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 30, 2017, 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 30,December 31,December 26,December 27,December 28,
20172016201520142013
(in thousands, except per share data)
Income Statement Data:
Net sales ..................................................................................................................................................................................$12,461,543$11,571,668$10,629,719$10,371,390$9,560,647
Gross profit ...............................................................................................................................................................................3,399,1033,226,4733,006,9542,910,8202,655,247
Selling, general and administrative expenses (5)......................................................................................................................................2,539,7342,409,0082,238,0512,195,6781,978,193
Restructuring costs (1) ..................................................................................................................................................................-45,89134,931--
Operating income ........................................................................................................................................................................859,369771,574733,972715,142677,054
Other expense, net (2) ..................................................................................................................................................................(36,521)(15,739)(13,214)(5,830)(12,360)
Income before taxes and equity in earnings
of affiliates ...........................................................................................................................................................................822,848755,835720,758709,312664,694
Income taxes (3) .........................................................................................................................................................................(362,506)(217,958)(211,391)(215,610)(190,891)
Equity in earnings of affiliates ..........................................................................................................................................................16,58718,51814,06011,73410,194
Loss on sale of equity investment (4) .................................................................................................................................................(17,636)---(12,535)
Net income ...............................................................................................................................................................................459,293556,395523,427505,436471,462
Less: Net income attributable to
noncontrolling interests ..............................................................................................................................................................(52,994)(49,617)(44,369)(39,359)(39,908)
Net income attributable to Henry Schein, Inc. ........................................................................................................................................$406,299$506,778$479,058$466,077$431,554
Earnings per share attributable to
Henry Schein, Inc.: (6)
Basic ...................................................................................................................................................................................$2.59$3.14$2.89$2.77$2.51
Diluted .................................................................................................................................................................................2.573.102.852.722.46
Weighted-average common shares outstanding:
Basic ...................................................................................................................................................................................156,787161,641165,687168,531171,852
Diluted .................................................................................................................................................................................158,208163,723168,250171,480175,244
Years ended
December 30,December 31,December 26,December 27,December 28,
20172016201520142013
(in thousands)
Net Sales by Market Data:
Health care distribution (7):
Dental ........................................................................................................................................................................................................................................................................................................................................................................................$6,048,813$5,555,299$5,276,407$5,381,215$4,997,972
Animal health ................................................................................................................................................................................................................................................................................................................................................................................3,476,6353,253,0952,921,6242,898,6122,599,461
Medical .......................................................................................................................................................................................................................................................................................................................................................................................2,497,9942,337,6612,072,9151,742,6851,643,167
Total health care distribution ............................................................................................................................................................................................................................................................................................................................................................12,023,44211,146,05510,270,94610,022,5129,240,600
Technology and value-added services (8) ....................................................................................................................................................................................................................................................................................................................................................438,101425,613358,773348,878320,047
Total .......................................................................................................................................................................................................................................................................................................................................................................................$12,461,543$11,571,668$10,629,719$10,371,390$9,560,647
As of
December 30,December 31,December 26,December 27,December 28,
20172016201520142013
(in thousands)
Balance Sheet data:
Total assets .....................................................................................................................................................................................................................................................................................................................................................................................$7,811,235$6,760,396$6,534,740$6,138,807$5,624,636
Long-term debt ................................................................................................................................................................................................................................................................................................................................................................................907,756715,457463,752542,776450,233
Redeemable noncontrolling interests ........................................................................................................................................................................................................................................................................................................................................................832,138607,636542,194564,527497,539
Stockholders' equity ...........................................................................................................................................................................................................................................................................................................................................................................2,824,4102,800,8042,886,8142,816,4452,788,001
(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. 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 2017 there was an estimated one-time-charge of $140 million related to the transition tax on deemed repatriated foreign earnings and a one-time charge of $3.0 million for the revaluation of deferred taxes associated with U.S. tax reform legislation. 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 2017 loss on divestiture of an equity ownership in E4D Technologies and a 2013 loss on divestiture of a noncontrolling interest in a dental wholesale distributor in the Middle East.
(5)Includes a pre-tax charge of $5,325 related to a litigation settlement in 2017.
(6)On August 16, 2017, we announced that our Board of Directors approved a two-for-one stock split of our common stock. Each Henry Schein, Inc. stockholder of record at the close of business on September 1, 2017 received a distribution of one additional share for every share held. Trading began on a split-adjusted basis on September 15, 2017. The effects of the stock split on share and per share amounts have been retroactively reflected for all periods presented in this Form 10-K.
(7)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.
(8)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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