Edgar Filing: HENRY SCHEIN INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

__ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 0-27078

HENRY SCHEIN, INC.

(Exact name of registrant as specified in its charter)

Delaware	11-3136595
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

135 Duryea Road

Melville, New York

(Address of principal executive offices)

11747

(Zip Code)

(631) 843-5500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X

No __

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes X

No __

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer X

Accelerated filer __

Non-accelerated filer __

(Do not check if a smaller reporting company)

Smaller reporting company __

Emerging growth company __

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes __

No X

As of May 2, 2018, there were 154,025,003 shares of the registrant’s common stock outstanding.



HENRY SCHEIN, INC.
INDEX
				Page

PART I. FINANCIAL INFORMATION

ITEM 1.	Consolidated Financial Statements:

		Balance Sheets as of March 31, 2018 and December 30, 2017..................................................................................................................................................		3

		Statements of Income for the three months ended
			March 31, 2018 and April 1, 2017.......................................................................................................................................................................................	4

		Statements of Comprehensive Income for the three months ended
			March 31, 2018 and April 1, 2017.......................................................................................................................................................................................	5

		Statement of Changes in Stockholders' Equity for the three months ended
			March 31, 2018.....................................................................................................................................................................................................................	6

		Statements of Cash Flows for the three months ended
			March 31, 2018 and April 1, 2017.......................................................................................................................................................................................	7

		Notes to Consolidated Financial Statements..............................................................................................................................................................................		8
		Note 1 – Basis of Presentation..............................................................................................................................................................................................		8
		Note 2 – Accounting Pronouncements Adopted and Critical Accounting Policies and
		Estimates..........................................................................................................................................................................................................................		8
		Note 3 – Revenue from Contracts with Customers..............................................................................................................................................................		13
		Note 4 – Segment Data..........................................................................................................................................................................................................		13
		Note 5 - Debt........................................................................................................................................................................................................................		15
		Note 6 – Redeemable Noncontrolling Interests.....................................................................................................................................................................		17
		Note 7 – Comprehensive Income..........................................................................................................................................................................................		18
		Note 8 – Fair Value Measurements.......................................................................................................................................................................................		19
		Note 9 – Business Acquisitions............................................................................................................................................................................................		21
		Note 10 – Plans of Restructuring..........................................................................................................................................................................................		22
		Note 11 – Earnings Per Share................................................................................................................................................................................................		23
		Note 12 – Income Taxes........................................................................................................................................................................................................		23
		Note 13 – Derivatives and Hedging Activities......................................................................................................................................................................		24
		Note 14 – Stock-Based Compensation.................................................................................................................................................................................		25
		Note 15 – Supplemental Cash Flow Information.................................................................................................................................................................		27
		Note 16 – Legal Proceedings.................................................................................................................................................................................................		27
		Note 17 – Subsequent Events...............................................................................................................................................................................................		30

ITEM 2.	Management's Discussion and Analysis of
		Financial Condition and Results of Operations..................................................................................................................................................................		31

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk...............................................................................................................................................			53

ITEM 4.	Controls and Procedures..............................................................................................................................................................................................................			54

PART II. OTHER INFORMATION

ITEM 1.	Legal Proceedings.........................................................................................................................................................................................................................			55

ITEM 1A.	Risk Factors...................................................................................................................................................................................................................................			57

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds.................................................................................................................................................			57


ITEM 6.	Exhibits...........................................................................................................................................................................................................................................			58

	Signature.......................................................................................................................................................................................................................................			59

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HENRY SCHEIN, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

				March 31,		December 30,
				2018		2017
				(unaudited)
ASSETS
Current assets:
	Cash and cash equivalents ..............................................................................................................................................................			$	99,235	$	174,658
	Accounts receivable, net of reserves of $57,351 and $53,832 ...................................................................................................................				1,576,390		1,522,807
	Inventories, net .............................................................................................................................................................................				2,015,069		1,933,803
	Prepaid expenses and other .............................................................................................................................................................				430,111		454,752
			Total current assets ...............................................................................................................................................................		4,120,805		4,086,020
Property and equipment, net ................................................................................................................................................................					377,002		375,001
Goodwill ..........................................................................................................................................................................................					2,317,873		2,301,331
Other intangibles, net .........................................................................................................................................................................					649,465		669,641
Investments and other ........................................................................................................................................................................					449,731		432,002
			Total assets ..........................................................................................................................................................................	$	7,914,876	$	7,863,995

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable .........................................................................................................................................................................			$	1,020,739	$	1,153,012
	Bank credit lines ............................................................................................................................................................................				954,140		741,653
	Current maturities of long-term debt ..................................................................................................................................................				14,164		16,659
	Accrued expenses:
		Payroll and related .....................................................................................................................................................................			234,704		272,998
		Taxes ......................................................................................................................................................................................			214,377		188,873
		Other ......................................................................................................................................................................................			418,167		455,780
			Total current liabilities ............................................................................................................................................................		2,856,291		2,828,975
Long-term debt .................................................................................................................................................................................					1,000,515		907,756
Deferred income taxes .........................................................................................................................................................................					54,453		50,431
Other liabilities ..................................................................................................................................................................................					421,684		420,285
			Total liabilities ......................................................................................................................................................................		4,332,943		4,207,447

Redeemable noncontrolling interests .....................................................................................................................................................					670,017		832,138
Commitments and contingencies ...........................................................................................................................................................

Stockholders' equity:
	Preferred stock, $.01 par value, 1,000,000 shares authorized,
		none outstanding ......................................................................................................................................................................			-		-
	Common stock, $.01 par value, 240,000,000 shares authorized,
		154,025,003 outstanding on March 31, 2018 and
		153,690,146 outstanding on December 30, 2017 ................................................................................................................................			1,540		1,537
	Retained earnings ..........................................................................................................................................................................				2,998,328		2,940,029
	Accumulated other comprehensive loss .............................................................................................................................................				(97,888)		(130,067)
		Total Henry Schein, Inc. stockholders' equity ..................................................................................................................................			2,901,980		2,811,499
	Noncontrolling interests .................................................................................................................................................................				9,936		12,911
			Total stockholders' equity .......................................................................................................................................................		2,911,916		2,824,410
		Total liabilities, redeemable noncontrolling interests and stockholders' equity........................................................................................		$	7,914,876	$	7,863,995

See accompanying notes.

Table of Contents

	HENRY SCHEIN, INC.
	CONSOLIDATED STATEMENTS OF INCOME
	(in thousands, except per share data)
	(unaudited)

			Three Months Ended
			March 31,		April 1,
			2018		2017

Net sales ......................................................................................................................................................................................			$	3,220,439	$	2,922,948
Cost of sales .................................................................................................................................................................................				2,324,847		2,100,028
		Gross profit ..........................................................................................................................................................................		895,592		822,920
Operating expenses:
	Selling, general and administrative .................................................................................................................................................			685,688		628,952
	Restructuring costs ....................................................................................................................................................................			3,762		-
		Operating income ..................................................................................................................................................................		206,142		193,968
Other income (expense):
	Interest income ..........................................................................................................................................................................			5,158		4,304
	Interest expense ........................................................................................................................................................................			(17,538)		(11,430)
	Other, net .................................................................................................................................................................................			(338)		(45)
		Income before taxes and equity in earnings of affiliates .................................................................................................................		193,424		186,797
Income taxes .................................................................................................................................................................................				(47,764)		(38,630)
Equity in earnings of affiliates ..........................................................................................................................................................				2,971		2,086
Net income ...................................................................................................................................................................................				148,631		150,253
	Less: Net income attributable to noncontrolling interests ...................................................................................................................			(8,413)		(9,505)
Net income attributable to Henry Schein, Inc. ......................................................................................................................................			$	140,218	$	140,748

Earnings per share attributable to Henry Schein, Inc.:

	Basic .......................................................................................................................................................................................		$	0.92	$	0.89
	Diluted ....................................................................................................................................................................................		$	0.91	$	0.88

Weighted-average common shares outstanding:
	Basic .......................................................................................................................................................................................			153,106		157,715
	Diluted ....................................................................................................................................................................................			154,130		159,758

See accompanying notes.

Table of Contents

	HENRY SCHEIN, INC.
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
	(in thousands)
	(unaudited)

				Three Months Ended
				March 31,		April 1,
				2018		2017

Net income ...............................................................................................................................................................................				$	148,631	$	150,253

Other comprehensive income, net of tax:
	Foreign currency translation gain...............................................................................................................................................				34,224		41,452

	Unrealized loss from foreign currency hedging activities ................................................................................................................				(902)		(2,861)

	Pension adjustment gain (loss)..................................................................................................................................................				(23)		84

Other comprehensive income, net of tax ..........................................................................................................................................					33,299		38,675
Comprehensive income ...............................................................................................................................................................					181,930		188,928
	Comprehensive income attributable to noncontrolling interests:
		Net income .......................................................................................................................................................................			(8,413)		(9,505)
		Foreign currency translation gain ..........................................................................................................................................			(1,120)		(3,453)
			Comprehensive income attributable to noncontrolling interests ...............................................................................................		(9,533)		(12,958)

Comprehensive income attributable to Henry Schein, Inc. ...................................................................................................................				$	172,397	$	175,970

See accompanying notes.

Table of Contents

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands, except share and per share data)

(unaudited)

										Accumulated
			Common Stock			Additional				Other				Total
			$.01 Par Value			Paid-in		Retained		Comprehensive		Noncontrolling		Stockholders'
			Shares		Amount	Capital		Earnings		Income/(Loss)		Interests		Equity
Balance, December 30, 2017 ............................................................................................................................................................			153,690,146	$	1,537	$	-	$	2,940,029	$	(130,067)	$	12,911	$	2,824,410
Cumulative impact of adopting new accounting standards (Note 2)........................................................................................................................			-		-		-		2,594		-		-		2,594
Net income (excluding $8,324 attributable to Redeemable
	noncontrolling interests) ...........................................................................................................................................................		-		-		-		140,218		-		89		140,307
Foreign currency translation gain (excluding $897
	attributable to Redeemable noncontrolling interests) .................................................................................................................................		-		-		-		-		33,104		223		33,327
Unrealized loss from foreign currency hedging activities,
	net of tax benefit of $182............................................................................................................................................................		-		-		-		-		(902)		-		(902)
Pension adjustment loss, including tax benefit of $0......................................................................................................................................			-		-		-		-		(23)		-		(23)
Dividends paid ........................................................................................................................................................................			-		-		-		-		-		(161)		(161)
Other adjustments .....................................................................................................................................................................			-		-		7		-		-		779		786
Change in fair value of redeemable securities .............................................................................................................................................			-		-		(82,361)		-		-		-		(82,361)
Initial noncontrolling interests and adjustments related to
	business acquisitions..............................................................................................................................................................		-		-		-		-		-		(3,905)		(3,905)
Stock issued upon exercise of stock options .............................................................................................................................................			151,516		2		3,020		-		-		-		3,022
Stock-based compensation expense .....................................................................................................................................................			430,330		4		8,750		-		-		-		8,754
Shares withheld for payroll taxes ........................................................................................................................................................			(246,989)		(3)		(16,391)		-		-		-		(16,394)
Settlement of stock-based compensation awards			-		-		(182)		-		-		-		(182)
Deferred tax benefit arising from acquisition of
	noncontrolling interest in partnership...............................................................................................................................................	.......................................................................................................................................................................................................	-		-		2,644		-		-		-		2,644
Transfer of charges in excess of capital...................................................................................................................................................................			-		-		84,513		(84,513)		-		-		-
Balance, March 31, 2018 ...............................................................................................................................................................			154,025,003	$	1,540	$	-	$	2,998,328	$	(97,888)	$	9,936	$	2,911,916

See accompanying notes.

Table of Contents

HENRY SCHEIN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

					Three Months Ended
					March 31,		April 1,
					2018		2017

Cash flows from operating activities:
	Net income .......................................................................................................................................................................................				$	148,631	$	150,253
	Adjustments to reconcile net income to net cash used in
		operating activities:
			Depreciation and amortization ......................................................................................................................................................			52,085		44,749
			Stock-based compensation expense ..............................................................................................................................................			8,754		8,497
			Provision for losses on trade and other accounts receivable ...............................................................................................................			3,241		2,810
			Provision for deferred income taxes ...............................................................................................................................................			3,522		13,496
			Equity in earnings of affiliates ......................................................................................................................................................			(2,971)		(2,086)
			Distributions from equity affiliates ................................................................................................................................................			3,548		3,038
			Changes in unrecognized tax benefits ............................................................................................................................................			2,413		(10,876)
			Other ......................................................................................................................................................................................			(4,811)		2,689
			Changes in operating assets and liabilities, net of acquisitions:
				Accounts receivable ..............................................................................................................................................................		(45,620)		(97,493)
				Inventories ...........................................................................................................................................................................		(63,875)		28,278
				Other current assets ...............................................................................................................................................................		11,869		2,689
				Accounts payable and accrued expenses ...................................................................................................................................		(187,730)		(198,635)
Net cash used in operating activities ......................................................................................................................................................						(70,944)		(52,591)

Cash flows from investing activities:
	Purchases of fixed assets ....................................................................................................................................................................					(18,251)		(17,311)
	Payments for equity investments and business
		acquisitions, net of cash acquired .....................................................................................................................................................				(8,703)		(11,820)
	Other ..............................................................................................................................................................................................					(8,212)		(5,549)
Net cash used in investing activities ......................................................................................................................................................						(35,166)		(34,680)

Cash flows from financing activities:
	Proceeds from bank borrowings ............................................................................................................................................................					212,055		234,037
	Proceeds from issuance of debt ............................................................................................................................................................					100,000		-
	Debt issuance costs ...........................................................................................................................................................................					(30)		-
	Principal payments for long-term debt ....................................................................................................................................................					(10,032)		(56,367)
	Proceeds from issuance of stock upon exercise of stock options .................................................................................................................					3,022		3,952
	Payments for repurchases of common stock ............................................................................................................................................					-		(50,006)
	Payments for taxes related to shares withheld for employee taxes.................................................................................................................					(15,012)		(40,605)
	Distributions to noncontrolling stockholders ..........................................................................................................................................					(811)		(3,264)
	Acquisitions of noncontrolling interests in subsidiaries ............................................................................................................................					(261,433)		(4,089)
Net cash provided by financing activities ................................................................................................................................................						27,759		83,658

Effect of exchange rate changes on cash and cash equivalents ....................................................................................................................						2,928		4,120
Net change in cash and cash equivalents ................................................................................................................................................						(75,423)		507
Cash and cash equivalents, beginning of period .......................................................................................................................................						174,658		62,381
Cash and cash equivalents, end of period ...............................................................................................................................................					$	99,235	$	62,888

See accompanying notes.

Table of Contents

HENRY SCHEIN, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

(unaudited)

Note 1 – Basis of Presentation

Our consolidated financial statements include our accounts, as well as those of our wholly-owned and majority-owned subsidiaries. Certain prior period amounts have been reclassified to conform to the current period presentation.

Our accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by U.S. GAAP for complete financial statements.

The consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 30, 2017.

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for any other interim period or for the year ending December 29, 2018.

On August 16, 2017, we announced that our Board of Directors approved a 2-for-1 split of our common stock. Each Henry Schein, Inc. stockholder of record at the close of business on September 1, 2017 received a dividend of one additional share for every share held. Trading began on a split-adjusted basis on September 15, 2017 and has been retroactively reflected for all periods presented in this Form 10-Q.

Note 2 – Accounting Pronouncements Adopted and Critical Accounting Policies and Estimates

Accounting Pronouncements Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, Accounting Standards Codification (“ASC”) 606 (“Topic 606”). We adopted the provisions of this standard as of December 31, 2017, on a modified retrospective basis. We applied the requirements of the new standard only to contracts that were not completed as of the adoption date. We recorded an immaterial adjustment to the opening balance of retained earnings for the adoption of Topic 606. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The impact of the new standard on our consolidated statements of income, which we expect to be immaterial on an ongoing basis, is primarily related to software sales and sales commissions and is described as follows:

Software Sales

For software licenses sold together with post contract support (PCS), we previously deferred software revenue if it did not have vendor-specific evidence of fair value of the PCS. Under Topic 606, the concept of vendor-specific objective evidence (“VSOE”) is eliminated and there are no cases where revenue is deferred due to a lack of standalone selling price. In addition, we previously recognized revenue from term licenses ratably over the contract term. Under Topic 606, such licenses represent a right to use intellectual property and therefore require upfront recognition. Furthermore, certain upfront fees related to service arrangements were previously deferred and

Table of Contents

HENRY SCHEIN, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

(unaudited)

recognized over the estimated customer life. Under Topic 606, the period over which we will recognize these fees is reduced as the upfront fee represents additional contract price which will be allocated to the performance obligations in the contract and recognized as those performance obligations are satisfied rather than being amortized over the estimated customer life. Based on the aforementioned changes, such software revenue will be recognized sooner than under the previous revenue recognition standard.

Sales Commissions

We previously recognized sales commissions as an expense when incurred. Under Topic 606, we defer such sales commissions as costs to obtain a contract when the costs are incremental and expected to be recovered. Deferred sales commissions are amortized over the estimated customer relationship period. We apply the practical expedient to expense, as incurred, commissions with an expected amortization period of one year or less.

The impact of adoption on our consolidated balance sheet and income statement was as follows:

		Three Months Ended
		March 31, 2018
					Balances		Effect of
			As		Without Adoption		Change
Balance Sheet			Reported		of Topic 606		Increase/(Decrease)
Assets:
	Prepaid expenses and other .........................................................................................................................................	$	430,111	$	430,851	$	(740)
	Investments and other ...............................................................................................................................................		449,731		448,278		1,453

Liabilities:
	Accrued Expenses -Taxes............................................................................................................................................	$	214,377	$	214,102	$	275
	Accrued Expenses - Other ...........................................................................................................................................		418,167		420,620		(2,453)
	Deferred Income Taxes ...............................................................................................................................................		54,453		53,879		574
	Other Liabilities (Long-term) ........................................................................................................................................		421,684		422,075		(391)
Stockholders' equity:
	Retained earnings .....................................................................................................................................................	$	2,998,328	$	2,995,620	$	2,708

			Three Months Ended
			March 31, 2018
						Balances		Effect of
				As		Without Adoption		Change
Statement of Income				Reported		of Topic 606		Increase/(Decrease)
Revenues:
	Dental ..............................................................................................................................................................................................		$	1,547,799	$	1,547,799	$	-
	Animal Health ...................................................................................................................................................................................			919,794		919,794		-
	Medical ............................................................................................................................................................................................			640,400		640,400		-
		Total healthcare distribution ................................................................................................................................................................	$	3,107,993	$	3,107,993	$	-
	Technology and value-added services ...................................................................................................................................................			112,446		112,485		(39)
		Total revenues ..................................................................................................................................................................................	$	3,220,439	$	3,220,478	$	(39)
Costs and expenses:
	Cost of sales .....................................................................................................................................................................................			2,324,847		2,324,847		-
	Selling, general and administrative .........................................................................................................................................................			685,688		685,189		499
	Income taxes......................................................................................................................................................................................			47,764		47,806		(42)
		.......................................................................................................................................................................................................
	Net Income .......................................................................................................................................................................................		$	148,631	$	149,127	$	(496)

Additional information related to Topic 606 can be found below in “Critical Accounting Policies and Estimates” as well as in Note 3 – Revenue from Contracts with Customers.

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes, Intra-Entity Transfers of Assets

Table of Contents

HENRY SCHEIN, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

(unaudited)

Other Than Inventory” (“Topic 740”). Topic 740 requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory in the period which the transfer occurs. Previously, companies were required to defer the income tax effects on intercompany transfer of assets until the asset has been sold to an outside party. On December 31, 2017, we adopted the guidance, which is effective for annual periods and related interim periods beginning after December 15, 2017 on a modified retrospective basis. As a result of the adoption of Topic 740, we have recorded an immaterial adjustment to the opening balance of retained earnings and a reduction to prepaid assets.

In May 2017, the FASB issued ASU No. 2017-09, “Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting”. ASU No. 2017-09 provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. ASU 2017-09 requires modification accounting if the fair value, vesting conditions, or equity or liability classification of the award is not the same immediately before and after a change to the terms and conditions of the award. ASU 2017-09 was adopted on a prospective basis as of December 31, 2017 and did not have a material impact on the consolidated financial statements or disclosures as of March 31, 2018.

The cumulative effect of the changes made to our consolidated balance sheet as of December 31, 2017 related to Topic 606 and Topic 740 were as follows:

			Balance at		Adjustments		Adjustments		Balance at
			December 30,		Due To		Due To		December 31,
			2017		Topic 606		Topic 740		2017
Assets:
	Prepaid expenses and other .........................................................................................................................................	$	454,752	$	119	$	(610)	$	454,261
	Investments and other ...............................................................................................................................................		432,002		1,133		-		433,135

Liabilities:
	Accrued Expenses - Taxes...........................................................................................................................................	$	188,873	$	437	$	-	$	189,310
	Accrued Expenses - Other ...........................................................................................................................................		455,780		(2,615)		-		453,165
	Deferred Income Taxes ...............................................................................................................................................		50,431		471		-		50,902
	Other Liabilities (Long-term) ........................................................................................................................................		420,285		(246)		-		420,039