Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks, interest rate risks as well as changes in foreign currency exchange rates as

measured against the U.S. dollar and each other, and changes to the credit markets.

We attempt to minimize these

risks primarily by using foreign currency forward contracts and by

maintaining counter-party credit limits.

These

hedging activities provide only limited protection against currency exchange

and credit risks.

Factors that could

influence the effectiveness of our hedging programs include currency markets and

availability of hedging

instruments and liquidity of the credit markets.

All foreign currency forward contracts that we enter into are

components of hedging programs and are entered into for the sole purpose

of hedging an existing or anticipated

currency exposure.

We do not enter into such contracts for speculative purposes and we manage our credit risks by

diversifying our investments, maintaining a strong balance sheet and having

multiple sources of capital.

Foreign Currency

The value of certain foreign currencies compared to the U.S. dollar may

affect our financial results.

Fluctuations in

exchange rates may positively or negatively affect our revenues, gross margins, operating expenses

and retained

earnings, all of which are expressed in U.S. dollars.

Where we deem it prudent, we engage in hedging programs

using primarily foreign currency forward contracts aimed at limiting

the impact of foreign currency exchange rate

fluctuations on earnings.

We purchase short-term (i.e., generally 18 months or less) foreign currency forward

contracts to protect against currency exchange risks associated with intercompany

loans due from our international

subsidiaries and the payment of merchandise purchases to foreign

suppliers.

We do not hedge the translation of

foreign currency profits into U.S. dollars, as we consider foreign

currency translation to be an accounting exposure,

not an economic exposure.

A hypothetical 5% change in the average value of the U.S. dollar in 2025 compared

to

foreign currencies would have changed our 2025 reported Net income

attributable to Henry Schein, Inc. by

approximately $6 million.

As of December 27, 2025, our forward foreign currency exchange agreements,

which expire through November 3,

2028, had a fair value of $(20) million as determined by quoted

market prices.

Included in the forward foreign

currency exchange agreements, Henry Schein, Inc. had net investment designated

EUR/USD forward contracts

with notional values of approximately €300 million and reported fair values

of $(20) million.

A 5% increase in the

value of the Euro to the USD from December 27, 2025 would decrease the fair

value of these forward contracts by

$18 million.

Total

Return Swaps

On March 20, 2020, we entered into a total return swap for the purpose of economically

hedging our unfunded non-

qualified supplemental retirement plan and our deferred compensation plan obligation.

At inception, the notional value of the investments in these plans was $43

million.

At December 27, 2025, the

notional value of the investments in these plans was $117 million.

At December 27, 2025, the financing blended

rate for this swap was based on the Secured Overnight Financing Rate

(“SOFR”) of 3.79% plus 0.75%, for a

combined rate of 4.54%.

For the years ended December 27, 2025, December 28, 2024, and December

30, 2023 we

have recorded a gain within selling, general and administrative expense, of approximately

$11 million, $8 million

and $10 million, respectively, net of transaction costs, related to this undesignated swap.

This swap is expected to

be renewed on an annual basis and is expected to result in a neutral impact to our

results of operations.

Credit Risk Monitoring

We limit our credit risk with respect to our cash equivalents, short-term investments and derivative instruments by

monitoring the credit worthiness of the financial institutions who are

the counterparties to such financial

instruments.

As a risk management policy, we limit the amount of credit exposure by diversifying and utilizing

numerous investment grade counterparties.

Index to Financial Statements

Interest Rate Risk

As of December 27, 2025, we had variable interest rate exposure for certain

of our revolving credit facilities and

our U.S. trade accounts receivable securitization.

Our revolving credit facility,

which we entered into on July 11,

2023 and expires on July 11, 2028,

has a variable

interest rate that is based on the SOFR plus a spread based on our leverage

ratio at the end of each financial

reporting quarter.

As of December 27, 2025, there was $100 million outstanding under

this revolving credit

facility.

During the year ended December 27, 2025, the average outstanding

balance was approximately $203

million.

Based upon our average outstanding balances, for each hypothetical

increase of 25 basis points, our

interest expense thereunder would have increased by $0.5 million.

Our U.S. trade accounts receivable securitization, which we entered

into on April 17, 2013 and expires on

December 6, 2027, has a variable interest rate that is based upon the asset-backed

commercial paper rate.

As of

December 27, 2025, the commercial paper rate was 4.06% plus 0.75%,

for a combined rate of 4.81%,

and the

outstanding balance under this securitization facility was $390 million.

During the year ended December 27, 2025,

the average outstanding balance was approximately $363 million.

Based upon our average outstanding balances,

for each hypothetical increase of 25 basis points, our interest expense thereunder

would have increased by $1

million.

On July 11, 2023, we entered into a three-year $750 million term loan credit agreement (the “Term Credit

Agreement”),

which was originally scheduled to mature on July 11, 2026.

On June 6, 2025, this agreement was

amended and restated to, among other things, (i) extend the maturity date

to June 6, 2030, and (ii) modify certain

financial definitions and covenants.

The interest rate on this term loan is based on the Term SOFR plus a spread

based on our leverage ratio at the end of each financial reporting quarter.

After renewing the Term Credit

Agreement in June of 2025, our hedged portion of the Term Credit Agreement was approximately 90% of the

notional total.

As of December 27, 2025, the effective fixed rate was 5.69% and the floating

rate was 5.01%,

resulting in a weighted average rate of 5.62%.

On July 11, 2023, we entered into interest rate swap agreements to hedge the cash flow of our variable

rate $750

million floating debt term loan facility, with three years maturity, effectively changing the floating rate portion of

our obligation to a fixed rate.

Under the terms of the interest rate swap agreements, we receive variable

interest

payments based on the one-month Term SOFR rate and pay interest at a fixed rate.

As of December 27, 2025, the

notional value of the interest rate swap agreements was $675 million.