Item 6. Selected Financial Data

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 26, 2020, 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 26,

December 28,

December 29,

December 30,

December 31,

2020

2019

2018

2017

2016

(in thousands, except per share data)

Income Statement Data:

Net sales

$

10,119,141

$

9,985,803

$

9,417,603

$

8,883,438

$

8,218,885

Gross profit

2,814,343

3,090,886

2,910,747

2,746,662

2,605,907

Selling, general and administrative expenses

2,246,947

2,357,920

2,217,273

2,071,576

1,975,445

Litigation settlements

-

-

38,488

5,325

-

Restructuring costs (1)

32,093

14,705

54,367

-

38,621

Operating income

535,303

718,261

600,619

669,761

591,841

Other expense, net

(35,408)

(37,954)

(63,783)

(39,967)

(18,705)

Income from continuing operations before taxes, equity

in earnings of affiliates and noncontrolling interests

499,895

680,307

536,836

629,794

573,136

Income taxes (2)

(95,374)

(159,515)

(107,432)

(308,975)

(169,311)

Equity in earnings of affiliates

12,344

17,900

21,037

15,293

17,110

Net gain (loss) on sale of equity investments (3)

1,572

186,769

-

(17,636)

-

Net income from continuing operations

418,437

725,461

450,441

318,476

420,935

Income (loss) from discontinued operations

(6,323)

111,685

140,817

135,460

Net income

419,423

719,138

562,126

459,293

556,395

Less: Net income attributable to noncontrolling interests

(15,629)

(24,770)

(19,724)

(25,304)

(19,651)

Less: Net (income) loss attributable to noncontrolling

interests from discontinued operations

-

(6,521)

(27,690)

(29,966)

Net income attributable to Henry Schein, Inc.

$

403,794

$

694,734

$

535,881

$

406,299

$

506,778

Amounts attributable to Henry Schein, Inc.:

Continuing operations

402,808

700,691

430,717

293,172

401,284

Discontinued operations

(5,957)

105,164

113,127

105,494

Net income attributable to Henry Schein, Inc.

$

403,794

$

694,734

$

535,881

$

406,299

$

506,778

Earnings (loss) per share attributable to

Henry Schein, Inc.:

From continuing operations:

Basic

$

2.83

$

4.74

$

2.82

$

1.87

$

2.48

Diluted

2.81

4.69

2.80

1.85

2.45

From discontinued operations:

Basic

$

0.01

$

(0.04)

$

0.69

$

0.72

$

0.65

Diluted

0.01

(0.04)

0.68

0.72

0.64

Earnings per share attributable to Henry Schein, Inc.:

Basic

$

2.83

$

4.70

$

3.51

$

2.59

$

3.14

Diluted

2.82

4.65

3.49

2.57

3.10

Weighted-average common shares outstanding:

Basic

142,504

147,817

152,656

156,787

161,641

Diluted

143,404

149,257

153,707

158,208

163,723

Years ended

December 26,

December 28,

December 29,

December 30,

December 31,

2020

2019

2018

2017

2016

(in thousands)

Net Sales by Market Data:

Health care distribution (4):

Dental

$

5,912,593

$

6,415,865

$

6,347,998

$

6,047,811

$

5,554,296

Medical

3,617,017

2,973,586

2,661,166

2,497,994

2,337,661

Total health care distribution

9,529,610

9,389,451

9,009,164

8,545,805

7,891,957

Technology and value-added services (5)

514,258

515,085

408,439

337,633

326,928

Total excluding Corporate TSA revenues

10,043,868

9,904,536

9,417,603

8,883,438

8,218,885

Corporate TSA revenues (6)

75,273

81,267

-

-

-

Total

$

10,119,141

$

9,985,803

$

9,417,603

$

8,883,438

$

8,218,885

As of

December 26,

December 28,

December 29,

December 30,

December 31,

2020

2019

2018

2017

2016

(in thousands)

Balance Sheet Data:

Total assets

$

7,772,532

$

7,151,101

$

8,500,527

$

7,863,995

$

6,811,763

Long-term debt

515,773

622,908

980,344

884,227

689,626

Redeemable noncontrolling interests

327,699

287,258

219,724

465,584

285,567

Stockholders' equity

3,984,385

3,630,137

3,541,788

2,824,410

2,800,804

Restructuring costs for the year ended December 26, 2020 consist primarily of severance costs, including severance pay and benefits

of $25.8 million, facility closing costs of $5.9 million and other costs of $0.4 million.

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.

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.

(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.

In the fourth quarter of 2020 we received contingent proceeds of $2.1 million from the 2019 sale

of Hu-Friedy resulting in the recognition of an additional after-tax gain of $1.6 million.

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, personal protective equipment, 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 ended in December 2020.