Henry Schein 2014 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2014 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 131

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

54
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. Accounting Standards Codification 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 27, 2014, December 28, 2013 and December 29, 2012 are presented in the
following table:
December 27, December 28, December 29,
2014 2013 2012
Balance, beginning of period ................................................................. $ 497,539 $ 435,175 $ 402,050
Decrease in redeemable noncontrolling interests due to
redemptions ....................................................................................... (105,383) (9,028) (23,637)
Increase in redeemable noncontrolling interests due to
business acquisitions ........................................................................... 120,220 11,542 30,935
N
et income attributable to redeemable noncontrolling interests ............ 38,741 39,430 34,803
Dividends declared ................................................................................. (23,346) (19,965) (21,013)
Effect of foreign currency translation gain (loss) attributable to
redeemable noncontrolling interests .................................................. (4,080) (654) 904
Change in fair value of redeemable securities ....................................... 40,836 41,039 53,769
Other adjustment to redeemable noncontrolling interests ...................... - - (42,636)
Balance, end of period ............................................................................ $ 564,527 $ 497,539 $ 435,175
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.
Unrecognized tax benefits
As more fully disclosed in Note 12 of “Notes to Consolidated Financial Statements,” we cannot reasonably
estimate the timing of future cash flows related to the unrecognized tax benefits, including accrued interest, of
$80.6 million as of December 27, 2014.