HENRY SCHEIN INCHSIC
HENRY SCHEIN INC Segments Disclosure
Note 4 – Segment and Geographic Data
We conduct our business through
three
Global Specialty Products; and (iii) Global Technology.
We aggregate operating segments into these reportable segments based on economic similarities, the nature of their
products, customer base and methods of distribution.
Global Distribution and Value-Added Services includes distribution to the global dental and medical markets of
national brand and corporate brand merchandise, as well as equipment and related technical services. This segment
also includes value-added services such as financial services, continuing education services, consulting and other
services. This segment also markets and sells under our own corporate brand a portfolio of cost-effective, high-
quality consumable merchandise. Global Specialty Products includes manufacturing, marketing and sales of dental
implant and biomaterial products; and endodontic, orthodontic and orthopedic products and other health care-
related products and services. Global Technology includes development and distribution of practice management
software, e-services and other products, which are distributed to health care providers.
Our organizational structure also includes Corporate, which consists primarily of income and expenses associated
with support functions and projects.
Our chief operating decision maker (“CODM”) is our Chairman and Chief Executive Officer. Our CODM uses
adjusted operating income as the profitability metric for purposes of making decisions about allocation of resources
to each segment and assessing performance of each segment. Adjusted operating income provides a measure of our
underlying segment results that is in line with our approach to risk and performance management. We define
adjusted operating income as operating income adjusted to exclude (a) direct cybersecurity costs and related
insurance recovery proceeds, (b) amortization of acquisition intangibles, (c) organizational restructuring and related
expenses, (d) impairment of intangible assets, (e) changes in fair value of contingent consideration, (f) litigation
settlements, and (g) costs associated with shareholder advisory matters and select value creation consulting costs.
These adjustments are either: (i) non-cash or non-recurring in nature; (ii) not allocable or controlled by the segment;
or (iii) not tied to the operational performance of the segment. Assets by segment are not a measure used to assess
the performance of the Company by CODM and thus are not reported in our disclosures.
The accounting policies of the reportable segments are generally the same as those described in
Sales and transfers between reportable segments are eliminated
in consolidation.
Segment adjusted operating income is presented in the following table to reconcile to operating income as
presented on the consolidated statement of operations. The reconciliation from operating income to income before
taxes and equity in earnings of affiliates is presented on our consolidated statements of income.
Years Ended
December 27,
December 28,
December 30,
2025
2024
2023
Gross Sales:
Global Distribution and Value -Added Services
(1)
$
11,138
$
10,760
$
10,561
Global Specialty Products
(2)
1,544
1,446
1,331
Global Technology
(3)
675
630
602
Total Gross Sales
13,357
12,836
12,494
Less: Eliminations:
Global Distribution and Value -Added Services
(18)
(31)
(36)
Global Specialty Products
(155)
(132)
(119)
Global Technology
-
-
-
Total Eliminations
(173)
(163)
(155)
Net Sales:
Global Distribution and Value -Added Services
11,120
10,729
10,525
Global Specialty Products
1,389
1,314
1,212
Global Technology
675
630
602
Total Net Sales
$
13,184
$
12,673
$
12,339
Segment Cost of Sales:
(4)
Global Distribution and Value -Added Services
$
8,352
$
7,984
$
7,862
Global Specialty Products
697
644
611
Global Technology
218
206
185
Segment Operating Expenses:
(5)
Global Distribution and Value -Added Services
$
2,106
$
2,080
$
2,034
Global Specialty Products
605
624
545
Global Technology
277
272
275
Operating Income:
Global Distribution and Value -Added Services
$
680
$
696
$
665
Global Specialty Products
242
178
175
Global Technology
180
152
142
Total Segment Operating Income
1,102
1,026
982
Corporate, net
(130)
(77)
(92)
Adjustments
(6)
(319)
(328)
(275)
Total Operating Income
$
653
$
621
$
615
Years Ended
December 27,
December 28,
December 30,
2025
2024
2023
Depreciation and Amortization:
Global Distribution and Value -Added Services
$
27
$
25
$
26
Global Specialty Products
36
29
23
Global Technology
36
35
31
Total Segment Depreciation and Amortization
99
89
80
Corporate
33
24
18
Acquisition intangible amortization within adjustments
(6)
179
184
150
Total Depreciation and Amortization
$
311
$
297
$
248
Global Distribution and Value -Added Services: Includes distribution of infection-control products, handpieces, preventatives,
impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, PPE products, branded and generic
pharmaceuticals, vaccines, surgical products, diagnostic tests, dental chairs, delivery units and lights, digital dental laboratories, X-
ray supplies and equipment, high-tech and digital restoration equipment, equipment repair services, financial services on a non-
recourse basis, continuing education services for practitioners, consulting and other services. This segment also markets and sells
under our own corporate brand a portfolio of cost-effective, high-quality consumable merchandise.
(2)
Global Specialty Products: Includes manufacturing, marketing and sales of dental implant and biomaterial products; and
endodontic, orthodontic and orthopedic products and other health care-related products and services.
(3)
Global Technology: Includes development and distribution of practice management software, e-services and other products, which
are distributed to health care providers.
(4)
Cost of goods sold in our Global Distribution and Value-Added Services segment and our Global Specialty Products segment
includes product cost and inbound and outbound freight charges. Cost of goods sold in our Global Technology segment consists
primarily of software development and third-party provider costs, including technology use and hosting fees.
(5)
Significant segment operating expenses for our reportable segments and Corporate include primarily compensation costs, and to a
lesser extent, rent, depreciation and maintenance costs related to operating our facilities.
Adjustments represent items excluded from segment operating income to enable comparison of financial results between periods.
The following table presents a breakdown of such adjustments:
Years Ended
December 27,
December 28,
December 30,
2025
2024
2023
Adjustments:
Restructuring and related costs
$
(105)
$
(110)
$
(80)
Acquisition intangible amortization
(179)
(184)
(150)
Cyber incident-insurance proceeds, net of third-party advisory
expenses
20
31
(11)
Change in contingent consideration
2
(45)
-
Litigation settlements
(5)
(6)
-
Impairment of capitalized assets
-
(12)
(27)
Impairment of intangible assets
(16)
-
(7)
Costs associated with shareholder advisory matters and select value
creation consulting costs
(36)
(2)
-
Total adjustments
$
(319)
$
(328)
$
(275)
The following table presents information about our operations by geographic area as of and for the years ended
December 27, 2025, December 28, 2024 and December 30, 2023. Net sales by geographic area are based on the
respective locations of our subsidiaries. No country, except for the United States, generated net sales greater than
10
% of consolidated net sales. There were no material amounts of sales or transfers among geographic areas and
there were no material amounts of export sales.
2025
2024
2023
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
Net Sales
Long-Lived
Assets
United States
$
9,096
$
4,033
$
8,825
$
3,683
$
8,662
$
3,479
Other
4,088
2,120
3,848
2,051
3,677
2,135
Consolidated total
$
13,184
$
6,153
$
12,673
$
5,734
$
12,339
$
5,614
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.