v3.26.1
Basis of Presentation (Policy)
 6 Months Ended
Jun. 27, 2026
Basis of Presentation [Abstract]  
Principles of Consolidation
Our condensed consolidated financial statements include the accounts of Henry
Schein, Inc. and all of our
controlled subsidiaries and VIE (“we,” “us” and “our”).
All intercompany accounts and transactions are eliminated
in consolidation.
Investments in unconsolidated affiliates for which we have the ability to influence
the operating
or financial decisions are accounted for under the equity method.
Basis of Accounting
Our accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with
accounting principles generally accepted in the United States
(“U.S. GAAP”) for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the
information and footnote disclosures required by U.S. GAAP for complete
financial statements.
Use of Estimates
The preparation of consolidated financial statements in conformity with
accounting principles generally accepted in
the United States requires us to make estimates and assumptions that
affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
The results of operations for the three and six months ended June 27,
2026 are not necessarily indicative of the
results to be expected for any other interim period or for the year ending
December 26, 2026.
Our condensed consolidated financial statements reflect estimates and
assumptions made by us that affect, among
other things, our goodwill, long-lived asset and definite-lived intangible
asset valuation; inventory valuation; equity
investment valuation; assessment of the annual effective tax rate; valuation of
deferred income taxes and income
tax contingencies; the allowance for credit losses; fair value of contingent
consideration; hedging activity; supplier
rebates; measurement of compensation cost for certain share-based
performance awards and cash bonus plans; and
pension plan assumptions.
Consolidated Variable Interest Entity
The primary beneficiary of a VIE is required to consolidate the assets and
liabilities of the VIE.
We are deemed to
be the primary beneficiary of the VIE when we have the power to direct activities
that most significantly affect its
economic performance and have the obligation to absorb the majority of
its losses or the right to receive benefits
that could potentially be significant to the VIE.
In determining whether we are the primary beneficiary, we
consider factors such as ownership interest, debt investments, management
representation, authority to control
decisions, and contractual and substantive participating rights of each party.
For this VIE, related to our U.S. trade
accounts receivable securitization as discussed in
the trade accounts receivable transferred to the
VIE are pledged as collateral to the related debt.
The VIE’s creditors have recourse to us for losses on these trade
accounts receivable.
At June 27, 2026 and December 27, 2025, certain trade accounts
receivable that can only be
used to settle obligations of this VIE were $
526
million and $
491
million, respectively, and the liabilities of this
VIE where the creditors have recourse to us were $
430
million and $
390
million, respectively.