Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The following selected financial data, with respect to our financial position and results of operations for each of the five fiscal years in the period ended December 31, 2016, set forth below, has been derived from, should be read in conjunction with and is qualified in its entirety by reference to, our consolidated financial statements and notes thereto. The selected financial data presented below should also be read in conjunction with ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and ITEM 8, “Financial Statements and Supplementary Data.”


	Years ended
	December 31,		December 26,		December 27,		December 28,		December 29,
	2016		2015		2014		2013		2012
	(in thousands, except per share data)
Income Statement Data:
Net sales ..................................................................................................................................................................................	$	11,571,668	$	10,629,719	$	10,371,390	$	9,560,647	$	8,939,967
Gross profit ..............................................................................................................................................................................		3,233,969		3,012,259		2,911,315		2,656,014		2,507,513
Selling, general and administrative expenses .........................................................................................................................................		2,416,504		2,243,356		2,196,173		1,978,960		1,873,360
Restructuring costs (1) ..................................................................................................................................................................		45,891		34,931		-		-		15,192
Operating income ........................................................................................................................................................................		771,574		733,972		715,142		677,054		618,961
Other expense, net (2) ..................................................................................................................................................................		(15,739)		(13,214)		(5,830)		(12,360)		(14,773)
Income before taxes and equity in earnings
of affiliates ...........................................................................................................................................................................		755,835		720,758		709,312		664,694		604,188
Income taxes (3) ........................................................................................................................................................................		(217,958)		(211,391)		(215,610)		(190,891)		(187,858)
Equity in earnings of affiliates .........................................................................................................................................................		18,518		14,060		11,734		10,194		7,058
Loss on sale of equity investment (4) ................................................................................................................................................		-		-		-		(12,535)		-
Net income ...............................................................................................................................................................................		556,395		523,427		505,436		471,462		423,388
Less: Net income attributable to
noncontrolling interests ..............................................................................................................................................................		(49,617)		(44,369)		(39,359)		(39,908)		(35,312)
Net income attributable to Henry Schein, Inc. ........................................................................................................................................	$	506,778	$	479,058	$	466,077	$	431,554	$	388,076


Earnings per share attributable to
Henry Schein, Inc.:



Basic ...................................................................................................................................................................................	$	6.27	$	5.78	$	5.53	$	5.02	$	4.44
Diluted .................................................................................................................................................................................		6.19		5.69		5.44		4.93		4.32

Weighted-average common shares outstanding:
Basic ...................................................................................................................................................................................		80,820		82,844		84,265		85,926		87,499
Diluted .................................................................................................................................................................................		81,862		84,125		85,740		87,622		89,823

		Years ended
		December 31,		December 26,		December 27,		December 28,		December 29,
		2016		2015		2014		2013		2012
		(in thousands)

Net Sales by Market Data:
Health care distribution (5):
Dental ..................................................................................................................................................................................	.......................................................................................................................................................................................................	$	5,555,299	$	5,276,407	$	5,381,215	$	4,997,972	$	4,774,482
Animal health .........................................................................................................................................................................	.......................................................................................................................................................................................................		3,253,095		2,921,624		2,898,612		2,599,461		2,321,151
Medical ................................................................................................................................................................................	.......................................................................................................................................................................................................		2,337,661		2,072,915		1,742,685		1,643,167		1,560,921
Total health care distribution ......................................................................................................................................................	.......................................................................................................................................................................................................		11,146,055		10,270,946		10,022,512		9,240,600		8,656,554
Technology and value-added services (6) ...........................................................................................................................................	.......................................................................................................................................................................................................		425,613		358,773		348,878		320,047		283,413
Total .................................................................................................................................................................................	.......................................................................................................................................................................................................	$	11,571,668	$	10,629,719	$	10,371,390	$	9,560,647	$	8,939,967
		As of
		December 31,		December 26,		December 27,		December 28,		December 29,
		2016		2015		2014		2013		2012
			(in thousands)

Balance Sheet data:
Total assets ..............................................................................................................................................................................	.......................................................................................................................................................................................................	$	6,730,396	$	6,504,740	$	6,138,807	$	5,624,636	$	5,333,997
Long-term debt ..........................................................................................................................................................................	.......................................................................................................................................................................................................		715,457		463,752		542,776		450,233		488,121
Redeemable noncontrolling interests .................................................................................................................................................	.......................................................................................................................................................................................................		607,636		542,194		564,527		497,539		435,175
Stockholders' equity ....................................................................................................................................................................	.......................................................................................................................................................................................................		2,800,804		2,886,814		2,816,445		2,788,001		2,615,864

(1)	Restructuring costs for the year ended December 31, 2016 consist primarily of severance costs, including severance pay and benefits of $40.7 million, facility closing costs of $3.6 million and other costs of $1.6 million. Restructuring costs for the year ended December 26, 2015 consist primarily of severance costs, including severance pay and benefits of $26.7 million, facility closing costs of $5.7 million and other costs of $2.5 million. Restructuring costs for the year ended December 29, 2012 consist primarily of severance costs, including severance pay and benefits of $12.8 million and facility closing costs of $2.4 million. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Plans of Restructuring” herein and the consolidated financial statements and related notes contained in ITEM 8.
(2)	Includes approximately $6.2 million of one-time expenses related to the refinancing of Henry Schein Animal Health debt in 2013. These expenses reflect the non-cash write-off of deferred financing costs.
(3)	In 2015, there was a $6.3 million income tax benefit related to a favorable response to a tax petition, which allowed us to conclude that it is was more likely than not that certain unrecognized tax benefits, which had been previously reserved, would be realized. In 2013, there was a $13.4 million reduction of our valuation allowance related to certain deferred tax assets related to tax loss carryforwards originating outside the United States.
(4)	Represents a loss on divestiture of a noncontrolling interest in a dental wholesale distributor in the Middle East in 2013.
(5)	Consists of consumable products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins.
(6)	Consists of practice management software and other value-added products, which are distributed primarily to health care providers, and financial services on a non-recourse basis, e-services, continuing education services for practitioners, consulting and other services.

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