
1
Total return
 
swap
-
1
-
1
Total assets
 
$
-
$
10
$
-
$
10
Liabilities:
Derivative contracts designated as hedges
$
-
$
1
$
-
$
1
Derivative contracts undesignated
-
2
-
2
Total liabilities
 
$
-
$
3
$
-
$
3
Redeemable noncontrolling interests
 
$
-
$
-
$
613
$
613
v3.22.4
Debt (Tables)
12 Months Ended
Dec. 31, 2022
Debt [Abstract]  
Bank Credit Lines
December 31,
December 25,
2022
2021
Revolving credit agreement
$
-
$
-
Other short-term bank credit lines
103
51
Total
$
103
$
51
Schedule of Long-Term Debt
December 31,
December 25,
2022
2021
Private placement facilities
 
$
699
$
706
U.S. trade accounts receivable securitization
330
105
Various
 
collateralized and uncollateralized loans payable with interest,
in varying installments through 2023 at interest rates
ranging from
0.00
% to
3.50
% at December 31, 2022 and
ranging from
2.62
% to
4.27
% at December 25, 2021
7
4
Finance lease obligations
10
7
Total
 
1,046
822
Less current maturities
(6)
(11)
Total long-term debt
 
$
1,040
$
811
Private Placement Facilities
Amount of
Date of
 
Borrowing
Borrowing
 
Borrowing
Outstanding
Rate
Due Date
January 20, 2012
$
50
3.45
%
January 20, 2024
December 24, 2012
50
3.00
December 24, 2024
June 16, 2017
100
3.42
June 16, 2027
September 15, 2017
100
3.52
September 15, 2029
January 2, 2018
100
3.32
January 2, 2028
September 2, 2020
100
2.35
September 2, 2030
June 2, 2021
100
2.48
June 2, 2031
June 2, 2021
100
2.58
June 2, 2033
Less: Deferred debt issuance costs
(1)
Total
$
699
Schedule of Long-Term Debt Maturities
2023
 
$
6
2024
 
109
2025
 
331
2026
 
-
2027
 
100
Thereafter
 
500
Total
 
$
1,046
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Taxes [Abstract]  
Income Before Taxes, Equity in Earnings of Affiliates and Loss on Sale of Equity Investment
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Domestic
 
$
506
$
593
$
431
Foreign
 
215
238
69
Total
 
$
721
$
831
$
500
Provision for Income Taxes Attributable to Continuing Operations
The provisions for income taxes were as follows:
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Current income tax expense:
U.S. Federal
 
$
150
$
129
$
83
State and local
 
49
37
24
Foreign
 
44
43
41
Total current
 
243
209
148
Deferred income tax expense (benefit):
U.S. Federal
 
(48)
(12)
(18)
State and local
 
(13)
(3)
(5)
Foreign
 
(12)
4
(30)
Total deferred
 
(73)
(11)
(53)
Total provision
 
$
170
$
198
$
95
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 31,
December 25,
2022
2021
Deferred income tax asset:
Net operating losses and other carryforwards
$
64
$
55
Inventory, premium
 
coupon redemptions and accounts receivable
valuation allowances
 
57
46
Stock-based compensation
 
11
13
Uniform capitalization adjustment to inventories
11
10
Operating lease liability
77
79
Other asset
 
48
41
Total deferred income
 
tax asset
 
268
244
Valuation
 
allowance for deferred tax assets
(1)
(36)
(36)
Net deferred income tax asset
232
208
Deferred income tax liability
Intangibles amortization
(112)
(134)
Operating lease right-of-use asset
(61)
(74)
Property and equipment
(7)
(7)
Total deferred tax
 
liability
(180)
(215)
Net deferred income tax asset (liability)
$
52
$
(7)
(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 31,
December 25,
December 26,
2022
2021
2020
Income tax provision at federal statutory rate
 
$
151
$
175
$
105
State income tax provision, net of federal income tax effect
 
20
21
13
Foreign income tax provision
4
6
-
Pass-through noncontrolling interest
 
(4)
(4)
(3)
Valuation
 
allowance
 
(2)
(6)
1
Unrecognized tax benefits and audit settlements
11
7
(18)
Interest expense related to loans
 
(12)
(11)
(11)
Tax benefit related
 
to legal entity reorganization outside the U.S.
-
-
(6)
Other
 
2
10
14
Total income
 
tax provision
 
$
170
$
198
$
95
Reconciliation of Unrecognized Tax Benefits Excluding the Effect of Deferred Taxes
December 31,
December 25,
December 26,
2022
2021
2020
Balance, beginning of period
 
$
71
$
70
$
91
Additions based on current year tax positions
 
14
3
5
Additions based on prior year tax positions
 
8
11
8
Reductions based on prior year tax positions
 
-
(1)
(1)
Reductions resulting from settlements with taxing authorities
 
(1)
(9)
(19)
Reductions resulting from lapse in statutes of limitations
 
(10)
(3)
(14)
Balance, end of period
 
$
82
$
71
$
70
v3.22.4
Plans of Restructuring and Integration Costs (Tables)
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Reserve by Type of Cost
Year
 
Ended December 31, 2022
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
25
$
-
$
4
$
-
$
29
Impairment and accelerated depreciation and
amortization of right-of-use lease assets and
other long-lived assets
47
-
-
-
47
Exit and other related costs
3
-
-
-
3
Loss on disposal of a business
49
-
49
Integration employee-related and other costs
-
3
-
-
3
Total restructuring and integration costs
$
124
$
3
$
4
$
-
$
131
Year
 
Ended December 25, 2021
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
6
$
-
$
2
$
-
$
8
Total restructuring and integration costs
$
6
$
-
$
2
$
-
$
8
Year
 
Ended December 26, 2020
Health-Care Distribution
Technology
 
and Value-Added
Services
Restructuring
Costs
Integration
Costs
Restructuring
Costs
Integration
Costs
Total
Severance and employee-related costs
$
25
$
-
$
1
$
-
$
26
Impairment and accelerated depreciation and
amortization of right-of-use lease assets and
other long-lived assets
4
-
-
-
4
Exit and other related costs
2
-
-
-
2
Total restructuring and integration costs
$
31
$
-
$
1
$
-
$
32
Schedule of Restructuring Reserve by Segment
Technology
 
and
Health Care
Value-Added
Distribution
Services
Total
Balance, December 25, 2021
 
$
3
$
1
$
4
Restructuring charges
124
4
128
Non-cash asset impairment and accelerated depreciation and
amortization of right-of-use lease assets and other long-lived
assets
(47)
-
(47)
Non-cash impairment on disposal of a business
(46)
-
(46)
Cash payments and other adjustments
 
(13)
(2)
(15)
Balance, December 31, 2022
 
$
21
$
3
$
24
v3.22.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Purchase commitments
2023
 
$
5
2024
 
4
2025
 
4
2026
 
4
2027
 
4
Thereafter
 
-
Total minimum
 
inventory purchase commitment payments
$
21
v3.22.4
Stock Based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Stock Based Compensation [Abstract]  
Valuation Model
2022
Expected dividend yield
 
0.00
%
Expected stock price volatility
 
27.80
%
Risk-free interest rate
 
3.62
%
Expected life of options (years)
 
6.00
Summary of 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
 
767,717
$
63.24
Granted
 
420,075
85.81
Exercised
 
(36,150)
62.92
Forfeited
 
(34,068)
74.84
Outstanding at end of year
 
1,117,574
$
71.38
8.5
$
12
Options exercisable at end of year
 
220,688
$
63.35
Intrinsic Values
Weighted
Weighted Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Price
Life (in years)
Value
Vested
 
or expected to vest
885,428
$
73.50
8.7
$
8
Status of Non-Vested Restricted Shares/Units
Time-Based Restricted Stock Units
Performance-Based Restricted Stock Units
Weighted Average
 
Weighted Average
 
Grant Date Fair
Intrinsic Value
Grant Date Fair
Intrinsic Value
Shares/Units
Value Per Share
Per Share
Shares/Units
Value Per Share
Per Share
Outstanding at beginning of period
 
1,945,862
$
58.79
674,753
$
59.63
Granted
 
471,840
85.49
267,865
82.35
Vested
 
(566,887)
55.46
(396,220)
59.21
Forfeited
 
(94,771)
67.87
(25,482)
67.65
Outstanding at end of period
 
1,756,044
$
66.59
$
79.87
520,916
$
60.23
$
79.87
v3.22.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2022
Employee Benefit Plans [Abstract]  
Obligation and Funded Status
Years
 
Ended
December 31,
December 25,
2022
2021
Obligation and funded status:
Change in benefit obligation
Projected benefit obligation, beginning of period
$
128
$
130
Service costs
3
4
Interest cost
1
-
Past service cost
-
5
Actuarial loss
(19)
(5)
Benefits paid
 
(1)
(1)
-
Participant contributions
1
1
Settlements
(1)
(2)
Effect of foreign currency translation
(4)
(5)
Projected benefit obligation, end of period
$
108
$
128
Change in plan assets
Fair value of plan assets at beginning of period
$
75
$
65
Actual return on plan assets
(3)
5
Employer contributions
2
2
Plan participant contributions
1
1
Expected return on plan assets
1
4
Benefit received
 
(1)
-
2
Settlements
(1)
(3)
Effect of foreign currency translation
(2)
(1)
Fair value of plan assets at end of period
$
73
$
75
Unfunded status at end of period
$
35
$
53
Includes regular benefit payments and amounts transferred in by new
 
participants.
Balance Sheet
Years
 
Ended
December 31,
December 25,
2022
2021
Non-current assets
$
25
$
22
Current liabilities
(1)
(1)
Non-current liabilities
(59)
(74)
Accumulated other comprehensive loss, pre-tax
4
21
Net Periodic Pension Cost
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Service cost
$
3
$
4
$
3
Interest cost
1
-
-
Expected return on plan assets
(1)
(1)
-
Employee contributions
-
-
-
Amortization of prior service credit
1
1
1
Recognized net actuarial loss
-
-
-
Settlements
-
-
-
Net periodic pension cost
$
4
$
4
$
4
Assumptions
Years
 
Ended
December 31,
December 25,
Pension Benefit Obligation
2022
2021
Weighted average
 
discount rate
1.67
%
0.87
%
Years
 
Ended
December 31,
December 25,
December 26,
Net Periodic Pension Cost
2022
2021
2020
Discount rate-pension benefit
1.25
%
0.56
%
0.51
%
Expected return on plan assets
0.81
%
0.71
%
0.87
%
Rate of compensation increase
1.68
%
1.95
%
1.97
%
Pension increase rate
0.61
%
0.72
%
0.67
%
Estimated Payments
Year
2023
$
6
2024
6
2025
5
2026
5
2027
7
2028 to 2032
38
Total
$
67
v3.22.4
Redeemable Noncontrolling Interests (Tables)
12 Months Ended
Dec. 31, 2022
Redeemable Noncontrolling Interests [Abstract]  
Change in Fair Value of Redeemable Noncontrolling Interests
December 31,
December 25,
December 26,
2022
2021
2020
Balance, beginning of period
 
$
613
$
328
$
287
Decrease in redeemable noncontrolling interests due to acquisitions of
noncontrolling interests in subsidiaries
(31)
(60)
(17)
Increase in redeemable noncontrolling interests due to business
acquisitions
4
189
28
Net income attributable to redeemable noncontrolling interests
21
23
14
Dividends declared
 
(21)
(21)
(13)
Effect of foreign currency translation loss attributable to redeemable
noncontrolling interests
(6)
(6)
(4)
Change in fair value of redeemable securities
 
(4)
160
33
Balance, end of period
 
$
576
$
613
$
328
v3.22.4
Comprehensive Income (Tables)
12 Months Ended
Dec. 31, 2022
Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income and Comprehensive Income Components
December 31,
December 25,
December 26,
2022
2021
2020
Attributable to Redeemable noncontrolling interests:
Foreign currency translation adjustment
 
$
(37)
$
(31)
$
(25)
Attributable to noncontrolling interests:
Foreign currency translation adjustment
 
$
(1)
$
-
$
-
Attributable to Henry Schein, Inc.:
Foreign currency translation adjustment
$
(236)
$
(155)
$
(77)
Unrealized gain (loss) from foreign currency hedging activities
 
5
(2)
(11)
Pension adjustment loss
 
(2)
(14)
(20)
Accumulated other comprehensive loss
 
$
(233)
$
(171)
$
(108)
Total Accumulated
 
other comprehensive loss
 
$
(271)
$
(202)
$
(133)
Components of comprehensive income, net of applicable taxes
December 31,
December 25,
December 26,
2022
2021
2020
Net income
 
$
566
$
660
$
420
Foreign currency translation gain (loss)
(88)
(84)
63
Tax effect
 
-
-
-
Foreign currency translation gain (loss)
(88)
(84)
63
Unrealized gain (loss) from foreign currency hedging activities
 
10
12
(10)
Tax effect
 
(3)
(3)
3
Unrealized gain (loss) from foreign currency hedging activities
 
7
9
(7)
Pension adjustment gain
16
8
-
Tax effect
 
(4)
(2)
-
Pension adjustment gain
12
6
-
Comprehensive income
 
$
497
$
591
$
476
Total Comprehensive Income
December 31,
December 25,
December 26,
2022
2021
2020
Comprehensive income attributable to
Henry Schein, Inc.
 
$
476
$
568
$
463
Comprehensive income attributable to
noncontrolling interests
 
6
6
3
Comprehensive income attributable to
Redeemable noncontrolling interests
 
15
17
10
Comprehensive income
 
$
497
$
591
$
476
v3.22.4
Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2022
Discontinued Operations [Abstract]  
Summarized Financial Information for Discontinued Operations
Year
 
Ended
December 26,
2020
Selling, general and administrative
2
Operating loss
 
(2)
Income tax benefit
(3)
Income from discontinued operations
 
1
Net income from discontinued operations attributable to Henry Schein,
 
Inc.
 
1
v3.22.4
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Basic
 
136,064,221
140,090,889
142,504,193
Effect of dilutive securities:
Stock options and restricted stock units
 
1,691,449
1,681,892
899,489
Diluted
 
137,755,670
141,772,781
143,403,682
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Years
 
Ended
December 31,
December 25,
December 26,
2022
2021
2020
Stock options
342,716
611,869
-
Restricted stock units
19,466
1,048
2,398
Total anti-dilutive
 
securities excluded from EPS computation
362,182
612,917
2,398
v3.22.4
Supplemental Cash Flow Information (Tables)
12 Months Ended
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]  
Cash Paid for Interest and Income Taxes
Years
 
ended
December 31,
December 25,
December 26,
2022
2021
2020
Interest
 
$
47
$
29
$
43
Income taxes
 
265
242
207
v3.22.4
Basis of Presentation and Significant Accounting Policies (Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Fiscal year duration 371 days 364 days 364 days
Accrued warranty costs $ 8,000,000 $ 8,000,000  
Distribution network costs 103,000,000 89,000,000 $ 72,000,000
Costs of goods sold 8,816,000,000 8,727,000,000 7,303,000,000
Advertising and promotional costs 47,000,000 48,000,000 32,000,000
Outstanding checks in excess of funds on deposit classified as accounts payable 54,000,000 2,000,000  
Contract liabilities, current 86,000,000 89,000,000  
Contract liabilities, noncurrent $ 8,000,000 10,000,000  
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.    
Short-term lease expense $ 7,000,000 4,000,000 2,000,000
Allowance for doubtful accounts 65,000,000 67,000,000 88,000,000
Additions to allowance for doubtful accounts 8,000,000 0 36,000,000
Deductions to allowance for doubtful accounts 10,000,000 21,000,000 8,000,000
Goodwill impairment 20,000,000 0  
Impairment charge on intangible assets $ 34,000,000 1,000,000 20,000,000
Minimum [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Fiscal year duration 364 days    
Maximum [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Fiscal year duration 371 days    
Shipping and Handling [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Costs of goods sold $ 96,000,000 97,000,000 $ 79,000,000
Variable Interest Entity, Primary Beneficiary [Member] | Recourse [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Liabilities of VIE 255,000,000 105,000,000  
Variable Interest Entity, Primary Beneficiary [Member] | Asset Pledged As Collateral [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Pledged assets $ 327,000,000 $ 138,000,000  
v3.22.4
Net Sales from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Disaggregation of Revenue [Abstract]      
Net sales $ 12,647 $ 12,401 $ 10,119
North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 9,636 9,173 7,434
International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 3,011 3,228 2,685
Total excluding Corporate TSA revenues      
Disaggregation of Revenue [Abstract]      
Net sales 12,647 12,401 10,044
Total excluding Corporate TSA revenues | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales     7,434
Total excluding Corporate TSA revenues | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales     2,610
Healthcare Distribution [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 11,924 11,754 9,530
Healthcare Distribution [Member] | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 9,003 8,613 6,987
Healthcare Distribution [Member] | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 2,921 3,141 2,543
Healthcare Distribution [Member] | Dental [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 7,473 7,544 5,913
Healthcare Distribution [Member] | Dental [Member] | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 4,628 4,506 3,472
Healthcare Distribution [Member] | Dental [Member] | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 2,845 3,038 2,441
Healthcare Distribution [Member] | Medical [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 4,451 4,210 3,617
Healthcare Distribution [Member] | Medical [Member] | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 4,375 4,107 3,515
Healthcare Distribution [Member] | Medical [Member] | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 76 103 102
Technology and Value-Added Services [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 723 647 514
Technology and Value-Added Services [Member] | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 633 560 447
Technology and Value-Added Services [Member] | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales 90 87 67
Corporate TSA [Member]      
Disaggregation of Revenue [Abstract]      
Net sales $ 0 $ 0 75
Corporate TSA [Member] | North America [Member]      
Disaggregation of Revenue [Abstract]      
Net sales     0
Corporate TSA [Member] | International [Member]      
Disaggregation of Revenue [Abstract]      
Net sales     $ 75
v3.22.4
Segment and Geographic Data (Narrative) (Details)
12 Months Ended
Dec. 31, 2022
number
countries
Segment Reporting Information [Line Items]  
Number of reportable segments | number 2
Number of countries served globally | countries 32
Minimum [Member] | United States [Member] | Geographic Concentration Risk [Member] | Sales Revenue, Net [Member]  
Segment Reporting Information [Line Items]  
Concentration risk percentage (as a percent) 10.00%
v3.22.4
Segment and Geographic Data (Business Segment Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Segment Reporting Information [Line Items]      
Net sales $ 12,647 $ 12,401 $ 10,119
Operating income 747 852 535
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment 721 831 500
Depreciation and amortization 212 210 186
Interest income 17 7 10
Interest expense 44 28 41
Income taxes 170 198 95
Purchases of fixed assets 96 79 49
Total assets 8,607 8,481 7,773
Total excluding Corporate TSA revenues      
Segment Reporting Information [Line Items]      
Net sales 12,647 12,401 10,044
Health Care Distribution [Member]      
Segment Reporting Information [Line Items]      
Net sales 11,924 11,754 9,530
Operating income 619 727 436
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment 592 706 400
Depreciation and amortization 160 157 143
Interest income 16 7 10
Interest expense 44 28 41
Income taxes 141 168 71
Purchases of fixed assets 86 74 44
Total assets 7,287 7,157 6,503
Health Care Distribution [Member] | Dental [Member]      
Segment Reporting Information [Line Items]      
Net sales 7,473 7,544 5,913
Health Care Distribution [Member] | Medical [Member]      
Segment Reporting Information [Line Items]      
Net sales 4,451 4,210 3,617
Technology and Value-Added Services [Member]      
Segment Reporting Information [Line Items]      
Net sales 723 647 514
Operating income 128 125 99
Income from before taxes, equity in earnings of affiliates and loss on sale of equity investment 129 125 100
Depreciation and amortization 52 53 43
Interest income 1 0 0
Interest expense 0 0 0
Income taxes 29 30 24
Purchases of fixed assets 10 5 5
Total assets 1,320 1,324 1,270
Corporate TSA [Member]      
Segment Reporting Information [Line Items]      
Net sales $ 0 $ 0 $ 75
v3.22.4
Segment and Geographic Data (Operations by Geographic Area) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales $ 12,647 $ 12,401 $ 10,119
Long-Lived Assets 4,147 4,213 3,615
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Net sales 9,190 8,722 7,090
Long-Lived Assets $ 2,891 2,981 2,363
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 $ 3,457 3,679 3,029
Long-Lived Assets $ 1,256 $ 1,232 $ 1,252
v3.22.4
Business Acquisitions and Divestitures (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Sep. 25, 2021
Dec. 26, 2020
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Business Acquisition [Line Items]          
Business acquisition allocated, goodwill   $ 2,504 $ 2,893 $ 2,854 $ 2,504
Income taxes     170 198 95
Equity in earnings of affiliates     15 20 12
Net sales     12,647 12,401 10,119
Contingent consideration receivable       5  
Increase in contingent consideration receivable     5    
Business Acquisition, Transaction Costs   6 9 7 6
Proceeds from sale of equity investment     0 10 14
After-tax gain on sale of equity investments     0 7 2
Hu-Friedy Mfg. Co., LLC [Member]          
Business Acquisition [Line Items]          
Proceeds from sale of equity investment $ 10 2      
After-tax gain on sale of equity investments $ 7 2      
Technology and Value-Added Services [Member]          
Business Acquisition [Line Items]          
Business acquisition allocated, goodwill   1,003 1,018 1,023 1,003
Income taxes     29 30 24
Net sales     723 647 514
Series of Individually Immaterial Business Acquisitions [Member]          
Business Acquisition [Line Items]          
Payments to Acquire Businesses     158 579 52
Net assets   70 107 398 70
Intangible Assets   38 96 317 38
Business acquisition allocated, goodwill   $ 23 86 376 23
Noncontrolling Interest, Increase from Business Combination     17 181 26
Business Combination Consideration Transferred 1     $ 193 $ 774 $ 93
Series of Individually Immaterial Business Acquisitions [Member] | Minimum [Member]          
Business Acquisition [Line Items]          
Acquired equity interest (as a percent)   51.00% 55.00% 51.00% 51.00%
Series of Individually Immaterial Business Acquisitions [Member] | Maximum [Member]          
Business Acquisition [Line Items]          
Acquired equity interest (as a percent)   100.00% 100.00% 100.00% 100.00%
v3.22.4
Business Acquisitions and Divestitures (Acquisition Consideration) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Business Acquisition [Line Items]      
Goodwill $ 2,893 $ 2,854 $ 2,504
Series of Individually Immaterial Business Acquisitions [Member]      
Business Acquisition [Line Items]      
Cash 158 579 52
Deferred consideration 2 11 6
Estimated fair value of contingent consideration receivable   (5)  
Fair value of previously held equity method investment 16 8 9
Redeemable noncontrolling interests 17 181 26
Total 193 774 93
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Assets 41 195 36
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 96 317 38
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Other Noncurrent Assets 13 51 22
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities (29) (93) (21)
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Liabilities (6) (26) (4)
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Noncurrent Liabilities Other (8) (46) (1)
Total 107 398 70
Goodwill 86 376 23
Total $ 193 $ 774 $ 93
v3.22.4
Business Acquisitions and Divestitures (Intangible Assets) (Details) - Series of Individually Immaterial Business Acquisitions [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1 $ 96 $ 317 $ 38
Customer Relationships and Lists [Member]      
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1 $ 81 $ 220 $ 23
Customer Relationships and Lists [Member] | Minimum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 8 years 5 years 10 years
Customer Relationships and Lists [Member] | Maximum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 12 years 12 years 12 years
Trademark And Tradename [Member]      
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1 $ 9 $ 58 $ 4
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years   5 years
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  
Product Development [Member]      
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1   $ 19 $ 9
Product Development [Member] | Minimum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life   5 years 7 years
Product Development [Member] | Maximum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life   10 years 10 years
Noncompete Agreements [Member]      
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1 $ 3 $ 5 $ 2
Acquired Finite Lived Intangible Assets Weighted Average Useful Life     5 years
Noncompete Agreements [Member] | Minimum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 2 years 3 years  
Noncompete Agreements [Member] | Maximum [Member]      
Business Acquisition [Line Items]      
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 5 years 5 years  
Other Intangible Assets [Member]      
Business Acquisition [Line Items]      
Finitelived Intangible Assets Acquired 1 $ 3 $ 15  
Acquired Finite Lived Intangible Assets Weighted Average Useful Life 10 years 18 years  
v3.22.4
Property and Equipment, Net (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Property, Plant and Equipment [Line Items]        
Property and equipment, gross $ 956 $ 956 $ 916  
Less accumulated depreciation (573) (573) (550)  
Property and equipment related depreciation expense   68 71 $ 64
Restructuring charges 128 128    
Land [Member]        
Property, Plant and Equipment [Line Items]        
Property and equipment, gross 20 20 21  
Buildings and permanent improvements [Member]        
Property, Plant and Equipment [Line Items]        
Property and equipment, gross 135 $ 135 140  
Property and equipment, average useful life (in years)   40 years    
Leasehold improvements [Member]        
Property, Plant and Equipment [Line Items]        
Property and equipment, gross 94 $ 94 98  
Machinery and warehouse equipment [Member]        
Property, Plant and Equipment [Line Items]        
Property and equipment, gross 169 $ 169 153  
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 127 $ 127 119  
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 $ 411 $ 411 $ 385  
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    
v3.22.4
Leases (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Lessee, Lease, Description [Line Items]      
Operating lease assets, Lease not yet commenced $ 8    
Amortization expense including operating lease credits 42 $ 0 $ 0
Impairment of right-of-use asset from operating lease 3 0 $ 4
Current operating lease liabilities 73 76  
Non-current operating lease liabilities 275 $ 268  
Property Owned By Employees And Shareholders [Member]      
Lessee, Lease, Description [Line Items]      
Current operating lease liabilities 4    
Non-current operating lease liabilities $ 14    
Property Owned By Employees And Shareholders [Member] | Current Operating Lease Liabilities [Member] | Related Party Concentration Risk [Member]      
Lessee, Lease, Description [Line Items]      
Concentration risk percentage (as a percent) 5.00%    
Property Owned By Employees And Shareholders [Member] | Non-Current Operating Lease Liabilities [Member] | Related Party Concentration Risk [Member]      
Lessee, Lease, Description [Line Items]      
Concentration risk percentage (as a percent) 5.30%    
Minimum [Member]      
Lessee, Lease, Description [Line Items]      
Remaining lease term 1 year    
Operating lease not yet commenced, term of contract 2 years    
Minimum [Member] | Property Owned By Employees And Shareholders [Member]      
Lessee, Lease, Description [Line Items]      
Remaining lease term 4 months    
Maximum [Member]      
Lessee, Lease, Description [Line Items]      
Remaining lease term 19 years    
Lease option to extend (in years) 15 years    
Operating lease not yet commenced, term of contract 5 years    
Maximum [Member] | Property Owned By Employees And Shareholders [Member]      
Lessee, Lease, Description [Line Items]      
Remaining lease term 9 years    
v3.22.4
Leases (Components of Lease Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Leases [Abstract]      
Operating lease cost $ 150 $ 103 $ 87
Finance lease cost:      
Amortization of right-of-use assets 3 3 2
Finance lease cost $ 3 $ 3 $ 2
v3.22.4
Leases (Supplemental Balance Sheet Information) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Operating Leases    
Operating lease right-of-use assets $ 284 $ 325
Current operating lease liabilities 73 76
Non-current operating lease liabilities 275 268
Total operating lease liabilities 348 344
Finance leases    
Property and equipment, at cost 16 13
Accumulated depreciation (6) (5)
Property and equipment, net of accumulated depreciation 10 8
Current maturities of long-term debt $ 4 $ 3
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Long-term Debt and Capital Lease Obligations, Current Long-term Debt and Capital Lease Obligations, Current
Long-term debt $ 6 $ 4
Total finance lease liabilities $ 10 $ 7
Weighted Average Remaining Lease Term, in years, Operating Lease 6 years 8 months 12 days 7 years 3 months 18 days
Weighted Average Remaining Lease Term, in years, Finance Lease 3 years 1 month 6 days 3 years 7 months 6 days
Weighted Average Discount Rate, Percent, Operating Lease 2.80% 2.40%
Weighted Average Discount Rate, Percent, Finance Lease 3.30% 1.70%
v3.22.4
Leases (Supplemental Cash Flow Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Cash paid for amounts included in the measurement of lease liabilities    
Operating cash flows for operating leases $ 87 $ 85
Financing cash flows for finance leases 3 3
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases 88 121
Finance leases $ 6 $ 4
v3.22.4
Leases (Maturities of Lease Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Operating Leases    
2023 $ 82  
2024 66  
2025 56  
2026 46  
2027 33  
Thereafter 98  
Total future lease payments 381  
Less imputed interest (33)  
Total operating lease liabilities 348 $ 344
Finance Leases    
2023 5  
2024 3  
2025 1  
2026 1  
2027 0  
Thereafter 1  
Total future lease payments 11  
Less imputed interest (1)  
Total finance lease liabilities $ 10 $ 7
v3.22.4
Goodwill and Other Intangibles, Net (Narrative) (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Goodwill and Intangible Assets [Line Items]        
Goodwill impairment   $ 20,000,000 $ 0  
Amortization of intabgible assets   126,000,000 124,000,000 $ 106,000,000
Impairment charge on intangible assets   34,000,000 1,000,000 20,000,000
Restructuring charges $ 128,000,000 128,000,000    
Amortization expense expected to be recorded 2023 120,000,000 120,000,000    
Amortization expense expected to be recorded 2024 96,000,000 96,000,000    
Amortization expense expected to be recorded 2025 84,000,000 84,000,000    
Amortization expense expected to be recorded 2026 68,000,000 68,000,000    
Amortization expense expected to be recorded 2027 55,000,000 55,000,000    
Loss on Disposal of a Business [Member]        
Goodwill and Intangible Assets [Line Items]        
Goodwill impairment   20,000,000    
Restructuring charges $ 49,000,000      
Healthcare Distribution [Member]        
Goodwill and Intangible Assets [Line Items]        
Goodwill impairment   20,000,000    
Restructuring charges   124,000,000 $ 6,000,000 $ 31,000,000
Healthcare Distribution [Member] | Loss on Disposal of a Business [Member]        
Goodwill and Intangible Assets [Line Items]        
Restructuring charges   49,000,000    
Healthcare Distribution [Member] | Businesses Within [Member]        
Goodwill and Intangible Assets [Line Items]        
Impairment charge on intangible assets   49,000,000    
Healthcare Distribution [Member] | Businesses Within [Member] | Loss on Disposal of a Business [Member]        
Goodwill and Intangible Assets [Line Items]        
Impairment charge on intangible assets   $ 15,000,000    
Trademarks and Trade Names [Member] | Weighted Average [Member]        
Goodwill and Intangible Assets [Line Items]        
Average useful life (in years)   8 years 4 months 24 days    
Customer Relationships and Lists [Member] | Weighted Average [Member]        
Goodwill and Intangible Assets [Line Items]        
Average useful life (in years)   10 years    
Product Development [Member] | Weighted Average [Member]        
Goodwill and Intangible Assets [Line Items]        
Average useful life (in years)   8 years 7 months 6 days    
Noncompete Agreements [Member] | Weighted Average [Member]        
Goodwill and Intangible Assets [Line Items]        
Average useful life (in years)   5 years 3 months 18 days    
v3.22.4
Goodwill and Other Intangibles, Net (Changes in the Carrying Amount of Goodwill) (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Goodwill [Roll Forward]    
Beginning balance $ 2,854,000,000 $ 2,504,000,000
Adjustments to goodwill: Acquisitions 85,000,000 383,000,000
Adjustments to goodwill: Impairment (20,000,000) 0
Adjustments to goodwill: Foreign currency translation (26,000,000) (33,000,000)
Ending balance 2,893,000,000 2,854,000,000
Health Care Distribution [Member]    
Goodwill [Roll Forward]    
Beginning balance 1,831,000,000 1,501,000,000
Adjustments to goodwill: Acquisitions 86,000,000 359,000,000
Adjustments to goodwill: Impairment (20,000,000)  
Adjustments to goodwill: Foreign currency translation (22,000,000) (29,000,000)
Ending balance 1,875,000,000 1,831,000,000
Technology and Value-Added Services [Member]    
Goodwill [Roll Forward]    
Beginning balance 1,023,000,000 1,003,000,000
Adjustments to goodwill: Acquisitions (1,000,000) 24,000,000
Adjustments to goodwill: Impairment 0  
Adjustments to goodwill: Foreign currency translation (4,000,000) (4,000,000)
Ending balance $ 1,018,000,000 $ 1,023,000,000
v3.22.4
Goodwill and Other Intangibles, Net (Other Intangible Assets - Finite-Lived) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Finite-Lived Intangible Assets, Net [Abstract]    
Cost $ 1,097 $ 1,149
Accumulated amortization (510) (481)
Net 587 668
Customer Relationships and Lists [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 826 853
Accumulated amortization (387) (353)
Net 439 500
Trademarks and Trade Names [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 125 129
Accumulated amortization (51) (44)
Net 74 85
Product Development [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 90 114
Accumulated amortization (56) (70)
Net 34 44
Noncompete Agreements [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 25 25
Accumulated amortization (6) (6)
Net 19 19
Other intangibles assets [Member]    
Finite-Lived Intangible Assets, Net [Abstract]    
Cost 31 28
Accumulated amortization (10) (8)
Net $ 21 $ 20
v3.22.4
Investments and Other (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Investments in unconsolidated affiliates $ 161 $ 168  
Non-current deferred foreign, state and local income taxes 88 35  
Notes receivable 28 36  
Capitalized costs for internally generated software for resale 79 65  
Security deposits 3 2  
Acquisition related indemnification 59 66  
Non-current pension assets 8 0  
Other long-term assets 46 52  
Total 472 424  
Amortization of other long-term assets $ 18 $ 15 $ 16
Financing Receivable [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Latest maturity date of varying installments of long-term notes receivable May 11, 2028    
Financing Receivable [Member] | Minimum [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Long-term notes receivable interest rate (as a percent) 3.00%    
Financing Receivable [Member] | Maximum [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Long-term notes receivable interest rate (as a percent) 7.50%    
v3.22.4
Fair Value Measurements (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests $ 576 $ 613 $ 328 $ 287
Estimate of Fair Value Measurement [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Fair value of debt 1,149 873    
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps   1    
Total assets   10    
Liabilities [Abstract]        
Total return swaps 3      
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 23 8    
Liabilities [Abstract]        
Derivative contracts - liabilities 1 1    
Fair value, measurements, recurring [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 4 1    
Liabilities [Abstract]        
Derivative contracts - liabilities 3 2    
Fair value, measurements, recurring [Member]        
Assets [Abstract]        
Total assets 27      
Liabilities [Abstract]        
Total liabilities 7 3    
Attributable To Redeemable Noncontrolling Interests [Abstract]        
Redeemable noncontrolling interests 576 613    
Fair value, measurements, recurring [Member] | Level 1 [Member] | Fair Value Measurement [Domain]        
Assets [Abstract]        
Total return swaps   0    
Total assets   0    
Liabilities [Abstract]        
Total return swaps 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    
Total assets   10    
Liabilities [Abstract]        
Total return swaps 3      
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Designated As Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 23 8    
Liabilities [Abstract]        
Derivative contracts - liabilities 1 1    
Fair value, measurements, recurring [Member] | Level 2 [Member] | Fair Value Measurement [Domain] | Not Designated as Hedging Instrument [Member]        
Assets [Abstract]        
Derivative contracts - assets 4 1    
Liabilities [Abstract]        
Derivative contracts - liabilities 3 2    
Fair value, measurements, recurring [Member] | Level 2 [Member]        
Assets [Abstract]        
Total assets 27      
Liabilities [Abstract]        
Total liabilities 7 3    
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    
Total assets   0    
Liabilities [Abstract]        
Total return swaps 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 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 $ 576 $ 613    
v3.22.4
Concentrations of Risk (Details)
12 Months Ended
Dec. 31, 2022
Top customer concentration risk [Member] | Sales revenue, net [Member] | Any single customer [Member] | Maximum [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 2.00%
Supplier concentration risk [Member] | Purchases [Member] | Top ten health care distribution suppliers [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 28.00%
Supplier concentration risk [Member] | Purchases [Member] | Single largest supplier [Member]  
Concentration Risk [Line Items]  
Concentration risk percentage (as a percent) 4.00%
v3.22.4
Derivatives and Hedging Activities (Details)
€ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 25, 2021
USD ($)
Dec. 31, 2022
EUR (€)
Dec. 31, 2022
USD ($)
Mar. 20, 2020
USD ($)
Other Comprehensive Income [Member] | Foreign Exchange Forward [Member]          
Derivative [Line Items]          
Gain (loss) on derivative $ (9) $ (11)      
Total Return Swap [Member] | SERP and DCP [Member]          
Derivative [Line Items]          
Derivative, Notional Amount       $ 78 $ 43
Derivative, Inception Date Mar. 20, 2020        
Gain (loss) on derivative $ (17) $ 12      
Total Return Swap [Member] | Secured Overnight Financing Rate Sofr Overnight Index Swap Rate [Member] | SERP and DCP [Member]          
Derivative [Line Items]          
Derivative, Variable Interest Rate     4.58% 4.58%  
Derivative, Basis Spread on Variable Rate     4.03% 4.03%  
Derivative Fixed Interest Rate     0.55% 0.55%  
Net Investment Hedging [Member] | Forward Contracts [Member]          
Derivative [Line Items]          
Derivative, Notional Amount | €     € 200    
Derivative, Maturity Dates Nov. 16, 2023        
v3.22.4
Debt (Revolving Credit Agreement and Other Short-Term Bank Credit Lines - Narrative) (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Line of Credit Facility [Line Items]    
Bank credit lines $ 103,000,000 $ 51,000,000
Revolving Credit Facility [Member]    
Line of Credit Facility [Line Items]    
Initiation date Aug. 20, 2021  
Revolving credit facility borrowing capacity $ 1,000,000,000.0  
Revolving credit facility expiration date Aug. 20, 2026  
Line of credit facility, amount outstanding $ 0 0
Bank credit lines 0 0
Outstanding letters of credit provided to third parties 9,000,000 9,000,000
Revolving Credit Facility April 2022 [Member]    
Line of Credit Facility [Line Items]    
Revolving credit facility borrowing capacity 750,000,000  
Various Bank Credit Lines [Member]    
Line of Credit Facility [Line Items]    
Revolving credit facility borrowing capacity 402,000,000  
Bank credit lines $ 103,000,000 $ 51,000,000
Weighted average interest rate on borrowings under credit lines at period end (as a percent) 10.11% 10.44%
v3.22.4
Debt (Private Placement Facilities - Narrative) (Details) - Private Placement Facilities [Member]
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 25, 2021
USD ($)
Debt Instrument [Line Items]    
Debt instrument 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  
Date of borrowing Oct. 20, 2021  
Weighted average interest rate on borrowings under credit lines at period end (as a percent) 2.99%  
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  
v3.22.4
Debt (U.S. Trade Accounts Receivable Securitization - Narrative) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
number
Sep. 24, 2022
Dec. 31, 2022
USD ($)
number
Dec. 25, 2021
USD ($)
Debt Instrument [Line Items]        
Long-term debt $ 1,046   $ 1,046 $ 822
U.S. trade accounts receivable securitization [Member]        
Debt Instrument [Line Items]        
Pricing commitment period     3 years  
Debt instrument, maturity date Dec. 15, 2025 Oct. 18, 2024    
Debt instrument maximum borrowing capacity $ 450   $ 450  
Number of banks as agents for debt instrument | number 2   2  
Long-term debt $ 330   $ 330 $ 105
Commitment fee for facility usage - facility limit greater than or equal to fifty percent usage (as a percent) 0.30%   0.30%  
Commitment fee for facility usage - facility limit less than fifty percent usage (as a percent) 0.35%   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 4.58%   4.58% 0.19%
Debt instrument, basis spread on variable rate     0.75% 0.75%
Debt instrument, interest rate at period end 5.33%   5.33% 0.94%
v3.22.4
Debt (Bank Credit Lines) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Line of Credit Facility [Line Items]    
Bank credit lines $ 103 $ 51
Revolving credit facility [Member]    
Line of Credit Facility [Line Items]    
Bank credit lines 0 0
Other short-term bank credit lines [Member]    
Line of Credit Facility [Line Items]    
Bank credit lines 103 51
Committed Loan Associated with Animal Health Spin-off [Member]    
Line of Credit Facility [Line Items]    
Bank credit lines $ 103 $ 51
v3.22.4
Debt (Schedule of Long-term Debt) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Debt Instrument [Line Items]    
Long-term debt $ 1,046 $ 822
Finance lease obligations 10 7
Less current maturities (6) (11)
Total long-term debt 1,040 811
Private Placement Facilities [Member]    
Debt Instrument [Line Items]    
Long-term debt 699 706
U.S. trade accounts receivable securitization [Member]    
Debt Instrument [Line Items]    
Long-term debt 330 105
Various collateralized and uncollateralized long-term loans payable with interest, in varying installments [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 7 $ 4
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 0.00% 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 3.50% 4.27%
v3.22.4
Debt (Private Placement Facilities) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Debt Instrument [Line Items]    
Less: Deferred debt issuance costs $ (1)  
Total Long-term debt $ 1,046 $ 822
Private Placement Facilities [Member]    
Debt Instrument [Line Items]    
Date of borrowing Oct. 20, 2021  
Less: Deferred debt issuance costs $ (1)  
Total Long-term debt $ 699 $ 706
Due date Oct. 20, 2026 Jun. 23, 2023
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  
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  
Borrowing Rate 3.00%  
Due date Dec. 24, 2024  
Private Placement Facilities [Member] | Private Placement facilities maturing in June 2027 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jun. 16, 2017  
Amount of borrowing outstanding $ 100  
Borrowing Rate 3.42%  
Due date Jun. 16, 2027  
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  
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  
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  
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  
Borrowing Rate 2.48%  
Due date Jun. 02, 2031  
Private Placement Facilities [Member] | Private placement facilities maturing in June 2033 [Member]    
Debt Instrument [Line Items]    
Date of borrowing Jun. 02, 2021  
Amount of borrowing outstanding $ 100  
Borrowing Rate 2.58%  
Due date Jun. 02, 2033  
v3.22.4
Debt (Schedule of Long-Term Debt Maturities) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Maturities of Long-term Debt [Abstract]  
2023 $ 6
2024 109
2025 331
2026 0
2027 100
Thereafter $ 500
v3.22.4
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Dec. 28, 2019
Income Tax Examination [Line Items]        
Effective tax rate (as a percent) 23.50% 23.80% 19.10%  
Allowable business interest deduction rate after modification to Section 163(j) 50.00%      
Allowable business interest deduction rate before modification to Section 163(j) 30.00%      
Unrecognized tax benefits $ 82 $ 71 $ 70 $ 91
Tax interest expense (credit) 0 0 $ (3)  
Accrued Taxes [Member]        
Income Tax Examination [Line Items]        
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Liability Current 19 14    
Other Liabilities [Member]        
Income Tax Examination [Line Items]        
Tax Cuts And Jobs Act Of 2017 Transition Tax For Accumulated Foreign Earnings Liability Current 23 42    
Unrecognized tax benefits 94 84    
Unrecognized tax benefits that would affect the effective tax rate if recognized 80 69    
Total interest 12 $ 12    
Domestic Tax Authority [Member]        
Income Tax Examination [Line Items]        
Operating loss carryforwards 30      
Net operating loss carryforwards not subject to expiration 21      
Foreign Tax Authority [Member]        
Income Tax Examination [Line Items]        
Operating loss carryforwards 220      
Net operating loss carryforwards not subject to expiration 218      
State and Local Jurisdiction [Member]        
Income Tax Examination [Line Items]        
Operating loss carryforwards 31      
Net operating loss carryforwards not subject to expiration $ 4      
v3.22.4
Income Taxes (Income Before Taxes, Equity in Earnings of Affiliates and Loss on Sale of Equity Investment) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Income before equity method investments, income taxes and loss on sale of equity investment [Abstract]      
Domestic $ 506 $ 593 $ 431
Foreign 215 238 69
Income from continuing operations before taxes, equity in earnings of affiliates and noncontrolling interests $ 721 $ 831 $ 500
v3.22.4
Income Taxes (Provision for Income Taxes Attributable to Continuing Operations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Current income tax expense:      
U.S. Federal $ 150 $ 129 $ 83
State and local 49 37 24
Foreign 44 43 41
Total current 243 209 148
Deferred income tax expense (benefit):      
U.S. Federal (48) (12) (18)
State and local (13) (3) (5)
Foreign (12) 4 (30)
Total deferred (73) (11) (53)
Total income tax provision $ 170 $ 198 $ 95
v3.22.4
Income Taxes (Tax Effects of Temporary Differences to Deferred Income Tax Asset (Liability)) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Deferred income tax asset:    
Net operating losses and other carryforwards $ 64 $ 55
Inventory, premium coupon redemptions and accounts receivable valuation allowances 57 46
Stock-based compensation 11 13
Uniform capitalization adjustment to inventories 11 10
Operating lease liability 77 79
Other asset 48 41
Total deferred income tax asset 268 244
Valuation allowance for non-current deferred tax assets (36) (36)
Net deferred income tax asset 232 208
Deferred income tax liability    
Intangibles amortization (112) (134)
Operating lease right-of-use asset (61) (74)
Property and equipment (7) (7)
Total deferred tax liability (180) (215)
Net deferred income tax asset (liability) $ 52 $ (7)
v3.22.4
Income Taxes (Operating Loss Carryforwards) (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Foreign tax authority [Member]  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards not subject to expiration $ 218
State and Local Jurisdiction [Member]  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards not subject to expiration 4
Federal tax authority [Member]  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards not subject to expiration $ 21
v3.22.4
Income Taxes (Reconciliation of Income Tax Provision at Federal Statutory Rate to Total Income Tax Provision) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Income tax provision at federal statutory rate $ 151 $ 175 $ 105
State income tax provision, net of federal income tax effect 20 21 13
Foreign income tax provision 4 6 0
Pass through noncontrolling interest (4) (4) (3)
Valuation allowance (2) (6) 1
Unrecognized tax benefits and audit settlements 11 7 (18)
Interest expense related to loans (12) (11) (11)
Tax benefit related to legal entity reorganization outside the U.S. 0 0 (6)
Other 2 10 14
Total income tax provision $ 170 $ 198 $ 95
v3.22.4
Income Taxes (Reconciliation of Unrecognized Tax Benefits Excluding the Effect of Deferred Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of period $ 71 $ 70 $ 91
Additions based on current year tax positions 14 3 5
Additions based on prior year tax positions 8 11 8
Reductions based on prior year tax positions 0 (1) (1)
Reductions resulting from settlements with taxing authorities (1) (9) (19)
Reductions resulting from lapse in statutes of limitations (10) (3) (14)
Balance, end of period $ 82 $ 71 $ 70
v3.22.4
Plans of Restructuring and Integration Costs (Narrative) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
number
Dec. 31, 2022
USD ($)
number
Restructuring Cost and Reserve [Line Items]    
Restructuring charges $ 128 $ 128
Midway Dental Supply [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring charges 9  
Integration costs $ 3  
Building Vacated [Member]    
Restructuring Cost and Reserve [Line Items]    
Number of buildings vacated | number 1 1
Accelerated amortization of right of use lease asset expense $ 34  
Loss on Disposal of a Business [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring charges $ 49  
v3.22.4
Plans of Restructuring and Integration Costs (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs $ 128 $ 128    
Total   131 $ 8 $ 32
Severance And Employee Related Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Total   29 8 26
Impairment and Accelerated Depreciation and Amortiztion of Right-of-Use Lease Assets and Other Long Long-Lived Assets [Member]        
Restructuring Cost and Reserve [Line Items]        
Total   47    
Accelerated Depreciation and Amortization [Member]        
Restructuring Cost and Reserve [Line Items]        
Total       4
Exit and Other Related Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Total   3   2
Loss on Disposal of a Business [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs $ 49      
Total   49    
Integration Employee Related and Other Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Total   3    
Healthcare Distribution [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   124 6 31
Integration Costs   3    
Healthcare Distribution [Member] | Severance And Employee Related Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   25 6 25
Healthcare Distribution [Member] | Impairment and Accelerated Depreciation and Amortiztion of Right-of-Use Lease Assets and Other Long Long-Lived Assets [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   47    
Healthcare Distribution [Member] | Accelerated Depreciation and Amortization [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs       4
Healthcare Distribution [Member] | Exit and Other Related Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   3   2
Healthcare Distribution [Member] | Loss on Disposal of a Business [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   49    
Healthcare Distribution [Member] | Integration Employee Related and Other Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Integration Costs   3    
Technology And Value Added Services [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   4 2 1
Technology And Value Added Services [Member] | Severance And Employee Related Costs [Member]        
Restructuring Cost and Reserve [Line Items]        
Restructuring Costs   $ 4 $ 2 $ 1
v3.22.4
Plans of Restructuring and Integration Costs (Schedule of Restructuring Reserve by Segment) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Restructuring Reserve [Roll Forward]        
Balance, beginning   $ 4    
Restructuring charges $ 128 128    
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets   (47)    
Non-cash impairment on disposal of a business   (46)    
Cash payments and other adjustments   (15)    
Balance, ending 24 24 $ 4  
Health Care Distribution [Member]        
Restructuring Reserve [Roll Forward]        
Balance, beginning   3    
Restructuring charges   124 6 $ 31
Non-cash asset impairment and accelerated depreciation and amortization of right-of-use lease assets and other long-lived assets   (47)    
Non-cash impairment on disposal of a business   (46)    
Cash payments and other adjustments   (13)    
Balance, ending 21 21 3  
Technology and Value-Added Services [Member]        
Restructuring Reserve [Roll Forward]        
Balance, beginning   1    
Restructuring charges   4    
Cash payments and other adjustments   (2)    
Balance, ending 3 3 $ 1  
Loss on Disposal of a Business [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges $ 49      
Loss on Disposal of a Business [Member] | Health Care Distribution [Member]        
Restructuring Reserve [Roll Forward]        
Restructuring charges   $ 49    
v3.22.4
Commitments and Contingencies - Unrecorded Unconditional Purchase Obligation (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Unrecorded Unconditional Purchase Obligation [Abstract]  
2022 $ 5
2023 4
2024 4
2025 4
2026 4
Thereafter 0
Total minimum inventory purchase commitment payments $ 21
v3.22.4
Commitments and Contingencies - Other Commitments (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
Employment, consulting and non-compete agreements [Member]  
Other Commitment, Fiscal Year Maturity [Abstract]  
2022 $ 23,000,000
2023 7,000,000
2024 5,000,000
2025 0
2026 0
Thereafter 0
Life-time consulting agreement [Member]  
Other Commitment, Fiscal Year Maturity [Abstract]  
Current compensation paid under lifetime consulting agreement 400,000
Amount of increase effective every fifth year on lifetime consulting agreement $ 25,000
v3.22.4
Commitments and Contingencies - Litigation (Details)
1 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
number
claims
Dec. 31, 2022
USD ($)
number
Dec. 25, 2021
USD ($)
Dec. 26, 2020
USD ($)
Loss Contingency, Information about Litigation Matters [Abstract]        
Net sales   $ 12,647,000,000 $ 12,401,000,000 $ 10,119,000,000
Maximum [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Number of pending claims | number 150 150    
DCH Health Care Authority Et Al [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Number of plantiffs set for jury trial   8    
Number of plantiffs   38    
Other Hospitals Located Throughout Florida [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Number of plantiffs   38    
Cases In Utah [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Number of plantiffs 19      
Number of cases settled | claims 7      
Litigation settlements $ 60,000      
Number of cases dismissed 7      
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 0.20%      
Actions consolidated in the MultiDistrict Litigation [Member] | Continuing Operations [Member]        
Loss Contingency, Information about Litigation Matters [Abstract]        
Net sales   $ 12,600,000,000    
v3.22.4
Stock Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax share-based compensation expense $ 54.0 $ 78.0 $ 9.0
After-tax share-based compensation expense 41.0 $ 60.0 $ 7.0
Total unrecognized compensation cost related to non-vested awards $ 75.0    
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards (in years) 2 years 1 month 6 days    
Liability related to grant date fair value of stock-based compensation to be settled in cash $ 0.4    
Expected life of options (years) 6 years    
Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) $ 85.51 $ 62.72 $ 60.23
Intrinsic value (in dollars per share) $ 78.74 $ 73.99 $ 61.49
Time-Based Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 4 years    
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) $ 85.49    
Intrinsic value (in dollars per share) $ 79.87    
Performance-Based Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 3 years    
Weighted-average grant date fair value of stock-based awards granted before forfeitures (in dollars per share) $ 82.35    
Intrinsic value (in dollars per share) $ 79.87    
Stock Options [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 3 years    
Percentage of stock options vest per year 33.33%    
Expiration period (in years) 10 years    
2020 Stock Incentive Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be granted (in shares) 70,942,657    
Shares available to be granted (in shares) 8,034,696    
2020 Stock Incentive Plan [Member] | Special Pandemic Recognition Award [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 2 years    
Stock based compensation percentage of options vest per year first anniversary 50.00%    
Stock based compensation percentage of options vest per year second anniversary 50.00%    
Cumulative percentage payout based on actual performance and one-time special award 75.00%    
2020 Stock Incentive Plan [Member] | Performance-Based Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage payout based on actual performance 20.00%    
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) 1,892,657    
Shares available to be granted (in shares) 192,400    
2015 Non-Employee Director Stock Incentive Plan [Member] | Time-Based Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 12 months    
2018 Long-Term Incentive Program [Member] | Performance-Based Restricted Stock/Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of years for full vesting (in years) 3 years    
v3.22.4
Stock Based Compensation (Valuation Model) (Details)
12 Months Ended
Dec. 31, 2022
Stock Based Compensation [Abstract]  
Expected dividend yield 0.00%
Expected stock price volatility 27.80%
Risk-free interest rate 3.62%
Expected life of options (years) 6 years
v3.22.4
Stock Based Compensation (Summary of Stock Option Activity Under the Plans) (Details) - Stock Options [Member]
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Outstanding at beginning of period (in shares) | shares 767,717
Granted (in shares) | shares 420,075
Exercised (in shares) | shares (36,150)
Forfeited (in shares) | shares (34,068)
Outstanding at end of period (in shares) | shares 1,117,574
Ending balance, options exercisable (in shares) | shares 220,688
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) | $ / shares $ 63.24
Granted (in dollars per share) | $ / shares 85.81
Exercised (in dollars per share) | $ / shares 62.92
Forfeited (in dollars per share) | $ / shares 74.84
Outstanding at end of period (in dollars per share) | $ / shares 71.38
Ending balance, options exercisable (in dollars per share) | $ / shares $ 63.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Outstanding at end of period, Weighted Average Remaining Contractual Life in Years 8 years 6 months
Outstanding at end of period, Aggregate Intrinsic Value | $ $ 12
v3.22.4
Stock-Based Compensation (Intrinsic Values) (Details) - Employee And Directors Stock Options [Member]
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of Options | shares 885,428
Weighted Average Exercise Price (in dollars per share) | $ / shares $ 73.50
Weighted Average Remaining Contractual Life (in years) 8 years 8 months 12 days
Aggregate Intrinsic Value | $ $ 8,000
v3.22.4
Stock Based Compensation (Status of Non-Vested Restricted Shares/Units) (Details)
12 Months Ended
Dec. 31, 2022
$ / shares
shares
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) | shares 1,945,862
Granted (in shares) | shares 471,840
Vested (in shares) | shares (566,887)
Forfeited (in shares) | shares (94,771)
Ending balance outstanding (in shares) | shares 1,756,044
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) $ 58.79
Granted (in dollars per share) 85.49
Vested (in dollars per share) 55.46
Forfeited (in dollars per share) 67.87
Ending balance outstanding (in dollars per share) 66.59
Intrinsic value (in dollars per share) $ 79.87
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) | shares 674,753
Granted (in shares) | shares 267,865
Vested (in shares) | shares (396,220)
Forfeited (in shares) | shares (25,482)
Ending balance outstanding (in shares) | shares 520,916
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) $ 59.63
Granted (in dollars per share) 82.35
Vested (in dollars per share) 59.21
Forfeited (in dollars per share) 67.65
Ending balance outstanding (in dollars per share) 60.23
Intrinsic value (in dollars per share) $ 79.87
v3.22.4
Employee Benefit Plans (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
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 $ (11) $ 8 $ 8
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 $ 45 38 21
Qualified 401K plan [Member] | Selling General And Administrative Expenses [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Amounts charged (credited) to operations 37    
Qualified 401K plan [Member] | Cost of Goods Sold [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Amounts charged (credited) to operations 8    
Supplemental executive retirement plan [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Amounts charged (credited) to operations $ (1) $ 2 $ 3
v3.22.4
Employee Benefit Plans (Obligation and Funded Status) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Defined Benefit Plan Disclosure [Line Items]      
Balance $ 128 $ 130  
Defined Benefit Plan Service Cost 3 4 $ 3
Defined Benefit Plan Interest Cost 1 0  
Defined Benefit Plan, Benefit Obligation, Past Service (Cost) and Credit 0 5  
Defined Benefit Plan Actuarial Gain Loss (19) (5)  
Defined Benefit Plan Benefit Obligation Benefits Paid (1) 0  
Defined Benefit Plan Benefit Obligation Contributions By Plan Participant 1 1  
Defined Benefit Plan Settlements Benefit Obligation (1) (2)  
Defined Benefit Plan Foreign Currency Exchange Rate Changes Benefit Obligation (4) (5)  
Balance 108 128 130
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of period 75 65  
Actual return on plan assets (3) 5  
Employer contributions 2 2  
Plan participant contributions 1 1  
Expected return on plan assets 1 4  
Benefit received 0 2  
Settlements (1) (3)  
Effect of foreign currency translation (2) (1)  
Fair value of plan assets at end of period 73 75 $ 65
Unfunded Plan [Member]      
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Defined Benefit Plan Funded Status Of Plan 35 53  
Funded Plan [Member]      
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward]      
Defined Benefit Plan Funded Status Of Plan $ 6 $ 6  
v3.22.4
Employee Benefit Plans (Balance Sheet) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 25, 2021
Defined Benefit Plan Disclosure [Line Items]    
Non-current assets $ 25 $ 22
Current liabilities (1) (1)
Non-current liabilities (59) (74)
Accumulated other comprehensive loss, pre-tax $ 4 $ 21
v3.22.4
Employee Benefit Plans (Net Periodic Pension Cost) (Details) - Pension Plans Defined Benefit [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan Service Cost $ 3 $ 4 $ 3
Defined Benefit Plan Interest Cost 1 0  
Defined Benefit Plan Expected Return On Plan Assets (1) (1)  
Defined Benefit Plan Amortization Of Prior Service Cost Credit 1 1 1
Total $ 4 $ 4 $ 4
v3.22.4
Employee Benefit Plans (Assumptions) (Details) - Pension Plans Defined Benefit [Member]
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Defined Benefit Plan Disclosure [Line Items]      
Defined Benefit Plan Assumptions Used Calculating Benefit Obligation Discount Rate 1.67% 0.87%  
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 1.25% 0.56% 0.51%
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets 0.81% 0.71% 0.87%
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Rate Of Compensation Increase 1.68% 1.95% 1.97%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Pension Rate 0.61% 0.72% 0.67%
v3.22.4
Employee Benefit Plans (Estimated Payments) (Details) - Pension Plans Defined Benefit [Member]
$ in Millions
Dec. 31, 2022
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months $ 6
Defined Benefit Plan Expected Future Benefit Payments Year Two 6
Defined Benefit Plan Expected Future Benefit Payments Year Three 5
Defined Benefit Plan Expected Future Benefit Payments Year Four 5
Defined Benefit Plan Expected Future Benefit Payments Year Five 7
Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter 38
Total $ 67
v3.22.4
Redeemable Noncontrolling Interests (Change in Fair Value of Redeemable Noncontrolling Interests) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Components of the change in the redeemable noncontrolling interests [Abstract]      
Balance, beginning of period $ 613 $ 328 $ 287
Decrease in redeemable noncontrolling interests due to acquisitions of noncontrolling interests in subsidiaries (31) (60) (17)
Increase in redeemable noncontrolling interests due to business acquisitions 4 189 28
Net income attributable to redeemable noncontrolling interests 21 23 14
Dividends declared (21) (21) (13)
Effect of foreign currency translation loss attributable to redeemable noncontrolling interests (6) (6) (4)
Change in fair value of redeemable securities (4) 160 33
Balance, end of period $ 576 $ 613 $ 328
v3.22.4
Comprehensive Income (Accumulated Other Comprehensive Income and Comprehensive Income Components) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Attributable to Redeemable noncontrolling interests:      
Foreign currency translation adjustment $ (37) $ (31) $ (25)
Attributable to noncontrolling interests:      
Foreign currency translation adjustment (1) 0 0
Attributable to Henry Schein, Inc.:      
Foreign currency translation adjustment (236) (155) (77)
Unrealized gain (loss) from foreign currency hedging activities 5 (2) (11)
Pension adjustment loss (2) (14) (20)
Accumulated other comprehensive loss (233) (171) (108)
Total Accumulated other comprehensive loss (271) (202) (133)
Components of comprehensive income [Abstract]      
Net Income 566 660 420
Foreign currency translation gain (loss) (88) (84) 63
Tax effect 0 0 0
Foreign currency translation gain (loss) (88) (84) 63
Unrealized gain (loss) from foreign currency hedging activities 10 12 (10)
Tax effect (3) (3) 3
Unrealized gain (loss) from foreign currency hedging activities 7 9 (7)
Tax effect 0 0 0
Pension adjustment gain 16 8 0
Tax effect (4) (2) 0
Pension adjustment gain 12 6 0
Comprehensive income $ 497 $ 591 $ 476
v3.22.4
Comprehensive Income (Total Comprehensive Income) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Comprehensive Income Net Of Applicable Taxes [Abstract]      
Comprehensive income attributable to Henry Schein, Inc. $ 476 $ 568 $ 463
Comprehensive income attributable to noncontrolling interests 6 6 3
Comprehensive income attributable to Redeemable noncontrolling interests 15 17 10
Comprehensive income $ 497 $ 591 $ 476
v3.22.4
Discontinued Operations (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Feb. 07, 2019
Dec. 31, 2022
Dec. 26, 2020
Covetrus, Inc. [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Period services provided according to transition service agreement   24 months  
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     $ 0
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 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    
Proceeds related to Animal Health Share Sale $ 361    
Noncontrolling interest, ownership percentage 63.00%    
v3.22.4
Discontinued Operations (Summarized Financial Information for Discontinued Operations) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Summarized financial information for our discontinued operations      
Costs of goods sold $ 8,816 $ 8,727 $ 7,303
Selling, general and administrative 2,771 2,634 2,086
Income from discontinued operations 0 0 1
Net income attributable to Henry Schein, Inc. $ 538 $ 631 404
Henry Schein Animal Health Business [Member]      
Summarized financial information for our discontinued operations      
Selling, general and administrative     2
Operating income (loss)     (2)
Income tax expense (benefit)     (3)
Income from discontinued operations     1
Net income attributable to Henry Schein, Inc.     $ 1
v3.22.4
Earnings Per Share (Reconciliation of Shares used in Calculating Earnings per Share Basic and Diluted) (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Weighted-average common shares outstanding:      
Basic (in shares) 136,064,221 140,090,889 142,504,193
Effect of dilutive securities:      
Stock options, restricted stock and restricted stock units (in shares) 1,691,449 1,681,892 899,489
Diluted (in shares) 137,755,670 141,772,781 143,403,682
v3.22.4
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive securities excluded from EPS 362,182 612,917 2,398
Stock Options [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive securities excluded from EPS 342,716 611,869 0
Restricted Stock/Units [Member]      
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]      
Anti-dilutive securities excluded from EPS 19,466 1,048 2,398
v3.22.4
Supplemental Cash Flow Information (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Supplemental Cash Flow Elements [Abstract]      
Unrealized gain (loss) from foreign currency hedging activities $ 10 $ 12 $ (10)
v3.22.4
Supplemental Cash Flow Information (Cash Paid for Interest and Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Supplemental Cash Flow Elements [Abstract]      
Interest $ 47 $ 29 $ 43
Income taxes $ 265 $ 242 $ 207
v3.22.4
Related Party Transactions (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 25, 2021
Dec. 26, 2020
Related Party Transaction [Line Items]      
Due to related party $ 6 $ 7  
Due from related party $ 36 44  
Covetrus, Inc. [Member]      
Related Party Transaction [Line Items]      
Period services provided according to transition service agreement 24 months    
Costs from transactions with related party     $ 13
Revenue from related party     75
Internet Brands Inc [Member]      
Related Party Transaction [Line Items]      
Due from (to) related party $ (8) 9  
Internet Brands Inc [Member] | Royalty Agreements [Member]      
Related Party Transaction [Line Items]      
Costs from transactions with related party $ 31 31 31
Internet Brands Inc [Member] | Scenario, Plan [Member] | Royalty Agreements [Member]      
Related Party Transaction [Line Items]      
Royalty agreement term (in years) 10 years    
Amount of transaction $ 31    
Equity Method Investee [Member]      
Related Party Transaction [Line Items]      
Revenue from related party 46 48 38
Purchases from related party $ 9 $ 15 $ 12