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 28, 2019, 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 28,		December 29,		December 30,		December 31,		December 26,
	2019		2018		2017		2016		2015
	(in thousands, except per share data)
Income Statement Data:
Net sales	$	9,985,803	$	9,417,603	$	8,883,438	$	8,218,885	$	7,650,755
Gross profit		3,090,886		2,910,747		2,746,662		2,605,907		2,476,068
Selling, general and administrative expenses		2,357,920		2,217,273		2,071,576		1,975,445		1,869,351
Litigation settlements		-		38,488		5,325		-		-
Restructuring costs (1)		14,705		54,367		-		38,621		26,587
Operating income		718,261		600,619		669,761		591,841		580,130
Other expense, net		(37,954)		(63,783)		(39,967)		(18,705)		(17,904)
Income from continuing operations before taxes, equity
in earnings of affiliates and noncontrolling interests		680,307		536,836		629,794		573,136		562,226
Income taxes (2)		(159,515)		(107,432)		(308,975)		(169,311)		(170,113)
Equity in earnings of affiliates		17,900		21,037		15,293		17,110		13,300
Net gain (loss) on sale of equity investments (3)		186,769		-		(17,636)		-		-
Net income from continuing operations		725,461		450,441		318,476		420,935		405,413
Income (loss) from discontinued operations		(6,323)		111,685		140,817		135,460		118,014
Net income		719,138		562,126		459,293		556,395		523,427
Less: Net income attributable to noncontrolling interests		(24,770)		(19,724)		(25,304)		(19,651)		(19,705)
Less: Net (income) loss attributable to noncontrolling
interests from discontinued operations		366		(6,521)		(27,690)		(29,966)		(24,664)
Net income attributable to Henry Schein, Inc.	$	694,734	$	535,881	$	406,299	$	506,778	$	479,058
Amounts attributable to Henry Schein, Inc.:
Continuing operations		700,691		430,717		293,172		401,284		385,708
Discontinued operations		(5,957)		105,164		113,127		105,494		93,350
Net income attributable to Henry Schein, Inc.	$	694,734	$	535,881	$	406,299	$	506,778	$	479,058

Earnings (loss) per share attributable to
Henry Schein, Inc.:

From continuing operations:
Basic	$	4.74	$	2.82	$	1.87	$	2.48	$	2.33
Diluted		4.69		2.80		1.85		2.45		2.29

From discontinued operations:
Basic	$	(0.04)	$	0.69	$	0.72	$	0.65	$	0.56
Diluted		(0.04)		0.68		0.72		0.64		0.55

Earnings per share attributable to Henry Schein, Inc.:
Basic	$	4.70	$	3.51	$	2.59	$	3.14	$	2.89
Diluted		4.65		3.49		2.57		3.10		2.85

Weighted-average common shares outstanding:
Basic		147,817		152,656		156,787		161,641		165,687
Diluted		149,257		153,707		158,208		163,723		168,250

	Years ended
	December 28,		December 29,		December 30,		December 31,		December 26,
	2019		2018		2017		2016		2015
	(in thousands)
Net Sales by Market Data:
Health care distribution (4):
Dental	$	6,415,865	$	6,347,998	$	6,047,811	$	5,554,296	$	5,275,405
Medical		2,973,586		2,661,166		2,497,994		2,337,661		2,072,915
Total health care distribution		9,389,451		9,009,164		8,545,805		7,891,957		7,348,320
Technology and value-added services (5)		515,085		408,439		337,633		326,928		302,435
Total excluding Corporate TSA revenues		9,904,536		9,417,603		8,883,438		8,218,885		7,650,755
Corporate TSA revenues (6)		81,267		-		-		-		-
Total	$	9,985,803	$	9,417,603	$	8,883,438	$	8,218,885	$	7,650,755
	As of
	December 28,		December 29,		December 30,		December 31,		December 26,
	2019		2018		2017		2016		2015
		(in thousands)
Balance Sheet Data:
Total assets	$	7,151,101	$	8,500,527	$	7,863,995	$	6,811,763	$	6,580,775
Long-term debt		622,908		980,344		884,227		689,626		439,830
Redeemable noncontrolling interests		287,258		219,724		465,584		285,567		266,435
Stockholders' equity		3,630,137		3,541,788		2,824,410		2,800,804		2,886,814

(1)	Restructuring costs for the year ended December 28, 2019 consist primarily of severance costs, including severance pay and benefits of $13.8 million and facility closing costs of $0.9 million. Restructuring costs for the year ended December 29, 2018 consist primarily of severance costs, including severance pay and benefits of $50.2 million, facility closing costs of $3.2 million and other costs of $1.0 million. Restructuring costs for the year ended December 31, 2016 consist primarily of severance costs, including severance pay and benefits of $33.8 million, facility closing costs of $3.2 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 $20.3 million, facility closing costs of $4.9 million and other costs of $1.4 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)	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)	During the fourth quarter of 2019, we sold an equity investment in Hu-Friedy Mfg. Co., LLC, a manufacturer of dental instruments and infection prevention solutions. Our investment was non-controlling, we were not involved in running the business and had no representation on the board of directors. During the fourth quarter of 2019, we also sold certain other equity investments. During 2017 we sold our equity ownership in E4D Technologies resulting in a loss of approximately $17.6 million. There was no tax benefit recognized related to this loss.
(4)	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.
(5)	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.
(6)	Corporate TSA revenues represents sales of certain products to Covetrus under the transition services agreement entered into in connection with the Animal Health Spin-off, which we expect to continue through August 2020.

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