# HENRY SCHEIN INC (HSIC) Informational only - not investment advice. CIK: 0001000228 SIC: 5047 Wholesale-Medical, Dental & Hospital Equipment & Supplies SIC breadcrumb: [Wholesale Trade](/division/F/) > [SIC Major Group 50](/major-group/50/) > [SIC 5047 Wholesale-Medical, Dental & Hospital Equipment & Supplies](/industry/5047/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1000228 Filing source: https://www.sec.gov/Archives/edgar/data/1000228/000100022826000013/hsic-20251227.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 13184000000 | USD | 2025 | 2026-02-24 | | Net income | 398000000 | USD | 2025 | 2026-02-24 | | Assets | 11215000000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001000228.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 8,883,438,000 | 9,417,603,000 | 9,985,803,000 | 10,119,000,000 | 12,401,000,000 | 12,647,000,000 | 12,339,000,000 | 12,673,000,000 | 13,184,000,000 | | Net income | 506,778,000 | 406,299,000 | 535,881,000 | 694,734,000 | 404,000,000 | 631,000,000 | 538,000,000 | 416,000,000 | 390,000,000 | 398,000,000 | | Operating income | 771,574,000 | 669,761,000 | 600,619,000 | 718,261,000 | 535,000,000 | 852,000,000 | 747,000,000 | 615,000,000 | 621,000,000 | 653,000,000 | | Gross profit | 3,226,473,000 | 2,746,662,000 | 2,910,747,000 | 3,090,886,000 | 2,816,000,000 | 3,674,000,000 | 3,831,000,000 | 3,860,000,000 | 4,016,000,000 | 4,105,000,000 | | Diluted EPS | 3.10 | 2.57 | 3.49 | 4.65 | 2.82 | 4.45 | 3.91 | 3.16 | 3.05 | 3.27 | | Assets | 6,811,763,000 | 7,863,995,000 | 8,500,527,000 | 7,151,101,000 | 7,773,000,000 | 8,481,000,000 | 8,607,000,000 | 10,573,000,000 | 10,218,000,000 | 11,215,000,000 | | Liabilities | 3,351,956,000 | 4,207,447,000 | 4,646,583,000 | 3,233,706,000 | 3,460,448,000 | 3,805,000,000 | 3,936,000,000 | 5,420,000,000 | 5,381,000,000 | 6,421,000,000 | | Stockholders' equity | 2,793,066,000 | 2,811,499,000 | 2,961,332,000 | 2,998,044,000 | 3,348,172,000 | 3,425,000,000 | 3,446,000,000 | 3,655,000,000 | 3,393,000,000 | 3,245,000,000 | | Net margin | | 4.57% | 5.69% | 6.96% | 3.99% | 5.09% | 4.25% | 3.37% | 3.08% | 3.02% | | Operating margin | | 7.54% | 6.38% | 7.19% | 5.29% | 6.87% | 5.91% | 4.98% | 4.90% | 4.95% | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Cautionary Note Regarding Forward-Looking Statements In accordance with the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are generally identified by the use of such terms as “may,” “could,” “expect,” “intend,” “believe,” “plan,” “estimate,” “forecast,” “project,” “anticipate,” “to be,” “to make” or other comparable terms. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Annual Report on Form 10-K, and in particular the risks discussed under the caption “Risk Factors” in Item 1A of this report and those that may be discussed in other documents we file with the Securities and Exchange Commission (“SEC”). Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: our dependence on third parties for the manufacture and supply of our products and where we manufacture products, our dependence on third parties for raw materials or purchased components; risks relating to the achievement of our strategic growth objectives, including anticipated results of restructuring and value creation initiatives; risks related to the Strategic Partnership Agreement with KKR Hawaii Aggregator L.P. entered into in January 2025; transitions in senior company leadership; our ability to develop or acquire and maintain and protect new products (particularly technology and specialty products) and services and utilize new technologies that achieve market acceptance with acceptable margins; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies/benefits, as well as significant demands on our operations, information systems, legal, regulatory, compliance, financial and human resources functions in connection with acquisitions, dispositions and joint ventures; certain provisions in our governing documents that may discourage third-party acquisitions of us; adverse changes in supplier rebates or other purchasing incentives; risks related to the sale of corporate brand products; risks related to activist investors; security risks associated with our information systems and technology products and services, such as cyberattacks or other privacy or data security breaches (including the October 2023 incident); effects of a highly competitive (including, without limitation, competition from third-party online commerce sites) and consolidating market; political, economic and regulatory influences on the health care industry; risks from expansion of customer purchasing power and multi-tiered costing structures; increases in shipping costs for our products or other service issues with our third-party shippers, and increases in fuel and energy costs; changes in laws and policies governing manufacturing, development and investment in territories and countries where we do business; general global and domestic macro-economic and political conditions, including inflation, deflation, recession, unemployment (and corresponding increase in under-insured populations), consumer confidence, sovereign debt levels, fluctuations in energy pricing and the value of the U.S. dollar as compared to foreign currencies and changes to other economic indicators; failure to comply with existing and future regulatory requirements, including relating to health care; risks associated with the EU Medical Device Regulation; failure to comply with laws and regulations relating to health care fraud or other laws and regulations; failure to comply with laws and regulations relating to the collection, storage and processing of sensitive personal information or standards in electronic health records or transmissions; changes in tax legislation, changes in tax rates and availability of certain tax deductions; risks related to product liability, intellectual property and other claims; risks associated with customs policies or legislative import restrictions; risks associated with disease outbreaks, epidemics, pandemics (such as the COVID-19 pandemic), or similar wide-spread public health concerns and other natural or man-made disasters; risks associated with our global operations; the threat or outbreak of war (including, without limitation, geopolitical wars), terrorism or public unrest (including, without limitation, the war in Ukraine, the Israel-Gaza war and other unrest and threats in the Middle East and the possibility of a wider European or global conflict); changes to laws and policies governing foreign trade, tariffs and sanctions or greater restrictions on imports and exports, including changes to international trade agreements and the current imposition of (and the potential for additional) tariffs by the U.S. on numerous countries and retaliatory tariffs; supply chain disruption; litigation risks; new or unanticipated litigation developments and the status of litigation matters; our dependence on our senior management (including, without Table of Contents Index to Financial Statements 49 limitation, the transition to a new Chief Executive Officer), employee hiring and retention, increases in labor costs or health care costs, and our relationships with customers, suppliers and manufacturers; and disruptions in financial markets. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements except as required by law. Where You Can Find Important Information We may disclose important information through one or more of the following channels: SEC filings, public conference calls and webcasts, press releases, the investor relations page of our website (www.henryschein.com) and the social media channels identified on the About Media Center page of our website. Recent Developments Chief Executive Officer On January 12, 2026, we announced the appointment of Frederick M. Lowery as our new CEO, effective March 2, 2026, at which time Mr. Lowery will join our Board of Directors. Mr. Lowery succeeds Stanley M. Bergman, who will remain as our CEO through March 1, 2026, at which time Mr. Bergman will retire as CEO, but will remain as Chairman of the Board. Cyber Incident As previously reported, in October 2023 Henry Schein experienced a cyber incident that primarily affected the operations of our North American and European dental and medical distribution businesses. During the years ended December 28, 2024 and December 30, 2023, we had a sales decrease in our dental and medical distribution businesses, which we believe was primarily a result of lower sales to episodic customers following the cyber incident. With respect to the October 2023 cyber incident, we had a $60 million insurance policy, following a $5 million retention. During the years ended December 27, 2025, December 28, 2024 and December 30, 2023, we incurred $0 million, $9 million and $11 million, respectively, of direct expenses related to the cyber incident, mostly consisting of professional fees. During the years ended December 27, 2025 and December 28, 2024, we received insurance proceeds of $20 million and $40 million, respectively, representing insurance recovery of losses related to the cyber incident. The expenses and insurance recoveries related to the cyber incident are included in the selling, general and administrative line in our consolidated statements of income. Tariffs and Related Economic Conditions The U.S. has adopted new and increased tariffs on imports from countries, which tariffs remain subject to frequently evolving exemptions and modifications, as well as to court challenges, including a recent invalidation in the Supreme Court of many of the tariffs. Some countries have imposed retaliatory tariffs and other restrictions on imports from the U.S. These developments, and anticipated future developments, have created a volatile environment for global trade, and new trade policies with individual countries. It is unclear whether, or the extent to which, the current tariffs on trade with numerous countries will remain in place, or change, the exceptions that may apply, and their timing. The tariffs did not have a material impact on our results of operations during fiscal year 2025, although sales of U.S. dental equipment were temporarily impacted by market uncertainty related to tariffs in the second half of the Table of Contents Index to Financial Statements 50 quarter ended June 28, 2025. It is unclear whether, or the extent to which, the current tariffs on trade with numerous countries will remain in place, or change, the exceptions that may apply, and their timing. One Big Beautiful Bill Act In the United States, the OBBBA, signed into law on July 4, 2025, includes a number of provisions that are expected to result in reductions in the number of Medicaid enrollees, which will reduce utilization of services and covered products generally. There are also several provisions that will reduce federal funding to state Medicaid programs. The OBBBA, in combination with tariffs, will likely have an adverse impact on utilization, Medicaid payment and cost of production (if foreign components are used). The OBBBA also includes changes to corporate tax rates, limitations on certain deductions and modifications to international tax provisions. Table of Contents Index to Financial Statements 51 Executive-Level Overview Henry Schein, Inc. is a solutions company for health care professionals powered by a network of people and technology. We believe we are the world’s largest provider of health care products and services primarily to office- based dental and medical practitioners, as well as alternate sites of care. We serve more than one million customers worldwide including dental practitioners, laboratories, physician practices and ambulatory surgery centers, as well as government, institutional health care clinics, home health providers, and other alternate care clinics. We believe that we have a strong brand identity due to our more than 94 years of experience distributing health care products. We are headquartered in Melville, New York, employ more than 25,000 people (of which approximately 13,000 are based outside of the United States) and have operations or affiliates in 34 countries and territories. Our broad global footprint has evolved over time through our organic growth as well as through contribution from strategic acquisitions. We have established strategically located distribution centers around the world to enable us to better serve our customers and increase our operating efficiency. This infrastructure, together with broad product and service offerings at competitive prices, and a strong commitment to customer service, enables us to be a single source of supply for our customers’ needs. As a distributor, we market and sell branded products as well as our own corporate brand portfolio of cost-effective, high-quality consumable merchandise products. We also manufacture, source and sell a range of company-owned manufactured products, primarily implants, biomaterial products, endodontics, handpiece and small equipment, hand instrument and repair, restoratives, orthodontics, wound care, orthopedics and dental lab products. We have achieved scale in these global businesses primarily through acquisitions, as manufacturers of these products typically do not utilize a distribution channel to serve customers. Our reportable segments consist of: (i) Global Distribution and Value-Added Services; (ii) Global Specialty Products; and (iii) Global Technology. 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. A key element to grow closer to our customers is our One Schein initiative, which is a unified go-to-market approach that enables practitioners to work synergistically with our supply chain, equipment sales and service and other value-added services, allowing our customers to leverage the combined value that we offer through a single program. Specifically, One Schein provides customers with streamlined access to our comprehensive offering of national brand products, corporate brand products and proprietary specialty products and solutions (including implant, orthodontic and endodontic products). In addition, customers have access to a wide range of services, including software and other value-added services. Industry Overview In recent years, the health care industry has increasingly focused on cost containment. This trend has benefited distributors capable of providing a broad array of products and services at low prices. It also has accelerated the growth of DSOs, GPOs, HMOs, group practices, other managed care accounts and collective buying groups, which, in addition to their emphasis on obtaining products at competitive prices, tend to favor distributors capable of providing specialized management information support. We believe that the trend towards cost containment has the potential to favorably affect demand for technology solutions, including software, which can enhance the efficiency and facilitation of practice management. Table of Contents Index to Financial Statements 52 Our operating results in recent years have been significantly affected by strategies and transactions that we undertook to expand our business, domestically and internationally, in part to address significant changes in the health care industry, including consolidation of health care distribution companies, health care reform, trends toward managed care, cuts in Medicare and collective purchasing arrangements. Industry Consolidation The health care products distribution industry, as it relates to office-based health care practitioners, is fragmented and diverse. The industry ranges from sole practitioners working out of relatively small offices to group practices or service organizations ranging in size from a few practitioners to a large number of practitioners who have combined or otherwise associated their practices. Due in part to the inability of office-based health care practitioners to store and manage large quantities of supplies in their offices, the distribution of health care supplies and small equipment to office-based health care practitioners has been characterized by frequent, small quantity orders, and a need for rapid, reliable and substantially complete order fulfillment. The purchasing decisions within an office-based health care practice are typically made by the practitioner or an administrative assistant. Supplies and small equipment are generally purchased from more than one distributor, with one generally serving as the primary supplier. The trend of consolidation extends to our customer base. Health care practitioners are increasingly seeking to partner, affiliate or combine with larger entities such as hospitals, health systems, group practices or physician hospital organizations. In many cases, purchasing decisions for consolidated groups are made at a centralized or professional staff level; however, orders are delivered to the practitioners’ offices. Our approach to acquisitions and joint ventures has been to expand our role as a provider of products and services to the health care industry. This trend has resulted in our expansion into service areas that complement our existing operations and provide opportunities for us to develop synergies with, and thus strengthen, the acquired businesses. As industry consolidation continues, we believe that we are positioned to capitalize on this trend, as we believe we have the ability to support increased sales through our existing infrastructure, although there can be no assurances that we will be able to successfully accomplish this. We are focused on building relationships with decision makers who do not reside in the office-based practitioner setting. As the health care industry continues to change, we continually evaluate possible candidates for joint venture or acquisition and intend to continue to seek opportunities to expand our role as a provider of products and services to the health care industry. There can be no assurance that we will be able to successfully pursue any such opportunity or consummate any such transaction, if pursued. If additional transactions are entered into or consummated, we would incur merger and/or acquisition-related costs, and there can be no assurance that the integration efforts associated with any such transaction would be successful. Aging Population and Other Market Influences The health care products distribution industry continues to experience growth due to the aging population, increased health care awareness, the proliferation of medical technology and testing, new pharmacological treatments, and expanded third-party insurance coverage, partially offset by the effects of unemployment on insurance coverage. In addition, the physician market continues to benefit from the shift of procedures and diagnostic testing from acute care settings to alternate-care sites, particularly physicians’ offices. According to the U.S. Census Bureau’s International Database, between 2025 and 2035, the 45 and older population is expected to grow by approximately 10%. Between 2025 and 2045, this age group is expected to grow by approximately 17%. This compares with expected total U.S. population growth rates of approximately 4% between 2025 and 2035 and approximately 6% between 2025 and 2045. Table of Contents Index to Financial Statements 53 According to the U.S. Census Bureau’s International Database, in 2025 there are approximately seven million Americans aged 85 years or older, the segment of the population most in need of long-term care and elder-care services. By the year 2050, that number is projected to increase to approximately 17 million. The population aged 65 to 84 years is projected to increase by approximately 15% during the same period. As a result of these market dynamics, annual expenditures for health care services continue to increase in the United States. We believe that demand for our products and services will grow while continuing to be impacted by current and future operating, economic and industry conditions. The Centers for Medicare and Medicaid Services, or CMS, published “National Health Expenditure Data” indicating that total national health care spending reached approximately $5.3 trillion in 2024, or 18.0% of the nation’s gross domestic product, the benchmark measure for annual production of goods and services in the United States. Health care spending is projected to reach approximately $8.6 trillion by 2033, or 20.3% of the nation’s projected gross domestic product. We believe similar demographic changes are also occurring in other markets we serve outside the U.S. Government Our businesses are generally subject to numerous laws and regulations that could impact our financial performance, and failure to comply with such laws or regulations could have a material adverse effect on our business. See “ Item 1. Business – Governmental Regulations ” for a discussion of laws, regulations and governmental activity that may affect our results of operations and financial condition. Table of Contents Index to Financial Statements 54 Results of Operations Refer to Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2024 Annual Report on Form 10-K for management’s discussion and analysis of financial condition and results of operations for the fiscal year 2024 compared to fiscal year 2023. The following tables summarize the significant components of our operating results and cash flows for each of the three years ended December 27, 2025, December 28, 2024, and December 30, 2023 (in millions): Years Ended December 27, December 28, December 30, 2025 2024 2023 Operating results: Net sales $ 13,184 $ 12,673 $ 12,339 Cost of sales 9,079 8,657 8,479 Gross profit 4,105 4,016 3,860 Operating expenses: Selling, general and administrative 3,084 3,034 2,956 Depreciation and amortization 263 251 209 Restructuring and related costs 105 110 80 Operating income $ 653 $ 621 $ 615 Other expense, net $ (120) $ (108) $ (73) Income taxes (126) (128) (120) Net income 419 398 436 Net income attributable to Henry Schein, Inc. 398 390 416 Years Ended December 27, December 28, December 30, 2025 2024 2023 Cash flows: Net cash provided by operating activities $ 712 $ 848 $ 500 Net cash used in investing activities (400) (430) (1,135) Net cash provided by (used in) financing activities (188) (510) 701 Table of Contents Index to Financial Statements 55 Plans of Restructuring and Related Costs On August 6, 2024, we committed to a restructuring plan (the “2024 Plan”) to integrate our acquisitions, right-size operations and further increase efficiencies. We currently expect this plan to be completed at the end of 2027. During the years ended December 27, 2025 and December 28, 2024, we recorded restructuring and related charges associated with the 2024 Plan of $105 million and $73 million, respectively. The restructuring and related costs for these periods primarily related to severance and employee-related costs, accelerated amortization of right-of-use assets and fixed assets, and other exit costs. We expect to record restructuring and related charges associated with the 2024 Plan through the end of 2027; however, an estimate of the amount of these charges for 2026 through 2027 has not yet been determined. During the year ended December 27, 2025, in connection with the 2024 Plan, we recorded a loss of $1 million and $12 million related to the disposal of businesses in the Global Distribution and Value -Added Services and Global Specialty Product segments, respectively, and a net gain related to disposal of a business in the Global Technology segment. These amounts are included in the $105 million of restructuring and related charges discussed above. During the year ended December 28, 2024, in connection with the 2024 Plan, we recorded an impairment of goodwill and intangible assets of $13 million related to the disposal of a portion of a business in the Global Specialty Products segment. This impairment is included in the $73 million of restructuring and related charges discussed above. On August 1, 2022, we committed to a restructuring plan (the “2022 Plan”) focused on funding the priorities of the BOLD+1 strategic plan, streamlining operations and other initiatives to increase efficiency. The 2022 Plan was completed as of July 31, 2024. During the years ended December 28, 2024 and December 30, 2023, in connection with our 2022 Plan, we recorded restructuring and related costs of $37 million and $80 million, respectively, which primarily related to severance and employee-related costs, accelerated amortization of right-of-use assets and fixed assets, and other exit costs. During the year ended December 30, 2023, in connection with the 2022 Plan, we recorded an impairment of an intangible asset of $12 million related to disposal of a U.S. business in the Global Specialty Products segment. This impairment is included in the $80 million of restructuring and related costs discussed above. The disposal was completed during the first quarter of 2024. Table of Contents Index to Financial Statements 56 2025 Compared to 2024 Note: Percentages for Net Sales; Gross Profit; Operating Expenses; Other Expense, Net; and Income Taxes are based on actual values and may not recalculate due to rounding. Our reportable segments are determined based on how our Chairman and Chief Executive Officer manages the business, assesses performance and allocates resources. We have three reportable segments: (i) Global Distribution and Value -Added Services; (ii) Global Specialty Products; and (iii) Global Technology. Net Sales Net sales by reportable segment and by major product or service type were as follows: % of % of Increase / (Decrease) 2025 Total 2024 Total $ % Global Distribution and Value -Added Services Global Dental Merchandise (1) $ 4,831 36.6 % $ 4,723 37.3 % $ 108 2.2 % Global Dental Equipment (2) 1,799 13.6 1,723 13.6 76 4.4 Global Value -Added Services (3) 238 1.8 233 1.8 5 2.2 Global Dental 6,868 52.0 6,679 52.7 189 2.8 Global Medical (4) 4,270 32.5 4,081 32.2 189 4.6 Total Global Distribution and Value -Added Services 11,138 84.5 10,760 84.9 378 3.5 Global Specialty Products (5) 1,544 11.7 1,446 11.4 98 6.7 Global Technology (6) 675 5.1 630 5.0 45 7.1 Eliminations (173) (1.3) (163) (1.3) (10) n/a Total $ 13,184 100.0 % $ 12,673 100.0 % $ 511 4.0 (1) Includes infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, gypsum, acrylics, articulators, abrasives, PPE products and our own corporate brand of consumable merchandise. (2) Includes dental chairs, delivery units and lights, digital dental laboratories, X-ray supplies and equipment, equipment repair services and high-tech and digital restoration equipment. (3) Consists of financial services on a non-recourse basis, continuing education services for practitioners, consulting and other services. (4) Includes branded and generic pharmaceuticals, home solutions products, vaccines, surgical products, diagnostic tests, infection- control products, X-ray products, equipment, PPE products, and vitamins. (5) 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. (6) Consists of the development and distribution of practice management software, e-services and other technology-enabled products for health care providers. The components of our sales growth/(decline) were as follows: Constant Currency Growth/(Decline) Total Constant Currency Growth Foreign Exchange Impact Total Sales Growth Local Internal Growth/(Decline) Acquisition Growth Global Distribution and Value -Added Services Global Dental Merchandise 1.4 % 0.2 % 1.6 % 0.6 % 2.2 % Global Dental Equipment 2.7 0.5 3.2 1.2 4.4 Global Value -Added Services (2.0) 4.0 2.0 0.2 2.2 Global Dental 1.6 0.4 2.0 0.8 2.8 Global Medical 3.1 1.5 4.6 - 4.6 Total Global Distribution and Value -Added Services 2.2 0.8 3.0 0.5 3.5 Global Specialty Products 3.3 2.4 5.7 1.0 6.7 Global Technology 6.7 - 6.7 0.4 7.1 Total 2.6 0.9 3.5 0.5 4.0 Table of Contents Index to Financial Statements 57 Global Sales Global net sales for the year ended December 27, 2025 increased 4.0%, attributable to internal growth of 2.6%, acquisition growth of 0.9%, and an increase in foreign exchange of 0.5%. The components of our sales increase are presented in the table above. Global Distribution and Value-Added Services Sales Global Distribution and Value-Added Services net sales for the year ended December 27, 2025 increased 3.5%. The components of our sales increase are presented in the table above. The 1.6% increase in internally generated local currency dental sales was primarily due to sales growth in U.S dental merchandise and international dental merchandise, as well as growth in traditional dental equipment in the U.S. and growth in traditional and digital dental equipment in international markets. The 3.1% increase in internally generated local currency medical sales was attributable to growth of our Home Solutions business, dialysis products and pharmaceuticals. The 2.0% decrease in internally generated local currency value-added services sales was attributable primarily to lower sales in our practice transitions business, partially offset by sales growth from our international businesses. Global Specialty Products Global Specialty Products net sales for the year ended December 27, 2025 increased 6.7%. The components of our sales increase are presented in the table above. The 3.3% increase in internally generated local currency sales was attributable to growth in our implant and biomaterial businesses, and orthopedics, partially offset by a decline in orthodontic sales. Global Technology Global Technology net sales for the year ended December 27, 2025 increased 7.1%. The components of sales growth are presented in the table above. The internally generated local currency increase of 6.7% in Global Technology sales was primarily attributable to the adoption of our core practice management solutions, particularly our cloud-based platforms, as well as an increase in revenue cycle management solutions. Table of Contents Index to Financial Statements 58 Gross Profit Gross profit and gross margin percentages by segment and in total were as follows: Gross Gross Increase 2025 Margin % 2024 Margin % $ % Global Distribution and Value -Added Services $ 2,786 25.0 % $ 2,776 25.8 % $ 10 0.4 % Global Specialty Products 847 54.8 802 55.4 45 5.5 Global Technology 457 67.7 424 67.4 33 7.6 Corporate 15 n/a 14 n/a 1 n/a Total $ 4,105 31.1 $ 4,016 31.7 $ 89 2.2 As a result of different practices of categorizing costs associated with distribution networks throughout our industry, our gross margins may not necessarily be comparable to other distribution companies. Gross margin percentages vary between our segments. We realize substantially higher gross margin from products we develop and manufacture within our Global Specialty Products segment compared to products distributed within our Global Distribution and Value-Added Services segment. Within our Global Technology segment, higher gross margins result from us being both the developer and seller of software products and services. Within our Global Distribution and Value -Added Services segment, gross profit margins may fluctuate between the periods as a result of the changes in product mix and customer mix. With respect to customer mix, sales to our large-group customers are typically completed at lower gross margins as a result of higher sales volumes, while sales to office-based practitioners generally carry higher gross margins due to lower volumes. The increase in Global Distribution and Value-Added Services gross profit for the year ended December 27, 2025 compared to the prior-year-period is due primarily to increased internally generated sales volume as described above. The decrease in gross margin rates was attributable primarily to the impact of targeted promotional programs and product mix. The increase in Global Specialty Products gross profit primarily reflects increased internally generated sales volume and gross profit from acquisitions. The decrease in gross margin rates was due to product mix and pricing. The increase in Global Technology gross profit is the result primarily of higher internally generated sales. The increase in gross margin rates was due to product mix. Table of Contents Index to Financial Statements 59 Operating Expenses Operating expenses (consisting of selling, general and administrative expenses; depreciation and amortization; and restructuring and related costs) by segment were as follows: % of % of Respective Respective Increase / (Decrease) 2025 Sales 2024 Sales $ % Global Distribution and Value -Added Services $ 2,106 18.9 % $ 2,080 19.3 % $ 26 1.3 % Global Specialty Products 605 39.2 624 43.2 (19) (3.1) Global Technology 277 41.0 272 43.2 5 1.5 Corporate 145 n/a 91 n/a 54 60.8 3,133 23.8 3,067 24.2 66 2.1 Adjustments (1) 319 n/a 328 n/a (9) n/a Total operating expenses $ 3,452 26.2 $ 3,395 26.8 $ 57 1.7 (1) Adjustments represent items excluded from segment operating income to enable comparison of financial results between periods. These items may vary independently of business performance. Please see Note 4 – Segment and Geographic Data . These adjustments (current year vs. prior year) consist of (i) acquisition intangible amortization ($179 million vs. $184 million), (ii) restructuring and related costs ($105 million vs. $110 million), (iii) change in contingent consideration ($(2) million vs. $45 million), (iv) litigation settlements ($5 million vs. $6 million), (v) cyber incident-insurance proceeds, net of third-party advisory expenses ($(20) million net proceeds vs. $(31) million net proceeds), (vi) impairment of intangible assets ($16 million vs. $0 million), (vii) impairment of capitalized assets ($0 million vs. $12 million), and (viii) costs associated with shareholder advisory matters and select value creation consulting costs ($36 million vs. $2 million). The net increase in operating expenses was attributable to the following: Operating Costs (excluding acquisitions) Acquisitions Adjustments Total Global Distribution and Value -Added Services $ 3 $ 23 $ - $ 26 Global Specialty Products (23) 4 - (19) Global Technology 5 - - 5 Corporate 54 - - 54 39 27 - 66 Adjustments - - (9) (9) Total operating expenses $ 39 $ 27 $ (9) $ 57 The components of the net increase in total operating expenses are presented in the table above. The increase in operating costs (excluding acquisitions) during the year ended December 27, 2025 was attributable to an increase in Corporate investments in technology supporting the launch of our Global E-Commerce Platform (www.henryschein.com), depreciation expense, the impact of certain compensation related costs and timing of certain non-income tax credits during the year ended December 28, 2024, partially offset by cost savings from our restructuring activities, certain changes in estimates and other operating cost efficiencies. In addition, during the year ended December 27, 2025, our operating costs were impacted by recognition of a benefit related to the remeasurement to fair value of previously held equity investments of $29 million within our Global Specialty Products segment and $9 million within our Global Distribution and Value-Added Services segment. During the year ended December 28, 2024, our operating costs were impacted by recognition of a remeasurement gain related to the remeasurement to fair value of a previously held equity investments of $18 million within our Global Distribution and Value-Added Services segment. Table of Contents Index to Financial Statements 60 Other Expense, Net Other expense, net was as follows: Variance 2025 2024 $ % Interest income $ 33 $ 24 $ 9 37.1 % Interest expense (150) (131) (19) (14.2) Other, net (3) (1) (2) n/a Other expense, net $ (120) $ (108) $ (12) 10.9 Interest income increased primarily due to increased interest rates. Interest expense increased primarily due to increased borrowings. Income Taxes Our effective tax rate was 23.7% for the year ended December 27, 2025, compared to 24.9% for the prior year period. The difference between our effective and federal statutory tax rates primarily relates to state and foreign income taxes and interest expense, as well as the tax treatment associated with the acquisition of a controlling interest of a previously held non-controlling equity investment. On July 4, 2025, President Trump signed the reconciliation tax bill, commonly known as the “One Big Beautiful Bill Act” (OBBBA), into law. Corporate provisions in the OBBBA include immediate expensing of domestic research and experimental expenditures, limitations on certain deductions, and modifications to international tax provisions. The changes resulting from the OBBBA did not have a significant impact to the total tax provision. The Organization of Economic Co-Operation and Development (OECD) issued technical and administrative guidance on Pillar Two rules in December 2021, which provides for a global minimum tax rate on the earnings of large multinational businesses on a country-by-country basis. Effective January 1, 2024, the minimum global tax rate is 15% for various jurisdictions pursuant to the Pillar Two rules. Future tax reform resulting from these developments may result in changes to long-standing tax principles, which may adversely impact our effective tax rate going forward or result in higher cash tax liabilities. As of December 27, 2025, the impact of the Pillar Two rules to our financial statements was immaterial. Table of Contents Index to Financial Statements 61 Liquidity and Capital Resources Our principal capital requirements have included funding of acquisitions, purchases of additional noncontrolling interests, repayments of debt principal, the funding of working capital needs, purchases of fixed assets and repurchases of common stock. Working capital requirements generally result from increased sales, special inventory forward buy-in opportunities and payment terms for receivables and payables. Historically, sales have tended to be stronger during the second half of the year and special inventory forward buy-in opportunities have been most prevalent just before the end of the year, and have caused our working capital requirements to be higher from the end of the third quarter to the end of the first quarter of the following year. We finance our business primarily through cash generated from our operations, revolving credit facilities and debt placements. Please see Note 14 – Debt for further information. Our ability to generate sufficient cash flows from operations is dependent on the continued demand of our customers for our products and services, and access to products and services from our suppliers. Our business requires a substantial investment in working capital, which is susceptible to fluctuations during the year as a result of inventory purchase patterns and seasonal demands. Inventory purchase activity is a function of sales activity, special inventory forward buy-in opportunities and our desired level of inventory. We finance our business to provide adequate funding for at least 12 months. Funding requirements are based on forecasted profitability and working capital needs, which, on occasion, may change. Consequently, we may change our funding structure to reflect any new requirements. Our acquisition strategy is focused on investments in companies, including high growth high margin businesses aligned with our BOLD+1 strategy, that add new customers and sales teams, increase our geographic footprint (whether entering a new country, such as emerging markets, or building scale where we have already invested in businesses), and finally, those that enable us to access new products and technologies. We believe that our cash and cash equivalents, our ability to access private debt markets and public equity markets, and our available funds under existing credit facilities provide us with sufficient liquidity to meet our currently foreseeable short-term and long-term capital needs. Net cash provided by operating activities was $712 million for the year ended December 27, 2025, compared to net cash provided by operating activities of $848 million for the prior year. The net change of $136 million was primarily attributable to changes in working capital accounts (primarily accounts receivable, inventory, and accounts payable and accrued expenses), partially offset by an increase in operating income. Our operating cash flows during the year ended December 28, 2024 were positively affected by the residual impacts of the 2023 cyber incident and included a higher-than-normal level of cash collections. Our cash collections normalized during the second half of the year ended December 28, 2024. Net cash used in investing activities was $400 million for the year ended December 27, 2025, compared to net cash used in investing activities of $430 million for the prior year. The net change of $30 million was primarily attributable to lower acquisition activity. Net cash used in financing activities was $188 million for the year ended December 27, 2025, compared to net cash used in financing activities of $510 million for the prior year. The net change of $322 million was primarily due to increased net borrowings from debt, proceeds received from the issuance of common stock, and a reduction in acquisitions of noncontrolling interests in subsidiaries, partially offset by increased repurchases of common stock. Table of Contents Index to Financial Statements 62 The following table summarizes selected measures of liquidity and capital resources: December 27, December 28, 2025 2024 Cash and cash equivalents $ 156 $ 122 Working capital (1) 1,236 1,180 Debt: Bank credit lines $ 764 $ 650 Current maturities of long-term debt 33 56 Long-term debt 2,310 1,830 Total debt $ 3,107 $ 2,536 Leases: Current operating lease liabilities $ 78 $ 75 Non-current operating lease liabilities 251 259 (1) Includes $491 million and $241 million of certain accounts receivable which serve as security for U.S. trade accounts receivable securitization at December 27, 2025 and December 28, 2024, respectively. Our cash and cash equivalents consist of bank balances and investments in money market funds representing overnight investments with a high degree of liquidity. Accounts receivable days sales outstanding and inventory turns Our accounts receivable days sales outstanding from operations decreased to 44.8 days as of December 27, 2025 from 47.3 days as of December 28, 2024, which was primarily attributable to the impact that the cyber incident had on the cash collections during the first half of 2024. During the years ended December 27, 2025 and December 28, 2024, we wrote off approximately $18 million and $12 million, respectively, of fully reserved accounts receivable against our trade receivable reserve. Our inventory turns from operations decreased to 4.8 as of December 27, 2025 from 5.0 as of December 28, 2024. Our working capital accounts may be impacted by current and future economic conditions. Contractual obligations The following table summarizes our contractual obligations related to fixed and variable rate long-term debt and finance lease obligations, including interest (assuming a weighted average interest rate of 4.62%), as well as inventory purchase commitments and operating lease obligations as of December 27, 2025: Payments due by period 1 year 2 - 3 years 4 - 5 years 5 years Total Contractual obligations: Long-term debt, including interest $ 133 $ 942 $ 1,066 $ 656 $ 2,797 Inventory purchase commitments 8 1 - - 9 Operating lease obligations 91 133 84 63 371 Finance lease obligations, including interest 3 3 1 - 7 Total $ 235 $ 1,079 $ 1,151 $ 719 $ 3,184 For information relating to our debt please see Note 14 – Debt . Table of Contents Index to Financial Statements 63 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. As of December 27, 2025, our right-of-use assets related to operating leases were $301 million and our current and non-current operating lease liabilities were $78 million and $251 million, respectively. Please see Note 8 – Leases for further information. Stock Repurchases On January 27, 2025, our Board authorized the repurchase of up to an additional $500 million in shares of our common stock. On May 19, 2025, we executed an accelerated share repurchase program to repurchase a total of $250 million of our outstanding common stock based on volume-weighted average prices. In May 2025, we received 3,122,832 shares at an estimated fair value of $224 million. In July 2025, we received an additional 368,651 shares at an estimated fair value of $26 million, representing the final amount of shares to be received under this accelerated share repurchase program. On September 8, 2025, our Board authorized the repurchase of up to an additional $750 million in shares of our common stock. From March 3, 2003 through December 27, 2025, we repurchased $6.0 billion, or 107,876,628 shares, under our common stock repurchase programs, with $780 million available as of December 27, 2025 for future common stock share repurchases. Redeemable Noncontrolling Interests Some minority stockholders in certain of our subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. Accounting Standards Codification Topic 480-10 is applicable for noncontrolling interests where we are or may be required to purchase all or a portion of the outstanding interest in a consolidated subsidiary from the noncontrolling interest holder under the terms of a put option contained in contractual agreements. As of December 27, 2025 and December 28, 2024, our balance for redeemable noncontrolling interests was $895 million and $806 million, respectively. Please see Note 20 – Redeemable Noncontrolling Interests for further information. Table of Contents Index to Financial Statements 64 Critical Accounting Estimates Our accounting policies are described in Note 1 – Basis of Presentation and Significant Accounting Policies of the consolidated financial statements. The preparation of consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. We base our estimates on historical data, when available, experience, industry and market trends, and on various other assumptions that are believed to be reasonable under the circumstances, the combined results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. However, by their nature, estimates are subject to various assumptions and uncertainties. Therefore, reported results may differ from estimates and any such differences may be material to our consolidated financial statements. We believe that the following critical accounting estimates, which have been discussed with the Audit Committee of our Board, affect the significant estimates and judgments used in the preparation of our consolidated financial statements: Inventories and Reserves Inventories consist primarily of finished goods, raw materials and work-in-process and are stated at the lower of cost or net realizable value. Cost is determined by the weighted average method for merchandise and actual cost for large equipment, high-technology equipment and drop-shipments. Inventory costs for manufactured products include direct materials, labor, and an allocation of related fixed and variable overhead. The determination of inventory carrying values requires management to make significant estimates and judgments. In assessing the need for inventory reserves and evaluating net realizable value, we consider multiple factors, including inventory condition, on-hand quantities, historical and forecasted sales, product life cycles, and prevailing market and economic conditions. Business Combinations The estimated fair value of acquired identifiable intangible assets (i.e., customer relationships and lists, trademarks and trade names, product development and non-compete agreements) is based on critical judgments and assumptions derived from analysis of market conditions, including discount rates, projected revenue growth rates (which are based on historical trends and assessment of financial projections), estimated customer attrition and projected cash flows. These assumptions are forward-looking and could be affected by future economic and market conditions. Please see Note 5 – Business Acquisitions for further discussion of our acquisitions. Goodwill Goodwill is subject to impairment assessment at least once annually as of the first day of our fourth quarter, or if an event occurs or circumstances change that would more likely than not reduce a reporting unit’s fair value below carrying value. We conduct our goodwill impairment testing at the reporting unit level. We identify our reporting units by assessing whether two or more components are economically similar and therefore should be aggregated. Our reporting units are identified as our operating segments. Goodwill is allocated to such reporting units for the purposes of our impairment assessment. For the year ended December 27, 2025, our reporting structure was: (i) Global Distribution and Value-Added Services reportable segment, which included the following operating segments (a) US Distribution Group; (b) Europe, Middle East, and Africa Distribution Group; (c) Americas Non-US Distribution Group; and (d) Asia-Pacific and Australia Distribution Group; (ii) Global Specialty Products reportable segment, which included the following operating segments (a) Global Oral Reconstruction Group; and (b) Healthcare Specialty Group; and (iii) Global Technology, which is both a reportable segment and an operating segment. Table of Contents Index to Financial Statements 65 Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities that are considered shared services to the reporting units, and ultimately the determination of the fair value of each reporting unit. The fair value of each reporting unit is calculated by applying the discounted cash flow methodology and confirming with a market approach. There are inherent uncertainties, however, related to fair value models, the inputs and our judgments in applying them to this analysis. The most significant inputs include estimation of detailed future cash flows based on budget expectations, and determination of comparable companies to develop a weighted average cost of capital for each reporting unit. In performing the annual goodwill impairment assessment, we prepare forward-looking financial projections for each reporting unit based on input from our leadership and approved operating plans. These projections incorporate assumptions related to planned strategic initiatives, the continued integration of recent acquisitions, and prevailing macroeconomic and market conditions. Changes in these assumptions could materially affect the estimated fair values of the reporting units. Our third-party valuation specialists provide inputs into our determination of the discount rate. The rate is dependent on a number of underlying assumptions, including the risk-free rate, tax rate, equity risk premium, debt to equity ratio and pre-tax cost of debt. Long-term growth rates are applied to our estimation of future cash flows. The long-term growth rates are tied to growth rates we expect to achieve beyond the years for which we have forecasted operating results. We also consider external benchmarks, and other data points which we believe are applicable to our industry and the composition of our global operations. We performed our annual quantitative goodwill assessment, and the estimated fair value of each of our reporting units sufficiently exceeded its respective carrying value. As a result, no goodwill impairments were recorded during the years ended December 27, 2025, December 28, 2024, and December 30, 2023. For the year ended December 28, 2024, in connection with our restructuring initiatives, 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. Definite-Lived Intangible Assets Annually or if we identify an impairment indicator, definite-lived intangible assets such as customer relationships and lists, trademarks, trade names, product development and non-compete agreements are reviewed for impairment indicators. If any impairment indicators exist, quantitative testing is performed on the asset. The quantitative impairment model is a two-step test under which we first calculate the recoverability of the carrying value by comparing the undiscounted projected cash flows associated with the asset or asset group, including its estimated residual value, to the carrying amount. If the cash flows associated with the asset or asset group are less than the carrying value, we perform a fair value assessment of the asset, or asset group. If the carrying amount is found to be greater than the fair value, we record an impairment loss for the excess of book value over the fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate. Although we believe our judgments, estimates and/or assumptions used in estimating cash flows and determining fair value are reasonable, making material changes to such judgments, estimates and/or assumptions could materially affect such impairment analyses and our financial results. During the year ended December 27, 2025, we recorded $16 million of impairment charges related to businesses in our Global Distribution and Value-Added Services segment. The impairment charges included $14 million primarily related to customer lists and relationships attributable to lower than anticipated operating margins in these businesses. The remaining impairment charges of $2 million related to trade names and non-compete agreements. During the year ended December 28, 2024, we recorded $4 million of impairment charges related to businesses in our Global Distribution and Value-Added Services segment. It included $2 million of a trade name impairment, calculated using the relative fair value, related to a disposal of a business, and $1 million related to trade name Table of Contents Index to Financial Statements 66 impairment due to business integration in connection with our restructuring initiatives. The remaining $1 million impairment charges related to trade names and non-compete agreements. During the year ended December 30, 2023, we recorded $19 million of impairment charges related to businesses in our Global Distribution and Value-Added Services segment, consisting of $7 million primarily related to customer 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. Please see Note 16 – Plans of Restructuring and Related Costs for additional details. Redeemable Noncontrolling Interests Some minority stockholders in certain of our consolidated subsidiaries have the right, at certain times, to require us to acquire their ownership interest in those entities at fair value. The redemption amounts have been estimated based on recent transactions and/or implied multiples of earnings and, if such earnings and cash flows are not achieved, the value of the redeemable noncontrolling interests might be impacted. See Note 1 – Basis of Presentation and Significant Accounting Policies and Note 20 – Redeemable Noncontrolling Interests for additional information. Income Tax Determining whether a deferred tax asset will be realized requires significant estimates and judgment to assess whether a valuation allowance is necessary. We consider all available evidence, both positive and negative, including estimated future taxable earnings, ongoing planning strategies, future reversals of existing temporary differences and historical operating results. Additionally, changes to tax laws and statutory tax rates can have an impact on our determination. We evaluate the realizability of our deferred tax assets quarterly. Accounting Standards Codification Topic 740 prescribes the accounting for uncertainty in income taxes recognized in the financial statements in accordance with provisions contained within its guidance. This topic prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by the taxing authorities. The amount recognized is measured as the largest amount of benefit that has a greater than 50% likelihood of being realized upon ultimate audit settlement. In the normal course of business, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities for uncertain tax positions taken in respect of certain tax matters. Please see Note 15 – Income Taxes for further discussion. Accounting Standards Update For a discussion of accounting standards updates that have been adopted or will be adopted in the future, please see Note 1 – Basis of Presentation and Significant Accounting Policies included under Item 8. Table of Contents Index to Financial Statements 67