Henry Schein 2009 Annual Report Download - page 87

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
75
Note 6 – Fair Value Measurements – (Continued)
As of December 26, 2009, we have estimated the value of our closed-end municipal bond fund ARS
portfolio and our student loan backed ARS portfolio based upon a discounted cash flow model. The
assumptions used in our valuation model include estimates for interest rates, timing and amount of cash
flows and expected holding periods for the ARS portfolio. As a result of these analyses, our previously
recorded cumulative temporary impairment at December 27, 2008 of $2.0 million was increased by $0.2
million to $2.2 million during the year ended December 26, 2009.
We estimated the value of our holdings within the Reserve Primary Fund based upon the net asset
value of the fund as of September 16, 2008, subsequent to the declaration of bankruptcy by Lehman
Brothers Holdings, Inc. The reserve recorded in 2008 of $0.8 million related to our holdings within the
Reserve Primary Fund was reduced by $0.5 million during 2009, based upon collections, and as of
December 26, 2009 the reserve is $0.3 million. The following table presents a reconciliation of our assets
and Redeemable noncontrolling interests measured at fair value on a recurring basis using unobservable
inputs (Level 3). The details of the changes in Redeemable noncontrolling interests are shown in Note 1:
Level 3 (Unobservable Inputs)
Closed-End Municipal Bond Funds,
Student Loan Backed Auction-Rate
Securities, Money Market Fund and
Redeemable Noncontrolling Interests
Balance, December 29, 2007 ....................................................... 150,028$
Transfers to Level 3 ..................................................................... 36,318
Change in redeemable noncontrolling interests ............................ 83,007
Gains and (losses):
Reported in earnings - Reserve Primary Fund increase ............. (750)
Reported in accumulated other comprehensive income ............ (2,022)
Balance, December 27, 2008 ....................................................... 266,581
Transfers to Level 3 ..................................................................... -
Change in redeemable noncontrolling interests ............................ (54,465)
Redemptions at par ....................................................................... (13,227)
Gains and (losses):
Reported in earnings - Reserve Primary Fund reduction ........... 500
Reported in accumulated other comprehensive income ............ (225)
Balance, December 26, 2009 ....................................................... 199,164$
Note 7 – Business Acquisitions, Discontinued Operations, Divestitures and Other Transactions
Acquisitions
The operating results of all acquisitions are reflected in our financial statements from their respective
acquisition dates.
We completed certain acquisitions during the year ended December 26, 2009, which were immaterial
to our financial statements individually and in the aggregate.