Henry Schein 2013 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2013 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.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
95
Note 17 – Commitments and Contingencies – (Continued)
Capital Expenditures
We sometimes enter into certain commitments regarding capital expenditures. As of December 28, 2013, we
have capital expenditure commitments of $1.6 million due within one year.
Purchase Commitments
In our health care distribution business, we sometimes enter into long-term purchase commitments to ensure the
availability of products for distribution. Future minimum annual payments for inventory purchase commitments as
of December 28, 2013 were:
2014 .................................................................................................$ 41,920
 2015 ................................................................................................. 22,076
 2016 ................................................................................................. 22,457
 2017 ................................................................................................. 23,580
 2018 ................................................................................................. 24,759
 Thereafter ........................................................................................ 53,294
  Total minimum inventory purchase commitment payments .......$ 188,086
Litigation
From time to time, we may become a party to legal proceedings, including, without limitation, product liability
claims, employment matters, commercial disputes, governmental inquiries and investigations, and other matters
arising out of the ordinary course of our business. In our opinion, pending matters will not have a material adverse
effect on our financial condition or results of operations.
As of December 28, 2013, we had accrued our best estimate of potential losses relating to claims that were
probable to result in a liability and for which we were able to reasonably estimate a loss. This accrued amount, as
well as related expenses, was not material to our financial position, results of operations or cash flows. Our method
for determining estimated losses considers currently available facts, presently enacted laws and regulations and
other external factors, including probable recoveries from third parties.
Employment, Consulting and Non-Compete Agreements
We have definite-lived employment, consulting and non-compete agreements that have varying base aggregate
annual payments for the years 2014 through 2018 and thereafter of approximately $13.0 million, $2.7 million, $2.1
million, $2.5 million, $0.2 million and $2.2 million. We also have lifetime consulting agreements that provide for
current compensation of $0.5 million per year, increasing $25 every fifth year with the next increase in 2017. In
addition, some agreements have provisions for additional incentives and compensation.