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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
67
Note 1 – Significant Accounting Policies – (Continued)
ASC Topic 810-10-65 requires that a noncontrolling interest in a subsidiary be reported as equity in
the consolidated financial statements. Consolidated net income includes the net income for both the parent
and the noncontrolling interest with disclosure of both amounts on the consolidated statement of income.
The calculation of earnings per share continues to be based on income amounts attributable to the parent.
The presentation provisions of ASC Topic 810-10-65 are applied retrospectively, and ASC Topic 810-10-
65 is effective for fiscal years beginning on or after December 15, 2008. The adoption of ASC Topic 805-
20 did not have a material impact on our consolidated financial statements. The cumulative impact of the
adoption of ASC Topic 810-10-65 and ASC Topic 480-10 (discussed above) on our consolidated financial
statements was to decrease Additional paid-in capital by $93.4 million and increase Noncontrolling
interests by $3.2 million as of December 30, 2006.
New Accounting Pronouncements Not Yet Adopted
During January 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value
Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements.”
ASU 2010-06 includes new disclosure requirements related to fair value measurements, including transfers
in and out of Levels 1 and 2 and information about purchases, sales, issuances and settlements for Level 3
fair value measurements. This update also clarifies existing disclosure requirements relating to levels of
disaggregation and disclosures of inputs and valuation techniques. The new disclosures are required in
interim and annual reporting periods beginning after December 15, 2009, except the disclosures relating to
Level 3 activity are effective for fiscal years beginning after December 15, 2010 and for interim periods
within those fiscal years. We are currently evaluating the potential impact that these provisions within
ASU 2010-06 will have on our consolidated financial statements.
During October 2009, the FASB issued ASU 2009-13 which amended guidance contained within ASC
Topic 605-25 related to revenue recognition for multiple-element arrangements. The amendments in this
update establish a selling price hierarchy for determining the selling price of a deliverable. These
amendments also will replace the term fair value in the revenue allocation guidance with selling price to
clarify that the allocation of revenue is based on entity-specific assumptions rather than assumptions of a
marketplace participant. The guidance in this update will require that a vendor determine its best estimate
of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on
a standalone basis. The amendments in this update will be effective prospectively for revenue
arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010. We
are currently evaluating the potential impact that these provisions within ASU 2009-13 will have on our
consolidated financial statements.