Henry Schein 2009 Annual Report Download - page 90

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
78
Note 8 – Plans of Restructuring
On November 5, 2008, we announced certain actions to reduce operating costs. These actions
included the elimination of approximately 430 positions from our operations and the closing of several
smaller facilities.
For the years ended December 26, 2009 and December 27, 2008, we incurred one-time restructuring
costs of approximately $3.0 million (approximately $2.1 million after taxes) and $23.2 million
(approximately $16.0 million after taxes), respectively, consisting of employee severance pay and benefits,
facility closing costs, representing primarily lease termination and asset write-off costs, and outside
professional and consulting fees directly related to the restructuring plan. The costs associated with the
restructuring are included in a separate line item, “Restructuring costs” within our consolidated statements
of income.
The following table shows the amounts expensed and paid for restructuring costs that were incurred
during 2009 and 2008 and the remaining accrued balance of restructuring costs as of December 26, 2009
and December 27, 2008, which is included in Accrued expenses: Other and Other liabilities within our
consolidated balance sheet:
Balance at
December 29,
2007 Provision
Payments
and Other
Adjustments
Balance at
December 27,
2008 Provision
Payments
and Other
Adjustments
Balance at
December 26,
2009
Severance costs (1) ................ -$ 18,643$ 4,313$ 14,330$ 1,532$ 13,697$ 2,165$
Facility closing costs (2) ....... - 3,846 158 3,688 1,452 3,110 2,030
Other professional and
consulting costs ................... - 751 232 519 36 453 102
Total ................................. -$ 23,240$ 4,703$ 18,537$ 3,020$ 17,260$ 4,297$
(1) Represents salaries and related benefits for employees separated from the Company.
(2) Represents costs associated with the closing of certain smaller facilities (primarily lease termination costs) and
property and equipment write-offs.
The majority of these costs have been paid as of December 26, 2009.
The following table shows, by reportable segment, the restructuring costs incurred during 2009 and
2008 and the remaining accrued balance of restructuring costs as of December 26, 2009 and December 27,
2008:
Balance at
December 29,
2007 Provision
Payments
and Other
Adjustments
Balance at
December 27,
2008 Provision
Payments
and Other
Adjustments
Balance at
December 26,
2009
Healthcare distribution .......... -$ 22,650$ 4,193$ 18,457$ 3,020$ 17,252$ 4,225$
Technology ............................ - 590 510 80 - 8 72
Total ................................. -$ 23,240$ 4,703$ 18,537$ 3,020$ 17,260$ 4,297$