Henry Schein 2014 Annual Report Download - page 102

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
88
Note 12 – Income Taxes – (Continued)
The total amount of unrecognized tax benefits as of December 27, 2014 was approximately $80.6 million, of
which $60.7 million would affect the effective tax rate if recognized. It is expected that the amount of
unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a
material impact on our consolidated financial statements.
The total amounts of interest and penalties, which are classified as a component of the provision for income
taxes, were approximately $14.8 million and $0, respectively, as of December 27, 2014.
The tax years subject to examination by major tax jurisdictions include the years 2009 and forward by the U.S.
Internal Revenue Service, the years 2005 and forward for certain states and the years 2005 and forward for certain
foreign jurisdictions. In December 2014, the IRS issued a Statutory Notice of Deficiency for 2009, 2010 and 2011.
We do not expect this to have a significant effect on our consolidated financial position, liquidity or the results of
operations.
The following table provides a reconciliation of unrecognized tax benefits excluding the effects of deferred
taxes, interest and penalties:
December 27, December 28,
2014 2013
Balance, beginning of period ......................................................................................... $ 43,200 $ 32,700
Additions based on current year tax positions ................................................................ 13,500 6,000
Additions based on prior year tax positions ................................................................... 13,400 9,600
Reductions based on prior year tax positions ................................................................. (900) (1,100)
Reductions resulting from settlements with taxing authorities ....................................... (1,700) (800)
Reductions resulting from lapse in statutes of limitations .............................................. (1,700) (3,200)
Balance, end of period .................................................................................................... $ 65,800 $ 43,200