Revvity, Inc. (NYSE:RVTY) 42nd Annual J.P. Morgan Healthcare Conference January 9, 2024 1:30 PM ET Company Participants Prahlad Singh - President and Chief Executive Officer Conference Call Participants Rachel Vatnsdal - JPMorgan Chase & Co. Rachel Vatnsdal Hi, good afternoon, everyone. This is Rachel Vatnsdal from the Life Science Tools and Diagnostics team here at JP Morgan. I am joined on stage by Revvity and Prahlad, the CEO. And so as is typical, this is going to be a 40 minute session, it will be roug ...

[Part I. Financial Information](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents Revvity, Inc.'s unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements show a significant decline in Q3 2023 revenue and net income, primarily due to a loss from discontinued operations Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | (In thousands, except per share data) | Oct 1, 2023 | Oct 2, 2022 | Oct 1, 2023 | Oct 2, 2022 | | **Total revenue** | **$670,739** | **$711,803** | **$2,054,670** | **$2,570,608** | | Operating income from continuing operations | $69,228 | $110,780 | $223,403 | $605,230 | | Income from continuing operations | $32,469 | $69,508 | $115,936 | $415,179 | | (Loss) income from discontinued operations | ($22,972) | $15,839 | $498,595 | $26,342 | | **Net income** | **$9,497** | **$85,347** | **$614,531** | **$441,521** | | **Diluted EPS from continuing operations** | **$0.26** | **$0.55** | **$0.93** | **$3.28** | | **Diluted Net EPS** | **$0.08** | **$0.67** | **$4.90** | **$3.49** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets reflect a decrease in total assets and liabilities, with a significant increase in cash due to proceeds from discontinued operations Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | Oct 1, 2023 | Jan 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | **$1,136,721** | **$454,358** | | Total current assets | $2,913,237 | $3,288,558 | | Goodwill | $6,470,139 | $6,481,768 | | **Total assets** | **$13,421,548** | **$14,129,855** | | Current portion of long-term debt | $727,539 | $470,929 | | Long-term debt | $3,152,454 | $3,923,347 | | **Total liabilities** | **$5,727,267** | **$6,746,979** | | **Total stockholders' equity** | **$7,694,281** | **$7,382,876** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements show a shift to net cash used in operations, significant cash from divestitures, and substantial debt and stock repurchases Cash Flow Summary (Unaudited) | | Nine Months Ended | | | :--- | :--- | :--- | | (In thousands) | Oct 1, 2023 | Oct 2, 2022 | | Net cash (used in) provided by operating activities | ($105,341) | $540,652 | | Net cash provided by (used in) investing activities | $1,728,330 | ($107,167) | | Net cash used in financing activities | ($927,507) | ($585,106) | | **Net increase (decrease) in cash** | **$667,212** | **($203,025)** | - Investing activities were primarily driven by **$2.07 billion** in net cash provided by discontinued operations, which includes proceeds from the sale of the Business[24](index=24&type=chunk) - Financing activities included payments of senior unsecured notes of **$518.0 million** and purchases of common stock totaling **$384.0 million**[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the basis of presentation, revenue, discontinued operations, debt, segment performance, and share repurchase programs - In March 2023, the company completed the sale of its Applied, Food and Enterprise Services businesses (the "Business"), which are now reported as discontinued operations[29](index=29&type=chunk) - The sale of the Business was for an aggregate price of up to **$2.45 billion**, including **~$2.14 billion** in cash proceeds at closing, **$75 million** for the PerkinElmer brand transfer, and up to **$150 million** in contingent consideration[37](index=37&type=chunk) - The company paid in full **$467.1 million** of 0.550% Senior Unsecured Notes due in September 2023 and repurchased **$54.1 million** of its 2024 Notes during the first nine months of 2023[47](index=47&type=chunk) - A new stock repurchase program of up to **$600.0 million** was authorized in April 2023, replacing a previous program; as of October 1, 2023, **$355.4 million** remained available[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 and nine-month financial results, highlighting revenue declines, margin impacts, segment performance, and liquidity management post-divestiture [Overview](index=24&type=section&id=Overview) Revvity's Q3 2023 revenue declined 6% year-over-year, primarily due to reduced COVID-19 product demand in the Diagnostics segment - Q3 2023 revenue was **$670.7 million**, a **6% decrease** YoY[89](index=89&type=chunk) - The Diagnostics segment revenue decreased **9% ($36.1 million)** due to lower demand for COVID-19 products, while Life Sciences segment revenue decreased **2% ($4.9 million)**[89](index=89&type=chunk) - Consolidated gross margins decreased by **165 basis points** in Q3 2023, primarily due to lower COVID-19 revenue[90](index=90&type=chunk) [Consolidated Results of Continuing Operations](index=25&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Consolidated results show Q3 revenue declined 6% and nine-month revenue fell 20%, with gross margins decreasing and the effective tax rate significantly increasing Q3 Revenue Change by Segment | Segment | Q3 2023 Revenue (in millions) | Q3 2022 Revenue (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Diagnostics | $363.1M | $399.2M | ($36.1M) | -9% | | Life Sciences | $307.9M | $312.8M | ($4.9M) | -2% | | **Total** | **$670.7M** | **$711.8M** | **($41.1M)** | **-6%** | Nine-Month Revenue Change by Segment | Segment | 9M 2023 Revenue (in millions) | 9M 2022 Revenue (in millions) | Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | Diagnostics | $1,082.6M | $1,625.7M | ($543.1M) | -33% | | Life Sciences | $972.6M | $945.5M | $27.2M | +3% | | **Total** | **$2,054.7M** | **$2,570.6M** | **($515.9M)** | **-20%** | - The effective tax rate from continuing operations was **35.8%** for Q3 2023, compared to **15.4%** for Q3 2022, due to projected lower income in certain lower tax rate jurisdictions and an increase in tax reserves of **$29.8 million**[109](index=109&type=chunk) [Reporting Segment Results of Continuing Operations](index=28&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Segment results show Life Sciences revenue decline in Q3 but growth over nine months, while Diagnostics faced significant declines due to reduced COVID-19 demand Segment Operating Income (in thousands) | Segment | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :--- | :--- | :--- | :--- | :--- | | Life Sciences | $114,192 | $116,881 | $371,410 | $357,661 | | Diagnostics | $81,741 | $123,428 | $241,414 | $668,981 | - Life Sciences Q3 operating margin decreased **28 basis points** due to investments in new product development and growth initiatives[113](index=113&type=chunk) - Diagnostics Q3 operating margin decreased **840 basis points** primarily due to lower COVID-19 product sales volume[117](index=117&type=chunk) [Discontinued Operations](index=29&type=section&id=Discontinued%20Operations) The company completed the sale of its Applied, Food and Enterprise Services businesses, resulting in a Q3 loss from discontinued operations but a nine-month gain including the sale proceeds - The sale of the Business to an affiliate of New Mountain Capital L.L.C. was completed on March 13, 2023, for up to **$2.45 billion**[119](index=119&type=chunk) Results of Discontinued Operations (in thousands) | | Three Months Ended | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | | | Oct 1, 2023 | Oct 2, 2022 | Oct 1, 2023 | Oct 2, 2022 | | (Loss) gain on sale | ($58) | — | $835,629 | — | | **(Loss) income from discontinued operations** | **($22,972)** | **$15,839** | **$498,595** | **$26,342** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is strong with significant cash and credit availability, utilizing divestiture proceeds for debt repayment, share repurchases, and strategic acquisitions - Cash and cash equivalents stood at **$1.1 billion** as of October 1, 2023, with **$1.5 billion** of borrowing capacity available under the senior unsecured revolving credit facility[126](index=126&type=chunk) - Proceeds from the sale of the Business are expected to be used for satisfying debt maturities, opportunistic share repurchases, and strategic acquisitions[123](index=123&type=chunk) - The company repurchased a total of **$375.9 million** in common stock during the first nine months of 2023 under its existing and new repurchase programs[129](index=129&type=chunk) - The Board declared a quarterly cash dividend of **$0.07 per share** for Q3 and Q4 of 2023[139](index=139&type=chunk)[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate and foreign currency fluctuations, which it manages using derivative instruments - The company is exposed to market risk from changes in interest rates and currency exchange rates[142](index=142&type=chunk) - Substantially all of the debt portfolio is fixed interest, but cash and cash equivalents of **$1.1 billion** earn variable interest rates, creating exposure to interest rate fluctuations[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of October 1, 2023, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that as of October 1, 2023, the company's disclosure controls and procedures were **effective** at the reasonable assurance level[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[148](index=148&type=chunk) [Part II. Other Information](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, but management does not expect them to have a material adverse effect on financial statements - The company is subject to various legal proceedings and investigations arising in the ordinary course of business[151](index=151&type=chunk) - Management believes the total cost of resolving these contingencies will not have a **material adverse effect** on the company's condensed consolidated financial statements[151](index=151&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant business risks, including economic conditions, product demand, M&A execution, competition, supply chain, IT security, and financial leverage - **Business & Industry Risks:** Declines in customer markets, unfavorable government regulations, and the negative effect of the COVID-19 pandemic on demand for certain products pose significant risks[152](index=152&type=chunk)[153](index=153&type=chunk) - **Strategic Risks:** Failure to introduce new products in a timely manner, inability to successfully execute acquisitions or divestitures, and intense competition could harm business results[160](index=160&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - **Operational Risks:** Disruptions in the supply of raw materials from single-source suppliers, disruptions in third-party delivery services, and breaches of IT security systems could adversely affect operations[169](index=169&type=chunk)[170](index=170&type=chunk)[174](index=174&type=chunk) - **Financial Risks:** A substantial amount of outstanding debt could impact future financing and flexibility; the stock price is subject to volatility, and future dividends could be reduced or eliminated[188](index=188&type=chunk)[194](index=194&type=chunk)[199](index=199&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2023, the company repurchased over 1 million shares of common stock for approximately $112.4 million under a new repurchase program Issuer Repurchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid Per Share (USD) | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program (USD) | | :--- | :--- | :--- | :--- | :--- | | Jul 3 - Jul 30, 2023 | 211,455 | $117.14 | 210,736 | $442,849,012 | | Jul 31 - Aug 27, 2023 | 727 | $118.03 | — | $442,849,012 | | Aug 28 - Oct 1, 2023 | 801,256 | $109.26 | 800,000 | $355,447,935 | | **Total for Quarter** | **1,013,438** | **$110.91** | **1,010,736** | **$355,447,935** | - On April 27, 2023, a new stock repurchase program for up to **$600.0 million** was authorized, terminating a prior program; as of October 1, 2023, **$355.4 million** remained available under the new program[202](index=202&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During Q3 2023, three executive officers adopted Rule 10b5-1 trading arrangements for future stock sales, with no terminations of such plans - Three Section 16 officers, including the CEO, adopted Rule 10b5-1 trading arrangements during the third quarter of 2023[203](index=203&type=chunk) Rule 10b5-1 Trading Arrangements Adopted | Name | Position | Adoption Date | Duration of Arrangement | Aggregate Securities to be Sold (shares) | | :--- | :--- | :--- | :--- | :--- | | Joel S. Goldberg | SVP, General Counsel | Aug 3, 2023 | Dec 1, 2023 - Feb 6, 2024 | Up to 22,613 | | Prahlad Singh | President and CEO | Aug 4, 2023 | Dec 4, 2023 - Feb 6, 2024 | Up to 31,002 | | Tajinder S. Vohra | SVP, Global Operations | Aug 4, 2023 | Dec 4, 2023 - Feb 28, 2024 | Up to 7,918 | [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files - Exhibits include certifications from the CEO and CFO under Sarbanes-Oxley Sections 302 and 906[205](index=205&type=chunk) - The filing includes Inline XBRL documents for financial statements and notes[205](index=205&type=chunk)

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements, management's analysis of financial condition, market risk disclosures, and internal controls [Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Presents Revvity, Inc.'s unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows, reflecting the impact of discontinued operations [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues declined to **$709.1 million**, with operating income from continuing operations falling to **$78.1 million**, and net income significantly dropping to **$35.6 million** Condensed Consolidated Statements of Operations (Three Months Ended, in thousands, except per share data) | | Three Months Ended July 2, 2023 | Three Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Total revenue** | $709,066 | $895,642 | | **Operating income from continuing operations** | $78,056 | $232,494 | | **Income from continuing operations** | $58,622 | $161,601 | | **(Loss) income from discontinued operations** | $(23,063) | $17,611 | | **Net income** | $35,559 | $179,212 | | **Diluted earnings per share (Net income)** | $0.28 | $1.42 | Condensed Consolidated Statements of Operations (Six Months Ended, in thousands, except per share data) | | Six Months Ended July 2, 2023 | Six Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Total revenue** | $1,383,931 | $1,858,805 | | **Operating income from continuing operations** | $154,175 | $494,450 | | **Income from continuing operations** | $83,467 | $345,671 | | **(Loss) income from discontinued operations** | $521,567 | $10,503 | | **Net income** | $605,034 | $356,174 | | **Diluted earnings per share (Net income)** | $4.80 | $2.81 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2023 was **$35.0 million**, a turnaround from a **$33.2 million** loss in Q2 2022, driven by reduced negative currency adjustments Comprehensive Income (Loss) Summary (in thousands) | | Three Months Ended July 2, 2023 | Three Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Net income** | $35,559 | $179,212 | | **Other comprehensive (loss) income** | $(591) | $(212,366) | | **Comprehensive income (loss)** | $34,968 | $(33,154) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$14.22 billion**, with cash and equivalents rising to **$1.33 billion**, while total liabilities decreased to **$6.35 billion** Key Balance Sheet Items (in thousands) | | July 2, 2023 | January 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,331,903 | $454,358 | | **Total current assets** | $3,523,341 | $3,288,558 | | **Goodwill** | $6,518,419 | $6,481,768 | | **Total assets** | $14,218,549 | $14,129,855 | | **Total current liabilities** | $1,366,830 | $1,544,483 | | **Long-term debt** | $3,883,738 | $3,923,347 | | **Total liabilities** | $6,348,591 | $6,746,979 | | **Total stockholders' equity** | $7,869,958 | $7,382,876 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$7.87 billion**, driven by net income and comprehensive income, partially offset by stock repurchases and dividends - Key activities impacting stockholders' equity in the first six months of 2023 include net income of **$569.5 million**, common stock purchases of **$275.7 million** (**$67.5 million** in Q1, **$208.1 million** in Q2), and dividend payments of **$17.5 million** (**$8.8 million** in Q1, **$8.7 million** in Q2)[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operations was **$71.9 million**, while investing activities provided **$1.29 billion**, leading to an overall **$862.6 million** increase in cash and equivalents Net Cash Flow Summary (Six Months Ended, in thousands) | | July 2, 2023 | July 3, 2022 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(71,856) | $380,700 | | **Net cash provided by (used in) investing activities** | $1,293,461 | $(84,661) | | **Net cash used in financing activities** | $(341,458) | $(519,466) | | **Net increase (decrease) in cash** | $862,576 | $(257,404) | - Investing activities were dominated by **$2.07 billion** in net cash provided by discontinued operations, offset by **$831.2 million** in purchases of marketable securities[23](index=23&type=chunk) - Financing activities included **$273.3 million** for purchases of common stock and **$50.8 million** in payments of senior unsecured notes[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed accounting policies and financial disclosures, including revenue disaggregation, impact of discontinued operations, debt structure, and share repurchase programs - In March 2023, the company completed the sale of its Applied, Food and Enterprise Services businesses, which are now reported as discontinued operations for all periods presented[28](index=28&type=chunk) Revenue by Segment (Three Months Ended July 2, 2023, in thousands) | Segment | Revenue | | :--- | :--- | | Life Sciences | $336,353 | | Diagnostics | $372,713 | | **Total** | **$709,066** | - The sale of the business was for an aggregate price of up to **$2.45 billion**, with initial cash proceeds of approximately **$2.14 billion**; the company recognized a pre-tax loss on disposal of **$31.2 million** in Q2 2023[36](index=36&type=chunk)[37](index=37&type=chunk) - The company repurchased **$131.3 million** of common stock under its Repurchase Program and **$132.5 million** under a new **$600 million** New Repurchase Program during the first six months of 2023[54](index=54&type=chunk)[55](index=55&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 financial results, noting a **20.8%** revenue decrease driven by Diagnostics, segment performance, and liquidity post-divestiture [Overview](index=24&type=section&id=Overview) Revvity, Inc. reported a **20.8%** Q2 2023 revenue decrease to **$709.1 million**, driven by a **34%** decline in Diagnostics, partially offset by Life Sciences growth - Effective April 26, 2023, the company changed its name from PerkinElmer, Inc. to Revvity, Inc. and its stock ticker to **RVTY**[89](index=89&type=chunk) - Q2 2023 revenue decreased **20.8%** YoY to **$709.1 million**, driven by a **34%** decline in Diagnostics revenue, which was partially offset by a **3%** increase in Life Sciences revenue[90](index=90&type=chunk) - The decrease in Diagnostics revenue was primarily due to a drop in demand for COVID-19 products, while Life Sciences growth was led by the academia and government markets[90](index=90&type=chunk) [Consolidated Results of Continuing Operations](index=25&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Q2 2023 revenue declined **20.8%** to **$709.1 million**, gross margin contracted to **56.7%**, and interest expense decreased due to higher interest income Revenue by Segment (Q2 2023 vs Q2 2022, in millions) | Segment | Q2 2023 Revenue | Q2 2022 Revenue | Change (%) | | :--- | :--- | :--- | :--- | | Diagnostics | $372.9M | $569.2M | -34% | | Life Sciences | $336.4M | $326.6M | +3% | | **Total** | **$709.1M** | **$895.6M** | **-20.8%** | - Gross margin for Q2 2023 decreased to **56.7%** from **61.6%** in Q2 2022, primarily due to lower COVID-19 revenue, partially offset by pricing actions[99](index=99&type=chunk) - Interest and other expense, net, for Q2 2023 decreased to **$6.5 million** from **$26.2 million** YoY, mainly due to a **$24.3 million** increase in interest income from investing cash proceeds from the business sale[107](index=107&type=chunk) - The effective tax rate from continuing operations for Q2 2023 was **18.1%**, down from **21.7%** in the prior year period, due to projected lower income in higher tax jurisdictions[110](index=110&type=chunk) [Reporting Segment Results of Continuing Operations](index=28&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Life Sciences revenue grew **3%** to **$336.4 million**, while Diagnostics revenue declined **34%** to **$372.9 million**, significantly impacting operating margins Segment Performance (Q2 2023 vs Q2 2022) | Segment | Revenue Change | Operating Income Change | Operating Margin Change | | :--- | :--- | :--- | :--- | | Life Sciences | +3% | -2% | -200 bps | | Diagnostics | -34% | -65% | -2,012 bps | - Life Sciences revenue growth was driven by a **$15.6 million** increase in academia and government markets, partially offset by a **$5.9 million** decrease in pharmaceutical and biotechnology markets[112](index=112&type=chunk) - Diagnostics revenue decline was driven by decreased demand for COVID-19 products, with immunodiagnostics revenue down **$154.7 million** and applied genomics revenue down **$38.0 million**[116](index=116&type=chunk) [Discontinued Operations](index=28&type=section&id=Discontinued%20Operations) The company completed the sale of its Applied, Food and Enterprise Services businesses for up to **$2.45 billion**, recognizing a **$31.2 million** pre-tax loss in Q2 2023 - The company completed the sale of the Business on March 13, 2023, for up to **$2.45 billion**, receiving **~$2.14 billion** in initial cash proceeds[120](index=120&type=chunk) Discontinued Operations Financial Summary (in thousands) | | Three Months Ended July 2, 2023 | Six Months Ended July 2, 2023 | | :--- | :--- | :--- | | **(Loss) gain on sale** | $(31,232) | $835,687 | | **(Loss) income from discontinued operations** | $(23,063) | $521,567 | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and a credit facility, with **$2.14 billion** from a business sale allocated for debt, repurchases, and acquisitions - The company plans to use the **~$2.14 billion** in cash proceeds from the business sale for debt maturities, opportunistic share repurchases, and strategic acquisitions[125](index=125&type=chunk) - As of July 2, 2023, the company had **$1.3 billion** in cash and cash equivalents and **$1.5 billion** of borrowing capacity under its senior unsecured revolving credit facility[127](index=127&type=chunk) - In the first half of 2023, the company repurchased a total of **$263.8 million** in common stock under two separate repurchase programs and has **$467.5 million** remaining under the new program[130](index=130&type=chunk) Cash Flow Summary - Continuing Operations (Six Months Ended, in millions) | Cash Flow Activity | Six Months Ended July 2, 2023 | Six Months Ended July 3, 2022 | | :--- | :--- | :--- | | **Operating Activities** | $28.0M | $423.4M | | **Investing Activities** | $(771.8)M | $(73.3)M | | **Financing Activities** | $(341.5)M | $(519.5)M | [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rate fluctuations, using derivatives to hedge, with its overall risk profile unchanged - The company's primary market risks are changes in interest rates and foreign currency exchange rates[143](index=143&type=chunk) - As of July 2, 2023, the company held **$1.3 billion** in cash and cash equivalents at variable interest rates, making its earnings and cash flows susceptible to interest rate fluctuations[145](index=145&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 2, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of July 2, 2023, the company's disclosure controls and procedures were effective at the reasonable assurance level[147](index=147&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[148](index=148&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, various risk factors, details on equity security sales and use of proceeds, and other miscellaneous information [Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material adverse effect on financial statements - The company is subject to various legal proceedings but does not expect the resolution of these matters to have a material adverse effect on its financial statements[151](index=151&type=chunk) [Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks to the company's business, including market conditions, supply chain, intellectual property, regulatory compliance, foreign operations, and substantial debt [Risks Related to Business Operations and Industry](index=35&type=section&id=Risks%20Related%20to%20our%20Business%20Operations%20and%20Industry) Business operations face risks from market dependency, government funding, COVID-19 impact, supply chain disruptions, and the ability to retain key personnel - Business is highly dependent on customer markets (pharma, biotech, academic) and government funding, which are subject to economic and political uncertainties[152](index=152&type=chunk) - Demand for COVID-19 related products declined in 2022 and H1 2023 and is expected to continue declining[155](index=155&type=chunk)[156](index=156&type=chunk) - The company faces risks from supply chain disruptions, as certain critical raw materials and components are sourced from limited or single suppliers[170](index=170&type=chunk) - Failure to successfully execute acquisitions, integrate new businesses, or realize the full value of intangible assets (**$9.7 billion** as of July 2, 2023) could adversely affect results[163](index=163&type=chunk)[175](index=175&type=chunk) [Risks Related to Intellectual Property](index=39&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) Risks include failure to protect patents, costly IP litigation, and potential loss of competitive advantage from inability to renew licensed technologies - The company may not be successful in protecting its patents and trade secrets, which are critical for maintaining a competitive advantage[177](index=177&type=chunk) - The company may face expensive litigation if third parties challenge its patents or claim that its products infringe on their IP[178](index=178&type=chunk) - Loss of licensed rights could force the company to stop selling certain products or lose a competitive advantage[179](index=179&type=chunk) [Risks Related to Legal, Government and Regulatory Matters](index=40&type=section&id=Risks%20Related%20to%20Legal%2C%20Government%20and%20Regulatory%20Matters) The company faces risks from product liability claims, non-compliance with FDA and global regulations, and changes in healthcare industry laws - The company faces inherent risks of product liability claims, which could result in substantial liability exceeding insurance coverage[181](index=181&type=chunk) - Failure to comply with regulations from the FDA and other global agencies could lead to product recalls, fines, and criminal prosecution[182](index=182&type=chunk) - The healthcare industry is highly regulated; non-compliance with laws regarding fraud, abuse, and patient privacy could result in significant fines and penalties[185](index=185&type=chunk) [Risks Related to Foreign Operations](index=42&type=section&id=Risks%20Related%20to%20our%20Foreign%20Operations) Foreign operations expose the company to risks from currency fluctuations, political instability, trade protection measures, and differing international laws - The majority of the company's revenue came from outside the U.S. in fiscal 2022, exposing it to risks such as currency fluctuations, political instability, and trade protection measures[187](index=187&type=chunk) - Specific risks include sanctions related to the conflict in Ukraine, import/export licensing requirements, and differing laws regarding taxes, labor, and intellectual property[188](index=188&type=chunk) [Risks Related to Debt](index=42&type=section&id=Risks%20Related%20to%20our%20Debt) Substantial debt levels could limit financial flexibility, expose the company to interest rate risk, and trigger default if restrictive covenants are breached - Substantial debt levels could require significant cash flow for debt service, reducing funds for acquisitions and stock repurchases, and limiting operational flexibility[189](index=189&type=chunk) - Debt instruments contain restrictive covenants limiting the ability to pay dividends, sell assets, and incur certain other obligations[191](index=191&type=chunk)[196](index=196&type=chunk) - Failure to comply with financial covenants could lead to an event of default and require early prepayment of debt[193](index=193&type=chunk) [Risks Related to Ownership of our Common Stock](index=43&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Common%20Stock) Common stock ownership risks include significant price volatility influenced by financial performance and market sentiment, and the potential reduction or elimination of future dividends - The company's common stock price is subject to significant volatility due to factors like financial performance, market sentiment, and competitor actions[194](index=194&type=chunk)[197](index=197&type=chunk) - The Board of Directors may reduce or eliminate the common stock dividend in the future to fund growth, repurchase shares, or conserve capital[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details stock repurchase activities for Q2 2023, including the repurchase of **1,707,305** shares for **$205.9 million** under a new **$600 million** program Issuer Repurchases of Equity Securities (Quarter Ended July 2, 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share ($) | Maximum Dollar Value that May Yet Be Purchased Under the Programs ($) | | :--- | :--- | :--- | :--- | | April 3, 2023—April 30, 2023 | 557,282 | $132.34 | $149,591,197 | | May 1, 2023—May 28, 2023 | 338,031 | $116.10 | $574,752,955 | | May 29, 2023—July 2, 2023 | 811,992 | $114.91 | $467,534,970 | | **Total for Quarter** | **1,707,305** | **$120.83** | **$467,534,970** | - On April 27, 2023, the Board terminated the existing repurchase program and authorized a new **$600.0 million** stock repurchase program, which expires on April 26, 2025[202](index=202&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the second quarter of 2023 - No directors or officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2023[203](index=203&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including corporate governance documents, credit agreement amendments, and CEO/CFO certifications - Key exhibits filed include corporate governance documents, an amendment to the credit agreement, and required CEO/CFO certifications[203](index=203&type=chunk)

Revenue Performance - Total revenue for Q1 2023 was $674.9 million, a decrease of $288.3 million, or 29.9%, compared to Q1 2022[86] - Diagnostics segment revenue fell to $346.6 million, down $310.6 million, or 47%, primarily due to decreased demand for COVID-19 products[93] - Life Sciences segment revenue increased to $328.4 million, up $22.4 million, or 7%, driven by growth in pharmaceutical and biotechnology markets[101] Margins and Expenses - Consolidated gross margins decreased by 524 basis points to 56.5% in Q1 2023, primarily due to lower COVID-19 revenue[87] - Operating margins dropped from 27% to 11% in Q1 2023, with expectations of approximately 30% for the full fiscal year[87] - Selling, general and administrative expenses decreased by $26.7 million, or 10%, to $248.6 million in Q1 2023[95] - Research and development expenses were $56.7 million, a slight decrease of $0.8 million, or 1%, compared to Q1 2022[97] Income and Taxation - The effective tax rate from continuing operations was 15.6% for Q1 2023, down from 18.2% in Q1 2022[100] - Segment operating income for Life Sciences increased by $19.3 million, or 17%, to $129.5 million in Q1 2023[102] - Segment operating income for the three months ended April 2, 2023, was $74.4 million, a decrease of 75% from $300.9 million for the same period in 2022[104] Cash Flow and Investments - Net cash provided by operating activities for the three months ended April 2, 2023, was $71.7 million, down from $326.1 million for the same period in 2022, a decrease of $254.4 million[120] - Net cash used in investing activities was $215.1 million for the three months ended April 2, 2023, compared to $48.6 million for the same period in 2022, an increase of $166.5 million[121] - Net cash used in financing activities decreased to $113.2 million for the three months ended April 2, 2023, from $164.9 million in the same period in 2022, a decrease of $51.7 million[122] Share Repurchase and Dividends - The company repurchased 450,238 shares of common stock for an aggregate cost of $57.9 million during the three months ended April 2, 2023[116] - A quarterly cash dividend of $0.07 per share was declared for Q1 FY 2023, with $8.8 million accrued for dividends declared on January 26, 2023, to be paid in May 2023[124] - The company may consider reducing or eliminating its common stock dividend in the future to fund growth investments, repurchase shares, or conserve capital resources[124] Cash and Contingent Considerations - As of April 2, 2023, the company had cash and cash equivalents of $2.3 billion, with $1.9 billion held by non-U.S. subsidiaries[113] - The company recorded contingent consideration obligations of $43.8 million related to acquisitions with open contingency periods as of April 2, 2023[117] - The company expects to use proceeds from the sale of the business for debt maturities, share repurchases, and strategic acquisitions[110] Debt Management and Market Risks - The company has repurchased $32.9 million of its 0.550% senior unsecured notes due in September 2023 and $81.9 million of its 0.850% senior unsecured notes due in September 2024 since the beginning of Q3 FY 2022[123] - The company continues to measure foreign currency risk using the Value-at-Risk model, with no material changes in the measures for its Value-at-Risk analysis[128] - The company is exposed to market risks, including changes in interest rates and currency exchange rates, and manages these risks through derivative transactions[127] - The sensitivity measures for the company's interest rate risk have not changed materially, as detailed in its 2022 Form 10-K[130] - No derivative instruments are outstanding as of April 2, 2023, to manage interest rate exposures[129] Accounting and Regulatory Matters - The company has not adopted any new accounting pronouncements during the three months ended April 2, 2023, and no significant impact from recently issued accounting pronouncements is expected[126]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This section presents PerkinElmer's unaudited condensed consolidated financial statements, adjusted for discontinued operations, reflecting decreased revenue and net income due to lower COVID-19 sales [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues for the three months ended October 2, 2022, decreased to $711.8 million, resulting in lower net income of $85.3 million and diluted EPS of $0.67 Condensed Consolidated Statements of Operations (Three Months Ended) | Metric | Three Months Ended Oct 2, 2022 (In thousands) | Three Months Ended Oct 3, 2021 (In thousands) | | :--- | :--- | :--- | | **Total revenue** | **$711,803** | **$861,316** | | Operating income from continuing operations | $110,780 | $195,561 | | Income from continuing operations | $69,508 | $107,631 | | **Net income** | **$85,347** | **$127,738** | | Diluted EPS from continuing operations | $0.55 | $0.94 | | **Diluted EPS (Net income)** | **$0.67** | **$1.11** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of October 2, 2022, total assets decreased to $13.82 billion, total liabilities decreased to $6.76 billion, and stockholders' equity remained stable Condensed Consolidated Balance Sheet Highlights | Metric | Oct 2, 2022 (In thousands) | Jan 2, 2022 (In thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $400,741 | $603,320 | | Total current assets | $3,116,480 | $2,440,780 | | Goodwill | $6,373,327 | $6,627,119 | | **Total assets** | **$13,823,764** | **$15,000,554** | | Total current liabilities | $1,485,731 | $1,213,744 | | Long-term debt | $3,898,267 | $4,979,737 | | **Total liabilities** | **$6,758,564** | **$7,859,309** | | **Total stockholders' equity** | **$7,065,200** | **$7,141,245** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to $540.7 million, with net cash used in investing and financing activities for the nine months ended October 2, 2022 Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | Cash Flow Activity | Nine Months Ended Oct 2, 2022 (In thousands) | Nine Months Ended Oct 3, 2021 (In thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $540,652 | $1,075,158 | | Net cash used in investing activities | ($107,167) | ($4,052,807) | | Net cash (used in) provided by financing activities | ($585,106) | $3,080,682 | | **Net (decrease) increase in cash** | **($203,025)** | **$86,449** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial data, covering revenue disaggregation, business combinations, discontinued operations, restructuring, debt, and fair value measurements - In August 2022, the company agreed to sell its Analytical, Food and Enterprise Services businesses to New Mountain Capital for up to **$2.45 billion**. These businesses are now classified as discontinued operations, and prior period financial statements have been retrospectively adjusted[24](index=24&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - In fiscal year 2021, the company acquired BioLegend, Inc. for an aggregate consideration of **$5.7 billion**, consisting of **$3.3 billion** in cash and **$2.6 billion** in stock, significantly expanding the Discovery & Analytical Solutions segment[33](index=33&type=chunk) Revenue by Segment (Three Months Ended Oct 2, 2022) | Segment | Revenue (In thousands) | YoY Change | | :--- | :--- | :--- | | Discovery & Analytical Solutions | $312,783 | +50.7% | | Diagnostics | $399,020 | -39.0% | | **Total** | **$711,803** | **-17.4%** | - The company initiated several restructuring plans in 2022, involving workforce reductions to realign resources towards growth initiatives and integrate acquisitions, with total charges of **$18.8 million** for the first three quarters[48](index=48&type=chunk)[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2022 financial results, highlighting a 17.4% revenue decrease driven by lower Diagnostics segment sales, partially offset by Discovery & Analytical Solutions growth from acquisitions [Overview](index=28&type=section&id=Overview) Q3 2022 total revenue decreased by 17.4% to $711.8 million, driven by a 39% decline in Diagnostics due to lower COVID-19 sales, partially offset by 51% growth in Discovery & Analytical Solutions from acquisitions Q3 2022 Performance Summary | Metric | Q3 2022 vs Q3 2021 Change | | :--- | :--- | | Total Revenue | -17.4% | | Diagnostics Segment Revenue | -39% | | Discovery & Analytical Solutions Segment Revenue | +51% | | Consolidated Gross Margin | -352 bps | | Consolidated Operating Margin | -714 bps | [Consolidated Results of Continuing Operations](index=29&type=section&id=Consolidated%20Results%20of%20Continuing%20Operations) Q3 2022 revenue decreased 17.4% to $711.8 million due to lower COVID-19 sales, impacting gross margin, while SG&A decreased and R&D increased reflecting strategic investments - Q3 2022 revenue decreased by **$149.5 million (17.4%)** YoY, primarily due to a **$231.2 million** decline in COVID-19 product revenue from the Diagnostics segment[100](index=100&type=chunk) - Gross margin for Q3 2022 decreased by **352 basis points** to **57.2%**, mainly due to increased amortization of intangible assets from acquisitions (**$35.3 million** vs **$28.5 million** YoY) and lower high-margin COVID-19 revenue[102](index=102&type=chunk) - The effective tax rate from continuing operations for Q3 2022 was **15.4%**, down from **20.3%** in Q3 2021, primarily due to lower income in higher tax jurisdictions and a one-time discrete expense in the prior year[116](index=116&type=chunk) [Reporting Segment Results of Continuing Operations](index=33&type=section&id=Reporting%20Segment%20Results%20of%20Continuing%20Operations) Discovery & Analytical Solutions segment revenue grew 51% to $312.8 million, while Diagnostics segment revenue fell 39% to $399.0 million due to reduced COVID-19 product sales Q3 2022 Segment Performance | Segment | Revenue (In millions) | YoY Change | Operating Income (In millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Discovery & Analytical Solutions | $312.8 | +51% | $32.6 | +269% | | Diagnostics | $399.0 | -39% | $94.7 | -60% | [Discontinued Operations](index=35&type=section&id=Discontinued%20Operations) The company is selling its Analytical, Food and Enterprise Services businesses for up to $2.45 billion, now reported as discontinued operations, generating $320.6 million in Q3 2022 revenue - The sale of the Analytical, Food and Enterprise Services businesses is for cash consideration of up to **$2.45 billion**, with approximately **$2.30 billion** payable at closing, expected in Q1 2023[128](index=128&type=chunk) Discontinued Operations Financial Summary (Q3 2022) | Metric | Amount (In thousands) | | :--- | :--- | | Revenue | $320,616 | | Income from discontinued operations before income taxes | $25,180 | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of October 2, 2022, the company had $400.7 million in cash and $1.5 billion in credit, with net cash from operations at $545.3 million, and plans to use divestiture proceeds for debt, repurchases, and strategic acquisitions - As of October 2, 2022, the company had **$400.7 million** in cash and equivalents and **$1.5 billion** of borrowing capacity available under its senior unsecured revolving credit facility[132](index=132&type=chunk) - The company expects to use the **~$2.23 billion** in proceeds from the sale of its discontinued operations to fund debt maturities, opportunistic share repurchases, and strategic acquisitions[130](index=130&type=chunk) - A new **$300.0 million** stock repurchase program was authorized on July 22, 2022, expiring in July 2024, with no shares repurchased under this new program during Q3 2022[134](index=134&type=chunk)[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate and foreign currency fluctuations, managed with derivatives, with no material changes from its 2021 Form 10-K disclosures - The company's primary market risks are changes in interest rates and foreign currency exchange rates[147](index=147&type=chunk) - The company uses derivative transactions to hedge against known or forecasted market exposures, and these risks have not materially changed since the 2021 Form 10-K[147](index=147&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of October 2, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of October 2, 2022[152](index=152&type=chunk) - No material changes were made to the company's internal control over financial reporting during the third fiscal quarter of 2022[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, with management not expecting a material adverse effect on financial statements - The company is subject to various legal proceedings but believes the resolution of these matters will not have a material adverse effect on its financial condition[156](index=156&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks including market dependence, COVID-19 impact, global instability, innovation challenges, M&A issues, competition, supply chain disruptions, and regulatory compliance [Risks Related to Business Operations and Industry](index=41&type=section&id=Risks%20Related%20to%20our%20Business%20Operations%20and%20Industry) The company faces risks from market downturns, economic conditions, government funding changes, ongoing COVID-19 impacts, global political instability, innovation failures, M&A challenges, competition, and supply chain disruptions - The business is highly dependent on customer markets (pharma, biotech, academic) and is vulnerable to economic downturns, cuts in government funding, and unfavorable regulations[157](index=157&type=chunk) - The COVID-19 pandemic has reduced demand for certain products and may continue to disrupt operations, supply chains, and manufacturing, with revenue from COVID-19 testing products expected to decline[158](index=158&type=chunk)[162](index=162&type=chunk) - Failure to successfully execute acquisitions or divestitures, such as the pending sale of the Analytical, Food and Enterprise Services businesses, could dilute earnings and present integration or separation challenges[169](index=169&type=chunk)[170](index=170&type=chunk) - Disruptions in the supply of critical raw materials from limited or single-source suppliers could adversely affect business operations and customer relationships[174](index=174&type=chunk) [Risks Related to Intellectual Property](index=45&type=section&id=Risks%20Related%20to%20our%20Intellectual%20Property) The company's competitive advantage relies on intellectual property protection, facing risks of patent challenges, inadequate trade secret protection, and loss of licensed technology rights - The company faces risks that its patents may not be issued, may be challenged by third parties, or may not be broad enough to fully protect its products[182](index=182&type=chunk)[183](index=183&type=chunk) - Loss of licensed rights, through non-renewal or other factors, could require the company to cease selling products or redesign them, potentially losing competitive advantage[185](index=185&type=chunk) [Risks Related to Legal, Government and Regulatory Matters](index=46&type=section&id=Risks%20Related%20to%20Legal%2C%20Government%20and%20Regulatory%20Matters) The company faces product liability risks and must comply with extensive FDA and other regulations, with non-compliance potentially leading to recalls, fines, and significant penalties in the highly regulated healthcare industry - The company's operations are subject to extensive regulation by the FDA and other agencies; non-compliance could lead to product recalls, fines, or criminal penalties[188](index=188&type=chunk) - The highly regulated healthcare industry poses risks of significant fines, penalties, and exclusion from government programs for non-compliance with fraud, abuse, and privacy laws[191](index=191&type=chunk) [Risks Related to Foreign Operations](index=47&type=section&id=Risks%20Related%20to%20our%20Foreign%20Operations) With most revenue from outside the U.S., the company faces risks from foreign currency fluctuations, political instability, trade protectionism, and differing regulations, with Brexit posing ongoing economic uncertainty - With a majority of sales from outside the U.S., the company is exposed to risks including currency fluctuations, political instability, trade sanctions, and differing tax and labor laws[192](index=192&type=chunk)[193](index=193&type=chunk) - Brexit poses ongoing risks of economic volatility and adverse currency movements (GBP vs USD), which could harm the company's UK and European business[195](index=195&type=chunk)[196](index=196&type=chunk) [Risks Related to Debt](index=49&type=section&id=Risks%20Related%20to%20our%20Debt) Substantial debt levels could reduce available funds, limit flexibility, and expose the company to interest rate and foreign currency risks, with restrictive covenants and potential LIBOR discontinuation impacting expenses - Substantial debt levels could require significant cash flow for debt service, reducing funds for other purposes and limiting operational flexibility[197](index=197&type=chunk)[199](index=199&type=chunk) - Existing debt agreements contain restrictive covenants that limit the company's ability to pay dividends, sell assets, and incur additional secured debt[198](index=198&type=chunk)[200](index=200&type=chunk) - The planned discontinuation of LIBOR after June 2023 may increase interest expense on the company's variable-rate debt facilities[203](index=203&type=chunk) [Risks Related to Ownership of Common Stock](index=50&type=section&id=Risks%20Related%20to%20Ownership%20of%20our%20Common%20Stock) The company's common stock price is subject to significant volatility due to market conditions and operating results, and future dividends are not guaranteed and may be reduced or eliminated - The company's common stock price is subject to significant price and volume volatility[204](index=204&type=chunk) - Future dividends are not guaranteed and may be reduced or eliminated by the Board of Directors[205](index=205&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase activities, including a new $300 million program authorized in July 2022, under which no shares were repurchased in Q3 2022, except for tax withholding obligations - A new stock repurchase program for up to **$300 million** was authorized on July 22, 2022, and will expire on July 22, 2024, with no shares repurchased under this program in Q3 2022[207](index=207&type=chunk) - During Q3 2022, the company repurchased **624 shares** of common stock for **$0.1 million** to satisfy minimum statutory tax withholding obligations related to employee equity awards[208](index=208&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Master Purchase and Sale Agreement for divested businesses, employment agreements, CEO/CFO certifications, and XBRL data files - Exhibits filed include the Master Purchase and Sale Agreement for the divested businesses, CEO/CFO certifications, and XBRL interactive data files[209](index=209&type=chunk)[210](index=210&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 3, 2022 or ☐ 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 001-5075 ___ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 3, 2022 or ☐ 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 001-5075 __ ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 _____________________________________ Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2022 or ☐ 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 001-5075 _____________________________________ PerkinElmer, Inc. (Exac ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 3, 2021 or ☐ 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 001-5075 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-Q _______________________________________ (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 4, 2021 or ☐ 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 001-5075 _____________________ ...