UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

 

(Mark One)

X             ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2016

OR

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1943

 

For the transition period from ____________ to ____________

Commission File Number:   0-27078

 

 

A.           Full title of the plan and the address of the plan, if different from that of the issuer named below:

 

Henry Schein, Inc. 401(k) Savings Plan

 

B.            Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

 

Henry Schein, Inc.

 

135 Duryea Road

 

Melville, New York 11747

 

   


 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

 

TABLE OF CONTENTS

 

 

Page

Number

Report of Independent Registered Public Accounting Firm

3

Financial Statements:

Statements of Net Assets Available for Benefits as of December 31, 2016 and 2015

4

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2016 and 2015

5

Notes to Financial Statements

6

Supplemental schedule as of and for the year ended December 31, 2016:

Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets (Held at End of Year)

12

  Signature

15

Exhibits:

Consent of Independent Registered Public Accounting Firm

Exhibit 23.1

All other schedules required by Section 2520.103-10 of the U.S. Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted

because they are not applicable.

 

 

 

 

2


 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Plan Administrator of the

Henry Schein Inc. 401(k) Savings Plan

Melville, NY

 

We have audited the accompanying statements of net assets available for benefits of the Henry Schein Inc. 401(k) Savings Plan (the “Plan”) as of December 31, 2016 and 2015, and the related statements of changes in net assets available for benefits for the years ended December 31, 2016 and 2015.  These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2016 and 2015, and the changes in net assets available for benefits for the years ended December 31, 2016 and 2015, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2016 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

 

/s/ BDO USA, LLP

 

New York, New York

June 27, 2017

  

3


 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

                 

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

2016

 

2015

 

 

 

 

 

 

Assets

 

 

 

Investments, at fair value (Note 4 ):

 

 

 

 

Money market accounts

$

44,471,809

 

$

42,609,895

 

Mutual funds

 

755,896,782

 

 

670,137,078

 

Common stock

 

98,586,316

 

 

115,420,011

 

 

Total investments

 

898,954,907

 

 

828,166,984

Receivables:

 

 

 

 

 

 

Notes receivable from participants

 

19,513,722

 

 

19,047,311

 

Employer’s contribution (Note 1(b))

 

24,004,284

 

 

23,639,748

 

Other

 

46,005

 

 

36,574

 

 

Total receivables

 

43,564,011

 

 

42,723,633

 

 

 

Total Assets

 

942,518,918

 

 

870,890,617

Liabilities

 

 

 

 

 

 

Benefits claims payable

 

59,499

 

 

1,390

 

 

Net assets available for benefits

$

942,459,419

 

$

870,889,227

 

 

 

 

 

 

 

 

 

See accompanying Notes to Financial Statements

4


 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

                   

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

 

December 31,

 

December 31,

 

 

 

 

2016

 

2015

 

 

 

 

 

 

 

 

 

Additions:

 

 

 

 

 

Investment income:

 

 

 

 

 

 

Interest and dividends:

 

 

 

 

 

 

 

Money market fund and mutual funds

$

25,483,975

 

$

27,694,208

Net appreciation (depreciation) in fair value of investments:

 

 

 

 

 

 

Mutual funds

 

32,155,895

 

 

(24,672,021)

 

Common stock

 

(4,020,440)

 

 

16,488,909

 

 

 

 

Total investment income

 

53,619,430

 

 

19,511,096

 

Participants’ contributions

 

50,596,125

 

 

49,280,055

 

Employer’s contribution (Note 1(b))

 

24,004,284

 

 

23,639,748

 

Interest income - notes receivable from participants

 

1,010,163

 

 

1,001,458

 

 

 

 

Total additions

 

129,230,002

 

 

93,432,357

Deductions:

 

 

 

 

 

 

Benefits paid to participants

 

57,035,408

 

 

48,488,923

 

Administrative expenses

 

624,402

 

 

412,097

Total deductions

 

57,659,810

 

 

48,901,020

Net increase in plan assets

 

71,570,192

 

 

44,531,337

Net assets available for benefits, beginning of year

 

870,889,227

 

 

826,357,890

Net assets available for benefits, end of year

$

942,459,419

 

$

870,889,227

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Financial Statements

5


 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

 

NOTES TO FINANCIAL STATEMENTS

 

Note 1 – Description of Plan

 

The following description of the Henry Schein, Inc. 401(k) Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan document or Summary Plan Description for a more complete description of the Plan’s provisions.

 

(a) Nature of Operations

 

The Plan is a contributory defined contribution 401(k) plan originally effective January 1, 1970.  The Plan was amended effective December 26, 1993, to include an Internal Revenue Code Section 401(k) feature.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).  The third-party administrator is Fidelity Investments Institutional Operations Company, Inc., (the “Administrator”).  The Plan trustee is Fidelity Management Trust Company (the “Trustee”). Eligible employees are those employed by Henry Schein, Inc. (the “Plan Sponsor” or the “Company”) and certain of the Company’s affiliates (collectively, the “Employer”).

 

All employees (other than temporary employees) are eligible to make salary reduction contributions to the Plan upon hire and become eligible to be credited with Profit Sharing Contributions and the Employer Match (each as described below) upon completion of a one year period of service.  Temporary employees are eligible to make salary reduction contributions to the Plan and to be credited with Profit Sharing Contributions and the Employer Match on the first July 1 or January 1 following the completion of a twelve consecutive month period during which the temporary employee is credited with at least one thousand hours of service.  Effective December 1, 2015, if an individual is initially classified as a temporary employee and then is reclassified as a regular participant, the participant is immediately eligible to make salary reduction contributions to the Plan, and is eligible to be credited with Profit Sharing Contributions and the Employer Match upon the earlier of a completion of a one year period of service or when he or she would have been eligible to be credited with Profit Sharing Contributions and the Employer Match if he or she would have remained a temporary employee.

 

(b) Contributions

 

The Plan provides for a discretionary Employer contribution (the “Profit Sharing Contribution”) of a percentage of a participant’s base compensation, as defined under the Plan.  There were no discretionary Profit Sharing Contributions for the years ended December 31, 2016 and 2015.

 

The Plan allows employees to elect to contribute, through payroll deductions, stated percentages from 1% to 50% of their compensation, as defined under the Plan, not to exceed $18,000 for years 2016 and 2015, in accordance with the deferral limitations for such years under the Internal Revenue Code (“IRC”).  The Plan also provides for matching contributions (the “Employer Match”) of 100% of participant 401(k) contributions up to the lesser of 7% or the participant’s deferral percentage, multiplied by the participant’s base compensation, as defined under the Plan.  For the 2016 and 2015 Plan years, the Employer Match was allocated 100% to the participant’s investment elections on file, subject to a 20% allocation limit to the Henry Schein Stock Fund.

 

Participants age 50 or over are permitted to make additional catch-up tax deferred contributions once the participant has reached a limit on those contributions imposed either by the Plan or by law.  The extra amount a participant may contribute may not exceed $6,000 in years 2016 and 2015.

 

The Plan provides for the automatic enrollment in the Plan, at a deferral percentage of 3% of compensation, of eligible employees initially hired by the Company or its participating affiliates on or after March 1, 2014, unless the employee elects not to make 401(k) plan contributions or elects to make elective 401(k) plan contributions at a different percentage.

 

 

On December 19, 2016, the Plan was amended , effective January 1, 2016, to (i) clarify the crediting of periods of service with respect to employment with nonparticipating affiliates of the Company, (ii) clarify the definitions of “Base Compensation” and “Compensation” under the plan and (iii) to provide for the recognition of continuous service performed for Custom Automated Prosthetics, LLC (“CAP”) or Custom Milling Center, Inc.(“CMC”) immediately prior to the consummation of the Company’s acquisition of CAP or CMC, as applicable, for purposes of eligibility and vesting under the Plan for those individuals who were actively employed by CAP or CMC, as applicable, on the applicable closing date who remained employed by CAP or CMC, as applicable, until becoming employees of the Company effective as of July 1, 2016.

 

 

6


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

NOTES TO FINANCIAL STATEMENTS – (Continued) 

 

 (c) Participants’ Accounts

 

Each participant’s account is credited with the participant’s salary reduction contributions and the Employer contributions and an allocation of net Plan earnings.  Expenses directly related to participant transactions are deducted from the respective participant’s account.  Participants may direct the investment of their account balances into various investment options by the Plan.  As of December 31, 2016, the Plan offered twenty mutual funds and a money market account as investment options for participants.  Participants also have the option to direct up to 20% of their account balances to common shares of Henry Schein, Inc.

 

(d) Vesting

 

Participants are immediately vested in their 401(k) contributions plus actual earnings thereon.  Vesting in the Profit Sharing Contribution and the Employer Match, plus actual earnings thereon, is based on years of continuous service, on a graded scale as follows:

  

 

 

 

 

Vested

 

 

Vesting

percentage

 

 

2 but less than 3 years

20%

 

 

3 but less than 4 years

40%

 

 

4 but less than 5 years

60%

 

 

5 or more years

100%

 

 

(e) Notes Receivable from Participants

 

Participants may borrow up to a maximum of the lesser of $50,000 or 50% of their vested account balance from their accounts pursuant to rules set forth in the Plan document.  The minimum amount that may be borrowed is $1,000 and only two loans may be made in any calendar year, and no more than two loans may be outstanding at any time.  The loans are secured by the balance in the participants’ accounts and bear interest at prevailing rates.  The loans must be for a term of five years or less (ten years if the loan is for the purpose of purchasing a principal residence).  Principal and interest are paid ratably through payroll deductions.

 

If an employee is terminated and has an outstanding loan balance at the time of termination, the employee will be permitted to repay any outstanding loans directly to the Trustee.  The employee may also roll-over any outstanding loans, as part of a rollover of the terminated employee’s entire vested account balance to certain other retirement plans in which the terminated employee participates.  Notes receivable from participants are valued at the aggregate of the unpaid principal balance and accrued but unpaid interest.

 

(f) Payment of Benefits

 

The Plan provides that, upon termination of service, retirement, disability or death of the participant, a benefit equal to the vested, nonforfeitable portion of the participant’s account is distributed as outlined in the Plan.  Participants may also receive in-service or hardship distributions based on criteria as described in the Plan document.

 

(g) Administrative Expenses

 

All reasonable costs, charges and expenses incurred in connection with the administration of the Plan may be paid by the Plan Sponsor but, if not paid by the Plan Sponsor when due, shall be paid from Plan assets.  For the years ended December 31, 2016 and 2015, the Plan Sponsor did not use any Plan assets from forfeited accounts to pay costs associated with the Plan.  Amounts reflected in the statements of changes in net assets available for benefits reflect various participant directed expenses which have been deducted from the respective participant accounts. 

 

On January 1, 2011, the Plan entered into an agreement with Fidelity Management Trust Company for record keeping and administrative services with a fixed basis point pricing.  The pricing is calculated on a quarterly basis on total Plan assets based upon average quarterly assets and is subject to offset for revenue received from Fidelity and Non-Fidelity investments as outlined in the agreement. 

 

7


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

NOTES TO FINANCIAL STATEMENTS – (Continued) 

 

(h) Forfeitures

 

Forfeiture allocations may be used to offset administrative expenses of the Plan and to reduce the Employer Match.  Forfeited invested accounts totaled $1,123,569 and $311,227 at December 31, 2016 and 2015, respectively, and are included primarily in the Fidelity Retirement Money Market account in the statements of net assets available for benefits.  Forfeitures in the amount of $1,287,976 and $437,243 will be or have been used to offset Employer contributions for the years ended December 31, 2016 and 2015, respectively.

 

Note 2 – Summary of Significant Accounting Policies

 

Basis of Accounting

 

The financial statements of the Plan are prepared under the accrual method of accounting.  

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities.  Actual results could differ from those estimates.

 

Investment Valuation and Income Recognition

 

Investments are stated at fair value based upon quoted market prices.  Gains and losses on investment transactions are recognized when realized based on trade dates.  Net appreciation (depreciation) in fair value of investments includes realized and unrealized appreciation (depreciation).  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.

 

Risk and Uncertainties

 

The Plan utilizes various investment instruments which are exposed to various risks, such as interest rate, credit and overall market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.  The Plan’s investments are not insured or protected by the Plan’s Trustee, the Pension Benefit Guaranty Corporation, or any other governmental agency; accordingly, the Plan is subject to the normal investment risks associated with money market funds, mutual funds, stocks, bonds, and other similar types of investments.

 

Payment of Benefits

 

Benefits are recorded when paid.

 

Accounting Pronouncements Adopted

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which amends Accounting Standards Codification (“ASC”) 820, “Fair Value Measurement.” The amendments remove the requirement to categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The amendments were effective for fiscal years beginning after December 15, 2015 and were applied on a retrospective basis. The provisions are effective for the year ending December 31, 2016. The adoption of this ASU did not have a significant impact on the Plan’s financial statements.

 

8


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

NOTES TO FINANCIAL STATEMENTS – (Continued) 

 

In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient (consensuses of the FASB Emerging Issues Task Force).” The amendments required fully benefit-responsive investment contracts to be measured, presented and disclosed only at contract value, not fair value; simplified the investment disclosure requirements; and provided a measurement date practical expedient for employee benefit plans. The amendments are effective for fiscal years beginning after December 15, 2015. Part I and Part II were applied on a retrospective basis and Part III was applied prospectively. The provisions are effective for the year ending December 31, 2016.  The Plan adopted ASU 2015-12 as of December 31, 2016.  The adoption of ASU 2015-12 has resulted in the Plan eliminating its historical disclosure of individual investments which comprise 5% or more of total net assets available for benefits. There were no other impacts on the statements of net assets available for benefits as of December 31, 2016 and 2015 and the statement of changes in net assets available for benefits for the year ended December 31, 2016.”

 

Note 3 – Tax Status

 

The Internal Revenue Service (“IRS”) has determined and informed the Company, by a letter dated April 24, 2017, that the Plan, which was amended and restated  effective as of January 1, 2015, with certain amendments effective on subsequent dates, and related trust are designed in accordance with the applicable sections of the Internal Revenue Code (“IRC”).  Previous determination letters were received by the Plan dated April 26, 2013 and June 1, 2005.  The Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. The related trust, therefore, is not subject to tax under present income tax law. Accordingly, no provision for income taxes has been included in the Plan’s financial statements.

 

The Plan Administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2016 and 2015, there are no uncertain positions taken, or expected to be taken, that would require recognition of a liability or disclosure in the financial statements.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.  The administrator believes the Plan is no longer subject to income tax examinations for years prior to 2013.

 

Note 4 – Fair Value Measurements

 

ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).

 

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).  The three levels of the fair value hierarchy under ASC 820 are described as follows:

 

·               Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

 

·               Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

·               Level 3 - Inputs that are unobservable for the asset or liability.

 

The following section describes the valuation methodologies that were used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is classified:

 

Money Market Accounts

 

Funds held in money market accounts are valued at amortized cost, which approximates fair value and are classified as Level 1 within the fair value hierarchy at December 31, 2016 and 2015.

 

9


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

NOTES TO FINANCIAL STATEMENTS – (Continued) 

 

Mutual Funds

 

Mutual funds are valued at the net asset value of shares held by the Plan as of December 31, 2016 and 2015.  The Company has classified its mutual fund holdings as Level 1 within the fair value hierarchy based upon unadjusted quoted prices in active markets for identical assets or liabilities that were accessible at December 31, 2016 and 2015.

 

Common Stock Fund

 

The Henry Schein, Inc. common stock fund is a unitized stock fund.  The fund consists of both Henry Schein, Inc. common stock and a short-term cash component that provides liquidity for daily trading.  Henry Schein, Inc. common stock is valued at the quoted market price from a national securities exchange and the short-term cash investment is valued at cost, which approximates fair value.  The Henry Schein, Inc. common stock fund is classified within Level 1 of the fair value hierarchy based upon unadjusted quoted prices in active markets for identical assets or liabilities that were accessible at December 31, 2016 and 2015.  The common stock component of $98,586,316 and $115,420,011 is included within “Common stock” on the Statement of Net Assets Available for Benefits and the short-term cash component of $807,053 and $971,720 is included within “Money market accounts” on the Statement of Net Assets Available for Benefits as of December 31, 2016 and 2015.

 

The following tables present the Company’s investments that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of December 31, 2016 and 2015:

 

 

 

December 31, 2016

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Investments:

 

 

 

 

 

 

 

 

 

 

 

Money market accounts

$

44,471,809

 

$

-

 

$

-

 

$

44,471,809

Mutual funds

 

755,896,782

 

 

-

 

 

-

 

 

755,896,782

Henry Schein, Inc. Common Stock Fund

 

98,586,316

 

 

-

 

 

-

 

 

98,586,316

 

Total investments

$

898,954,907

 

$

-

 

$

-

 

$

898,954,907

 

 

 

December 31, 2015

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Investments:

 

 

 

 

 

 

 

 

 

 

 

Money market accounts

$

42,609,895

 

$

-

 

$

-

 

$

42,609,895

Mutual funds

 

670,137,078

 

 

-

 

 

-

 

 

670,137,078

Henry Schein, Inc. Common Stock Fund

 

115,420,011

 

 

-

 

 

-

 

 

115,420,011

 

Total investments

$

828,166,984

 

$

-

 

$

-

 

$

828,166,984

 

During the years ended December 31, 2016 and 2015, there were no transfers of investments between the levels of the fair value hierarchy.

 

Note 5 – Plan Termination

 

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to ERISA.  In the event of Plan termination, participants will become 100% vested in their accounts.

 

Note 6 – Party-in-Interest Transactions

 

The Plan invests in shares of funds managed by an affiliate of the Trustee as defined by the Plan and, therefore, these transactions in such investments qualify as party-in-interest.  The Plan invests in the common stock of Henry Schein, Inc., which is a party-in-interest.  Notes receivable from participants also qualify as party-in-interest transactions.

 

10


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

NOTES TO FINANCIAL STATEMENTS – (Continued) 

 

Note 7 – Subsequent Events

 

In preparing the financial statements, Plan management has evaluated events and transactions for potential recognition or disclosure through June 27, 2017, the date the Plan’s financial statements are available to be issued. 

 

11


 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS (Continued) 

(HELD AT END OF YEAR) 

(EIN: 11-3136595   Plan Number: 003) 

DECEMBER 31, 2016

 

(a)

 

(b)

 

(c)

 

(d)

 

(e)

 

 

 

 

 

 

Description of investment

 

 

 

 

 

 

 

 

 

 

including maturity date, rate

 

 

 

 

 

 

Identity of issue, borrower,

 

of interest, collateral, par or

 

 

 

 

 

 

lessor or similar party

 

maturity value

 

Cost

 

Current Value

 

 

Money market/cash and cash equivalents:

 

 

 

 

 

*

 

 

 

Fidelity Retirement Money Market Fund

 

44,471,809 money market fund shares with no set

 

 

 

 

 

 

 

 

 

 

rate of interest and no maturity value.

 

a

$

44,471,809

 

 

 

 

 

 

 

 

 

**

 

Common stock Fund:

 

 

 

 

 

 

 

 

 

Henry Schein, Inc. -  Common Stock Fund

 

1,340,731 units.  There is no maturity date,

 

a

 

98,586,316

 

 

 

 

 

 

rate of interest, collateral, par or maturity value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares of registered investment companies:

 

 

 

 

 

*

 

 

 

Fidelity Spartan 500 Index Institutional Fund

 

1,580,004 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

123,793,332

 

 

 

 

AF Growth of America R6

 

1,608,065 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

67,619,159

 

 

 

 

Dodge & Cox Stock Fund

 

318,127 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

58,630,820

*

 

 

 

Fidelity Freedom Index 2020 Fund - Class W

 

3,422,812 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

48,364,345

*

 

 

 

Fidelity Freedom Index 2030 Fund - Class W

 

3,561,405 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

54,382,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*    Funds are managed by an affiliate of Fidelity Management Trust Company, a party-in-interest as defined by ERISA.

**  A party-in-interest as defined by ERISA.

a    The cost of participant-directed investments is not required to be disclosed.

 

 

 

 

 

 

 

12


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS 

(HELD AT END OF YEAR) 

(EIN: 11-3136595   Plan Number: 003) 

DECEMBER 31, 2016

 

(a)

 

(b)

 

(c)

 

(d)

(e)

 

 

 

 

 

Description of investment

 

 

 

 

 

 

 

 

 

including maturity date, rate

 

 

 

 

 

 

Identity of issue, borrower,

 

of interest, collateral, par or

 

 

 

 

 

 

lessor or similar party

 

maturity value

 

Cost

 

Current Value

 

Shares of registered investment companies

 

 

 

 

(continued):

 

 

 

 

 

 

*

 

 

Fidelity Diversified International Fund – Class K

 

963,163 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

32,005,912

 

 

Vanguard Total International Stock Index Fund

 

451,875 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

Institutional Shares

 

date, rate of interest, collateral, par or maturity value.

 

a

44,509,673

*

 

 

Fidelity OTC Portfolio

 

357,058 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

29,750,099

*

 

 

Fidelity Low Priced Stock Fund

 

624,675 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

30,908,925

*

 

 

Fidelity Puritan Fund

 

1,477,487 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

30,406,690

 

 

Vanguard Small Cap Index Institutional

 

543,693 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

33,583,937

*

 

 

Fidelity Freedom 2040 Index Fund - Class W

 

2,160,067 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

34,474,682

 

 

Neuberger Berman Genesis Trust

 

501,137 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

28,434,525

*

 

 

Fidelity Government Income Fund

 

2,282,758 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

23,215,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*  Funds are managed by an affiliate of Fidelity Management Trust Company, a party-in-interest as defined by ERISA.

a  The cost of participant-directed investments is not required to be disclosed.

13


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS 

(HELD AT END OF YEAR) 

(EIN: 11-3136595   Plan Number: 003) 

DECEMBER 31, 2016

 

(a)

 

(b)

 

(c)

 

(d)

 

(e)

 

 

 

 

 

 

Description of investment

 

 

 

 

 

 

 

 

 

 

including maturity date, rate

 

 

 

 

 

 

Identity of issue, borrower,

 

of interest, collateral, par or

 

 

 

 

 

 

lessor or similar party

 

maturity value

 

Cost

 

Current Value

 

 

Shares of registered investment companies

 

 

 

 

 

 

 

 

 

(continued):

 

 

 

 

 

 

 

 

 

Vanguard Inflation-Protected Securities Fund

 

2,486,935 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

Institutional Shares

 

date, rate of interest, collateral, par or maturity value.

 

a

 

25,814,395

*

 

 

Fidelity Freedom Index 2010 Fund - Class W

 

751,807 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

10,006,559

*

 

 

Fidelity Freedom Index 2050 Fund - Class W

 

895,940 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

14,505,280

*

 

 

Fidelity Freedom Index Income Fund - Class W

 

449,413 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

5,127,805

 

 

 

Prudential Total Return Bond Fund - Class Q

 

4,213,198 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

59,406,091

*

 

 

Fidelity Freedom Index 2060 Fund

 

91,682 mutual fund shares.  There is no maturity

 

 

 

 

 

 

 

 

 

 

date, rate of interest, collateral, par or maturity value.

 

a

 

956,245

 

 

 

Total shares of registered investment companies

 

 

 

 

 

755,896,782

 

 

Total Investments

 

 

 

$

898,954,907

 

 

 

 

 

 

 

 

 

**

 

 

Notes Receivable from Participants

 

Fully secured loans with interest charges at current 

 

-

$

19,513,722

 

 

 

 

 

 

commercial rates (current loans range from 5.25% to

 

 

 

 

 

 

 

 

 

 

10.25% maturing through October 6, 2026)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*    Funds are managed by an affiliate of Fidelity Management Trust Company, a party-in-interest as defined by ERISA.

**  A party-in-interest as defined by ERISA.

a    The cost of participant-directed investments is not required to be disclosed.

14


HENRY SCHEIN, INC. 401(k) SAVINGS PLAN 

 

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS 

(HELD AT END OF YEAR) 

(EIN: 11-3136595   Plan Number: 003) 

DECEMBER 31, 2016

 

 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

HENRY SCHEIN, INC. 401(k) SAVINGS PLAN

Dated: June 27, 2017

/s/ Lorelei McGlynn

Lorelei McGlynn

Chairperson of the 401(k) Plan Administrative Committee

 

 

 

15


 

 

EXHIBIT 23.1

 

Consent of Independent Registered Public Accounting Firm

 

Henry Schein Inc. 401(k) Savings Plan

Melville, New York

 

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (Nos. 333-212994, 333-192788, 333-171400, 333-164360, 333-111914, 333-91778, 333-35144, 333-39893, 333-33193, and 333-05453) of Henry Schein, Inc. of our report dated June 27, 2017, relating to the financial statements and supplemental schedule of the Henry Schein, Inc. 401(k) Savings Plan which appear in this Form 11-K for the year ended December 31, 2016.

 

 

/s/ BDO USA, LLP

New York, NY

June 27, 2017