The company's strategy is focused on investments in companies that add new customers and sales teams, increase geographic footprint, and enable access to new products and technologies. In 2023, acquisitions were made in implant systems, clear aligners, homecare medical products, and dental practice transition services.

The company is focused on the BOLD+1 strategic plan to build complementary businesses, operationalize one distribution model, leverage one Schein, drive digital transformation, and create value for stakeholders. This plan is intended to improve customer experience, efficiency, and growth.

The company intends to expand its dental full-service model and medical offerings in countries where opportunities exist through direct sales and partnerships with local distribution and manufacturing companies.

The company committed to a restructuring plan in August 2022, focused on funding strategic priorities and streamlining operations. Expected to continue through 2024, but the company is currently unable to estimate the total costs or future cash expenditures associated with the plan.

A cybersecurity incident in October 2023 primarily affected North American and European distribution businesses. The incident disrupted key business operations, adversely impacted financial results, and diverted management attention. Remediation efforts are ongoing.

The company emphasizes employee engagement through various initiatives, including the Pulse Global Culture Survey and Employee Resource Groups. There is also a focus on diversity and inclusion, with efforts to ensure a diverse and inclusive environment.

The company acknowledges the increasing sophistication and frequency of cybersecurity threats, which have previously affected and may continue to affect their business operations, potentially leading to financial losses, reputational damage, and legal liabilities.

The company relies on third-party suppliers for a significant portion of its products, and disruptions in the supply chain, including those caused by forced labor allegations, could negatively impact operations and customer relationships.

The company is subject to numerous laws and regulations, including those related to pharmaceuticals, medical devices, and data privacy. Changes in these regulations or failure to comply could have a material adverse effect on the business.

The health care products distribution industry is highly competitive, with competition from numerous companies, including major manufacturers and distributors. The company must continuously adapt to changing technologies and customer demands to remain competitive.

The expansion of group purchasing organizations (GPOs) and dental support organizations (DSOs) may lead to more favorable pricing terms for these entities, potentially placing the company at a competitive disadvantage.

The company's success depends on its senior management and its ability to maintain relationships with sales representatives, service technicians, customers, suppliers, and manufacturers.

The company has implemented a restructuring plan to streamline operations and increase efficiency. However, the company is unable to estimate the total costs or future cash expenditures associated with the plan.

Distribution network costs, which include purchasing, receiving, inspections, and warehousing, are a significant component of operating expenses. These costs totaled $105 million in 2023.

The company relies on a network of strategically located distribution centers to ensure prompt delivery and complete order fulfillment. Any significant increase in shipping rates or service interruptions could harm the business.

The company's future growth, especially in the technology and value-added services segment, depends on its ability to develop or acquire and maintain new products and technologies that achieve market acceptance.

Cyberattacks that bypass the company's security measures could cause security breaches and vulnerabilities in its technology products and services, leading to loss of business and reputational harm.

Electronic commerce solutions have become an integral part of traditional health care supply and distribution relationships. The company must adapt to changing technologies and enhance existing services to address consumer demands.

The company's capital allocation strategy includes funding acquisitions, purchasing noncontrolling interests, repaying debt, funding working capital needs, purchasing fixed assets, and repurchasing common stock.

As of December 30, 2023, $265 million remained available for future common stock share repurchases under the company's initiatives.

Net cash used in investing activities was $1,135 million for the year ended December 30, 2023, primarily attributable to increased payments for equity investments and business acquisitions, and increased purchases of fixed assets.

Henry Schein has a long, rich history of a purpose-driven model that engages our five key stakeholders – our supplier partners, customers, our employees, who are referred to as Team Schein Members (“TSMs”), stockholders and society at large – of our Mosaic of Success to drive sustained, long-term economic success while also creating shared value for society.

Continued focus on creating a diverse and inclusive environment where TSMs feel a sense of belonging. In 2023, Diversity and Inclusion, for the second time, was our top strength identified in The Pulse Global Culture Survey.

Build a world we want to live in by supporting each other and the communities in which we live and work.

The health care industry is highly regulated and subject to changing political, economic, and regulatory influences. In recent years, the health care industry has undergone, and is in the process of undergoing, significant changes driven by various efforts to reduce costs.

Uncertain global and domestic macro-economic and political conditions that affect the economy and the economic outlook of the United States, Europe, Asia, and other parts of the world could materially adversely affect our results of operations and financial condition.

The health care products industry is subject to a multi-tiered costing structure, which can vary by manufacturer and/or product. Under this structure, certain institutions can obtain more favorable prices for health care products than we are able to obtain.