Henry Schein 2012 Annual Report Download - page 57
Download and view the complete annual report
Please find page 57 of the 2012 Henry Schein annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.47
As a component of total selling, general and administrative expenses, selling expenses increased $101.4
million, or 9.4%, for the year ended December 31, 2011 from the comparable prior year period. As a percentage of
net sales, selling expenses decreased to 13.8% from 14.3% for the comparable prior year period.
As a component of total selling, general and administrative expenses, general and administrative expenses
increased $97.0 million, or 17.4%, for the year ended December 31, 2011 from the comparable prior year period.
As a percentage of net sales, general and administrative expenses increased to 7.7% from 7.4% for the comparable
prior year period.
Other Expense, Net
Other expense, net for the years ended 2011 and 2010 was as follows (in thousands):
Variance
2011 2010 $ %
Interest income .................................................................... $ 15,593 $ 14,098 $ 1,495 10.6 %
Interest expense ................................................................... (30,377) (33,641) 3,264 9.7
Other, net ............................................................................. 1,942 447 1,495 334.5
Other expense, net ....................................................... $ (12,842) $ (19,096) $ 6,254 32.8
Other expense, net decreased $6.3 million to $12.8 million for the year ended December 31, 2011 from the
comparable prior year period. Interest income increased $1.5 million primarily due to higher investment income
partially offset by a decrease in late fee income. Interest expense decreased $3.3 million primarily due to reduced
interest expense from the redemption of our 3% convertible contingent notes originally due in 2034 (the
“Convertible Notes”) on September 3, 2010, partially offset by increased interest expense related to borrowings
under our private placement facilities, as well as interest expense related to our credit lines. Other, net increased by
$1.5 million due primarily to a gain associated with the acquisition of the remaining interest in an equity investment
and proceeds received from a litigation settlement.
Income Taxes
For the year ended December 31, 2011, our effective tax was 31.7% compared to 31.9% for the prior year
period. The net reduction in our 2011 effective tax rate results from additional tax planning, settlements of tax
audits and higher income from lower taxing countries. The difference between our effective tax rate and the federal
statutory tax rate for both periods related primarily to foreign and state income taxes.
Net Income
Net income increased $52.5 million, or 14.9%, for the year ended December 31, 2011 compared to the prior
year period due to the factors noted above.