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 29, 2018, 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 29,December 30,December 31,December 26,December 27,
20182017201620152014
(in thousands, except per share data)
Income Statement Data:
Net sales ..................................................................................................................................................................................$13,201,995$12,461,543$11,571,668$10,629,719$10,371,390
Gross profit ..............................................................................................................................................................................3,595,0843,399,1033,226,4733,006,9542,910,820
Selling, general and administrative expenses..........................................................................................................................................2,701,8762,534,4092,409,0082,238,0512,195,678
Litigation settlements.................................................................................................................................................................38,4885,325---
Transaction costs related to Animal Health spin-off..............................................................................................................................38,756----
Restructuring costs (1) ..................................................................................................................................................................62,912-45,89134,931-
Operating income ........................................................................................................................................................................753,052859,369771,574733,972715,142
Other expense, net.......................................................................................................................................................................(57,704)(36,521)(15,739)(13,214)(5,830)
Income before taxes and equity in earnings
of affiliates ...........................................................................................................................................................................695,348822,848755,835720,758709,312
Income taxes (2) .........................................................................................................................................................................(155,492)(362,506)(217,958)(211,391)(215,610)
Equity in earnings of affiliates .........................................................................................................................................................22,27016,58718,51814,06011,734
Loss on sale of equity investment (3) .................................................................................................................................................-(17,636)---
Net income ...............................................................................................................................................................................562,126459,293556,395523,427505,436
Less: Net income attributable to
noncontrolling interests ..............................................................................................................................................................(26,245)(52,994)(49,617)(44,369)(39,359)
Net income attributable to Henry Schein, Inc. ........................................................................................................................................$535,881$406,299$506,778$479,058$466,077
Earnings per share attributable to
Henry Schein, Inc.: (4)
Basic ...................................................................................................................................................................................$3.51$2.59$3.14$2.89$2.77
Diluted .................................................................................................................................................................................3.492.573.102.852.72
Weighted-average common shares outstanding:
Basic ...................................................................................................................................................................................152,656156,787161,641165,687168,531
Diluted .................................................................................................................................................................................153,707158,208163,723168,250171,480
Table of ContentsYears ended
December 29,December 30,December 31,December 26,December 27,
20182017201620152014
(in thousands)
Net Sales by Market Data:
Health care distribution (5):
Dental .........................................................................................................................................................................................................................................................................................................................................................................................$6,348,945$6,048,813$5,555,299$5,276,407$5,381,215
Animal health ................................................................................................................................................................................................................................................................................................................................................................................3,682,6393,476,6353,253,0952,921,6242,898,612
Medical .......................................................................................................................................................................................................................................................................................................................................................................................2,661,1662,497,9942,337,6612,072,9151,742,685
Total health care distribution .............................................................................................................................................................................................................................................................................................................................................................12,692,75012,023,44211,146,05510,270,94610,022,512
Technology and value-added services (6) ...................................................................................................................................................................................................................................................................................................................................................509,245438,101425,613358,773348,878
Total ........................................................................................................................................................................................................................................................................................................................................................................................$13,201,995$12,461,543$11,571,668$10,629,719$10,371,390
As of
December 29,December 30,December 31,December 26,December 27,
20182017201620152014
(in thousands)
Balance Sheet data:
Total assets .....................................................................................................................................................................................................................................................................................................................................................................................$8,500,527$7,863,995$6,811,763$6,580,775$6,184,320
Long-term debt .................................................................................................................................................................................................................................................................................................................................................................................1,003,873907,756715,457463,752542,776
Redeemable noncontrolling interests .........................................................................................................................................................................................................................................................................................................................................................312,156832,138607,636542,194564,527
Stockholders' equity ...........................................................................................................................................................................................................................................................................................................................................................................3,541,7882,824,4102,800,8042,886,8142,816,445
(1)Restructuring costs for the year ended December 29, 2018 consist primarily of severance costs, including severance pay and benefits of $58.2 million, facility closing costs of $3.6 million and other costs of $1.1 million. 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)In 2018 we recorded (a) a $10.0 million net credit to income tax representing a change in our estimate of the transition tax on deemed repatriated foreign earnings, (b) a one-time income tax charge of $3.9 million to income tax as a result of a reorganization of legal entities related to Henry Schein One, (c) an income tax credit of $13.9 million ($10.6 million attributable to Henry Schein, Inc.) resulting from a legal entity reorganization outside of the United States and (d) a one-time income tax charge of $3.1 million as a result of the reorganization of legal entities completed in preparation for the Animal Health spin-off. In 2017 we recorded a one-time income tax charge of $140 million related to the transition tax on deemed repatriated foreign earnings and a one-time income tax charge of $3.0 million for the revaluation of deferred taxes associated with U.S. tax reform legislation. In 2015, we recorded 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.
(3)Represents a 2017 loss on divestiture of an equity ownership in E4D Technologies.
(4)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.
(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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