Comprehensive Income

9 Months Ended

Sep. 29, 2018

Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]

Note 7 – Comprehensive Income

Comprehensive income includes certain gains and losses that, under U.S. GAAP, 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 gain (loss), unrealized gain (loss) on foreign currency hedging activities, unrealized investment loss and pension adjustment gain (loss).

The following table summarizes our Accumulated other comprehensive loss, net of applicable taxes as of:

			September 29,		December 30,
			2018		2017
Attributable to Redeemable noncontrolling interests:
		Foreign currency translation adjustment	$	(19,316)	$	(5,564)

Attributable to noncontrolling interests:
		Foreign currency translation adjustment	$	(553)	$	539

Attributable to Henry Schein, Inc.:
	Foreign currency translation loss		$	(203,749)	$	(112,439)
	Unrealized loss from foreign currency hedging activities			(108)		(782)
	Unrealized investment loss			(5)		(3)
	Pension adjustment loss			(15,787)		(16,843)
		Accumulated other comprehensive loss	$	(219,649)	$	(130,067)

Total Accumulated other comprehensive loss			$	(239,518)	$	(135,092)

The following table summarizes the components of comprehensive income, net of applicable taxes as follows:

	Three Months Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2018		2017		2018		2017
Net income	$	126,976	$	150,948	$	423,116	$	450,783

Foreign currency translation gain (loss)		(10,582)		58,916		(106,154)		173,166
Tax effect		-		-		-		-
Foreign currency translation gain (loss)		(10,582)		58,916		(106,154)		173,166

Unrealized gain (loss) from foreign currency hedging
activities		(406)		26		1,079		(1,278)
Tax effect		27		(60)		(405)		4
Unrealized gain (loss) from foreign currency hedging
activities		(379)		(34)		674		(1,274)

Unrealized investment loss		(1)		(3)		(2)		(3)
Tax effect		-		1		-		1
Unrealized investment loss		(1)		(2)		(2)		(2)

Pension adjustment gain (loss)		139		(529)		1,449		(1,571)
Tax effect		(23)		176		(393)		508
Pension adjustment gain (loss)		116		(353)		1,056		(1,063)
Comprehensive income	$	116,130	$	209,475	$	318,690	$	621,610

During the three months ended September 29, 2018 and September 30, 2017, we recognized, as a component of our comprehensive income, a foreign currency translation gain (loss) of $(10.6) million and $58.9 million, respectively, due to changes in foreign exchange rates from the beginning of the period to the end of the period. During the nine months ended September 29, 2018 and September 30, 2017, we recognized, as a component of our comprehensive income, a foreign currency translation gain (loss) of $(106.2) million and $173.2 million, respectively, due to changes in foreign exchange rates from the beginning of the period to the end of the period. Our financial statements are denominated in the U.S. Dollar currency. Fluctuations in the value of foreign currencies as compared to the U.S. Dollar may have a significant impact on our comprehensive income. The foreign currency translation gain (loss) during the three and nine months ended September 29, 2018 and September 30, 2017 was impacted by changes in foreign currency exchange rates as follows:

		Foreign Currency				Foreign Currency
		Translation				Translation
		Gain (Loss)				Gain
		for the Three				for the Three
		Months Ended		FX Rate into USD		Months Ended		FX Rate into USD
		September 29,		September 29,	June 30,	September 30,		September 30,	July 1,
Currency		2018		2018	2018	2017		2017	2017
Euro		$	(144)	1.16	1.16	$	30,373	1.18	1.14
British Pound			(1,804)	1.31	1.31		9,168	1.34	1.30
Australian Dollar			(5,507)	0.72	0.74		3,767	0.78	0.77
Canadian Dollar			1,488	0.77	0.76		5,640	0.80	0.77
Polish Zloty			1,253	0.27	0.27		940	0.27	0.27
Swiss Franc			266	1.02	1.00		407	1.03	1.04
Brazilian Real			(6,001)	0.25	0.26		6,400	0.32	0.30
All other currencies			(133)				2,221
	Total	$	(10,582)			$	58,916

		Foreign Currency				Foreign Currency
		Translation				Translation
		Loss				Gain
		for the Nine				for the Nine
		Months Ended		FX Rate into USD		Months Ended		FX Rate into USD
		September 29,		September 29,	December 30,	September 30,		September 30,	December 26,
Currency		2018		2018	2017	2017		2017	2016
Euro		$	(27,896)	1.16	1.20	$	95,715	1.18	1.05
British Pound			(11,886)	1.31	1.35		24,712	1.34	1.23
Australian Dollar			(21,227)	0.72	0.78		16,220	0.78	0.72
Canadian Dollar			(4,366)	0.77	0.80		9,820	0.80	0.74
Polish Zloty			(3,907)	0.27	0.29		7,891	0.27	0.24
Swiss Franc			(1,741)	1.02	1.03		5,305	1.03	0.98
Brazilian Real			(32,701)	0.25	0.30		4,136	0.32	0.31
All other currencies			(2,430)				9,367
	Total	$	(106,154)			$	173,166

The following table summarizes our total comprehensive income, net of applicable taxes, as follows:

		Three Months Ended				Nine Months Ended
		September 29,		September 30,		September 29,		September 30,
		2018		2017		2018		2017
Comprehensive income attributable to
	Henry Schein, Inc.	$	113,221	$	193,085	$	313,326	$	577,403
Comprehensive income attributable to
	noncontrolling interests		2,478		372		2,097		848
Comprehensive income attributable to
	Redeemable noncontrolling interests		431		16,018		3,267		43,359
Comprehensive income		$	116,130	$	209,475	$	318,690	$	621,610