Henry Schein 2013 Annual Report Download - page 79

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
70
Note 1 – Significant Accounting Policies – (Continued)
Cost of Sales
The primary components of cost of sales include the cost of the product (net of purchase discounts, supplier
chargebacks and rebates) and inbound and outbound freight charges. Costs related to purchasing, receiving,
inspections, warehousing, internal inventory transfers and other costs of our distribution network are included in
selling, general and administrative expenses along with other operating costs.
As a result of different practices of categorizing costs associated with distribution networks throughout our
industry, our gross margins may not necessarily be comparable to other distribution companies. Total distribution
network costs were $62.2 million, $59.5 million and $59.1 million for the years ended December 28, 2013,
December 29, 2012 and December 31, 2011.
Comprehensive Income
Comprehensive income includes certain gains and losses that, under accounting principles generally accepted in
the United States, are excluded from net income as such amounts are recorded directly as an adjustment to
stockholders’ equity. Our comprehensive income is primarily comprised of net income, foreign currency
translation adjustments, unrealized gains (losses) on hedging and investment activity and pension adjustments.