Henry Schein 2013 Annual Report Download - page 12

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3
PART I
ITEM 1. Business
General
We believe we are the world’ s largest provider of health care products and services primarily to office-based
dental, animal health and medical practitioners. We serve more than 800,000 customers worldwide, including
dental practitioners and laboratories, animal health clinics and physician practices, as well as government,
institutional health care clinics and other alternate care clinics. We believe that we have a strong brand identity due
to our more than 81 years of experience distributing health care products.
We are headquartered in Melville, New York, employ more than 16,000 people (of which more than 7,000 are
based outside the United States) and have operations or affiliates in 25 countries, including the United States,
Australia, Austria, Belgium, Canada, China, the Czech Republic, France, Germany, Hong Kong SAR, Iceland,
Ireland, Israel, Italy, Luxembourg, Mauritius, the Netherlands, New Zealand, Portugal, Slovakia, South Africa,
Spain, Switzerland, Thailand and the United Kingdom.
We offer a comprehensive selection of products and services and value-added solutions for operating efficient
practices and delivering high quality care. We operate through a centralized and automated distribution network
with a selection of more than 96,000 branded products and Henry Schein private brand products in stock, as well as
more than 110,000 additional products available as special order items. We also offer our customers exclusive,
innovative technology solutions, including practice management software and e-commerce solutions, as well as a
broad range of financial services.
We have established over four million square feet of space in 61 strategically located distribution centers
around the world to enable us to better serve our customers and increase our operating efficiency. This
infrastructure, together with broad product and service offerings at competitive prices, and a strong commitment to
customer service, enables us to be a single source of supply for our customers’ needs. Our infrastructure also
allows us to provide convenient ordering and rapid, accurate and complete order fulfillment.
We conduct our business through two reportable segments: (i) health care distribution and (ii) technology and
value-added services. These segments offer different products and services to the same customer base.
The health care distribution reportable segment aggregates our global dental, animal health and medical
operating segments. This segment consists of consumable products, small equipment, laboratory products, large
equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic
tests, infection-control products and vitamins. Our global dental group serves office-based dental practitioners,
dental laboratories, schools and other institutions. Our global animal health group serves animal health practices
and clinics. Our global medical group serves office-based medical practitioners, ambulatory surgery centers, other
alternate-care settings and other institutions.
Our global technology and value-added services group provides software, technology and other value-added
services to health care practitioners. Our technology group offerings include practice management software
systems for dental and medical practitioners and animal health clinics. Our value-added practice solutions include
financial services on a non-recourse basis, e-services, practice technology, network and hardware services, as well
as continuing education services for practitioners.
Industry
The health care products distribution industry, as it relates to office-based health care practitioners, is highly
fragmented and diverse. This industry, which encompasses the dental, animal health and medical markets, was
estimated to produce revenues of approximately $45 billion in 2013 in the global markets. The industry ranges
from sole practitioners working out of relatively small offices to group practices or service organizations ranging in
size from a few practitioners to a large number of practitioners who have combined or otherwise associated their
practices.