Henry Schein 2009 Annual Report Download - page 40

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December 26, December 27, December 29, December 30, December 31,
2009 2008 (1) 2007 (1) 2006 (1) 2005 (1)
Net Sales by Market Data:
Healthcare distribution (5):
Dental (6) ................................................................ 2,509,921$ 2,567,064$ 2,447,841$ 2,122,415$ 1,883,748$
Medical (7) .............................................................. 1,457,102 1,428,968 1,540,269 1,398,996 1,284,214
International (8) ...................................................... 2,398,105 2,221,092 1,769,881 1,401,889 1,256,910
Total healthcare distribution ................................ 6,365,128 6,217,124 5,757,991 4,923,300 4,424,872
Technology (9) ............................................................ 173,208 163,289 131,893 98,223 88,255
Total .................................................................... 6,538,336$ 6,380,413$ 5,889,884$ 5,021,523$ 4,513,127$
December 26, December 27, December 29, December 30, December 31,
2009 2008 (2) 2007 (2) 2006 (2) 2005 (2)
Balance Sheet data:
Total assets ................................................................. 3,835,985$ 3,599,210$ 3,313,472$ 2,880,547$ 2,582,436$
Long-term debt ........................................................... 243,373 256,648 407,627 434,804 463,455
Redeemable noncontrolling interests .......................... 178,570 233,035 150,028 111,902 72,433
Stockholders' equity ................................................... 2,161,508 1,772,354 1,674,987 1,393,356 1,204,795
Years ended
(in thousands)
As of
(in thousands)
(1) Adjusted to reflect the effects of discontinued operations as further described below.
(2) Adjusted to reflect the effects of the 2009 adoption of provisions contained within Accounting Standards Codification (“ASC”)
Topic 470-20, “Debt with Conversion and Other Options.” Also, reflects the adoption of ASC Topic 810-10-65, relating to
consolidations, that requires a noncontrolling interest in a subsidiary be reported as equity in our consolidated financial
statements. Consolidated net income includes the net income for both the parent and the noncontrolling interest. Additionally,
reflects the adoption of provisions of ASC Topic 480-10 related to noncontrolling interests, where we are or may be required to
purchase all or a portion of the outstanding interest in a consolidated subsidiary from the noncontrolling interest holder under the
terms of a put option or other contractual agreement.
(3) Restructuring costs for the year ended December 26, 2009 consist primarily of employee severance costs, including severance
pay and benefits of $1.5 million and facility closing costs of $1.5 million. Restructuring costs for the year ended December 27,
2008 consist primarily of employee severance costs, including severance pay and benefits of $18.6 million, facility closing costs
of $3.8 million and other professional and consulting costs of $0.8 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.
(4) On August 5, 2009, we completed the sale of a wholesaler of dental consumables for aggregate consideration of $14.2 million, of
which $13.2 million has been received as of December 26, 2009. As a result of this sale, included in operating results from
discontinued operations for 2009 is a net gain, net of tax, of $2.6 million or $0.03 per diluted share.
During the fourth quarter of 2008, we recorded an impairment charge of $11.2 million ($7.3 million, net of tax), or $0.08 per
diluted share, related to the exit from our wholesale ultrasound business.
During 2007, we sold substantially all of the assets of our oncology pharmaceutical and specialty pharmacy businesses,
previously reported as part of our healthcare distribution reportable segment. The aggregate sales price was $14.3 million, which
was received during the third and fourth quarters of 2007. As a result of these sales, included in the operating results from
discontinued operations for 2007 is a net gain, net of tax, of approximately $0.7 million or $0.01 per diluted share. We recorded
an impairment charge to our related long-lived assets of approximately $20.6 million, net of tax, or $(0.23) per diluted share in
2007.
On April 1, 2006, we sold substantially all of the assets of our Hospital Supply Business, previously reported as part of our
healthcare distribution reportable segment. The sale price was $36.5 million, which was received during the second quarter of
2006. As a result of this sale, included in the operating results from discontinued operations for 2007 is a $0.3 million ($0.2
million after-tax) expense relating to contract contingencies. Included in operating results from discontinued operations for 2006
is a $32.3 million ($19.4 million after-tax) loss on the sale, including $3.5 million ($2.1 million after-tax) of transitional service
obligations and selling costs. Also, because the decision to divest this business was reached in 2005, we recorded an impairment
charge to our long-lived assets of approximately $7.0 million, net of tax, or $(0.08) per diluted share in 2005.
(5) Consists of consumable products, small equipment, laboratory products, large dental and medical equipment, equipment repair
services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and
vitamins.
(6) Consists of products sold in the United States and Canada.
(7) Consists of products sold in the United States’ medical and animal health markets.
(8) Consists of products sold in the dental, medical and animal health markets, primarily in Europe.
(9) Consists of practice management software and other value-added products and services, which are sold primarily to healthcare
providers in the United States, Canada, the United Kingdom, Australia and New Zealand for the years 2007 through 2009 and the
United States and Canada for the years 2005 and 2006.