x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Minnesota
|
|
41-0886515
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
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Title of each class
|
|
Name of exchange on which registered
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Common Stock, par value $.01
|
|
NASDAQ Global Select Market
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Large accelerated filer
|
|
x
|
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
|
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¨
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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||
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Fiscal Year Ended
|
||||||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
||||||
Dental
|
$
|
2,476
|
|
|
$
|
2,415
|
|
|
$
|
2,348
|
|
Animal Health
|
2,862
|
|
|
1,457
|
|
|
1,203
|
|
|||
Corporate
|
49
|
|
|
39
|
|
|
34
|
|
|||
Consolidated net sales
|
$
|
5,387
|
|
|
$
|
3,911
|
|
|
$
|
3,585
|
|
•
|
Broad product and service offerings at competitive prices
. We offer over 190,000 SKUs to our customers, including many proprietary branded products. We believe that our proprietary branded products and our competitive pricing strategy have generated a loyal customer base that is confident in our brands. Of the SKUs offered, approximately 90,000 are offered to our dental customers and approximately 100,000 are offered to our animal health customers. Our product offerings include consumables, equipment and software. Our service offerings include software and design services, repair and maintenance, and equipment financing.
|
•
|
Focus on customer relationships and exceptional customer service.
Our sales and marketing efforts are designed to establish and solidify customer relationships through personal visits by field sales representatives, interaction via phone with sales representatives, web-based activities including e-commerce and frequent direct marketing, emphasizing our broad product lines, including exclusive distribution agreements, competitive prices and ease of order placement. We focus on providing our customers with exceptional order fulfillment and a streamlined ordering process.
|
•
|
Cost-effective purchasing and efficient distribution.
We believe that cost-effective purchasing is a key element to maintaining and enhancing our position as a competitive-pricing provider of dental and animal health products. We distribute our products from strategically located fulfillment centers. We strive to maintain optimal inventory levels in order to satisfy customer demand for prompt and complete order fulfillment.
|
•
|
Emphasizing our value-added, full-service capabilities
. We are positioned to meet virtually all of the needs of dental practitioners, veterinarians, production animal operators and animal health product retailers by providing a broad range of consumable supplies, technology, equipment and software and value-added services. We believe our knowledgeable sales representatives can create special relationships with customers by providing an informational link to the overall industry. Our value-added strategy is further supported by our equipment specialists who offer consultation on design, equipment requirements and financing, our service technicians who perform equipment installation, maintenance and repair services, our business development professionals who provide business tools and educational programs to our customers, and our technology advisors who provide guidance on integrating technology solutions.
|
•
|
Using technology to enhance customer service.
As part of our commitment to providing superior customer service, we offer our customers easy order placement. Although we offer computerized order entry systems that we believe help establish relationships with new customers and increase loyalty among existing customers, predominant platforms for ordering today include www.pattersondental.com, www.pattersonvet.com and www.animalhealthinternational.com. The use of these methods of ordering enables our sales representatives to spend more time with existing and prospective customers. Our Internet environment includes order entry, customer support for digital and our proprietary products, customer-loyalty program reports and services, and access to articles and manufacturers’ product information. We also provide real-time customer and sales information to our sales force, managers and vendors via the Internet. In addition, we believe that the Patterson Technology Center (the “PTC”) differentiates Patterson from our competition by positioning Patterson as the only single-source solution for digital components. In addition to trouble-shooting through the PTC’s support center, customers can access various service capabilities offered by the PTC, including electronic claims and statement processing and system back-up capabilities.
|
•
|
Continuing to improve operating efficiencies.
We continue to implement programs designed to improve our operating efficiencies and allow for continued sales growth. This strategy includes our continuing investment in management information systems and consolidation and leveraging of fulfillment centers and sales branches between our operating segments. In addition, we have established shared sales branch offices in several locations.
|
•
|
Growing through internal expansion and acquisitions
. We intend to continue to grow by hiring established sales representatives, hiring and training skilled sales professionals, opening additional sales offices as needed, and acquiring other distributors in order to enter new, or more deeply penetrate existing, geographic markets, gain access to additional product lines, and expand our customer base. We believe both of our operating segments are well positioned to take advantage of expected continued consolidation in our markets.
|
|
Fiscal Year Ended
|
|||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
|||
Consumable
|
56
|
%
|
|
55
|
%
|
|
55
|
%
|
Equipment and software
|
33
|
|
|
34
|
|
|
34
|
|
Other
(1)
|
11
|
|
|
11
|
|
|
11
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
Consists of other value-added services, including software and design service, maintenance and repair, and equipment financing.
|
|
Fiscal Year Ended
|
|||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
|||
Consumable
|
97
|
%
|
|
95
|
%
|
|
94
|
%
|
Equipment and software
|
2
|
|
|
3
|
|
|
4
|
|
Other
|
1
|
|
|
2
|
|
|
2
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Scott P. Anderson
|
|
49
|
|
|
President, Chief Executive Officer, Chairman of the Board – Patterson Companies, Inc.
|
Ann B. Gugino
|
|
44
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer – Patterson Companies, Inc.
|
John E. Adent
|
|
48
|
|
|
Chief Executive Officer - Patterson Animal Health
|
Les B. Korsh
|
|
46
|
|
|
Vice President, General Counsel and Secretary - Patterson Companies, Inc.
|
Kelly A. Baker
|
|
47
|
|
|
Chief Human Resources Officer - Patterson Companies, Inc.
|
•
|
regulate the storage and distribution, labeling, packaging, handling, reporting, record keeping, introduction, manufacturing and marketing of drugs, HCT/P products and medical devices;
|
•
|
subject us to inspection by the FDA and the DEA;
|
•
|
regulate the storage, transportation and disposal of certain of our products that are considered hazardous materials;
|
•
|
require us to advertise and promote our drugs and devices in accordance with applicable FDA requirements;
|
•
|
require registration with the FDA and the DEA and various state agencies;
|
•
|
require record keeping and documentation of transactions involving drug products;
|
•
|
require us to design and operate a system to identify and report suspicious orders of controlled substances to the DEA;
|
•
|
require us to manage returns of products that have been recalled and subject us to inspection of our recall procedures and activities; and
|
•
|
impose reporting requirements if a pharmaceutical, HCT/P product or medical device causes serious illness, injury or death.
|
•
|
facilitate the purchase and distribution of thousands of inventory items through numerous fulfillment centers;
|
•
|
receive, process and ship orders on a timely basis;
|
•
|
accurately bill and collect from thousands of customers;
|
•
|
process payments to suppliers; and
|
•
|
provide products and services that maintain certain of our customers’ electronic medical or dental records (including protected health information of their human patients).
|
•
|
future results could be adversely affected due to the theft, destruction, loss, misappropriation or release of confidential data or intellectual property;
|
•
|
operational or business delays resulting from the disruption or damage of IS and subsequent clean-up and mitigation activities, including our ability to process orders, maintain proper levels of inventories, collect accounts receivable and disburse funds;
|
•
|
negative publicity resulting in reputation or brand damage with our customers, suppliers or industry peers; and
|
•
|
lawsuits for, or regulatory proceedings relating to, a breach of personal financial and health information belonging to our customers and their patients.
|
•
|
the publication of earnings estimates or other research reports and speculation in the press or investment community;
|
•
|
changes in our industry and competitors;
|
•
|
changes in government or legislation;
|
•
|
our financial condition, results of operations and cash flows and prospects;
|
•
|
stock repurchases;
|
•
|
any future issuances of our common stock, which may include primary offerings for cash, stock splits, issuances in connection with business acquisitions, issuances of restricted stock/units and the grant or exercise of stock options from time to time;
|
•
|
general market and economic conditions; and
|
•
|
any outbreak or escalation of hostilities in areas where we do business.
|
•
|
two dental fulfillment centers (Hawaii and Texas);
|
•
|
four animal health fulfillment centers (Alabama, Colorado and Texas (two));
|
•
|
seven fulfillment centers that distribute dental and animal health products (California, Florida, Indiana, Iowa, Pennsylvania, South Carolina and Washington); and
|
•
|
two fulfillment centers pursuant to the transition services agreement.
|
|
High
|
|
Low
|
|
Dividends
per share
|
||||||
Fiscal 2016
|
|
|
|
|
|
||||||
First Quarter
|
$
|
50.94
|
|
|
$
|
45.32
|
|
|
$
|
0.22
|
|
Second Quarter
|
53.07
|
|
|
42.62
|
|
|
0.22
|
|
|||
Third Quarter
|
48.87
|
|
|
38.51
|
|
|
0.22
|
|
|||
Fourth Quarter
|
46.64
|
|
|
40.17
|
|
|
0.24
|
|
|||
Fiscal 2015
|
|
|
|
|
|
||||||
First Quarter
|
41.93
|
|
|
37.03
|
|
|
0.20
|
|
|||
Second Quarter
|
42.61
|
|
|
38.04
|
|
|
0.20
|
|
|||
Third Quarter
|
51.49
|
|
|
41.43
|
|
|
0.20
|
|
|||
Fourth Quarter
|
51.48
|
|
|
47.22
|
|
|
0.22
|
|
|
Fiscal Year Ending
|
||||||||||||||||
|
4/30/2011
|
|
4/28/2012
|
|
4/27/2013
|
|
4/26/2014
|
|
4/25/2015
|
|
4/30/2016
|
||||||
Patterson Companies, Inc.
|
100.00
|
|
|
99.51
|
|
|
111.53
|
|
|
123.81
|
|
|
148.56
|
|
|
136.30
|
|
S&P 500
|
100.00
|
|
|
105.16
|
|
|
121.27
|
|
|
145.85
|
|
|
169.15
|
|
|
168.63
|
|
Peer Group
|
100.00
|
|
|
97.87
|
|
|
110.43
|
|
|
131.91
|
|
|
158.32
|
|
|
174.96
|
|
*
|
The current composition of SIC Code 5047 – Wholesale – Medical, Dental & Hospital Equipment & Supplies – is as follows: Fuse Medical, Inc., Henry Schein, Inc., Millennium Healthcare, Inc., Owens & Minor, Inc., Cerebain Biotech Corp. and Patterson Companies, Inc.
|
|
Fiscal Year Ended
|
||||||||||||||||||
|
April 30,
2016
(4)
|
|
April 25,
2015
|
|
April 26,
2014
(5)
|
|
April 27,
2013
|
|
April 28,
2012
|
||||||||||
Statement of Income Data
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
5,386,703
|
|
|
$
|
3,910,865
|
|
|
$
|
3,585,141
|
|
|
$
|
3,135,215
|
|
|
$
|
3,022,321
|
|
Cost of sales
|
4,063,955
|
|
|
2,850,316
|
|
|
2,566,444
|
|
|
2,138,468
|
|
|
2,060,220
|
|
|||||
Gross profit
|
1,322,748
|
|
|
1,060,549
|
|
|
1,018,697
|
|
|
996,747
|
|
|
962,101
|
|
|||||
Operating expenses
|
975,035
|
|
|
755,963
|
|
|
724,971
|
|
|
711,532
|
|
|
683,154
|
|
|||||
Operating income
|
347,713
|
|
|
304,586
|
|
|
293,726
|
|
|
285,215
|
|
|
278,947
|
|
|||||
Other expense, net
|
(46,020
|
)
|
|
(30,268
|
)
|
|
(32,463
|
)
|
|
(33,670
|
)
|
|
(28,563
|
)
|
|||||
Income from continuing operations before taxes
|
301,693
|
|
|
274,318
|
|
|
261,263
|
|
|
251,545
|
|
|
250,384
|
|
|||||
Income tax expense
|
116,009
|
|
|
94,235
|
|
|
89,931
|
|
|
86,629
|
|
|
87,524
|
|
|||||
Net income from continuing operations
|
185,684
|
|
|
180,083
|
|
|
171,332
|
|
|
164,916
|
|
|
162,860
|
|
|||||
Net income from discontinued operations
|
1,500
|
|
|
43,178
|
|
|
29,280
|
|
|
45,356
|
|
|
49,955
|
|
|||||
Net income
|
$
|
187,184
|
|
|
$
|
223,261
|
|
|
$
|
200,612
|
|
|
$
|
210,272
|
|
|
$
|
212,815
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
$
|
1.90
|
|
|
$
|
1.81
|
|
|
$
|
1.69
|
|
|
$
|
1.59
|
|
|
$
|
1.47
|
|
Discontinued operations
(2)
|
0.01
|
|
|
0.43
|
|
|
0.28
|
|
|
0.44
|
|
|
0.45
|
|
|||||
Net diluted earnings per share
|
$
|
1.91
|
|
|
$
|
2.24
|
|
|
$
|
1.97
|
|
|
$
|
2.03
|
|
|
$
|
1.92
|
|
Weighted average shares and potentially dilutive shares outstanding
|
97,902
|
|
|
99,694
|
|
|
101,643
|
|
|
103,807
|
|
|
110,846
|
|
|||||
Dividends per common share
|
$
|
0.90
|
|
|
$
|
0.82
|
|
|
$
|
0.68
|
|
|
$
|
0.58
|
|
|
$
|
0.50
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
$
|
918,206
|
|
|
$
|
995,540
|
|
|
$
|
872,254
|
|
|
$
|
912,817
|
|
|
$
|
873,865
|
|
Total assets
(3)
|
3,520,804
|
|
|
2,945,248
|
|
|
2,863,191
|
|
|
2,679,862
|
|
|
2,736,889
|
|
|||||
Total long-term debt
(3)
|
1,022,155
|
|
|
722,542
|
|
|
723,514
|
|
|
723,084
|
|
|
722,521
|
|
|||||
Stockholders’ equity
|
1,441,746
|
|
|
1,514,123
|
|
|
1,471,664
|
|
|
1,394,455
|
|
|
1,375,202
|
|
(1)
|
Statement of Income Data has been restated to present the results of Patterson Medical as discontinued operations for all periods presented. See Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
(2)
|
Fiscal 2014 includes a pre-tax restructuring charge of $15.4 million, or $0.13 per diluted share on an after-tax basis, related to the Medical Restructuring described in Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
(3)
|
Prior year balances have been revised to reflect the impact of adopting ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs.
|
(4)
|
In June 2015, we acquired Animal Health International, Inc. Prior to our acquisition, Animal Health International, Inc. generated sales and earnings before interest, income taxes, depreciation and amortization of $1.5 billion and $68 million, respectively, during the 12 months ended March 2015. In connection with this acquisition, we incurred pre-tax transaction costs of $13.7 million, or $0.11 per diluted share from continuing operations on an after-tax basis. See Note 4 to the Consolidated Financial Statements for additional information. Also in fiscal 2016, we approved a one-time repatriation of approximately $200.0 million of foreign earnings. This one-time repatriation reduced the overall cost of funding the acquisition of Animal Health International, Inc. In addition, certain foreign cash at Patterson Medical was required to be repatriated as part of the sale transaction. The continuing operations tax impact of $12.3 million from the repatriation was recorded during fiscal 2016. See Note 13 to the Consolidated Financial Statements for additional information.
|
(5)
|
In August 2013, we acquired National Veterinary Services Limited ("NVS"), which had revenues of more than £315 million, or approximately $493 million, in its fiscal year ended June 30, 2013 prior to acquisition. NVS results beginning on the date of the acquisition are included in continuing operations. See Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
|
Fiscal Year Ended
|
|||||||
|
April 30,
2016
|
|
April 25,
2015
|
|
April 26,
2014
|
|||
Net sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales
|
75.4
|
|
|
72.9
|
|
|
71.6
|
|
Gross profit
|
24.6
|
|
|
27.1
|
|
|
28.4
|
|
Operating expenses
|
18.1
|
|
|
19.3
|
|
|
20.2
|
|
Operating income from continuing operations
|
6.5
|
|
|
7.8
|
|
|
8.2
|
|
Other income (expense)
|
(0.9
|
)
|
|
(0.8
|
)
|
|
(0.9
|
)
|
Income from continuing operations before taxes
|
5.6
|
|
|
7.0
|
|
|
7.3
|
|
Income tax expense
|
2.2
|
|
|
2.4
|
|
|
2.5
|
|
Net income from continuing operations
|
3.4
|
%
|
|
4.6
|
%
|
|
4.8
|
%
|
|
Payments due by year
|
||||||||||||||||||
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Long-term debt principal
|
$
|
1,042,625
|
|
|
$
|
16,500
|
|
|
$
|
267,750
|
|
|
$
|
243,375
|
|
|
$
|
515,000
|
|
Long-term debt interest
|
186,959
|
|
|
34,434
|
|
|
58,983
|
|
|
41,598
|
|
|
51,944
|
|
|||||
Operating leases
|
72,925
|
|
|
22,891
|
|
|
28,023
|
|
|
15,141
|
|
|
6,870
|
|
|||||
Total
|
$
|
1,302,509
|
|
|
$
|
73,825
|
|
|
$
|
354,756
|
|
|
$
|
300,114
|
|
|
$
|
573,814
|
|
|
Fiscal Year Ended
|
|||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
|||
DSO
(1)
|
49
|
|
|
48
|
|
|
46
|
|
Inventory turnover
|
7.1
|
|
|
6.2
|
|
|
7.2
|
|
|
April 30, 2016
|
|
April 25, 2015
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
137,453
|
|
|
$
|
347,260
|
|
Short-term investments
|
—
|
|
|
53,372
|
|
||
Receivables, net of allowance for doubtful accounts of $12,008 and $7,678
|
796,693
|
|
|
586,263
|
|
||
Inventory
|
722,140
|
|
|
408,422
|
|
||
Prepaid expenses and other current assets
|
91,255
|
|
|
59,561
|
|
||
Current assets held for sale
|
—
|
|
|
118,347
|
|
||
Total current assets
|
1,747,541
|
|
|
1,573,225
|
|
||
Property and equipment, net
|
293,315
|
|
|
204,133
|
|
||
Long-term receivables, net
|
88,248
|
|
|
71,686
|
|
||
Goodwill
|
816,592
|
|
|
299,924
|
|
||
Identifiable intangibles, net
|
509,297
|
|
|
125,025
|
|
||
Other non-current assets
|
65,811
|
|
|
35,461
|
|
||
Long-term assets held for sale
|
—
|
|
|
635,794
|
|
||
Total assets
|
$
|
3,520,804
|
|
|
$
|
2,945,248
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
566,253
|
|
|
$
|
323,294
|
|
Accrued payroll expense
|
75,448
|
|
|
72,464
|
|
||
Other accrued liabilities
|
151,134
|
|
|
142,611
|
|
||
Current maturities of long-term debt
|
16,500
|
|
|
—
|
|
||
Borrowings on revolving credit
|
20,000
|
|
|
—
|
|
||
Current liabilities held for sale
|
—
|
|
|
39,316
|
|
||
Total current liabilities
|
829,335
|
|
|
577,685
|
|
||
Long-term debt
|
1,022,155
|
|
|
722,542
|
|
||
Deferred income taxes
|
206,896
|
|
|
41,413
|
|
||
Other non-current liabilities
|
20,672
|
|
|
40,071
|
|
||
Long-term liabilities held for sale
|
—
|
|
|
49,414
|
|
||
Total liabilities
|
2,079,058
|
|
|
1,431,125
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $.01 par value: 600,000 shares authorized; 99,107 and 103,278 shares issued and outstanding
|
991
|
|
|
1,033
|
|
||
Additional paid-in capital
|
48,477
|
|
|
21,026
|
|
||
Accumulated other comprehensive income (loss)
|
(67,964
|
)
|
|
(60,346
|
)
|
||
Retained earnings
|
1,529,158
|
|
|
1,630,148
|
|
||
Unearned ESOP shares
|
(68,916
|
)
|
|
(77,738
|
)
|
||
Total stockholders’ equity
|
1,441,746
|
|
|
1,514,123
|
|
||
Total liabilities and stockholders’ equity
|
$
|
3,520,804
|
|
|
$
|
2,945,248
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
||||||
Net sales
|
$
|
5,386,703
|
|
|
$
|
3,910,865
|
|
|
$
|
3,585,141
|
|
Cost of sales
|
4,063,955
|
|
|
2,850,316
|
|
|
2,566,444
|
|
|||
Gross profit
|
1,322,748
|
|
|
1,060,549
|
|
|
1,018,697
|
|
|||
Operating expenses
|
975,035
|
|
|
755,963
|
|
|
724,971
|
|
|||
Operating income from continuing operations
|
347,713
|
|
|
304,586
|
|
|
293,726
|
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Other income, net
|
4,045
|
|
|
3,425
|
|
|
3,250
|
|
|||
Interest expense
|
(50,065
|
)
|
|
(33,693
|
)
|
|
(35,713
|
)
|
|||
Income from continuing operations before taxes
|
301,693
|
|
|
274,318
|
|
|
261,263
|
|
|||
Income tax expense
|
116,009
|
|
|
94,235
|
|
|
89,931
|
|
|||
Net income from continuing operations
|
185,684
|
|
|
180,083
|
|
|
171,332
|
|
|||
Net income from discontinued operations
|
1,500
|
|
|
43,178
|
|
|
29,280
|
|
|||
Net income
|
$
|
187,184
|
|
|
$
|
223,261
|
|
|
$
|
200,612
|
|
Basic earnings per share:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
1.91
|
|
|
$
|
1.82
|
|
|
$
|
1.70
|
|
Discontinued operations
|
0.02
|
|
|
0.44
|
|
|
0.29
|
|
|||
Net basic earnings per share
|
$
|
1.93
|
|
|
$
|
2.26
|
|
|
$
|
1.99
|
|
Diluted earnings per share:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
1.90
|
|
|
$
|
1.81
|
|
|
$
|
1.69
|
|
Discontinued operations
|
0.01
|
|
|
0.43
|
|
|
0.28
|
|
|||
Net diluted earnings per share
|
$
|
1.91
|
|
|
$
|
2.24
|
|
|
$
|
1.97
|
|
Weighted average shares:
|
|
|
|
|
|
||||||
Basic
|
97,222
|
|
|
98,989
|
|
|
100,727
|
|
|||
Diluted
|
97,902
|
|
|
99,694
|
|
|
101,643
|
|
|||
Dividends declared per common share
|
$
|
0.90
|
|
|
$
|
0.82
|
|
|
$
|
0.68
|
|
Comprehensive income
|
|
|
|
|
|
||||||
Net income
|
$
|
187,184
|
|
|
$
|
223,261
|
|
|
$
|
200,612
|
|
Foreign currency translation gain (loss)
|
(9,552
|
)
|
|
(73,271
|
)
|
|
6,059
|
|
|||
Cash flow hedges, net of tax
|
1,934
|
|
|
(12,445
|
)
|
|
(5,854
|
)
|
|||
Comprehensive income
|
$
|
179,566
|
|
|
$
|
137,545
|
|
|
$
|
200,817
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
|
|
Unearned
ESOP
Shares
|
|
Total
|
|||||||||||||||
|
Number
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
Balance at April 27, 2013
|
105,570
|
|
|
$
|
1,056
|
|
|
$
|
—
|
|
|
$
|
25,165
|
|
|
$
|
1,463,358
|
|
|
$
|
(95,124
|
)
|
|
$
|
1,394,455
|
|
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
6,059
|
|
|
—
|
|
|
—
|
|
|
6,059
|
|
||||||
Cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,854
|
)
|
|
—
|
|
|
—
|
|
|
(5,854
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200,612
|
|
|
—
|
|
|
200,612
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72,413
|
)
|
|
—
|
|
|
(72,413
|
)
|
||||||
Common stock issued and related tax benefits
|
749
|
|
|
7
|
|
|
27,461
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,468
|
|
||||||
Repurchase of common stock
|
(2,354
|
)
|
|
(23
|
)
|
|
(36,104
|
)
|
|
—
|
|
|
(60,359
|
)
|
|
—
|
|
|
(96,486
|
)
|
||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
8,643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,643
|
|
||||||
ESOP activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,180
|
|
|
9,180
|
|
||||||
Balance at April 26, 2014
|
103,965
|
|
|
1,040
|
|
|
—
|
|
|
25,370
|
|
|
1,531,198
|
|
|
(85,944
|
)
|
|
1,471,664
|
|
||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(73,271
|
)
|
|
—
|
|
|
—
|
|
|
(73,271
|
)
|
||||||
Cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,445
|
)
|
|
—
|
|
|
—
|
|
|
(12,445
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
223,261
|
|
|
—
|
|
|
223,261
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82,531
|
)
|
|
—
|
|
|
(82,531
|
)
|
||||||
Common stock issued and related tax benefits
|
507
|
|
|
5
|
|
|
11,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,336
|
|
||||||
Repurchase of common stock
|
(1,194
|
)
|
|
(12
|
)
|
|
(5,747
|
)
|
|
—
|
|
|
(41,780
|
)
|
|
—
|
|
|
(47,539
|
)
|
||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
15,442
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,442
|
|
||||||
ESOP activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,206
|
|
|
8,206
|
|
||||||
Balance at April 25, 2015
|
103,278
|
|
|
1,033
|
|
|
21,026
|
|
|
(60,346
|
)
|
|
1,630,148
|
|
|
(77,738
|
)
|
|
1,514,123
|
|
||||||
Foreign currency translation
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,552
|
)
|
|
—
|
|
|
—
|
|
|
(9,552
|
)
|
||||||
Cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
1,934
|
|
|
—
|
|
|
—
|
|
|
1,934
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
187,184
|
|
|
—
|
|
|
187,184
|
|
||||||
Dividends declared
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(88,218
|
)
|
|
—
|
|
|
(88,218
|
)
|
||||||
Common stock issued and related tax benefits
|
208
|
|
|
2
|
|
|
12,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,877
|
|
||||||
Repurchase of common stock
|
(4,379
|
)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(199,956
|
)
|
|
—
|
|
|
(200,000
|
)
|
||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
14,576
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,576
|
|
||||||
ESOP activity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,822
|
|
|
8,822
|
|
||||||
Balance at April 30, 2016
|
99,107
|
|
|
$
|
991
|
|
|
$
|
48,477
|
|
|
$
|
(67,964
|
)
|
|
$
|
1,529,158
|
|
|
$
|
(68,916
|
)
|
|
$
|
1,441,746
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
187,184
|
|
|
$
|
223,261
|
|
|
$
|
200,612
|
|
Net income from discontinued operations
|
1,500
|
|
|
43,178
|
|
|
29,280
|
|
|||
Net income from continuing operations
|
185,684
|
|
|
180,083
|
|
|
171,332
|
|
|||
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
34,315
|
|
|
23,768
|
|
|
23,843
|
|
|||
Amortization
|
48,068
|
|
|
20,755
|
|
|
18,603
|
|
|||
Bad debt expense
|
8,246
|
|
|
2,546
|
|
|
2,544
|
|
|||
Non-cash employee compensation
|
28,851
|
|
|
23,070
|
|
|
16,932
|
|
|||
Accelerated amortization of debt issuance costs on early retirement of debt
|
5,153
|
|
|
—
|
|
|
—
|
|
|||
Excess tax benefits from stock-based compensation
|
(2,656
|
)
|
|
(255
|
)
|
|
(1,290
|
)
|
|||
Deferred income taxes
|
(16,034
|
)
|
|
460
|
|
|
5,533
|
|
|||
Change in assets and liabilities net of acquired:
|
|
|
|
|
|
||||||
Receivables
|
(57,249
|
)
|
|
(40,696
|
)
|
|
(49,784
|
)
|
|||
Inventory
|
(118,351
|
)
|
|
(21,754
|
)
|
|
(41,501
|
)
|
|||
Accounts payable
|
119,690
|
|
|
10,286
|
|
|
13,828
|
|
|||
Accrued liabilities
|
(4,055
|
)
|
|
42,555
|
|
|
15,828
|
|
|||
Long term receivables
|
(38,882
|
)
|
|
814
|
|
|
(5,108
|
)
|
|||
Other changes from operating activities, net
|
2,093
|
|
|
(36,568
|
)
|
|
(22,543
|
)
|
|||
Net cash provided by operating activities- continuing operations
|
194,873
|
|
|
205,064
|
|
|
148,217
|
|
|||
Net cash provided by (used in) operating activities- discontinued operations
|
(38,544
|
)
|
|
57,627
|
|
|
47,619
|
|
|||
Net cash provided by operating activities
|
156,329
|
|
|
262,691
|
|
|
195,836
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Additions to property and equipment
|
(79,354
|
)
|
|
(60,662
|
)
|
|
(34,041
|
)
|
|||
Acquisitions and equity investments, net of cash assumed
|
(1,106,583
|
)
|
|
(10,515
|
)
|
|
(145,815
|
)
|
|||
Proceeds from sale of securities
|
48,744
|
|
|
40,775
|
|
|
—
|
|
|||
Purchase of investments
|
—
|
|
|
(543
|
)
|
|
(99,672
|
)
|
|||
Other investing activities
|
22,320
|
|
|
18,035
|
|
|
(4,436
|
)
|
|||
Net cash used in investing activities- continuing operations
|
(1,114,873
|
)
|
|
(12,910
|
)
|
|
(283,964
|
)
|
|||
Net cash provided by investing activities- discontinued operations
|
714,239
|
|
|
3,311
|
|
|
200
|
|
|||
Net cash used in investing activities
|
(400,634
|
)
|
|
(9,599
|
)
|
|
(283,764
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(90,597
|
)
|
|
(81,760
|
)
|
|
(85,657
|
)
|
|||
Repurchases of common stock
|
(200,000
|
)
|
|
(47,539
|
)
|
|
(96,486
|
)
|
|||
Proceeds from issuance of long-term debt
|
1,000,000
|
|
|
250,000
|
|
|
—
|
|
|||
Debt issuance costs
|
(11,600
|
)
|
|
—
|
|
|
—
|
|
|||
Retirement of long-term debt
|
(682,375
|
)
|
|
(250,000
|
)
|
|
—
|
|
|||
Settlement of swap
|
—
|
|
|
(29,003
|
)
|
|
—
|
|
|||
Draw on revolver
|
20,000
|
|
|
—
|
|
|
—
|
|
|||
Common stock issued, net
|
4,825
|
|
|
7,300
|
|
|
20,217
|
|
|||
ESOP activity
|
(133
|
)
|
|
(188
|
)
|
|
435
|
|
|||
Excess tax benefits from stock-based compensation
|
2,749
|
|
|
255
|
|
|
1,290
|
|
|||
Net cash provided by (used in) financing activities
|
42,869
|
|
|
(150,935
|
)
|
|
(160,201
|
)
|
|||
Effect of exchange rate changes on cash
|
(8,371
|
)
|
|
(19,805
|
)
|
|
7,809
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
(209,807
|
)
|
|
82,352
|
|
|
(240,320
|
)
|
|||
Cash and cash equivalents at beginning of period
|
347,260
|
|
|
264,908
|
|
|
505,228
|
|
|||
Cash and cash equivalents at end of period
|
$
|
137,453
|
|
|
$
|
347,260
|
|
|
$
|
264,908
|
|
Supplemental disclosures:
|
|
|
|
|
|
||||||
Income taxes paid
|
$
|
151,662
|
|
|
$
|
110,909
|
|
|
$
|
108,374
|
|
Interest paid
|
37,883
|
|
|
34,076
|
|
|
34,933
|
|
|
Fiscal Year Ended
|
|||||||
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
|||
Denominator
|
|
|
|
|
|
|||
Denominator for basic earnings per share – weighted average shares
|
97,222
|
|
|
98,989
|
|
|
100,727
|
|
Effect of dilutive securities – stock options, restricted stock and stock purchase plans
|
680
|
|
|
705
|
|
|
916
|
|
Denominator for diluted earnings per share – adjusted weighted average shares
|
97,902
|
|
|
99,694
|
|
|
101,643
|
|
|
April 30, 2016
|
|
April 25, 2015
|
||||
Cash on hand
|
$
|
122,844
|
|
|
$
|
256,691
|
|
Money market funds
|
14,609
|
|
|
90,569
|
|
||
Total
|
$
|
137,453
|
|
|
$
|
347,260
|
|
|
Balance at April 25, 2015
|
|
Acquisition
Activity
and
Divestitures
|
|
Other
Activity
|
|
Balance at April 30, 2016
|
||||||||
Dental
|
$
|
139,449
|
|
|
$
|
—
|
|
|
$
|
(320
|
)
|
|
$
|
139,129
|
|
Animal Health
|
160,475
|
|
|
517,965
|
|
|
(977
|
)
|
|
677,463
|
|
||||
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
299,924
|
|
|
$
|
517,965
|
|
|
$
|
(1,297
|
)
|
|
$
|
816,592
|
|
|
April 30, 2016
|
|
April 25, 2015
|
||||
Unamortized – indefinite lived:
|
|
|
|
||||
Copyrights, trade names and trademarks
|
$
|
29,900
|
|
|
$
|
17,600
|
|
Amortized:
|
|
|
|
||||
Distribution agreement, customer lists and other
|
641,236
|
|
|
221,359
|
|
||
Less: Accumulated amortization
|
(161,839
|
)
|
|
(113,934
|
)
|
||
Net amortized intangible assets
|
479,397
|
|
|
107,425
|
|
||
Total identifiable intangible assets, net
|
$
|
509,297
|
|
|
$
|
125,025
|
|
Total purchase price consideration
|
$
|
1,106,583
|
|
Receivables
|
$
|
161,427
|
|
Inventory
|
195,367
|
|
|
Prepaid expenses and other current assets
|
35,320
|
|
|
Property and equipment
|
47,405
|
|
|
Identifiable intangibles
|
434,300
|
|
|
Other long-term assets
|
38,300
|
|
|
Total assets acquired
|
912,119
|
|
|
Accounts payable
|
122,129
|
|
|
Accrued liabilities and other current liabilities
|
21,227
|
|
|
Deferred tax liability
|
180,145
|
|
|
Total liabilities assumed
|
323,501
|
|
|
Identifiable net assets acquired
|
588,618
|
|
|
Goodwill
|
517,965
|
|
|
Net assets acquired
|
$
|
1,106,583
|
|
|
Gross Carrying
Value |
|
Weighted
Average Life (years) |
||
Unamortized – indefinite lived:
|
|
|
|
||
Trade names
|
$
|
12,300
|
|
|
indefinite
|
Amortized:
|
|
|
|
||
Customer relationships
|
291,900
|
|
|
15.0
|
|
Trade names
|
111,400
|
|
|
10.0
|
|
Developed technology and other
|
18,700
|
|
|
12.2
|
|
Total amortized intangible assets
|
422,000
|
|
|
13.6
|
|
Total identifiable intangible assets
|
$
|
434,300
|
|
|
|
|
Fiscal Years Ended
|
||||||
|
April 30,
2016 |
|
April 25,
2015 |
||||
Pro forma net sales
|
$
|
5,579,739
|
|
|
$
|
5,452,056
|
|
Pro forma net income from continuing operations
|
193,794
|
|
|
176,744
|
|
|
April 25, 2015
|
||
Assets held for sale
|
|
||
Receivables, net of allowance for doubtful accounts
|
$
|
57,876
|
|
Inventory
|
48,265
|
|
|
Prepaid expenses and other current assets
|
12,206
|
|
|
Property and equipment, net
|
22,672
|
|
|
Goodwill
|
537,175
|
|
|
Identifiable intangibles, net
|
74,804
|
|
|
Other long-term assets
|
1,143
|
|
|
Total assets held for sale
|
$
|
754,141
|
|
Liabilities held for sale
|
|
||
Accounts payable
|
$
|
26,341
|
|
Accrued liabilities and other current liabilities
|
12,975
|
|
|
Long-term liabilities
|
49,414
|
|
|
Total liabilities held for sale
|
$
|
88,730
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 (a) |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Net sales
|
$
|
168,504
|
|
|
$
|
464,155
|
|
|
$
|
478,574
|
|
Cost of sales
|
107,359
|
|
|
286,498
|
|
|
298,993
|
|
|||
Operating expenses
|
54,954
|
|
|
108,816
|
|
|
127,551
|
|
|||
Gain on sale
|
(24,328
|
)
|
|
—
|
|
|
—
|
|
|||
Other expense
|
150
|
|
|
488
|
|
|
381
|
|
|||
Income before taxes
|
30,369
|
|
|
68,353
|
|
|
51,649
|
|
|||
Income tax expense
|
28,869
|
|
|
25,175
|
|
|
22,369
|
|
|||
Net income from discontinued operations
|
$
|
1,500
|
|
|
$
|
43,178
|
|
|
$
|
29,280
|
|
(a)
|
Includes activity up until the sale date of August 28, 2015.
|
|
April 30, 2016
|
|
April 25, 2015
|
||||
Land
|
$
|
11,585
|
|
|
$
|
10,390
|
|
Buildings
|
111,386
|
|
|
109,064
|
|
||
Leasehold improvements
|
26,291
|
|
|
17,905
|
|
||
Furniture and equipment
|
169,110
|
|
|
130,348
|
|
||
Computer hardware and software
|
141,727
|
|
|
115,580
|
|
||
Construction-in-progress
(1)
|
95,450
|
|
|
51,800
|
|
||
|
555,549
|
|
|
435,087
|
|
||
Accumulated depreciation
|
(262,234
|
)
|
|
(230,954
|
)
|
||
Property and equipment, net
|
$
|
293,315
|
|
|
$
|
204,133
|
|
|
|
|
Carrying Value
|
|||||||
|
Interest Rate
|
|
April 30, 2016
|
|
April 25, 2015
|
|||||
Senior notes due fiscal 2018
1
|
5.75
|
%
|
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Senior notes due fiscal 2019
2
|
2.95
|
%
|
|
60,000
|
|
|
60,000
|
|
||
Senior notes due fiscal 2022
2
|
3.59
|
%
|
|
165,000
|
|
|
165,000
|
|
||
Senior notes due fiscal 2024
2
|
3.74
|
%
|
|
100,000
|
|
|
100,000
|
|
||
Senior notes due fiscal 2025
3
|
3.48
|
%
|
|
250,000
|
|
|
250,000
|
|
||
Term loan due fiscal 2021
4
|
1.81
|
%
|
|
317,625
|
|
|
—
|
|
||
Less: Deferred debt issuance costs
|
|
|
(3,970
|
)
|
|
(2,458
|
)
|
|||
Total debt
|
|
|
1,038,655
|
|
|
722,542
|
|
|||
Less: Current maturities of long-term debt
|
|
|
(16,500
|
)
|
|
—
|
|
|||
Long-term debt
|
|
|
$
|
1,022,155
|
|
|
$
|
722,542
|
|
1.
|
Issued in March 2008.
|
2.
|
Issued in December 2011.
|
3.
|
Issued in March 2015.
|
4.
|
Issued in June 2015. Interest rate is LIBOR plus
1.375%
as of April 30, 2016.
|
Fiscal Year
|
|
||
2017
|
$
|
16,500
|
|
2018
|
174,750
|
|
|
2019
|
93,000
|
|
|
2020
|
33,000
|
|
|
2021
|
210,375
|
|
|
Thereafter
|
515,000
|
|
|
Total
|
$
|
1,042,625
|
|
Derivative type
|
Classification
|
|
April 30, 2016
|
|
April 25, 2015
|
||||
Assets:
|
|
|
|
|
|
||||
Interest rate contracts
|
Other non-current assets
|
|
$
|
816
|
|
|
$
|
1,255
|
|
Liabilities:
|
|
|
|
|
|
||||
Interest rate contracts
|
Other non-current liabilities
|
|
$
|
816
|
|
|
$
|
1,255
|
|
|
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
|
||||||||||
|
Fiscal Year Ended
|
||||||||||
Derivatives in cash flow hedging relationships
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
||||||
Interest rate swap
|
$
|
—
|
|
|
$
|
(23,343
|
)
|
|
$
|
(5,660
|
)
|
|
|
|
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
|
||||||||||
|
|
|
Fiscal Year Ended
|
||||||||||
Derivatives in cash flow hedging relationships
|
Income statement location
|
|
April 30, 2016
|
|
April 25, 2015
|
|
April 26, 2014
|
||||||
Interest rate swap
|
Interest expense
|
|
$
|
(2,817
|
)
|
|
$
|
(56
|
)
|
|
$
|
194
|
|
|
|
|
Level 1 –
|
|
Quoted prices in active markets for identical assets and liabilities at the measurement date.
|
|
|
|
Level 2 –
|
|
Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
|
|
|
Level 3 –
|
|
Unobservable inputs for which there is little or no market data available. These inputs reflect
management’s assumptions of what market participants would use in pricing the asset or liability.
|
|
April 30, 2016
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
14,609
|
|
|
$
|
14,609
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Deferred purchase price receivable
|
108,837
|
|
|
—
|
|
|
—
|
|
|
108,837
|
|
||||
Derivative instruments
|
816
|
|
|
—
|
|
|
816
|
|
|
—
|
|
||||
Total assets
|
$
|
124,262
|
|
|
$
|
14,609
|
|
|
$
|
816
|
|
|
$
|
108,837
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
816
|
|
|
$
|
—
|
|
|
$
|
816
|
|
|
$
|
—
|
|
|
April 25, 2015
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
90,569
|
|
|
$
|
90,569
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Deferred purchase price receivable
|
89,588
|
|
|
—
|
|
|
—
|
|
|
89,588
|
|
||||
Derivative instruments
|
1,255
|
|
|
—
|
|
|
1,255
|
|
|
—
|
|
||||
Total assets
|
$
|
181,412
|
|
|
$
|
90,569
|
|
|
$
|
1,255
|
|
|
$
|
89,588
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
1,255
|
|
|
$
|
—
|
|
|
$
|
1,255
|
|
|
$
|
—
|
|
2017
|
$
|
22,891
|
|
2018
|
16,620
|
|
|
2019
|
11,403
|
|
|
2020
|
8,777
|
|
|
2021
|
6,364
|
|
|
Thereafter
|
6,870
|
|
|
Total
|
$
|
72,925
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Income from continuing operations before taxes
|
|
|
|
|
|
||||||
United States
|
$
|
270,501
|
|
|
$
|
235,421
|
|
|
$
|
230,486
|
|
International
|
31,192
|
|
|
38,897
|
|
|
30,777
|
|
|||
Total
|
$
|
301,693
|
|
|
$
|
274,318
|
|
|
$
|
261,263
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
105,104
|
|
|
$
|
73,004
|
|
|
$
|
66,747
|
|
Foreign
|
11,690
|
|
|
11,764
|
|
|
8,954
|
|
|||
State
|
15,249
|
|
|
9,007
|
|
|
8,697
|
|
|||
Total current
|
132,043
|
|
|
93,775
|
|
|
84,398
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(14,308
|
)
|
|
497
|
|
|
5,225
|
|
|||
Foreign
|
323
|
|
|
44
|
|
|
(260
|
)
|
|||
State
|
(2,049
|
)
|
|
(81
|
)
|
|
568
|
|
|||
Total deferred
|
(16,034
|
)
|
|
460
|
|
|
5,533
|
|
|||
Income tax expense
|
$
|
116,009
|
|
|
$
|
94,235
|
|
|
$
|
89,931
|
|
|
April 30,
2016 |
|
April 25,
2015 |
||||
Deferred tax assets:
|
|
|
|
||||
Capital accumulation plan
|
$
|
5,898
|
|
|
$
|
5,723
|
|
Inventory related items
|
6,776
|
|
|
4,484
|
|
||
Bad debt allowance
|
2,649
|
|
|
1,380
|
|
||
Stock based compensation expense
|
9,985
|
|
|
7,995
|
|
||
Interest rate swap
|
9,749
|
|
|
10,872
|
|
||
Foreign tax credit
|
9,300
|
|
|
—
|
|
||
Net operating loss carryforwards
|
363
|
|
|
—
|
|
||
Other
|
11,979
|
|
|
8,390
|
|
||
Gross deferred tax assets
|
56,699
|
|
|
38,844
|
|
||
Less: Valuation allowance
|
(14,007
|
)
|
|
—
|
|
||
Total net deferred tax assets
|
42,692
|
|
|
38,844
|
|
||
Deferred tax liabilities
|
|
|
|
||||
LIFO reserve
|
(21,294
|
)
|
|
(19,173
|
)
|
||
Amortizable intangibles
|
(156,782
|
)
|
|
(2,310
|
)
|
||
Goodwill
|
(57,405
|
)
|
|
(52,140
|
)
|
||
Property, plant, equipment
|
(11,748
|
)
|
|
(4,695
|
)
|
||
Total deferred tax liabilities
|
(247,229
|
)
|
|
(78,318
|
)
|
||
Deferred net long-term income tax liability
|
$
|
(204,537
|
)
|
|
$
|
(39,474
|
)
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Tax at U.S. statutory rate
|
$
|
105,593
|
|
|
$
|
96,012
|
|
|
$
|
91,442
|
|
State tax provision, net of federal benefit
|
7,364
|
|
|
6,479
|
|
|
6,554
|
|
|||
Effect of foreign taxes
|
(1,195
|
)
|
|
(1,806
|
)
|
|
(2,078
|
)
|
|||
Permanent differences
|
(3,693
|
)
|
|
(5,363
|
)
|
|
(4,835
|
)
|
|||
Tax on dividends, net of foreign tax credit
|
12,300
|
|
|
—
|
|
|
—
|
|
|||
Other
|
(4,360
|
)
|
|
(1,087
|
)
|
|
(1,152
|
)
|
|||
Income tax expense
|
$
|
116,009
|
|
|
$
|
94,235
|
|
|
$
|
89,931
|
|
|
April 30,
2016 |
|
April 25,
2015 |
||||
Balance at beginning of period
|
$
|
16,661
|
|
|
$
|
17,256
|
|
Additions for tax positions related to the current year
|
1,794
|
|
|
2,516
|
|
||
Additions for tax positions of prior years
|
560
|
|
|
44
|
|
||
Reductions for tax positions of prior years
|
(1,599
|
)
|
|
(502
|
)
|
||
Statute expirations
|
(3,486
|
)
|
|
(2,653
|
)
|
||
Settlements
|
(370
|
)
|
|
—
|
|
||
Balance at end of period
|
$
|
13,560
|
|
|
$
|
16,661
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Net sales
|
|
|
|
|
|
||||||
Dental
|
$
|
2,476,234
|
|
|
$
|
2,415,003
|
|
|
$
|
2,348,403
|
|
Animal Health
|
2,862,249
|
|
|
1,456,570
|
|
|
1,203,045
|
|
|||
Corporate
|
48,220
|
|
|
39,292
|
|
|
33,693
|
|
|||
Consolidated net sales
|
$
|
5,386,703
|
|
|
$
|
3,910,865
|
|
|
$
|
3,585,141
|
|
Operating income
|
|
|
|
|
|
||||||
Dental
|
$
|
312,176
|
|
|
$
|
300,357
|
|
|
$
|
284,674
|
|
Animal Health
|
94,318
|
|
|
56,670
|
|
|
49,855
|
|
|||
Corporate
|
(58,781
|
)
|
|
(52,441
|
)
|
|
(40,803
|
)
|
|||
Consolidated operating income
|
$
|
347,713
|
|
|
$
|
304,586
|
|
|
$
|
293,726
|
|
Depreciation and amortization
|
|
|
|
|
|
||||||
Dental
|
$
|
18,903
|
|
|
$
|
18,568
|
|
|
$
|
17,416
|
|
Animal Health
|
44,243
|
|
|
8,861
|
|
|
7,237
|
|
|||
Corporate
|
19,237
|
|
|
17,094
|
|
|
17,793
|
|
|||
Consolidated depreciation and amortization
|
$
|
82,383
|
|
|
$
|
44,523
|
|
|
$
|
42,446
|
|
|
|
|
|
|
|
||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
|
||||||
Total assets
|
|
|
|
|
|
||||||
Dental
|
$
|
994,113
|
|
|
$
|
1,022,257
|
|
|
|
||
Animal Health
|
2,064,302
|
|
|
631,445
|
|
|
|
||||
Corporate
|
462,389
|
|
|
537,405
|
|
|
|
||||
Total assets, excluding assets held for sale
|
3,520,804
|
|
|
2,191,107
|
|
|
|
||||
Assets held for sale
|
—
|
|
|
754,141
|
|
|
|
||||
Total assets
|
$
|
3,520,804
|
|
|
$
|
2,945,248
|
|
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Consolidated
|
|
|
|
|
|
||||||
Consumable
1
|
$
|
4,153,921
|
|
|
$
|
2,697,581
|
|
|
$
|
2,418,201
|
|
Equipment and software
|
857,001
|
|
|
865,013
|
|
|
839,152
|
|
|||
Other
1
|
375,781
|
|
|
348,271
|
|
|
327,788
|
|
|||
Total
|
$
|
5,386,703
|
|
|
$
|
3,910,865
|
|
|
$
|
3,585,141
|
|
Dental
|
|
|
|
|
|
||||||
Consumable
1
|
$
|
1,378,886
|
|
|
$
|
1,319,407
|
|
|
$
|
1,285,459
|
|
Equipment and software
|
806,993
|
|
|
818,342
|
|
|
795,132
|
|
|||
Other
1
|
290,355
|
|
|
277,254
|
|
|
267,812
|
|
|||
Total
|
$
|
2,476,234
|
|
|
$
|
2,415,003
|
|
|
$
|
2,348,403
|
|
Animal Health
|
|
|
|
|
|
||||||
Consumable
1
|
$
|
2,775,035
|
|
|
$
|
1,378,174
|
|
|
$
|
1,132,742
|
|
Equipment and software
|
50,008
|
|
|
46,671
|
|
|
44,020
|
|
|||
Other
1
|
37,206
|
|
|
31,725
|
|
|
26,283
|
|
|||
Total
|
$
|
2,862,249
|
|
|
$
|
1,456,570
|
|
|
$
|
1,203,045
|
|
Corporate
|
|
|
|
|
|
||||||
Consumable
1
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equipment and software
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
1
|
48,220
|
|
|
39,292
|
|
|
33,693
|
|
|||
Total
|
$
|
48,220
|
|
|
$
|
39,292
|
|
|
$
|
33,693
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Net sales
|
|
|
|
|
|
||||||
United States
|
$
|
4,457,254
|
|
|
$
|
3,029,541
|
|
|
$
|
2,933,091
|
|
United Kingdom
|
626,603
|
|
|
649,541
|
|
|
419,341
|
|
|||
Canada
|
302,846
|
|
|
231,783
|
|
|
232,709
|
|
|||
Total
|
$
|
5,386,703
|
|
|
$
|
3,910,865
|
|
|
$
|
3,585,141
|
|
|
|
|
|
|
|
||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
|
||||||
Property and equipment, net
|
|
|
|
|
|
||||||
United States
|
$
|
278,667
|
|
|
$
|
190,618
|
|
|
|
||
United Kingdom
|
2,459
|
|
|
2,857
|
|
|
|
||||
Canada
|
12,189
|
|
|
10,658
|
|
|
|
||||
Total
|
$
|
293,315
|
|
|
$
|
204,133
|
|
|
|
|
Quarter
|
||||||||||||||
Fiscal year
|
1
|
|
2
|
|
3
|
|
4
|
||||||||
2016
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.24
|
|
2015
|
0.20
|
|
|
0.20
|
|
|
0.20
|
|
|
0.22
|
|
||||
2014
|
0.16
|
|
|
0.16
|
|
|
0.16
|
|
|
0.20
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Expected dividend yield
|
1.8
|
%
|
|
2.0
|
%
|
|
1.8
|
%
|
|||
Expected stock price volatility
|
25.6
|
%
|
|
26.3
|
%
|
|
30.0
|
%
|
|||
Risk-free interest rate
|
2.1
|
%
|
|
2.1
|
%
|
|
1.5
|
%
|
|||
Expected life (years)
|
6.7
|
|
|
7.0
|
|
|
7.1
|
|
|||
Weighted average grant date fair value per share
|
$
|
9.66
|
|
|
$
|
9.78
|
|
|
$
|
11.02
|
|
|
Number
of
Options
|
|
Weighted-
Average
Exercise
Price
|
|
Aggregate Intrinsic
Value
|
|||||
Balance as of April 25, 2015
|
338
|
|
|
$
|
36.22
|
|
|
|
||
Granted
|
923
|
|
|
55.39
|
|
|
|
|||
Exercised
|
(87
|
)
|
|
36.49
|
|
|
|
|||
Canceled
|
(64
|
)
|
|
39.03
|
|
|
|
|||
Balance as of April 30, 2016
|
1,110
|
|
|
$
|
52.09
|
|
|
$
|
1,402
|
|
Vested or expected to vest as of April 30, 2016
|
1,046
|
|
|
$
|
52.17
|
|
|
$
|
1,279
|
|
Exercisable as of April 30, 2016
|
49
|
|
|
$
|
35.22
|
|
|
$
|
402
|
|
|
Restricted Stock Awards
|
|||||
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|||
Outstanding at April 25, 2015
|
1,168
|
|
|
$
|
34.39
|
|
Granted
|
191
|
|
|
48.91
|
|
|
Vested
|
(421
|
)
|
|
33.33
|
|
|
Forfeitures
|
(178
|
)
|
|
36.34
|
|
|
Outstanding at April 30, 2016
|
760
|
|
|
$
|
38.18
|
|
|
Restricted Stock Units
|
|||||
|
Shares
|
|
Weighted-
Average Grant Date Fair Value |
|||
Outstanding at April 25, 2015
|
122
|
|
|
35.30
|
|
|
Granted
|
66
|
|
|
44.88
|
|
|
Vested
|
(6
|
)
|
|
39.54
|
|
|
Forfeitures
|
(111
|
)
|
|
35.03
|
|
|
Outstanding at April 30, 2016
|
71
|
|
|
$
|
44.26
|
|
|
Performance Unit Awards
|
|||||
|
Shares
|
|
Weighted-
Average
Grant Date
Fair Value
|
|||
Outstanding at April 25, 2015
|
205
|
|
|
$
|
38.91
|
|
Granted
|
87
|
|
|
54.55
|
|
|
Vested
|
(78
|
)
|
|
37.70
|
|
|
Forfeitures and cancellations
|
(57
|
)
|
|
40.69
|
|
|
Outstanding at April 30, 2016
|
157
|
|
|
$
|
47.56
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Expected dividend yield
|
2.0
|
%
|
|
1.6
|
%
|
|
1.6
|
%
|
|||
Expected stock price volatility
|
21.1
|
%
|
|
31.0
|
%
|
|
31.0
|
%
|
|||
Risk-free interest rate
|
0.5
|
%
|
|
0.1
|
%
|
|
0.2
|
%
|
|||
Expected life (years)
|
0.6
|
|
|
0.5
|
|
|
0.5
|
|
|||
Weighted average grant date fair value per share
|
$
|
9.16
|
|
|
$
|
10.74
|
|
|
$
|
9.46
|
|
|
Fiscal Year Ended
|
||||||||||
|
April 30,
2016 |
|
April 25,
2015 |
|
April 26,
2014 |
||||||
Expected dividend yield
|
2.0
|
%
|
|
1.6
|
%
|
|
1.6
|
%
|
|||
Expected stock price volatility
|
19.7
|
%
|
|
31.0
|
%
|
|
31.0
|
%
|
|||
Risk-free interest rate
|
0.6
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|||
Expected life (years)
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|||
Weighted average grant date fair value per share
|
$
|
14.13
|
|
|
$
|
17.67
|
|
|
$
|
15.00
|
|
|
Quarter Ended
|
||||||||||||||
|
April 30,
2016 (1) |
|
January 30,
2016 |
|
October 31,
2015 |
|
August 1,
2015 |
||||||||
Net sales
|
$
|
1,453,770
|
|
|
$
|
1,400,853
|
|
|
$
|
1,389,210
|
|
|
$
|
1,142,870
|
|
Gross profit
|
363,741
|
|
|
339,864
|
|
|
330,899
|
|
|
288,244
|
|
||||
Operating income from continuing operations
|
106,344
|
|
|
95,729
|
|
|
83,463
|
|
|
62,177
|
|
||||
Net income from continuing operations
|
65,620
|
|
|
57,190
|
|
|
42,563
|
|
|
20,311
|
|
||||
Net income (loss) from discontinued operations
|
—
|
|
|
(750
|
)
|
|
(7,142
|
)
|
|
9,392
|
|
||||
Net income
|
65,620
|
|
|
56,440
|
|
|
35,421
|
|
|
29,703
|
|
||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.69
|
|
|
$
|
0.60
|
|
|
$
|
0.43
|
|
|
$
|
0.20
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
(0.07
|
)
|
|
0.10
|
|
||||
Net basic earnings per share
|
$
|
0.69
|
|
|
$
|
0.59
|
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
0.43
|
|
|
$
|
0.20
|
|
Discontinued operations
|
—
|
|
|
(0.01
|
)
|
|
(0.07
|
)
|
|
0.10
|
|
||||
Net diluted earnings per share
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
|
Quarter Ended
|
||||||||||||||
|
April 25,
2015 |
|
January 24,
2015 |
|
October 25,
2014 |
|
July 26,
2014 |
||||||||
Net sales
|
$
|
1,035,061
|
|
|
$
|
958,628
|
|
|
$
|
978,220
|
|
|
$
|
938,956
|
|
Gross profit
|
288,203
|
|
|
262,442
|
|
|
259,287
|
|
|
250,617
|
|
||||
Operating income from continuing operations
|
89,073
|
|
|
77,377
|
|
|
72,140
|
|
|
65,996
|
|
||||
Net income from continuing operations
|
53,459
|
|
|
46,434
|
|
|
41,865
|
|
|
38,325
|
|
||||
Net income (loss) from discontinued operations
|
11,059
|
|
|
8,242
|
|
|
11,913
|
|
|
11,964
|
|
||||
Net income
|
64,518
|
|
|
54,676
|
|
|
53,778
|
|
|
50,289
|
|
||||
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.54
|
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
$
|
0.39
|
|
Discontinued operations
|
0.11
|
|
|
0.08
|
|
|
0.12
|
|
|
0.12
|
|
||||
Net basic earnings per share
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
0.54
|
|
|
$
|
0.51
|
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.54
|
|
|
$
|
0.47
|
|
|
$
|
0.42
|
|
|
$
|
0.38
|
|
Discontinued operations
|
0.11
|
|
|
0.08
|
|
|
0.12
|
|
|
0.12
|
|
||||
Net diluted earnings per share
|
$
|
0.65
|
|
|
$
|
0.55
|
|
|
$
|
0.54
|
|
|
$
|
0.50
|
|
(1)
|
During the first quarter of fiscal
2016
, we incurred
$9,302
, or
$0.09
per diluted share from continuing operations on an after-tax basis, of transaction costs related to the acquisition of Animal Health International, Inc. Also during the first quarter of fiscal 2016, we approved a one-time repatriation of approximately
$200,000
of foreign earnings. This one-time repatriation reduced the overall costs of funding the acquisition of Animal Health International, Inc. In addition, certain foreign cash at Patterson Medical was required to be repatriated as part of the sale transaction. The tax impact of the repatriation recorded during the first quarter of fiscal 2016 was
$11,800
, or
$0.12
per diluted per share from continuing operations on an after-tax basis.
|
|
Cash Flow
Hedges
|
|
Currency
Translation
Adjustment
|
|
Total
|
||||||
AOCL at April 25, 2015
|
$
|
(18,668
|
)
|
|
$
|
(41,678
|
)
|
|
$
|
(60,346
|
)
|
Other comprehensive loss before reclassifications
|
—
|
|
|
(20,635
|
)
|
|
(20,635
|
)
|
|||
Amounts reclassified from AOCL
|
1,934
|
|
|
11,083
|
|
|
13,017
|
|
|||
AOCL at April 30, 2016
|
$
|
(16,734
|
)
|
|
$
|
(51,230
|
)
|
|
$
|
(67,964
|
)
|
|
|
/s/ Scott P. Anderson
|
|
President and Chief Executive Officer
|
|
|
|
/s/ Ann B. Gugino
|
|
Executive Vice President, Chief Financial
Officer and Treasurer
|
|
|
|
|
Exhibit
|
|
Document Description
|
|
|
|
3.1
|
|
Restated Articles of Incorporation (incorporated by reference to our Quarterly Report on Form 10-Q, filed September 9, 2004 (File No. 000-20572)).
|
|
|
|
3.2
|
|
Amended and Restated Bylaws (incorporated by reference to our Current Report on Form 8-K, filed December 13, 2013 (File No. 000-20572)).
|
|
|
|
4.1
|
|
Specimen form of Common Stock Certificate (incorporated by reference to our Quarterly Report on Form 10-Q, filed September 9, 2004 (File No. 000-20572)).
|
|
|
|
10.1
|
|
Patterson Companies, Inc. Fiscal 2016 Incentive Plan
(filed herewith)
.
|
|
|
|
10.2
|
|
Patterson Companies Capital Accumulation Plan
(filed herewith)
.
|
|
|
|
10.3
|
|
2001 Non-Employee Director Stock Option Plan (incorporated by reference to our Annual Report on Form 10-K, filed July 25, 2002 (File No. 000-20572)).
|
|
|
|
10.4
|
|
Patterson Companies, Inc. Amended and Restated Employee Stock Purchase Plan (incorporated by reference to our Definitive Proxy Statement, filed August 7, 2012 (File No. 000-20572)).
|
|
|
|
10.5
|
|
Patterson Dental Company Amended and Restated Employee Stock Ownership Plan, effective May 1, 2001 (incorporated by reference to our Annual Report on Form 10-K, filed July 25, 2002 (File No. 000-20572)).
|
|
|
|
10.6
|
|
Stock Option Plan for Canadian Employees, effective June 13, 2000 (incorporated by reference to our Quarterly Report on Form 10-Q, filed March 11, 2003 (File No. 000-20572)).
|
|
|
|
10.7
|
|
Deferred Profit Sharing Plan for the Employees of Patterson Dental Canada Inc. (incorporated by reference to our Definitive Proxy Statement, filed July 28, 2008 (File No. 000-20572)).
|
|
|
|
10.8
|
|
Patterson Companies, Inc. Amended and Restated Equity Incentive Plan (incorporated by reference to our Definitive Proxy Statement, filed August 7, 2012 (File No. 000-20572)).
|
|
|
|
10.9
|
|
Patterson Companies, Inc. 2014 Sharesave Plan (incorporated by reference to our Definitive Proxy Statement, filed August 5, 2014 (File No. 000-20572)).
|
|
|
|
10.10
|
|
2015 Omnibus Incentive Plan (incorporated by reference to our Definitive Proxy Statement, filed August 7, 2015 (File No. 000-20572)).
|
|
|
|
10.11
|
|
ESOP Loan Agreement dated April 1, 2002 (incorporated by reference to our Annual Report on Form 10-K, filed July 24, 2003 (File No. 000-20572)).
|
|
|
|
10.12
|
|
Promissory Note dated April 1, 2002 between GreatBanc Trust Company, an Illinois corporation, not in its individual or corporate capacity, but solely as trustee of the Thompson Dental Company Employee Stock Ownership Plan and Trust and Thompson Dental Company (incorporated by reference to our Annual Report on Form 10-K, filed July 24, 2003 (File No. 000-20572)).
|
|
|
|
10.13
|
|
ESOP Loan Agreement dated September 11, 2006 (incorporated by reference to our Current Report on Form 8-K, filed September 12, 2006 (File No. 000-20572)).
|
|
|
|
10.14
|
|
ESOP Note dated September 11, 2006 (incorporated by reference to our Current Report on Form 8-K, filed September 12, 2006 (File No. 000-20572)).
|
|
|
|
10.15
|
|
Note Purchase Agreement dated March 19, 2008 among Patterson Companies, Inc., Patterson Medical Holdings, Inc., Patterson Medical Supply, Inc., Patterson Dental Holdings, Inc., Patterson Dental Supply, Inc., Webster Veterinary Supply, Inc. and Webster Management, LP (incorporated by reference to our Current Report on Form 8-K, filed March 24, 2008 (File No. 000-20572)).
|
|
|
|
10.16
|
|
Credit Agreement, dated December 1, 2011, among Patterson Companies, Inc., and JPMorgan Chase Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., and U.S. Bank NA, Wells Fargo Bank, NA, and Bank of America, N.A. (incorporated by reference to our Current Report on Form 8-K, filed December 6, 2011 (File No. 000-20572)).
|
|
|
|
10.17
|
|
Note Purchase Agreement, dated December 8, 2011, by and among Patterson Companies, Inc., Patterson Medical Holdings, Inc., Patterson Medical Supply, Inc., Patterson Dental Holdings, Inc., Patterson Dental Supply, Inc., Webster Veterinary Supply, Inc., Webster Management, LP (incorporated by reference to our Current Report on Form 8-K, filed December 12, 2011 (File No. 000-20572)).
|
|
|
|
10.18
|
|
Note Purchase Agreement, dated March 23, 2015, by and among Patterson Companies, Inc., Patterson Medical Holdings, Inc., Patterson Medical Supply, Inc., Patterson Dental Holdings, Inc., Patterson Dental Supply, Inc., Patterson Veterinary Supply, Inc., and Patterson Management, LP (incorporated by reference to our Current Report on Form 8-K, filed March 25, 2015 (File No. 000-20572)).
|
|
|
|
10.19
|
|
Commitment Letter, dated May 2, 2015, by and between Merrill Lynch, Pierce, Fenner & Smith Incorporated, Bank Of America, N.A., The Bank Of Tokyo-Mitsubishi UFJ, Ltd. and Patterson Companies, Inc. (incorporated by reference to our Current Report on Form 8-K, filed May 4, 2015 (File No. 000-20572)).
|
|
|
|
10.20
|
|
Credit Agreement dated as of June 16, 2015 by and among Patterson Companies, Inc., the lenders from time to time parties thereto, Bank of Tokyo-Mitsubishi UFJ, Ltd., as administrative agent, and Bank of America, N.A., as syndication agent (incorporated by reference to our Current Report on Form 8-K, filed June 17, 2015 (File No. 000-20572)).
|
|
|
|
10.21
|
|
Amended and Restated Contract Purchase Agreement dated August 12, 2011 among PDC Funding Company II, LLC, Patterson Companies, Inc., and Fifth Third Bank (incorporated by reference to our Current Report on Form 8-K, filed August 16, 2011 (File No. 000-20572)).
|
|
|
|
10.22
|
|
Receivables Sale Agreement, dated as May 10, 2002, by and among Patterson Dental Supply, Inc., Webster Veterinary Supply, Inc., and PDC Funding Company, LLC (incorporated by reference to our Annual Report on Form 10-K, filed July 25, 2002 (File No. 000-20572)).
|
|
|
|
10.23
|
|
Amended and Restated Receivables Sales Agreement dated August 12, 2011 by and among Patterson Dental Supply, Inc., Webster Veterinary Supply, Inc. and PDC Funding Company II, LLC incorporated by reference to our Annual Report on Form 10-K, filed June 24, 2015 (File No. 000-20572)).
|
|
|
|
10.24
|
|
Third Amended and Restated Receivables Purchase Agreement dated December 3, 2010 between PDC Funding Company, LLC, Patterson Companies, Inc., The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch (the “Bank”) and a commercial paper conduit managed by the Bank (incorporated by reference to our Current Report on Form 8-K, filed December 8, 2010 (File No. 000-20572)).
|
|
|
|
10.25
|
|
Assignment and Assumption and Amendment No. 1 to Third Amended and Restated Receivables Purchase Agreement dated December 20, 2010, by and among The Bank of Tokyo-Mitsubishi UFJ, Ltd., Victory Receivables Corporation, PDC Funding Company, LLC, Patterson Companies, Inc., Royal Bank of Canada and Thunder Bay Funding, LLC (incorporated by reference to our Current Report on Form 8-K, filed December 23, 2010 (File No. 000-20572)).
|
|
|
|
10.26
|
|
Agreement and Plan of Merger, dated May 2, 2015, by and among Patterson Companies, Inc., Rams Merger Sub, Inc., Animal Health International, Inc. and Leonard Green & Partners, L.P. (incorporated by reference to our Current Report on Form 8-K, filed May 4, 2015 (File No. 000-20572)).
|
|
|
|
10.27
|
|
Stock Purchase Agreement between Patterson Companies, Inc. and Lanai Holdings III, Inc. dated July 1, 2015 (incorporated by reference to our Current Report on Form 8-K, filed July 1, 2015 (File No. 000-20572)).
|
|
|
|
10.28
|
|
Employment Agreement between John Adent and Animal Health International, Inc., dated May 2, 2015 (filed herewith).
|
|
|
|
21
|
|
Subsidiaries (filed herewith).
|
|
|
|
23
|
|
Consent of Independent Registered Public Accounting Firm (filed herewith).
|
|
|
|
31.1
|
|
Certification of the Chief Executive Officer pursuant to Rules 13a-4(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
31.2
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-4(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
32.1
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
32.2
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
101
|
|
(Filed Electronically) The following financial information from our Annual Report on Form 10-K for fiscal 2016, formatted in Extensible Business Reporting Language (XBRL): (i) the consolidated balance sheets, (ii) the consolidated statements of income, (iii) the consolidated statements of cash flows, (iv) the consolidated statements of changes in stockholders’ equity and (v) the notes to the consolidated financial statements.(*)
|
(*)
|
The XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
|
|
|
PATTERSON COMPANIES, INC.
|
|
Dated: June 29, 2016
|
|
By
|
/s/ Scott P. Anderson
|
|
|
|
Scott P. Anderson,
|
|
|
|
President, Chief Executive Officer and Chairman of the Board
|
|
|
|
|
Date
|
/s/ Scott P. Anderson
|
|
President, Chief Executive Officer and Chairman of the Board)
(Principal Executive Officer & Chairman of the Board of Directors)
|
|
June 29, 2016
|
Scott P. Anderson
|
|
|
|
|
|
|
|
|
|
/s/ Ann B. Gugino
|
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)
|
|
June 29, 2016
|
Ann B. Gugino
|
|
|
|
|
|
|
|
|
|
/s/ John D. Buck
|
|
Director
|
|
June 29, 2016
|
John D. Buck
|
|
|
|
|
|
|
|
|
|
/s/ Jody H. Feragen
|
|
Director
|
|
June 29, 2016
|
Jody H. Feragen
|
|
|
|
|
|
|
|
|
|
/s/ Sarena S. Lin
|
|
Director
|
|
June 29, 2016
|
Sarena S. Lin
|
|
|
|
|
|
|
|
|
|
/s/ Ellen A. Rudnick
|
|
Director
|
|
June 29, 2016
|
Ellen A. Rudnick
|
|
|
|
|
|
|
|
|
|
/s/ Neil A. Schrimsher
|
|
Director
|
|
June 29, 2016
|
Neil A. Schrimsher
|
|
|
|
|
|
|
|
|
|
/s/ Les C. Vinney
|
|
Director
|
|
June 29, 2016
|
Les C. Vinney
|
|
|
|
|
|
|
|
|
|
/s/ James W. Wiltz
|
|
Director
|
|
June 29, 2016
|
James W. Wiltz
|
|
|
|
|
Balance at
Beginning
of Period
|
|
Charged to
Costs and
Expenses
|
|
Charged
to Other
Accounts
|
|
Deductions
|
|
Balance at
End of
Period
|
||||||||||
Year ended April 30, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
7,678
|
|
|
$
|
8,246
|
|
|
$
|
1,947
|
|
|
$
|
5,863
|
|
|
$
|
12,008
|
|
LIFO inventory adjustment
|
$
|
73,381
|
|
|
$
|
3,120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76,501
|
|
Inventory obsolescence reserve
|
4,218
|
|
|
15,547
|
|
|
1,550
|
|
|
14,694
|
|
|
6,621
|
|
|||||
Total inventory reserve
|
$
|
77,599
|
|
|
$
|
18,667
|
|
|
$
|
1,550
|
|
|
$
|
14,694
|
|
|
$
|
83,122
|
|
Year ended April 25, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
8,322
|
|
|
$
|
2,546
|
|
|
$
|
—
|
|
|
$
|
3,190
|
|
|
$
|
7,678
|
|
LIFO inventory adjustment
|
$
|
71,596
|
|
|
$
|
1,785
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
73,381
|
|
Inventory obsolescence reserve
|
3,498
|
|
|
17,624
|
|
|
—
|
|
|
16,904
|
|
|
4,218
|
|
|||||
Total inventory reserve
|
$
|
75,094
|
|
|
$
|
19,409
|
|
|
$
|
—
|
|
|
$
|
16,904
|
|
|
$
|
77,599
|
|
Year ended April 26, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Deducted from asset accounts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
$
|
4,093
|
|
|
$
|
2,544
|
|
|
$
|
3,552
|
|
|
$
|
1,867
|
|
|
$
|
8,322
|
|
LIFO inventory adjustment
|
$
|
67,187
|
|
|
$
|
4,409
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
71,596
|
|
Inventory obsolescence reserve
|
3,288
|
|
|
12,642
|
|
|
391
|
|
|
12,823
|
|
|
3,498
|
|
|||||
Total inventory reserve
|
$
|
70,475
|
|
|
$
|
17,051
|
|
|
$
|
391
|
|
|
$
|
12,823
|
|
|
$
|
75,094
|
|
Exhibit 10.1
|
|
Patterson Companies, Inc. Fiscal 2016 Incentive Plan.
|
|
|
|
Exhibit 10.2
|
|
Patterson Companies, Inc. Capital Accumulation Plan.
|
|
|
|
Exhibit 10.28
|
|
Employment Agreement between John Adent and Animal Health International, Inc., dated May 2, 2015.
|
|
|
|
Exhibit 21
|
|
Subsidiaries.
|
|
|
|
Exhibit 23
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
|
|
Exhibit 31.1
|
|
Certification of the Chief Executive Officer pursuant to Rules 13a-4(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
Exhibit 31.2
|
|
Certification of the Chief Financial Officer pursuant to Rules 13a-4(a) and 15d-14(a), under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
Exhibit 32.1
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
Exhibit 32.2
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
Exhibit 101
|
|
(Filed Electronically) The following financial information from our Annual Report on Form 10-K for fiscal 2016, formatted in Extensible Business Reporting Language (XBRL): (i) the consolidated balance sheets, (ii) the consolidated statements of income, (iii) the consolidated statements of cash flows, (iv) the consolidated statements of changes in stockholders’ equity and (v) the notes to the consolidated financial statements.(*)
|
(*)
|
The XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
|
1.
|
Employment – To be eligible to receive an award, the individual must be employed by Patterson Companies, Inc., or a subsidiary thereof, on the last day of the fiscal year;
|
a.
|
Job elimination – Participants whose positions are eliminated may, at the discretion of management, be eligible for prorated awards based on tenure in the qualifying position, overall performance level, actual results attained, and other criteria determined by management;
|
b.
|
Job transfer – Participants who transfer into or out of eligible positions within the Company may be eligible for prorated awards based on tenure in the qualifying position, overall performance level, actual results attained, and management discretion;
|
c.
|
Job promotion - If an employee is promoted during the plan year and is assigned to a new bonus plan or an increased target bonus percentage, their bonus award will be prorated based on the new base salary. If the promotion results only in a base pay increase, the pay rate as of the beginning of the fiscal year will be used for the bonus calculation.
|
2.
|
Performance – Continued participation in the Plan is dependent upon the participant remaining an employee in good standing as defined by Patterson Companies, Inc. or its subsidiary. To qualify for an award, a participant must have a satisfactory performance rating and not be on a formal performance improvement plan. A participant on written warning or
|
3.
|
Ethical and Legal Standards – Participants are required to be in compliance with, and abide by, Patterson Companies, Inc. Code of Ethics and comply with the letter and spirit of its provisions at all times.
|
NAME
|
JURISDICTION OF INCORPORATION
|
Patterson Dental Holdings, Inc.
|
Minnesota
|
Patterson Dental Supply, Inc.
|
Minnesota
|
Dolphin Imaging Systems, LLC
|
Delaware
|
Dolphin Practice Management, LLC
|
Delaware
|
Direct Dental Supply Co.
|
Nevada
|
Patterson Office Supplies, Inc.
|
Minnesota
|
Patterson Technology Center, Inc.
|
Minnesota
|
Patterson Dental Canada Inc.
|
Canada
|
PCI Limited I, LLC
|
Delaware
|
PCI Limited II, LLC
|
Delaware
|
PCI Two Limited Partnership
|
England
|
PDC Funding Company, LLC
|
Minnesota
|
PDC Funding Company II, LLC
|
Minnesota
|
Animal Health International, Inc.
|
Colorado
|
Aspen Veterinary Resources, Ltd
|
Colorado
|
Hawaii Mega-Cor., Inc.
|
Hawaii
|
Turnkey Computer Systems, LLC
|
Texas
|
Advance Veterinary Services LLC
|
Colorado
|
AVS West, Inc.
|
California
|
IAH Properties, LLC
|
Colorado
|
Indiana Animal Health, LLC
|
Colorado
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Patterson Veterinary Supply, Inc.
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Minnesota
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Patterson Management LP
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Minnesota
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PDCO HoldCo (Canada), Inc
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Canada
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Kane Veterinary Supplies, Ltd.
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Canada
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Patterson (PDCO) Holdings UK Limited
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England and Wales
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National Veterinary Services Limited
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England and Wales
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Patterson Logistics Services, Inc.
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Minnesota
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C.A.P.L. Limited
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England and Wales
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1.
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I have reviewed this annual report on Form 10-K for the fiscal year ended
April 30, 2016
of Patterson Companies, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: June 29, 2016
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/s/ S
COTT
P. A
NDERSON
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Scott P. Anderson
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President and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K for the fiscal year ended
April 30, 2016
of Patterson Companies, Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: June 29, 2016
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/s/ Ann B. Gugino
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Ann B. Gugino
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Executive Vice President, Chief Financial Officer and Treasurer
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/s/ S
COTT
P. A
NDERSON
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Scott P. Anderson
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President and Chief Executive Officer
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Date: June 29, 2016
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/s/ Ann B. Gugino
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Ann B. Gugino
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Executive Vice President, Chief Financial Officer and Treasurer
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Date: June 29, 2016
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