HENRY SCHEIN INC
For the period ended Dec 28, 2024. Filed Feb 25, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 25, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2023-12-30; filed 2024-02-28.
0001000228-24-000011
ITEM 7. Management's Discussion and Analysis of Financial Conditionand Results of OperationsCurrent report: 10-K
Period ended 2024-12-28; filed 2025-02-25.
0001000228-25-000014
ITEM 7. Management's Discussion and Analysis of Financial Conditionand Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 1071 previous paragraphs and 1231 current paragraphs.
490 unchanged; 197 reworded; 501 added; 365 removed; 19 previous and 43 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (501)
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expressed or implied herein.
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performance.
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risks, uncertainties and other factors
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by such forward-looking statements.
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those discussed in this Annual Report
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and historical results
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where we manufacture products, our dependence on third parties
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for raw materials or purchased components; risks
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relating to the achievement of our strategic growth objectives; risks
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related to the recently signed Strategic
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and protect new products (particularly
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technology products) and services and utilize new technologies
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including the failure to
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information systems, legal,
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third-party acquisitions of us;
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products; risks related to activist investors; security risks associated with our
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information systems and technology
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breaches (including the October 2023
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from third-party online
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issues with our third-party shippers, and increases in fuel and energy costs; changes
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in laws and policies governing
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manufacturing, development and investment in territories and countries
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where we do business; general global and
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deflation, recession, unemployment (and
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corresponding increase in under-insured populations), consumer confidence,
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sovereign debt levels, ongoing wars,
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foreign currencies, and changes to
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other economic indicators, international trade agreements; the threat
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or outbreak of war, terrorism or public unrest
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(including, without limitation, the war in Ukraine, the Israel-Gaza war and other
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unrest and threats in the Middle
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East and the possibility of a wider European or global conflict); changes
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to laws and policies governing foreign
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trade, tariffs and sanctions, or greater restrictions on imports and exports; supply
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chain disruption; geopolitical
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associated with the EU Medical Device Regulation; failure to comply
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storage and processing of sensitive personal information or standards in electronic
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health records or transmissions;
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changes in tax legislation, changes in tax rates and availability of certain tax
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deductions; risks related to product
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Removed paragraphs (365)
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expressed or implied
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herein.
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future performance.
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risks, uncertainties and other
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forward-looking
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terms as “may,” “could,” “expect,”
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terms.
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to, those discussed in
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Commission (“SEC”).
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current and historical results
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technology products) and
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challenges associated with
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governing documents that may discourage third-party acquisitions of us; adverse
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security risks associated with our
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information systems and technology products and services, such as
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limitation,
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competition from third-party online commerce sites) and consolidating
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market;
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global and domestic macro-economic
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to other economic indicators,
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international trade agreements, potential trade barriers and terrorism; geopolitical
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wars; failure to comply with
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Device Regulation; failure to
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sensitive personal information or standards
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in electronic health records or transmissions; changes in tax legislation;
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risks related to product liability, intellectual
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or legislative import restrictions; risks associated
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global operations; litigation
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of litigation matters; our dependence on our
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with customers, suppliers and
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construed to indicate their relative importance or priority.
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continued to experience a decrease in the
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sales of PPE and COVID-19 test kits as compared to the comparable
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prior-year periods, primarily due to lower
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market pricing of PPE and lower market demand for COVID-19
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test kits.
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national brand solutions or
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Our consolidated financial statements reflect estimates and assumptions
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made by us that affect, among other things,
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our goodwill, long-lived asset and definite-lived intangible asset valuation;
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Reworded paragraphs (197)
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All forward-looking statements made by us are subject to
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All forward-looking statements made by us are subject to risks and uncertainties
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risks and uncertainties and are not guarantees of
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and are not guarantees of future
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factors that may cause our actual results, performance and achievements
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that may cause our actual results, performance and achievements
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or industry results to be materially
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or industry results to be materially different from
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different from any future results, performance or achievements expressed or implied by such
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any future results, performance or achievements expressed or implied
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These statements are generally identified by the use of such
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statements are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,”
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“intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,”
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“plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to
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“to be,” “to make” or other comparable
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make” or other comparable terms. Factors that
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Factors that could cause or contribute to such differences include, but are not limited
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could cause or contribute to such differences include, but are not limited to,
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this Annual Report on Form 10-K, and in particular the risks discussed under
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on Form 10-K, and in particular the risks discussed under the caption
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the caption “Risk Factors” in Item 1A
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“Risk Factors” in Item 1A of this report and
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of this report and those that may be discussed in other documents we
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those that may be discussed in other documents we file with
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file with the Securities and Exchange
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the Securities and Exchange Commission (“SEC”).
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Risk factors and uncertainties that could cause actual results to differ materially from
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Risk factors and uncertainties that could cause actual results to differ materially from current
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the manufacture and supply of our products; our
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the manufacture and supply of our products and
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ability to develop or acquire and maintain and protect new products (particularly
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Partnership Agreement; our ability to develop or acquire and maintain
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technologies that achieve market acceptance with acceptable margins; transitional
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that achieve market acceptance with acceptable
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acquisitions, dispositions and joint ventures, including the failure
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margins; transitional challenges associated with acquisitions, dispositions and joint ventures,
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to achieve anticipated synergies/benefits, as well
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achieve anticipated synergies/benefits, as well as significant demands on our operations,
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resources functions in connection with acquisitions, dispositions and
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regulatory, compliance, financial and human resources functions in connection with acquisitions, dispositions and
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joint ventures; certain provisions in our
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joint ventures; certain provisions in our governing documents that may discourage
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changes in supplier rebates or
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adverse changes in supplier rebates or other purchasing incentives;
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other purchasing incentives; risks related to the sale of corporate brand products;
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risks related to the sale of corporate brand
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cyberattacks or other privacy or data security
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products and services, such as cyberattacks or other privacy or data security
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breaches (including the October 2023 incident); effects of a highly competitive (including, without
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incident); effects of a highly competitive (including, without limitation, competition
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changes in the health care industry;
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commerce sites) and consolidating market; changes in the health care
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risks from expansion of customer purchasing power and multi-tiered
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industry; risks from expansion of customer
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costing structures; increases in shipping costs
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purchasing power and multi-tiered costing structures; increases in shipping costs
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for our products or other service issues with our third-party shippers; general
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for our products or other service
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and political conditions, including inflation, deflation, recession, ongoing
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domestic macro-economic and political conditions, including inflation,
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the value of the U.S. dollar as compared to foreign currencies, and changes
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fluctuations in energy pricing and the value of the U.S. dollar as compared to
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existing and future regulatory requirements; risks associated with the EU Medical
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wars; failure to comply with existing and future regulatory requirements,
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comply with laws and regulations relating to health care fraud or other
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care fraud or other laws and regulations; failure to comply with laws
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laws and regulations relating to the collection, storage and processing of
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and regulations relating to the collection,
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property and other claims; risks associated with customs policies
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liability, intellectual property and other claims; risks associated with customs policies or legislative import
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with disease outbreaks, epidemics, pandemics (such as the COVID-19
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restrictions; risks associated with disease outbreaks, epidemics, pandemics
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on by the COVID-19 pandemic.
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(such as the COVID-19 pandemic), or
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pandemic), or similar wide-spread public
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similar wide-spread public health concerns and other natural or
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health concerns and other natural or man-made disasters; risks associated with our
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man-made disasters; risks associated with our
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risks; new or unanticipated litigation developments and the status
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global operations; litigation risks; new or unanticipated litigation developments
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including relating to health care; risks
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with laws and regulations relating to health
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accounts and collective buying groups, which,
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tend to favor distributors capable of
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was completed during the first quarter of 2024.
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costs, which are included in the
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Global net sales for the year ended December 28, 2024 increased 2.7%.
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products and COVID-19 test kits.
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generated local currency sales, excluding PPE products and COVID-19
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net sales for the year ended December
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revenue cycle management solutions and our analytical products.
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to customer mix, sales to our large-group customers are typically completed at lower gross
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The difference between our effective and federal statutory tax rates primarily relates to state
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A discussion of the results of operations for the year ended
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Note: Percentages for Net Sales; Gross Profit; Operating Expenses; Other
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Expense, Net; and Income Taxes are
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based on actual values and may not recalculate due to rounding.
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The 4.2% decrease in our internally generated local currency sales was primarily
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to a decrease in sales of
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growth are presented in the table above.
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increase the number of cloud-based users.
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Gross profit and gross margin percentages by reportable segment were as follows:
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As a result of different practices of categorizing costs associated with distribution networks
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industry, our gross margins may not necessarily be comparable to other distribution companies.
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Technology segment, higher gross margins result from us being both the developer and seller of software products
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-Added Services segment, gross profit margins may vary between the
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periods as a result of the changes in the mix of products sold as well as
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sales of our corporate brand and certain specialty products achieve
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typically completed at lower gross margins due to the higher volumes sold as opposed
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to the gross margin on sales
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Operating expenses (consisting of selling, general and administrative
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restructuring and integration costs) by segment were as follows:
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The net increase in operating expenses is attributable to the following:
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Other expense, net was as follows:
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Interest income increased primarily due to increased interest rates.
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Interest expense increased primarily due to
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increased borrowings and increased interest rates.
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non-current operating lease liabilities were
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In estimating carrying value of inventory, we
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disposal of an unprofitable business in connection with our restructuring
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as significant demands on our operations, information systems,
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legal, regulatory, compliance, financial and human
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wars, fluctuations in energy pricing and
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laws and regulations; failure to comply with
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We are headquartered in Melville, New York,
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and 2033, the 45 and older
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impairment of intangible assets and goodwill,
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of global net sales for the year ended December 30, 2023.
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sales, excluding PPE products were flat compared to the prior year.
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During the year ended December 30, 2023, the
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For example, sales of our corporate
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During the quarter ended December 30, 2023, the cybersecurity
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year ended December 30, 2023, compared to net
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During the years ended December 30, 2023 and
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Note 1 – Basis of Presentation and Significant Accounting
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These impairment charges were calculated as the differences
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impairment charges related to businesses in
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of tax positions taken or expected to
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The amount recognized is measured as the largest amount of