Henry Schein 2009 Annual Report Download - page 82

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
70
Note 4 – Goodwill and Other Intangibles, Net – (Continued)
Other intangible assets consisted of the following:
Accumulated Accumulated
Cost Amortization Net Cost Amortization Net
Non-compete agreements ..................... 27,800$ (6,460)$ 21,340$ 23,874$ (4,489)$ 19,385$
Trademarks and trade names ................ 45,612 (11,026) 34,586 43,939 (6,479) 37,460
Customer relationships and lists ........... 192,004 (69,235) 122,769 183,051 (49,293) 133,758
Other .................................................... 36,728 (10,978) 25,750 32,431 (8,941) 23,490
Total ............................................... 302,144$ (97,699)$ 204,445$ 283,295$ (69,202)$ 214,093$
December 26, 2009 December 27, 2008
Non-compete agreements represent amounts paid primarily to key employees and prior owners of
acquired businesses in exchange for placing restrictions on their ability to pose a competitive risk to us.
Such amounts are amortized, on a straight-line basis over the respective non-compete period, which
generally commences upon termination of employment or separation from us. The weighted-average non-
compete period for agreements currently being amortized was approximately six years as of December 26,
2009.
Trademarks, trade names, customer lists and customer relationships were established through business
acquisitions. Certain trademarks and trade names, totaling $26.7 million and $26.2 million as of
December 26, 2009 and December 27, 2008, are deemed indefinite-lived intangible assets and are not
amortized. The remainder are deemed definite-lived and are amortized on a straight-line basis over a
weighted-average period of approximately six years as of December 26, 2009. Customer relationships and
customer lists are definite-lived intangible assets that are amortized on a straight-line basis over a
weighted-average period of approximately 10 years as of December 26, 2009.
Amortization expense, attributable to continuing operations, related to definite-lived intangible assets
for the years ended December 26, 2009, December 27, 2008 and December 29, 2007 was $30.6 million,
$27.9 million and $23.0 million. The annual amortization expense expected for the years 2010 through
2014 is $27.8 million, $26.1 million, $23.9 million, $20.0 million and $14.8 million.