Henry Schein 2013 Annual Report Download - page 61

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52
Divestiture of an Equity Affiliate
On July 10, 2013, we divested our investment in a dental wholesale distributor in the Middle East that had
primarily served as an importer that distributed products largely to other distributors. The divestiture resulted in a
one-time loss of $12.5 million, or $0.14 per diluted share, in the third quarter of 2013. Pursuant to the terms of this
divestiture, we made cash payments to this distributor in the aggregate amount of $13.4 million, which it was
required to use to reduce its debt, pay certain trade payables and provide working capital. The investment in this
distributor had been fully impaired as of the end of 2012. There is no tax benefit related to the loss on this
divestiture.
Stock repurchases
From June 21, 2004 through December 28, 2013, we repurchased $1.1 billion, or 16,829,005 shares, under our
common stock repurchase programs, with $300.0 million available as of December 28, 2013 for future common
stock share repurchases.
Redeemable noncontrolling interests
Some minority shareholders in certain of our subsidiaries have the right, at certain times, to require us to
acquire their ownership interest in those entities at fair value. ASC Topic 480-10 is applicable for noncontrolling
interests where we are or may be required to purchase all or a portion of the outstanding interest in a consolidated
subsidiary from the noncontrolling interest holder under the terms of a put option contained in contractual
agreements. The components of the change in the Redeemable noncontrolling interests for the years ended
December 28, 2013, December 29, 2012 and December 31, 2011 are presented in the following table:
December 28, December 29, December 31,
2013 2012 2011
Balance, beginning of period ................................................................. $ 435,175 $ 402,050 $ 304,140
Decrease in redeemable noncontrolling interests due to
redemptions ....................................................................................... (9,028) (23,637) (160,254)
Increase in redeemable noncontrolling interests due to
business acquisitions ........................................................................... 11,542 30,935 13,618
N
et income attributable to redeemable noncontrolling interests ............ 39,430 34,803 36,514
Dividends declared ................................................................................. (19,965) (21,013) (15,212)
Effect of foreign currency translation gain (loss) attributable to
redeemable noncontrolling interests .................................................. (654) 904 (889)
Change in fair value of redeemable securities ....................................... 41,039 53,769 224,133
Other adjustment to redeemable noncontrolling interests ...................... - (42,636) -
Balance, end of period ............................................................................ $ 497,539 $ 435,175 $ 402,050
Changes in the estimated redemption amounts of the noncontrolling interests subject to put options are adjusted
at each reporting period with a corresponding adjustment to Additional paid-in capital. Future reductions in the
carrying amounts are subject to a “floor” amount that is equal to the fair value of the redeemable noncontrolling
interests at the time they were originally recorded. The recorded value of the redeemable noncontrolling interests
cannot go below the floor level. These adjustments do not impact the calculation of earnings per share.
Additionally, some prior owners of such acquired subsidiaries are eligible to receive additional purchase price
cash consideration if certain financial targets are met. Any adjustments to these accrual amounts are recorded in
our consolidated statement of income.
On December 30, 2011, we acquired all of Oak Hill Capital Partners’ (“OHCP”) remaining direct and indirect
interests in Butler Animal Health Supply (“BAHS”) (including its interest in W.A. Butler Company) for $155
million in cash. As a result of this transaction, our ownership in BAHS increased to approximately 71.7% at
December 31, 2011. The amount paid to OHCP for their remaining interests in BAHS was in excess of the
previously agreed upon annual limits (see Note 9. “Business Acquisitions and Other Transaction” within our notes
to our consolidated financial statements), but such limits were waived by all parties involved. At December 28,
2013, our ownership in BAHS is approximately 74.4%.