HENRY SCHEIN INCHSIC

HENRY SCHEIN INC Leases Disclosure

10-KFiled Feb 24, 20263 min read
Note 8 – Leases
We have operating and finance leases for corporate offices, office space, distribution and other facilities, vehicles
and certain equipment.
Our leases have remaining terms of less than one year to
approximately
23
years, some of
which may include options to extend the leases for up to
10
years.
The components of lease expense were as
follows:
Years
Ended
December 27,
December 28,
December 30,
2025
2024
2023
Operating lease cost:
$
94
$
107
$
99
Variable
lease cost
11
12
12
Short-term lease cost
10
11
10
Total operating lease cost
(1)
115
130
121
Finance lease cost
3
4
5
Total lease cost
$
118
$
134
$
126
(1)
Total operating lease cost for the years ended December 27, 2025, December 28, 2024 and December 30, 2023, included costs of $
3
million, $
17
million and $
11
million, respectively, related to facility leases recorded in restructuring and related costs within our
consolidated statements of income.
Further, for the year ended December 27, 2025 we recognized a gain of $
4
million on early lease termination
related to facility leases which was recorded in restructuring and related costs
within our consolidated statement of
income.
For the years ended December 28, 2024 and December
30, 2023, we recognized a net impairment of
operating lease right-of-use assets of $
0
million and $
3
million respectively, related to facility leases recorded in
restructuring and related costs within our consolidated statement of
income.
Supplemental balance sheet information related to leases is as follows:
Years
Ended
December 27,
December 28,
2025
2024
Operating Leases:
Operating lease right-of-use assets
$
301
$
293
Current operating lease liabilities
78
75
Non-current operating lease liabilities
251
259
Total operating lease liabilities
$
329
$
334
Finance Leases:
Property and equipment, at cost
$
14
$
16
Accumulated depreciation
(7)
(9)
Property and equipment, net of accumulated depreciation
$
7
$
7
Current maturities of long-term debt
$
3
$
3
Long-term debt
4
$
3
Total finance
lease liabilities
$
7
$
6
Weighted Average
Remaining Lease Term in
Years:
Operating leases
5.6
5.9
Finance leases
2.9
2.7
Weighted Average
Discount Rate:
Operating leases
4.5
%
4.2
%
Finance leases
4.5
%
4.4
%
Supplemental cash flow information related to leases is as follows:
Years
Ended
December 27,
December 28,
2025
2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$
99
$
94
Financing cash flows for finance leases
3
4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
$
71
$
76
Finance leases
3
2
Maturities of lease liabilities are as follows:
December 27, 2025
Operating
Finance
Leases
Leases
2026
$
91
$
3
2027
74
2
2028
59
1
2029
47
1
2030
37
-
Thereafter
63
-
Total future
lease payments
371
7
Less imputed interest
42
-
Total
$
329
$
7
As of December 27, 2025, we have additional operating leases that have
not yet commenced with total lease
payments of $
23
million for buildings and vehicles.
These operating leases will commence after December 27,
2025, with lease terms of less than one year to
ten years
.
Certain of our facilities related to our acquisitions are leased from
employees and minority shareholders.
These
leases are classified as operating leases and have a remaining lease term
ranging from less than a year to
12 years
.
As of December 27, 2025, current and non-current liabilities associated
with related party operating leases were $
5
million and $
22
million, respectively.
At December 27, 2025, related party leases represented
6.6
% and
8.7
% of
the total current and non-current operating lease liabilities, respectively.
As of December 28, 2024, current and
non-current liabilities associated with related party operating leases were
$
6
million and $
20
million, respectively.
At December 28, 2024 related party leases represented
7.6
% and
7.8
% of the total current and non-current
operating lease liabilities, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024
2022Feb 21, 2023
2021Feb 15, 2022
2020Feb 17, 2021
2019Feb 20, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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