HENRY SCHEIN INCHSIC
HENRY SCHEIN INC Goodwill & Intangibles Disclosure
Note 9 – Goodwill and Other Intangibles, Net
Changes in the carrying amounts of goodwill for the years ended December 27, 2025 and December 28, 2024 were
as follows:
Global
Distribution and
Value-Added
Services
Global Specialty
Products
Global
Technology
Total
Balance as of December 30, 2023
$
2,007
$
1,077
$
791
$
3,875
Adjustments to goodwill:
Acquisitions
41
107
-
148
Impairment
-
(11)
(2)
(13)
Foreign currency translation
(39)
(80)
(4)
(123)
Balance as of December 28, 2024
2,009
1,093
785
3,887
Adjustments to goodwill:
Acquisitions
49
124
26
199
Disposal
(1)
-
(2)
(3)
Foreign currency translation
49
74
7
130
Balance as of December 27, 2025
$
2,106
$
1,291
$
816
$
4,213
In January 2025, we performed a geographical realignment within the Global Distribution and Value-Added
Services reportable segment intended to provide increased transparency into the performance of our global
distribution businesses and to reflect evolving management oversight and decision-making. As a result of the
realignment and the change in reporting units, we reallocated goodwill to each of our new reporting units using a
relative fair value approach. The relative fair values of the new reporting units were determined based on a
quantitative valuation analysis that considered projected cash flows, market assumptions, and other relevant
valuation inputs. Reporting units under the former and new structures of the Global Distribution and Value-Added
Services reportable segment were tested for impairment as of January 1, 2025, and it was determined that the fair
values of our reporting units more likely than not exceeded their carrying values, resulting in no impairment as of
January 1, 2025 under both structures.
In connection with our restructuring initiatives, during the year ended December 28, 2024, we recorded an $
11
million impairment of goodwill in the Global Specialty Products segment, relating to the disposal of a portion of a
business; such impairment was calculated based on the relative fair value of goodwill.
Other intangible assets consisted of the following:
December 27, 2025
Accumulated
Weighted Average
Cost
Amortization
Net
Life (in years)
Customer relationships and lists
$
971
$
(408)
$
563
10
Trademarks / Tradenames
205
(96)
109
8
Product development
438
(120)
318
9
Non-compete agreements
18
(5)
13
5
Other
24
(9)
15
15
Total
$
1,656
$
(638)
$
1,018
December 28, 2024
Accumulated
Weighted Average
Cost
Amortization
Net
Life (in years)
Customer relationships and lists
$
915
$
(356)
$
559
10
Trademarks / Tradenames
188
(89)
99
8
Product development
403
(71)
332
9
Non-compete agreements
21
(6)
15
4
Other
28
(10)
18
15
Total
$
1,555
$
(532)
$
1,023
Trademarks, trade names, customer lists and customer relationships were established through business acquisitions
and are amortized on a straight-line basis over their respective asset life. Non-compete agreements represent
amounts paid primarily to prior owners of acquired businesses and certain sales persons, in exchange for placing
restrictions on their ability to pose a competitive risk to us. Such amounts are amortized, on a straight-line basis
over the respective non-compete period, which generally commences upon termination of employment or
separation from us.
Amortization expense, excluding impairment charges, related to definite-lived intangible assets for the years ended
December 27, 2025, December 28, 2024 and December 30, 2023, was $
180
185
152
respectively.
During the year ended December 27, 2025, we recorded $
16
our Global Distribution and Value-Added Services segment. The impairment charges included $
14
primarily related to customer lists and relationships attributable to lower than anticipated operating margins in these
businesses. The remaining impairment charges of $
2
During the year ended December 28, 2024, we recorded $
4
our Global Distribution and Value-Added Services segment. It included $
2
calculated using the relative fair value, related to a disposal of a business, and $
1
impairment due to business integration in connection with our restructuring initiatives. The remaining $
1
impairment charges related to trade names and non-compete agreements.
During the year ended December 30, 2023, we recorded $
19
our Global Distribution and Value-Added Services segment, consisting of $
7
lists and relationships attributable to lower than anticipated operating margins in certain businesses, and a $
12
million charge related to the planned exit of a business in connection with our restructuring initiatives.
The impairment charges for the years ended December 27, 2025, December 28, 2024, and December 30, 2023 were
measured as the excess of the carrying values over the estimated fair values of the related intangible assets,
determined using discounted estimates of future cash flows and the relief-from-royalty method.
The above intangible asset impairment charges were recorded within selling, general and administrative expenses
and in restructuring and related costs in our consolidated statement of income.
The annual amortization expense expected to be recorded for existing intangibles assets for the years 2026 through
2030 is $
172
159
142
128
118
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 15, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 10, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.