UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________

FORM 10-Q

_______________________________________

(Mark One)



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

For the quarterly period ended ~~October 1, 2017~~April 5, 2020



¨☐	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.

(Exact name of Registrant as specified in its Charter)

_______________________________________



Massachusetts			04-2052042
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

940 Winter Street,	Waltham,	Massachusetts	02451
(Address of principal executive offices)			(Zip Code)

~~940 Winter Street~~

~~Waltham, Massachusetts 02451~~

(~~Address of principal executive offices) (Zip code)~~

~~(781)~~ 781) 663-6900

(Registrant’s telephone number, including area code)

~~_______________________________________~~ ______________________________________

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common stock, $1 par value per share	PKI	The New York Stock Exchange
1.875% Notes due 2026	PKI 21A	The New York Stock Exchange
0.60% Notes due 2021	PKI 21B	The New York Stock Exchange

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 ý☑ 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes ý☑ 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,"~~filer”, “smaller reporting ~~company,"~~company”, and ~~"emerging~~“emerging growth ~~company"~~company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	ý☑	Accelerated filer		¨
			☐
Non-accelerated filer	¨ ~~(Do not check if a smaller reporting company)~~ ☐	Smaller reporting company		¨☐
~~Emerging growth company~~	¨				Emerging growth company	☐

If an emerging growth company, indicate by check mark whether 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 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨☐ No ý☑

As of ~~November 2, 2017~~May 7, 2020, there were outstanding ~~110,225,251~~111,386,181 shares of common stock, $1 par value per share.

~~Table of Contents~~

TABLE OF CONTENTS



		Page
PART I. FINANCIAL INFORMATION

Item 1.	Unaudited Financial Statements	3
	~~Condensed Consolidated Statements of Operations~~	3
	~~Condensed Consolidated Statements of Comprehensive Income~~	4
	Condensed Consolidated ~~Balance Sheets~~Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated ~~Statements of Cash Flows~~Balance Sheets	6
	Condensed Consolidated Statements of Stockholders' Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	79

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
	Overview	31
	Critical Accounting Policies and Estimates	32
	~~Overview~~Consolidated Results of Continuing Operations	32
	~~Critical Accounting Policies and Estimates~~Reporting Segment Results of Continuing Operations	3336
	~~Consolidated Results of Continuing Operations~~Liquidity and Capital Resources	3336
	~~Reporting Segment Results of Continuing Operations~~Dividends	3841
	~~Liquidity and Capital Resources~~Contractual Obligations	4041
	~~Dividends~~	44
	~~Contractual Obligations~~	44
	Effects of Recently Adopted and Issued Accounting Pronouncements	4441

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4541

Item 4.	Controls and Procedures	4643

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	4744

Item 1A.	Risk Factors	4744

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5452

Item 6.	Exhibits	5553

Signatures		5654

~~Table of Contents~~

PART I. FINANCIAL INFORMATION


Item 1.	Unaudited Financial Statements

PERKINELMER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended					Nine Months Ended					Three Months Ended
	October 1, 2017			October 2, 2016		October 1, 2017			October 2, 2016		April 5, 2020			March 31, 2019
	(In thousands, except per share data)										(In thousands, except per share data)
Product revenue	$	354,819		$	334,894	$	1,043,534		$	1,016,221	$	425,529		$	438,722
Service revenue	199,456			179,595		571,818			532,526		226,867			210,015
Total revenue	554,275			514,489		1,615,352			1,548,747		652,396			648,737
Cost of product revenue	165,160			155,668		501,468			483,202		206,190			206,276
Cost of service revenue	120,293			110,271		347,948			328,355		138,183			134,655
Total cost of revenue	285,453			265,939		849,416			811,557		344,373			340,931
Selling, general and administrative expenses	150,859			142,600		443,896			438,090		208,569			198,857
Research and development expenses	34,887			29,513		101,737			91,352		48,914			47,980
Restructuring and contract termination charges, net	3,269			656		12,920			5,124
Restructuring and other costs, net											5,858			7,639
Operating income from continuing operations	79,807			75,781		207,383			202,624		44,682			53,330
Interest and other (income) expense, net	(25,247		)	11,263		(8,446		)	27,742
Interest and other expense, net											9,993			16,565
Income from continuing operations before income taxes	105,054			64,518		215,829			174,882		34,689			36,765
Provision for income taxes	8,508			10,601		20,495			21,465		974			1,312
Income from continuing operations	96,546			53,917		195,334			153,417		33,715			35,453
Income from discontinued operations before income taxes	—			5,447		650			18,564
(Loss) gain on disposition of discontinued operations before income taxes	(206		)	630		180,171			619
Loss on disposition of discontinued operations before income taxes											—			—
Provision for income taxes on discontinued operations and dispositions	5,262			1,867		42,405			3,150		50			41
(Loss) income from discontinued operations and dispositions	(5,468		)	4,210		138,416			16,033
Loss from discontinued operations and dispositions											(50		)	(41		)
Net income	$	91,078		$	58,127	$	333,750		$	169,450	$	33,665		$	35,412
Basic earnings per share:
Income from continuing operations	$	0.88		$	0.49	$	1.78		$	1.40	$	0.30		$	0.32
(Loss) income from discontinued operations and dispositions	(0.05		)	0.04		1.26			0.15
Loss from discontinued operations and dispositions											(0.00		)	(0.00		)
Net income	$	0.83		$	0.53	$	3.04		$	1.55	$	0.30		$	0.32
Diluted earnings per share:
Income from continuing operations	$	0.87		$	0.49	$	1.77		$	1.39	$	0.30		$	0.32
(Loss) income from discontinued operations and dispositions	(0.05		)	0.04		1.25			0.15
Loss from discontinued operations and dispositions											(0.00		)	(0.00		)
Net income	$	0.82		$	0.53	$	3.02		$	1.54	$	0.30		$	0.32
Weighted average shares of common stock outstanding:
Basic	110,003			109,192		109,788			109,524		111,121			110,543
Diluted	110,993			110,078		110,653			110,372		111,644			111,293
Cash dividends declared per common share	$	0.07		$	0.07	$	0.21		$	0.21	$	0.07		$	0.07

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED BALANCE SHEETS

Operating lease right-of-use assets

Operating lease liabilities

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Impact of adopting ASU 2016-13 (see Note 1)

Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the condensed consolidated statements of cash flows:

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The condensed consolidated financial statements included herein have been prepared by PerkinElmer, Inc. (the “Company”), in accordance with accounting principles generally accepted in the United States of America (the “U.S.” or the "United States") and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information in the footnote disclosures of the financial statements has been condensed or omitted where it substantially duplicates information provided in the Company’s latest audited consolidated financial statements, in accordance with the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes included in its Annual Report on Form 10-K for the fiscal year ended ~~January 1, 2017~~December 29, 2019, filed with the SEC (the “~~2016~~2019 Form 10-K”). The balance sheet amounts at ~~January 1, 2017~~December 29, 2019 in this report were derived from the Company’s audited ~~2016~~2019 consolidated financial statements included in the ~~2016~~2019 Form 10-K. The condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods indicated. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and classifications 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. The results of operations for the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016~~March 31, 2019, respectively, are not necessarily indicative of the results for the entire fiscal year or any future period.

The Company’s fiscal year ends on the Sunday nearest December 31. The Company reports fiscal years under a 52/53 week format and as a result, certain fiscal years will contain 53 weeks. The fiscal year ending ~~December 31, 2017~~January 3, 2021 ("fiscal year ~~2017"~~2020") will include 5253 weeks, and the fiscal year ended ~~January 1, 2017~~December 29, 2019 ("fiscal year ~~2016"~~2019") included 52 weeks.

Recently Adopted and Issued Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the "FASB") and are adopted by the Company as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on the Company’s consolidated financial position, results of operations and cash flows or do not apply to the Company’s operations.

In ~~August 2017,~~December 2019, the FASB issued Accounting Standards Update No. ~~2017-12,~~ ~~Derivatives and Hedging~~2019-12, Income Taxes (Topic ~~815), Targeted Improvements to~~740): Simplifying the Accounting for ~~Hedging Activities~~ ("Income Taxes ("ASU ~~2017-12"~~2019-12"), ~~which amends~~. ASU 2019-12 eliminates certain exceptions and adds guidance to reduce complexity in accounting for income taxes. Specifically, this guidance: (1) removes the ~~hedge accounting recognition and presentation requirements in Topic 815. ASU 2017-12 makes targeted changes~~intraperiod tax allocation exception to the existing hedge accounting model to better align the entity’s financial reporting for hedging relationships with the entity’s risk management activities, and to reduce the complexity of, and simplify the application of, the hedge accounting model. Specifically, ASU 2017-12 expands the types of transactions eligible for hedge accounting, eliminates the requirement to separately measure and present hedge ineffectiveness, simplifies the way assessments of hedge ineffectiveness may be performed, relaxes the documentation requirements for entering into hedging positions, provides targeted improvements to fair value hedges of interest rate risk, and permits an entity to exclude the change in the fair value of cross-currency basis spreads in currency swaps from the assessment of hedge effectiveness. The standard also requires entities to provide new disclosures about the impact fair value and cash flow hedges have on the income statement and about cumulative basis adjustments arising from fair value hedges. The provisions of this guidance are to be applied using a modified retrospective approach to existing hedging relationships as of the adoption date. However, the transition provisions allow for certain elections at the date of adoption and entities may choose to apply any of the provided elections. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the requirements of this guidance. The adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.

~~In May 2017, the FASB issued Accounting Standards Update No. 2017-09,~~ ~~Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting~~ ~~("ASU 2017-09")~~, which amends the scope of modification accounting for share-based payment arrangements. ASU 2017-09 provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Topic 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. If an entity modifies its awards and concludes that it is not required to apply modification accounting under the standard, it must still consider whether the modification affects its application of other guidance. Additionally, if a significant modification does not result in incremental ~~compensation cost, entities are required to disclose the “lack of” incremental compensation cost resulting from such significant modification. The standard also removes~~

the guidance in Topic 718 stating that modification accounting is not required when an entity adds an antidilution provision as long as that modification is not made in contemplation of an equity restructuring. The provisions of this guidance are to be applied on a prospective basis to awards modified on or after the effective date. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the requirements of this guidance. The adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.

~~In March 2017, the FASB issued Accounting Standards Update No. 2017-07,~~ ~~Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost~~ ~~("ASU 2017-07")~~, which amends the requirements in Topic 715 related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. ASU 2017-07 requires entities to (1) disaggregate the current-service-cost component from the other components of net benefit cost (the “other components”) and present it with other current employee compensation costs in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations, and disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. Additionally, the standard requires that only the service-cost component of net benefit cost is eligible for capitalization (e.g., as part of inventory or property, plant, and equipment). The change in income statement presentation requires retrospective application, while the change in capitalized benefit cost is to be applied prospectively. ASU 2017-07 is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The standard provides a practical expedient that permits entities to use the components of cost disclosed in prior years as a basis for the retrospective application of the new income statement presentation. Entities need to disclose the use of the practical expedient. The Company is evaluating the requirements of this guidance. The adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.

~~In January 2017, the FASB issued Accounting Standards Update No. 2017-04,~~ ~~Intangibles-Goodwill and Other Topic (Topic 350), Simplifying the Test for Goodwill Impairment~~ ~~("ASU 2017-04")~~, which amends Topic 350 to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 requires that an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize the impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider the income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The provisions of this guidance are to be applied on a prospective basis. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company early adopted ASU 2017-04 and will apply the provisions of this standard in its interim or annual goodwill impairment tests subsequent to January 2, 2017.

~~In January 2017, the FASB issued Accounting Standards Update No. 2017-01,~~ ~~Business Combinations (Topic 805), Clarifying the Definition of a Business~~ ("ASU 2017-01"), which amends Topic 805 to provide a screen to determine when a set of assets and liabilities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. If the screen is not met, the standard (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output andapproach; (2) removes the ~~evaluation~~ownership changes in investments exception in determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of ~~whether a market participant could replace missing elements. The standard provides a framework to assist entities in evaluating whether both an input~~accounting and a substantive process are present. The standard also provides a framework that includes two sets of criteria to consider that depend on whether a set has outputs and a more stringent criteria for sets without outputs. Lastly, the standard narrows the definition of the term "output" so that the term is consistent with how outputs are described in Topic 606, ~~Revenue from Contracts with Customers. The provisions of~~applies this guidance are to be applied prospectively. ASU 2017-01 is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted in limited circumstances. The Company is evaluating the requirements of this guidance. The adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.

~~In November 2016, the FASB issued Accounting Standards Update No. 2016-18,~~ ~~Statement of Cash Flows (Topic 230), Restricted Cash~~ ("ASU 2016-18"), which amends Topic 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of

cash flows. The provisions of this guidance are to be applied using a retrospective transition method to each period presented. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company is evaluating the requirements of this guidance. The adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations and cash flows.

~~In October 2016, the FASB issued Accounting Standards Update No. 2016-16,~~ ~~Income Taxes (Topic 740), Intra-entity Transfer of Assets Other than Inventory~~ ("ASU 2016-16"). ASU 2016-16 removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. The standard requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The provisions of this guidance are to be appliedprovision on a modified retrospective basis through a cumulative-effect adjustment ~~directly~~to retained earnings at the beginning of the period of adoption; and (3) removes the exception to using the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 also simplifies accounting principles by making other changes, including requiring an entity to: (1) evaluate whether a step-up in tax basis of goodwill relates to a business combination or a separate transaction; (2) make a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and to apply this provision retrospectively to all periods presented; and (3) recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and apply this provision either retrospectively for all periods presented or on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The provisions of this guidance (except as specifically mentioned above) are to be applied prospectively upon their effective date. ASU ~~2016-16~~2019-12 is effective for annual reporting periods beginning after December 15, ~~2017,~~2020, and interim periods within those ~~years, with early~~years. Early adoption ~~permitted.~~is permitted but requires simultaneous adoption of all provisions of this guidance. The Company is currently evaluating the requirements of this guidance and has not yet determined the impact of its adoption on the Company's consolidated financial position, results of operations and cash flows.

In ~~August 2016,~~April 2019, the FASB issued Accounting Standards Update No. ~~2016-15,~~ ~~Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts~~2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and ~~Cash Payments~~ ("Hedging, and Topic 825, Financial Instruments ("ASU ~~2016-15"~~2019-04"). ASU ~~2016-15 addresses eight specific~~2019-04 clarifies certain aspects of previously issued accounting standards related to: (1) ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements ("ASU 2016-13"), in areas of accrued interest receivable, transfers of loans and debt securities between classifications, recoveries and prepayments, (2) ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), in areas of partial-term fair value hedges, fair value hedge basis adjustments, certain disclosures and transition

requirements and (3) ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), in areas of remeasurement of equity securities under ASC 820, Fair Value Measurement, when using the measurement alternative and remeasurement of equity securities at historical exchange rates. The amendments related to ASU 2016-13 are required to be adopted in conjunction with that accounting standards update, as further described below. Since the Company has already adopted ASU 2017-12 and ASU 2016-01, the related amendments in ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted in any interim period. The amendments to ASU 2017-12 can either be adopted retrospectively as of the date of adoption of ASU 2017-12 or they can be adopted prospectively. The amendments to ASU 2016-01 are required to be applied using a modified-retrospective adoption approach with a cumulative-effect adjustment to retained earnings as of the date of adoption of ASU 2016-01, except for those related to equity securities without readily determinable fair values that are measured using the measurement alternative, which are required to be applied prospectively. The standard was effective for the Company beginning on December 30, 2019, the first day of the Company's fiscal year 2020. The Company applied the provisions of this guidance prospectively. The adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash ~~flow issues~~flows.

In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract ("ASU 2018-15"). ASU 2018-15 aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the ~~objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other topics.~~guidance on capitalizing costs associated with developing or obtaining internal-use software (and hosting arrangements that include an internal-use software license). The provisions of this guidance are to be applied ~~using a retrospective transition method~~either retrospectively or prospectively to ~~each period presented, and if it is impracticable to apply~~all implementation costs incurred after the ~~amendments retrospectively~~date of adoption. The standard was effective for ~~some~~the Company beginning on December 30, 2019, the first day of the ~~issues,~~ Company's fiscal year 2020. The Company applied the provisions of this guidance prospectively. The adoption did not have a material impact on the Company's consolidated financial position, results of operations and cash flows.

In August 2018, the FASB issued Accounting Standards Update No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU ~~2016-15 allows~~2018-14"). ASU 2018-14 adds, removes, and clarifies disclosure requirements related to defined benefit pension and other postretirement plans. ASU 2018-14 adds requirements for an entity to disclose the ~~amendments~~weighted-average interest crediting rates used in the entity’s cash balance pension plans and other similar plans; and an explanation of the reasons for ~~those issues~~significant gains and losses related to changes in the benefit obligation for the period. Further, ASU 2018-14 removes guidance that currently requires the following disclosures: the amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost over the next year; the amount and timing of plan assets expected to be returned to the employer; information about (1) benefits covered by related-party insurance and annuity contracts and (2) significant transactions between the plan and related parties; and the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. ASU 2018-14 also clarifies the guidance in Compensation-Retirement Benefits(Topic 715-20-50-3) on defined benefit plans to require disclosure of (1) the projected benefit obligation ("PBO") and fair value of plan assets for pension plans with PBOs in excess of plan assets (the same disclosure with reference to the accumulated postretirement benefit obligation rather than the PBO is required for other postretirement benefit plans) and (2) the accumulated benefit obligation ("ABO") and fair value of plan assets for pension plans with ABOs in excess of plan assets. The provisions of this guidance are to be applied ~~prospectively as of the earliest date practicable.~~retrospectively to all periods presented upon their effective date. ASU ~~2015-16~~2018-14 is effective for annual reporting periods beginning after December 15, ~~2017,~~2020, and interim periods within those years with early adoption permitted. The Company is currently evaluating the requirements of this guidance and has not yet determined the impact of its adoption on the Company's consolidated financial position, results of operations and cash flows.

In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"). ASU 2018-13 adds, removes, and modifies certain disclosures related to fair value measurements. ASU 2018-13 adds requirements for an entity to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, ASU 2018-13 removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. ASU 2018-13 also modifies existing disclosure requirements related to measurement uncertainty. The amendments regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty are to be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments are to be applied retrospectively to all periods presented upon their effective date. The standard was effective for the Company beginning on

December 30, 2019, the first day of the Company's fiscal year 2020. The adoption did not have a material impact on the Company's disclosures related to fair value measurements.

In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326):, Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard requires entities to use the expected loss impairment model and will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. Entities are required to estimate the lifetime “expected credit loss” for each applicable financial asset and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The standard also amends the impairment model for available-for-sale (“AFS”) debt securities and requires entities to determine whether all or a portion of the unrealized loss on an AFS debt security is a credit loss. An entity will recognize an allowance for credit losses on an AFS debt security as a contra-account to the amortized cost basis rather than as a direct reduction of the amortized cost basis of the investment. The provisions of this guidance are to be applied using a modified-retrospective approach. A prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. Subsequent to the issuance of ASU 2016-13, in November 2018, the FASB issued Accounting Standards Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2018-19"), in April 2019, the FASB issued ASU 2019-04,and in May 2019, the FASB issued Accounting Standards Update No. 2019-05, Financial Instruments - Credit Losses (Topic 326), Targeted Transition Relief ("ASU 2019-05"). The amendments in ASU 2018-19 clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The amendments in ASU 2019-04 clarify the measurement of allowance for credit losses on accrued interest receivable; the inclusion of expected recoveries in the allowance for credit losses; the permission of a prepayment-adjusted effective interest rate when determining the allowance for credit losses; and the steps entities should take when recording the transfer of loans or debt securities between measurement classifications. The amendments in ASU 2019-05 provide an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments-Overall, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of ASU 2016-13, but this fair value option election does not apply to held-to-maturity debt securities. The effective date and transition requirements for the amendments in ASU 2018-19, ASU 2019-04 and ASU 2019-05 are the same as the effective date and transition requirements of ASU 2016-13, which is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those years. ~~Early adoption is permitted~~The standards were effective for ~~annual periods~~the Company beginning ~~after~~on December ~~15, 2018, and interim periods therein.~~30, 2019, the first day of the Company's fiscal year 2020. The Company ~~is evaluating~~adopted these standards using the ~~requirements~~modified-retrospective approach. The adoption of ~~this guidance~~the standards resulted in a decrease in retained earnings at December 30, 2019 of approximately $1.3 million from the cumulative effect of initially applying the standards as of that date. In addition, the adoption of the standard resulted in an increase in reserve for doubtful accounts of $1.7 million and ~~has not yet determined~~an increase in deferred tax assets of $0.4 million from the tax impact of ~~its~~the cumulative adjustments. The adoption did not have an impact on cash from or used in operating, investing or financing activities in the Company's consolidated ~~financial position, results~~statement of ~~operations~~cash flows at December 30, 2019.

Disaggregation of revenue

In the following tables, revenue is disaggregated by primary geographical markets, primary end-markets and ~~cash flows.~~timing of revenue recognition. The tables also include a reconciliation of the disaggregated revenue with the reportable segments' revenue.

Contract assets: The unbilled receivables (contract assets) primarily relate to the ~~FASB issued Accounting Standards Update No. 2016-02,~~ ~~Leases~~.Company's right to consideration for work completed but not billed at the reporting date. The ~~new guidance requires lessees~~unbilled receivables are transferred to ~~recognize a lease liability and right-of-use asset on the balance sheet for financing and operating leases. The provisions of this guidance~~trade receivables when billed to customers. Contract assets are ~~to be applied using a modified retrospective approach~~generally classified as current assets and are ~~effective for annual reporting periods beginning after~~included in "Accounts receivable, net" in the consolidated balance sheets. The balance of contract assets as of April 5, 2020 and December ~~15, 2018,~~29, 2019 were $33.7 million and ~~interim periods within those years, with early adoption permitted.~~$37.0 million, respectively. The ~~Company is evaluating the requirements~~amount of this guidance and has not yet determined the impact of its adoption on the Company's consolidated financial position, results of operations and cash flows. The Company does not intend to early adopt the provisions of this standard.

~~In July 2015, the FASB issued Accounting Standards Update No. 2015-11,~~ ~~Simplifying the Measurement of Inventory~~. Under this new guidance, companies that use inventory measurement methods other than last-in, first-out or the retail inventory method should measure inventory at the lower of cost and net realizable value. The provisions of this guidance are to be applied prospectively and are effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2015-11unbilled receivables recognized at the beginning of the ~~first quarter~~period that were transferred to trade receivables during the three months ended April 5, 2020 was $14.9 million. The increase in unbilled receivables during the three months ended April 5, 2020 as a result of ~~fiscal year 2017.~~ recognition of revenue before billing to customers, excluding amounts transferred to trade receivables during the period, amounted to $11.6 million.

Contract liabilities: The ~~adoption did~~contract liabilities primarily relate to the advance consideration received from customers for products and related installation for which transfer of control has not ~~have a material impact~~occurred at the balance sheet date. Contract liabilities are classified as either current in "Accounts payable" or long-term in "Long-term liabilities" in the consolidated balance sheets based on the ~~Company’s consolidated financial position, results~~timing of ~~operations and cash flows.~~

~~In May 2014,~~when the ~~FASB issued Accounting Standards Update No. 2014-09,~~ ~~Revenue from Contracts with Customers~~ ~~("ASU 2014-09"). Under this new guidance, an entity should use a five-step process~~Company expects to recognize revenue. The balance of contract liabilities as of April 5, 2020 and December 29, 2019 were $32.1 million and $29.9 million, respectively. The increase in contract liabilities during the three months ended April 5, 2020 due to cash received, excluding amounts recognized as revenue ~~depicting~~during the ~~transfer~~period, was $14.8 million. The amount of ~~promised goods or services to customers~~revenue recognized during the three months ended April 5, 2020 that was included in the contract liability balance at the beginning of the period was $12.6 million.

Contract costs: The Company recognizes the incremental costs of obtaining a contract with a customer as an ~~amount that reflects~~asset if it expects the ~~consideration to which the entity expects~~benefit of those costs to be ~~entitled~~longer than one year. The Company determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the period and are included in ~~exchange~~other current and long-term assets on the consolidated balance sheets. The Company applies a practical expedient to expense costs as incurred for ~~those goods~~costs to obtain a contract with a customer when the amortization period would have been one year or ~~services. The standard also requires new disclosures regarding~~less. These costs include the ~~nature, amount, timing and uncertainty of revenue and cash flows arising from contracts~~Company's internal sales force compensation program, as the Company determined that annual compensation is commensurate with ~~customers. Subsequent~~annual sales activities.

Transaction price allocated to the issuance of the standard, the FASB decided to defer the effective date for one year to annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. In May 2016, the FASB also issued Accounting Standards Update No. 2016-12, ~~Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients~~ ~~("ASU 2016-12")~~, which amended its revenue recognition guidance in ASU 2014-09 on transition, collectibility, non-cash consideration and the presentation of sales and other similar taxes. In April 2016, the FASB also issued Accounting Standards Update No. 2016-10, ~~Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing~~ ~~("ASU 2016-10")~~, ~~which amended its revenue recognition guidance in ASU 2014-09 on identifying~~remaining performance obligations to allow entities to disregard items that are immaterial in the context of the contract, clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow an entity to elect to account for the cost of shipping and handling performed after control of a good has been transferred to the customer as a fulfillment cost (i.e., an expense). ASU 2016-10 also clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property ("IP") and requires entities to classify IP in one of two categories: functional IP or symbolic IP, which will determine whether it recognizes revenue over time or at a point in time. ASU 2016-10 also address how entities should consider license renewals and restrictions and apply the exception for sales- and usage-based royalties received in exchange for licenses of IP. ASU 2016-12, ASU 2016-10 and ASU 2014-09 may be adopted either using a full retrospective approach or a modified retrospective approach. The Company is in the process of completing its evaluation of the impact of these standards upon adoption, but does not currently anticipate a material impact on the Company’s consolidated financial position, results of operations and cash flows. The Company intends to adopt these standards using the modified retrospective approach, and the Company does not intend to early adopt these standards.

The Company ~~believes~~applies the ~~key changes~~practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. The estimated revenue expected to be recognized beyond one year in the ~~standard~~future related to performance obligations that ~~impact revenue recognition relate~~are unsatisfied (or partially unsatisfied) at the end of the period are not material to the ~~accounting for certain transactions with multiple elements or “bundled” arrangements (for example, sales of~~Company. The remaining performance obligations primarily include noncancelable purchase orders and noncancelable software subscriptions ~~or sales of licenses~~ and maintenance for which the Company does not have vendor-specific objective evidence ("VSOE") for maintenance and/or support) because the requirement to have VSOE for undelivered elements under current accounting standards is eliminated under the new standard. Accordingly, the Company will be required to recognize the license revenue upon transfer of control of the applicable software, as compared to the current requirement of recognizing the entire sales price ratably over the maintenance period.cloud service contracts.

Note 2:3: Business Combinations

Acquisitions in fiscal year ~~2017~~2019

During the ~~first nine months of~~ fiscal year ~~2017,~~2019, the Company completed the acquisition of ~~Tulip Diagnostics Private Limited~~five businesses for aggregate consideration of $433.1 million in cash. The acquired businesses include Cisbio Bioassays SAS (“~~Tulip”~~Cisbio”), a company based in ~~Goa, India,~~Codolet, France, which was acquired for a total consideration of ~~$127.3 million.~~$219.9 million in cash, Shandong Meizheng Bio-Tech Co., Ltd. ("Meizheng Group"), a company headquartered in Beijing, China, for a total consideration of $166.5 million in cash, and three other businesses which were acquired for a total consideration of $46.6 million in cash. The Company has a potential obligation to pay the former shareholders of ~~Tulip~~certain of these acquired businesses additional contingent consideration of up to INR1.6 billion, currently equivalent to $24.6 million, which will be accounted for as compensation expense in the Company's financial statements over a two year period and is excluded from the purchase price allocation shown below. The excess of the purchase price over the fair value of the acquired business' net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee workforce acquired, and has been allocated to goodwill, which is not tax deductible. The Company has reported the operations for this acquisition within the results of the Company's Diagnostics segment from the acquisition date. Identifiable definite-lived intangible assets, such as core technology, trade names and customer relationships, acquired as part of this acquisition had a weighted average amortization period of 11.4 years.

~~The total purchase price for the acquisition in fiscal year 2017 has been allocated to the estimated fair values of assets acquired and liabilities assumed as follows:~~

During the second quarter of fiscal year 2017, the Company entered into a Share Sale and Transfer Agreement with Prof. Dr. Winfried Stöcker (the “Controlling Shareholder”) and his affiliated investment holding company Stöcker Vermögensverwaltungsgesellschaft mbH & Co. KG (“Stöcker KG”), which together hold a majority equity interest in EUROIMMUN Medizinische Labordiagnostika AG (“EUROIMMUN”), pursuant to which the Company or a wholly owned subsidiary of the Company (the “Purchaser”) will acquire up to 100% of the outstanding securities of EUROIMMUN, and EUROIMMUN will become a subsidiary of the Purchaser (the “Acquisition”). In addition to the majority equity interest in EUROIMMUN that the Controlling Shareholder and Stöcker KG will exchange for cash at the closing of the Acquisition, the Controlling Shareholder has undertaken to seek to enter into option agreements with all other shareholders in EUROIMMUN, which would, upon exercise by the Controlling Shareholder at the closing of the Acquisition result in such shareholders receiving the same per share price for their shares as will be received by the Controlling Shareholder and Stöcker KG. If the Acquisition is completed with 100% equity participation, EUROIMMUN’s shareholders will receive an aggregate consideration of €1.2 billion in cash, without interest thereon and subject to any tax withholding. The transaction is subject to customary closing conditions and is currently anticipated to close following the receipt of required standard regulatory approvals. EUROIMMUN is based in Lübeck, Germany, has approximately 2,400 employees, and is widely recognized as a global leader in autoimmune testing and an emerging force in infectious disease and allergy testing.

~~Acquisitions in fiscal year 2016~~

During fiscal year 2016, the Company completed the acquisition of two businesses for a total consideration of $72.3 million in cash. The acquired businesses were Bioo Scientific Corporation ("Bioo"), which was acquired for total consideration of $63.5 million in cash, and one other business acquired for a total consideration of $8.8 million in cash.$31.8 million. The excess of the purchase prices over the fair values ~~of each~~ of the acquired businesses' net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as the employee ~~workforce acquired. As a result of the acquisitions, the Company recorded~~workforces acquired, and has been allocated to goodwill, ~~of $42.8 million,~~ which is not tax ~~deductible, and intangible assets of $22.1 million.~~deductible. The Company has reported the operations for these acquisitions within the results of the Company's Diagnostics and Discovery & Analytical Solutions segments, as applicable, from the acquisition dates. Identifiable definite-lived intangible assets, such as core technology, trade names and customer relationships, acquired as part of these acquisitions had a weighted average amortization period of ~~9.4~~11.0 years.

The total purchase price for the acquisitions in fiscal year ~~2016~~2019 has been allocated to the estimated fair values of assets acquired and liabilities assumed as follows:



	Cisbio			Meizheng			Other
	(In thousands)
Fair value of business combination:
Cash payments	$	219,795		$	145,000		$	45,042
Other liability	—			6,446			638
Contingent consideration	—			12,100			634
Working capital and other adjustments	138			2,961			302
Less: cash acquired	(12,542		)	(2,108		)	(1,334		)
Total	$	207,391		$	164,399		$	45,282
Identifiable assets acquired and liabilities assumed:
Current assets	$	43,554		$	15,160		$	4,042
Property, plant and equipment	4,835			6,278			727
Other assets	100			32			481
Identifiable intangible assets:
Core technology	89,000			36,600			27,667
Trade names	5,000			4,900			1,310
Customer relationships	39,000			55,800			6,700
Goodwill	73,061			79,175			17,005
Deferred taxes	(34,606		)	(21,849		)	(6,657		)
Debt assumed	—			(706		)	(2,698		)
Liabilities assumed	(12,553		)	(10,991		)	(3,295		)
Total	$	207,391		$	164,399		$	45,282

2016 Acquisitions
(In thousands)
Fair value of business combination:
Cash payments $ 72,497
Working capital and other adjustments (261 )
Less: cash acquired (2,152 )
Total $ 70,084
Identifiable assets acquired and liabilities assumed:
Current assets $ 7,153
Property, plant and equipment 7,542
Identifiable intangible assets:
Core technology 6,600
Trade names 570
Customer relationships 14,900
Goodwill 42,843
Deferred taxes (7,539 )
Liabilities assumed (1,985 )
Total $ 70,084

The preliminary allocations of the purchase prices for acquisitions are based upon initial valuations. The Company's estimates and assumptions underlying the initial valuations are subject to the collection of information necessary to complete its valuations within the measurement periods, which are up to one year from the respective acquisition dates. The primary areas

of the preliminary purchase price allocations that are not yet finalized relate to the fair value of certain tangible and intangible assets acquired and liabilities assumed, assets and liabilities related to income taxes and related valuation allowances, and residual goodwill. The Company expects to continue to obtain information to assist in determining the fair values of the net assets acquired at the acquisition dates during the measurement periods. During the measurement periods, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition dates that, if known, would have resulted in the recognition of those assets and liabilities as of those dates. These adjustments will be made in the periods in which the amounts are determined and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. All changes that do not qualify as adjustments made during the measurement periods are also included in current period earnings.

During fiscal year 2020, the Company obtained information relevant to determining the fair values of certain tangible and intangible assets acquired, and liabilities assumed, related to recent acquisitions and adjusted its purchase price allocations. Based on this information, the Company recognized an increase in intangible assets of $1.9 million, a decrease in goodwill of $1.6 million and a decrease in deferred tax liabilities of $0.3 million during the three months ended April 5, 2020.

Allocations of the purchase price for acquisitions are based on estimates of the fair value of the net assets acquired and are subject to adjustment upon finalization of the purchase price allocations. The accounting for business combinations requires estimates and judgments as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair values for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. Contingent consideration is measured at fair value at the acquisition date, based on the probability that revenue thresholds or product development milestones will be achieved during the earnout period, with changes in the fair value after the acquisition date affecting earnings to the extent it is to be settled in cash. Increases or decreases in the fair value of contingent consideration liabilities primarily result from changes in the estimated probabilities of achieving revenue thresholds, changes in discount rates or product development milestones during the earnout period.

During the third quarter of fiscal year 2017, the Company obtained information relevant to determining the fair values of certain tangible and intangible assets acquired, and liabilities assumed, related to recent acquisitions and adjusted its purchase price allocation. Based on this information, for the Bioo acquisition, the Company recognized a decrease in deferred tax liabilities, with a corresponding decrease in goodwill, of $0.7 million, and for the Tulip acquisition, the Company recognized an increase in liabilities assumed, with a corresponding increase in goodwill, of $1.8 million.

As of ~~October 1, 2017,~~April 5, 2020, the Company may have to pay contingent consideration related to ~~an acquisition~~acquisitions with an open contingency ~~period~~periods of up to ~~$83.0~~$57.1 million. As of ~~October 1, 2017,~~April 5, 2020, the Company has recorded contingent consideration obligations with an estimated fair value of ~~$64.7~~$22.8 million, of which ~~$15.4~~$20.5 million was recorded in accrued expenses and other current liabilities, and ~~$49.3~~$2.3 million was recorded in long-term liabilities. As of ~~January 1, 2017,~~December 29, 2019, the Company had recorded contingent consideration obligations with an estimated fair value of ~~$63.2~~$35.5 million, of which ~~$15.4~~$20.8 million was recorded in accrued expenses and other current liabilities, and ~~$47.8~~$14.7 million was recorded in long-term liabilities. The expected maximum earnout period for ~~the acquisition~~acquisitions with an open contingency ~~period~~periods does not exceed ~~2.0~~2.8 years from ~~the acquisition date,~~April 5, 2020, and the remaining weighted average expected earnout period at ~~October~~April 5, 2020 was 1 ~~2017 was 1.4 years.~~year. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the condensed consolidated financial statements could result in a possible impairment of the intangible assets and goodwill, require acceleration of the amortization expense of definite-lived intangible assets or the recognition of additional contingent consideration which would be recognized as a component of operating expenses from continuing operations.

Total acquisition and divestiture-related costs ~~(income)~~ for the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and March 31, 2019 were ~~$(30.8)~~$12.4 million and ~~$(30.1)~~$1.8 million, respectively. These amounts ~~include $36.3 million and $42.0~~included $12.3 million of ~~net foreign exchange gain related to the foreign currency forward contracts~~incentive award associated with the ~~planned~~Company's acquisition of ~~EUROIMMUN~~Meizheng Group for the three ~~and nine~~ months ended ~~October 1, 2017, respectively. Total~~April 5, 2020 and $0.5 million of stay bonus associated with the Company's acquisition ~~and divestiture-related costs~~of Tulip Diagnostics Private Limited for the three ~~and nine~~ months ended ~~October 2, 2016 were $0.1 million and $0.6 million, respectively.~~March 31, 2019. These acquisition and divestiture-related costs were expensed as incurred and recorded in selling, general and administrative expenses and interest and other ~~(income)~~ expense, net in the Company's ~~condensed~~ consolidated statements of operations.

~~Note 3: Disposition of Businesses and Assets~~

As part of the Company’s continuing efforts to focus on higher growth opportunities, the Company has discontinued certain businesses. When the discontinued operations represent a strategic shift that will have a major effect on the Company's operations and financial statements, the Company has accounted for these businesses as discontinued operations and accordingly, has presented the results of operations and related cash flows as discontinued operations. Any business deemed to be a discontinued operation prior to the adoption of ASU 2014-08, ~~Reporting Discontinued Operations and Disclosures of Disposals of Components of An Entity,~~ continues to be reported as a discontinued operation, and the results of operations and related cash flows are presented as discontinued operations for all periods presented. Any remaining assets and liabilities of these businesses have been presented separately, and are reflected within assets and liabilities of discontinued operations in the accompanying condensed consolidated balance sheets as of ~~October 1, 2017~~ ~~and~~ ~~January 1, 2017~~.

On May 1, 2017 (the "Closing Date"), the Company completed the sale of its Medical Imaging business to Varex Imaging Corporation ("Varex") pursuant to the terms of the Master Purchase and Sale Agreement, dated December 21, 2016 (the “Agreement”), by and between the Company and Varian Medical Systems, Inc. ("Varian") and the subsequent Assignment and Assumption Agreement, dated January 27, 2017, between Varian and Varex, pursuant to which Varian assigned its rights under the Agreement to Varex. On the Closing Date, the Company received consideration of approximately $277.4 million for the sale of the Medical Imaging business. During the third quarter of fiscal year 2017, the Company paid Varex $4.2 million to settle the post-closing working capital adjustment. During the nine months ended October 1, 2017, the Company recorded a pre-tax gain of $180.4 million and income tax expense of $42.2 million related to the sale of the Medical Imaging business in discontinued operations and dispositions. The corresponding tax liability was recorded within the other tax liabilities in the condensed consolidated balance sheet, and the Company expects to utilize tax attributes to minimize the tax liability.

Following the closing, the Company is providing certain customary transitional services during a period of up to 12 months. Commercial transactions between the parties following the closing of the transaction are not expected to be significant.

Beginning in the fourth quarter of fiscal year 2016, the Company presented its Medical Imaging business as discontinued operations in the Company's consolidated financial statements. Financial information in this report relating to the three and nine months ended October 2, 2016 has been retrospectively adjusted to reflect this discontinued operation. The results of discontinued operations during the three and nine months ended October 1, 2017 include the results of the Medical Imaging business through April 30, 2017.

~~The summary pre-tax operating results of the discontinued operations were as follows for the three and nine months ended:~~

Three Months Ended Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Revenue $ —
$ 33,635
$ 44,343
$ 110,859
Cost of revenue —
21,386
32,933
71,870
Selling, general and administrative expenses —
3,193
5,869
9,242
Research and development expenses —
3,662
4,891
10,615
Restructuring and contract termination charges, net —
(53 ) —
568
Income from discontinued operations before income taxes $ —
$ 5,447
$ 650
$ 18,564

The table below provides a reconciliation of the carrying amounts of the major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the consolidated balance sheets at October 1, 2017 and January 1, 2017.

Prepaid income taxes

Total current liabilities of discontinued operations

The Company has undertaken a series of restructuring actions related to the impact of acquisitions and divestitures, the alignment of the Company's operations with its growth strategy, the integration of its business units and its productivity initiatives. The current portion of restructuring and contract termination charges is recorded in accrued restructuring and contract termination charges and the long-term portion of restructuring and contract termination charges is recorded in long-

~~term liabilities. The~~ activities associated with these plans have been reported as restructuring and ~~contract termination charges,~~other costs, net, as applicable, and are included as a component of income from continuing operations.

The current portion of restructuring and other costs is recorded in short-term accrued restructuring and other costs and accrued expense and other current liabilities. The long-term portion of restructuring and other costs is recorded in long-term liabilities and operating lease liabilities.

The Company implemented a restructuring plan in ~~each of~~ the first ~~and third quarters~~quarter of fiscal year ~~2017~~2020 consisting of workforce reductions and closure of excess facilities principally intended to realign resources to emphasize growth initiatives (the "Q1 2017 Plan" and "Q3 2017 Plan", respectively). The Company implemented a restructuring plan in the third quarter of fiscal year 2016 consisting of workforce reductions principally intended to focus resources on higher growth product lines (the "Q3 20162020 Plan"). The Company implemented a restructuring plan in ~~the second~~each quarter of fiscal year ~~2016~~2019 consisting of workforce reductions

principally intended to ~~focus~~realign resources ~~on higher~~to emphasize growth ~~end markets~~initiatives (the "Q1 2019 Plan", "Q2 ~~2016~~2019 Plan"), "Q3 2019 Plan" and "Q4 2019 Plan", respectively). Details of the plans initiated in previous years (the “Previous Plans”) are discussed more fully in Note 45 to the audited consolidated financial statements in the ~~2016~~2019 Form 10-K.

The following table summarizes the reductions in headcount, the initial restructuring or contract termination charges by ~~operating~~reporting segment, and the dates by which payments were substantially completed, or the dates by which payments are expected to be substantially completed, for restructuring actions implemented during fiscal years ~~2017~~2020 and ~~2016~~2019 in continuing operations:



	Workforce Reductions					Closure of Excess Facility				Total		(Expected) Date Payments Substantially Completed by
	Headcount Reduction	Discovery & Analytical Solutions		Diagnostics		Discovery & Analytical Solutions		Diagnostics				Severance	Excess Facility
	Headcount Reduction	Discovery & Analytical Solutions		Diagnostics		Discovery & Analytical Solutions		Diagnostics				Severance	Excess Facility
	(In thousands, except headcount data)
Q1 2020 Plan	32	$	2,312	$	1,134	$	92	$	682	$	4,220	Q4 FY2020	Q1 FY2022
Q4 2019 Plan	22	$	177	2,404		—		—		2,581		Q3 FY2020	—
Q3 2019 Plan	259	$	11,156	2,641		—		—		13,797		Q2 FY2020	—
Q2 2019 Plan	44	4,461		1,129		—		—		5,590		Q1 FY2020	—
Q1 2019 Plan	105	6,001		1,459		—		—		7,460		Q4 FY2019	—

The Company does not currently expect to incur any future charges for these plans. The Company expects to make payments under the Previous Plans for remaining residual lease obligations, with terms varying in length, through fiscal year 2022.

In connection with the termination of various contractual commitments, the Company recorded additional pre-tax charges of ~~$0.4~~$0.1 million and ~~$3.3~~$0.2 million during the three ~~and nine~~ months ended ~~October 1, 2017, respectively,~~April 5, 2020, in the Diagnostics and Discovery & Analytical Solutions ~~segment~~segments, respectively.

The Company recorded pre-tax charges of $0.1 million and ~~$0.5~~$1.3 million associated with relocating facilities during ~~each of~~ the three ~~and nine~~ months ended ~~October 1, 2017,~~April 5, 2020 in the Diagnostics ~~segment.~~and Discovery & Analytical Solutions segments, respectively. The Company expects to make payments on these relocation activities through fiscal year 2021.

At ~~October 1, 2017,~~April 5, 2020, the Company had ~~$15.7~~$15.1 million recorded for accrued restructuring and ~~contract termination charges,~~other costs, of which ~~$10.1~~$11.3 million was recorded in short-term accrued restructuring and ~~contract termination charges, $2.7~~other costs, $1.7 million was recorded in long-term liabilities, and ~~$2.9~~$2.1 million was recorded in ~~other reserves.~~operating lease liabilities. At ~~January 1, 2017,~~December 29, 2019, the Company had ~~$10.5~~$13.9 million recorded for accrued restructuring and ~~contract termination charges,~~other costs, of which ~~$7.5~~$11.6 million was recorded in short-term accrued restructuring and ~~contract termination charges and $3.0~~other costs, $0.4 million was recorded in accrued expenses and other current liabilities, $0.8 million was recorded in long-term liabilities, and $1.1 million was recorded in operating lease liabilities. The following table summarizes the Company's restructuring ~~and contract termination~~ accrual balances and related activity by restructuring plan, as well as ~~contract termination~~other accrual balances and related activity, during the ~~nine~~three months ended ~~October 1, 2017:~~April 5, 2020:

~~Table of Contents~~



	Balance at December 29, 2019		2020 Charges		2020 Changes in Estimates, Net		2020 Amounts Paid			Balance at April 5, 2020
	(In thousands)
Severance:
Q1 2020 Plan	$	—	$	3,446	$	—	$	(791	)	$	2,655
Q4 2019 Plan	889		—		—		(40		)	849
Q3 2019 Plan	6,311		—		—		(1,456		)	4,855
Q2 2019 Plan	1,889		—		—		(857		)	1,032
Q1 2019 Plan	2,129		—		—		(669		)	1,460

Facility:
Q1 2020 Plan	—		774		—		(92		)	682

Previous Plans	1,647		—		—		(112		)	1,535
Restructuring	12,865		4,220		—		(4,017		)	13,068
Contract Termination	188		—		212		—			400
Other Costs	827		1,426		—		(598		)	1,655
Total Restructuring and Other Liabilities	$	13,880	$	5,646	$	212	$	(4,615	)	$	15,123

Interest and other ~~(income)~~ expense, net, consisted of the following:



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Interest income	$	(265	)	$	(283	)
Interest expense	13,665			15,850
Loss on disposition of businesses and assets, net	—			2,133
Other income, net	(3,407		)	(1,135		)
Total interest and other expense, net	$	9,993		$	16,565

Foreign currency transaction ~~gains~~losses were ~~$2.7~~$7.9 million and ~~$5.4~~$0.1 million for the three ~~and nine~~ months ended ~~October 1, 2017, respectively. Foreign currency transaction (gains) losses were $(1.6) million~~April 5, 2020 and ~~$2.0 million for the three and nine months ended October 2, 2016,~~March 31, 2019, respectively. Net ~~gains from forward currency hedge contracts were $32.7 million and $34.4 million for the three and nine months ended October 1, 2017, respectively. Net~~(gains) losses from forward currency hedge contracts were ~~$2.1~~$(9.6) million and ~~$1.1~~$0.3 million for the three ~~and nine~~ months ended ~~October 2, 2016,~~April 5, 2020 and March 31, 2019, respectively. The other components of net periodic pension credit were $1.7 million and $1.5 million for the three months ended April 5, 2020 and March 31, 2019, respectively. These amounts were included in other ~~(income) expense,~~income, net.

Inventories as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017~~December 29, 2019 consisted of the following:



	April 5, 2020		December 29, 2019
	(In thousands)
Raw materials	$	140,480	$	130,673
Work in progress	26,712		26,409
Finished goods	225,972		199,855
Total inventories	$	393,164	$	356,937

October 1,
2017 January 1,
2017
(In thousands)
Raw materials $ 105,247
$ 79,189
Work in progress 9,935
6,561
Finished goods 179,994
161,097
Total inventories $ 295,176
$ 246,847

The Company regularly reviews its tax positions in each significant taxing jurisdiction in the process of evaluating its unrecognized tax benefits. The Company makes adjustments to its unrecognized tax benefits when: (i) facts and circumstances

regarding a tax position change, causing a change in management’s judgment regarding that tax position; (ii) a tax position is effectively settled with a tax authority at a differing amount; and/or (iii) the statute of limitations expires regarding a tax position.

The total provision for income taxes included in the condensed consolidated ~~financial~~ statements of operations consisted of the following:

Three Months Ended Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Continuing operations $ 8,508
$ 10,601
$ 20,495
$ 21,465
Discontinued operations and dispositions 5,262
1,867
42,405
3,150
Total $ 13,770
$ 12,468
$ 62,900
$ 24,615

At ~~October 1, 2017,~~April 5, 2020, the Company had gross tax effected unrecognized tax benefits of $~~29.0~~34.9 million, of which $~~27.3~~33.2 million, if recognized, would affect the continuing operations effective tax rate. The remaining amount, if recognized, would affect discontinued operations.

The Company believes that it is reasonably possible that approximately $~~3.8~~4.1 million of its uncertain tax positions at ~~October 1, 2017~~April 5, 2020, including accrued interest and penalties, and net of tax benefits, may be resolved over the next twelve months as a result of lapses in applicable statutes of limitations and potential settlements. Various tax years after 2010 remain open to examination by certain jurisdictions in which the Company has significant business operations, such as Finland, Germany, Italy, Netherlands, Singapore, ~~the United Kingdom~~China and the United States. The tax years under examination vary by jurisdiction.

During the first ~~nine~~three months of fiscal years ~~2017~~2020 and ~~2016,~~2019, the Company recorded net discrete income tax benefits of ~~$7.0~~$4.9 million and ~~$7.1~~$4.0 million, respectively. The most significant discrete tax benefits recorded in the first ~~nine~~three months of fiscal year ~~2017 and 2016 included the~~2020 include recognition of excess tax benefits on stock compensation of ~~$3.6~~$1.6 million and ~~$4.0~~$3.8 million ~~respectively.~~associated with a valuation allowance reversal during the first three months of fiscal year 2020. The most significant discrete tax benefits recorded in the first three months of fiscal year 2019 include recognition of excess tax benefits on stock compensation of $2.9 million.

As a result of the sale of the Medical Imaging business, the Company sold assets and liabilities of certain foreign operations, liquidated a related foreign entity and repatriated approximately $60.4 million of previously unremitted earnings. The Company has provided for the estimated taxes on the repatriation of these earnings and recorded a tax benefit of $0.1 million and a tax expense of $3.4 million in discontinued operations and dispositions for the three and nine months ended October 1, 2017, respectively. The Company expects to utilize tax attributes to minimize the cash taxes paid on the repatriation.

Taxes have not been provided for unremitted earnings that the Company continues to consider indefinitely reinvested, the determination of which is based on its future operational and capital requirements. The Company continues to maintain its indefinite reinvestment assertion with regards to the remaining unremitted earnings of its foreign subsidiaries, and therefore does not accrue U.S. tax for the repatriation of its remaining unremitted foreign earnings. As of October 1, 2017, the amount of foreign earnings that the Company has the intent and ability to keep invested outside the United States indefinitely and for which no U.S. tax cost has been provided was approximately $1.3 billion. It is not practical to calculate the unrecognized deferred tax liability on those earnings.

Senior Unsecured Revolving Credit Facility.The Company's senior unsecured revolving credit facility provides for ~~$1.0~~$1.0 billion of revolving loans that may be either US Dollar Base Rate loans or Eurocurrency Rate loans, as those terms are defined in the credit agreement, and has an initial maturity of ~~August 11, 2021~~.September 16, 2024. As of ~~October 1, 2017~~April 5, 2020, undrawn letters of credit in the aggregate amount of ~~$11.4~~$11.4 million were treated as issued and outstanding when calculating the borrowing availability under the ~~senior unsecured revolving credit~~ facility. As of ~~October 1, 2017~~April 5, 2020, the Company had ~~$988.6~~$681.4 million available for additional borrowing under the facility. The Company ~~uses~~plans to use the senior unsecured revolving credit facility for general corporate purposes, which may include working capital, refinancing existing indebtedness, capital expenditures, share repurchases, acquisitions and strategic alliances. The interest rates ~~under~~on the ~~senior unsecured revolving credit facility~~Eurocurrency Rate loans are based on the Eurocurrency ~~rate or the base rate~~Rate at the time of borrowing, plus a ~~margin.~~percentage spread based on the credit rating of the Company's debt. The interest rates on the US Dollar Base Rate loans are based on the

US Dollar Base Rate at the time of borrowing, plus a percentage spread based on the credit rating of the Company's debt. The base rate is the higher of (i) the Federal Funds Rate (as defined in the credit agreement) plus 50 basis points (ii) the rate of interest in effect for such day as publicly announced from time to time by ~~JP Morgan Chase~~ Bank ~~N.A.~~of America as its "prime rate," ~~(ii) the Federal Funds rate plus 50 basis points~~ or (iii) ~~an adjusted one-month Libor~~the Eurocurrency Rate plus 1.00%. The Eurocurrency margin as of April 5, 2020 was 101.5 basis points. The weighted average Eurocurrency interest rate as of April 5, 2020 was 0.85%, resulting in a weighted average effective Eurocurrency Rate, including the margin, of 1.86%, which was the interest applicable to the borrowings outstanding as of April 5, 2020. As of ~~October 1, 2017~~,April 5, 2020, the senior unsecured revolving credit facility had no outstanding borrowings of $307.2 million, and ~~$3.6~~$3.2 million of unamortized debt issuance costs. As of ~~January 1, 2017,~~December 29, 2019, the senior unsecured revolving credit facility had no outstanding borrowings of $325.4 million, and ~~$4.3~~$3.4 million of unamortized debt issuance costs. The credit agreement for the facility contains affirmative, negative and financial covenants and events of default. The financial covenants include a debt-to-capital ratio that remains applicable for so long as the Company's debt is rated as investment grade.

In the event that the Company's debt is not rated as investment grade, the debt-to-capital ratio covenant is replaced with a maximum consolidated leverage ratio covenant and a minimum consolidated interest coverage ratio covenant.

~~Senior Unsecured Term Loan Credit Facility~~. The Company entered into a senior unsecured term loan credit facility on August 11, 2017 that provides for $200.0 million of term loans and has an initial maturity of twelve months from the date of the initial draw. The Company plans to use the senior unsecured term loan facility for general corporate purposes, which may include financing for the planned acquisition of EUROIMMUN. The interest rates under the senior unsecured term loan credit facility are based on the Eurocurrency rate or the base rate at the time of the borrowing, plus a margin. The base rate is the higher of (i) the rate of interest in effect for such day as publicly announced from time to time by JP Morgan Chase Bank, N.A. as its "prime rate," (ii) the Federal Funds rate plus 50 basis points or (iii) an adjusted one-month Libor plus 1.00%. As of October 1, 2017, the senior unsecured term loan credit facility had no outstanding borrowings. The credit agreement for the facility contains affirmative, negative and financial covenants and events of defaults which are substantially similar to those contained in the senior unsecured revolving credit facility.

~~5% Senior Unsecured Notes due in 2021.~~ On October 25, 2011, the Company issued $500.0 million aggregate principal amount of senior unsecured notes due in 2021 (the “2021 Notes”) in a registered public offering and received $496.9 million of net proceeds from the issuance. The 2021 Notes were issued at ~~99.372%~~ ~~of the principal amount, which resulted in a discount of~~ ~~$3.1 million~~. As of October 1, 2017, the 2021 Notes had an aggregate carrying value of $496.4 million, net of $1.5 million of unamortized original issue discount and $2.1 million of unamortized debt issuance costs. As of January 1, 2017, the 2021 Notes had an aggregate carrying value of $495.8 million, net of $1.7 million of unamortized original issue discount and $2.5 million of unamortized debt issuance costs. The 2021 Notes mature in ~~November 2021~~ ~~and bear interest at an annual rate of~~ 5%. Interest on the 2021 Notes is payable semi-annually on May 15th and November 15th each year. Prior to August 15, 2021 (three months prior to their maturity date), the Company may redeem the 2021 Notes in whole or in part, at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest in respect to the 2021 Notes being redeemed, discounted on a semi-annual basis, at the Treasury Rate plus 45 basis points, plus accrued and unpaid interest. At any time on or after August 15, 2021 (three months prior to their maturity date), the Company may redeem the 2021 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2021 Notes to be redeemed plus accrued and unpaid interest. Upon a change of control (as defined in the indenture governing the 2021 Notes) and a contemporaneous downgrade of the 2021 Notes below investment grade, each holder of 2021 Notes will have the right to require the Company to repurchase such holder's 2021 Notes for ~~101%~~ ~~of their principal amount, plus accrued and unpaid interest.~~

1.875% Senior Unsecured Notes due 2026. On July 19, 2016, the Company issued €500.0 million aggregate principal amount of senior unsecured notes due in 2026 (the “2026 Notes”) in a registered public offering and received approximately €492.3 million of net proceeds from the issuance. The 2026 Notes were issued at 99.118% of the principal amount, which resulted in a discount of €4.4 million. The 2026 Notes mature in July 2026 and bear interest at an annual rate of 1.875%. Interest on the 2026 Notes is payable annually on July 19th each year. The proceeds from the 2026 Notes were used to pay in full the outstanding balance of the Company's previous senior unsecured revolving credit facility. As of ~~October 1, 2017,~~April 5, 2020, the 2026 Notes had an aggregate carrying value of ~~$581.5~~$532.9 million, net of ~~$4.7~~$3.2 million of unamortized original issue discount and ~~$4.4~~$3.2 million of unamortized debt issuance costs. As of ~~January 1, 2017,~~December 29, 2019, the 2026 Notes had an aggregate carrying value of ~~$517.8~~$552.2 million, net of ~~$4.5~~$3.5 million of unamortized original issue discount and ~~$4.8~~$3.3 million of unamortized debt issuance costs.

Prior to April 19, 2026 (three months prior to their maturity date), the Company may redeem the 2026 Notes in whole at any time or in part from time to time, at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2026 Notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest in respect to the 2026 Notes being redeemed, discounted on an annual basis, at the applicable Comparable Government Bond Rate (as defined in the indenture governing the 2026 Notes) plus 35 basis points; plus, in each case, accrued and unpaid interest. In addition, at any time on or after April 19, 2026 (three months prior to their maturity date), the Company may redeem the 2026 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2026 Notes due to be redeemed plus accrued and unpaid interest.

Upon a change of control (as defined in the indenture governing the 2026 Notes) and a contemporaneous downgrade of the 2026 Notes below investment grade, the Company will, in certain circumstances, make an offer to purchase the 2026 Notes at a price equal to 101% of their principal amount plus any accrued and unpaid interest.

~~Financing Lease Obligations.~~ ~~In fiscal year 2012,~~0.6% Senior Unsecured Notes due in 2021. On April 11, 2018, the Company ~~entered into agreements~~issued €300.0 million aggregate principal amount of senior unsecured notes due in 2021 (the “2021 Notes”) in a registered public offering and received approximately €298.7 million of net proceeds from the issuance. The 2021 Notes were issued at 99.95% of the principal amount, which resulted in a discount of €0.2 million. As of April 5, 2020, the 2021 Notes had an aggregate carrying value of $322.6 million, net of $0.1 million of unamortized original issue discount and $0.9 million of unamortized debt issuance costs. As of December 29, 2019, the 2021 Notes had an aggregate carrying value of $334.2 million, net of $0.1 million of unamortized original issue discount and $1.1 million of unamortized debt issuance costs. The 2021 Notes mature in April 2021 and bear interest at an annual rate of 0.6%. Interest on the 2021 Notes is payable annually on April 9th each year. Prior to the maturity date of the 2021 Notes, the Company may redeem them in whole at any time or in part from time to time, at its option, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2021 Notes to be redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest in respect to the 2021 Notes being redeemed, discounted on an annual basis, at the applicable Comparable Government Bond Rate (as defined in the indenture governing the 2021 Notes) plus 15 basis points; plus, in each case, accrued and unpaid interest. Upon a change of control (as defined in the indenture governing the 2021 Notes) and a contemporaneous downgrade of the 2021 Notes below investment grade, the Company will, in certain circumstances, make an offer to purchase the 2021 Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest.

3.3% Senior Unsecured Notes due in 2029. On September 12, 2019, the Company issued $850.0 million aggregate principal amount of senior unsecured notes due in 2029 (the "2029 Notes”) in a registered public offering and received $847.2 million of net proceeds from the issuance. The 2029 Notes were issued at 99.67% of the principal amount, which resulted in a discount of $2.8 million. As of April 5, 2020, the 2029 Notes had an aggregate carrying value of $839.9 million, net of $2.7 million of unamortized original issue discount and $7.4 million of unamortized debt issuance costs. As of December 29, 2019, the 2029 Notes had an aggregate carrying value of $839.9 million, net of $2.7 million of unamortized original issue discount and $7.4 million of unamortized debt issuance costs. The 2029 Notes mature in September 2029 and bear interest at an annual

rate of 3.3%. Interest on the 2029 Notes is payable semi-annually on March 15th and September 15th each year. Proceeds from the 2029 Notes were used to repay all outstanding borrowings under the Company’s previous senior unsecured revolving credit facility with the ~~lessors of certain buildings that~~remaining proceeds used in the ~~Company is currently occupying and leasing to expand those buildings. The Company provided a portion~~redemption of the ~~funds needed for the construction of the additions~~5% senior unsecured notes that were due in November 2021. Prior to the buildings, and as a result the Company was considered the owner of the buildings during the construction period. At the end of the construction period, the Company was not reimbursed by the lessors for all of the construction costs. The Company is therefore deemedJune 15, 2029 (three months prior to ~~have continuing involvement and the leases~~

qualify as financing leases under sale-leaseback accounting guidance, representing debt obligations for the Company and non-cash investing and financing activities. As a result, the Company capitalized ~~$29.3 million~~ ~~in property, plant and equipment, net, representing the fair value of the buildings with a corresponding increase to debt. The Company has also capitalized~~ ~~$11.5 million~~ ~~in additional construction costs necessary to complete the renovations to the buildings, which were funded by the lessors, with a corresponding increase to debt. At~~ ~~October 1, 2017~~their maturity date), the Company ~~had $36.2 million recorded for these financing lease obligations,~~may redeem the 2029 Notes in whole or in part, at its option, at a redemption price equal to the greater of ~~which $1.3 million was recorded~~(i) 100% of the principal amount of the 2029 Notes to be redeemed, and (ii) the sum of the present values of the remaining scheduled payments of principal and interest in respect to the 2029 Notes being redeemed (not including any portion of such payments of interest accrued but unpaid as ~~short-term debt~~of the date of redemption) assuming that such 2029 Notes matured on June 15, 2029, discounted at the date of redemption on a semi-annual basis (assuming a 360-day year of twelve 30-day months), at the Treasury Rate (as defined in the indenture governing the 2029 Notes) plus 25 basis points, plus accrued and ~~$34.9 million was recorded as long-term debt.~~unpaid interest. At ~~January 1, 2017~~any time on or after June 15, 2029 (three months prior to their maturity date), the Company ~~had~~ ~~$37.1 million~~ ~~recorded for these financing lease obligations, of which~~ ~~$1.2 million~~ ~~was recorded as short-term debt and~~ ~~$35.9 million~~ ~~was recorded as long-term debt. The buildings are being depreciated on~~may redeem the 2029 Notes, at its option, at a ~~straight-line basis over the terms~~redemption price equal to 100% of the ~~leases~~principal amount of the 2029 Notes to be redeemed plus accrued and unpaid interest. Upon a change of control (as defined in the indenture governing the 2029 Notes) and a contemporaneous downgrade of the 2029 Notes below investment grade, each holder of 2029 Notes will have the right to require the Company to repurchase such holder's 2029 Notes for 101% of their ~~estimated residual values, which will equal~~principal amount, plus accrued and unpaid interest.

Other Debt Facilities. The Company's other debt facilities include Euro-denominated bank loans with an aggregate carrying value of $19.7 million (or €18.2 million) and $23.8 million (or €21.3 million) as of April 5, 2020 and December 29, 2019, respectively. These bank loans are primarily utilized for financing fixed assets and are required to be repaid in monthly or quarterly installments with maturity dates extending to 2028. Of these bank loans, loans in the aggregate amount of $19.6 million bear fixed interest rates between 1.1% and 4.3% and a loan in the amount of $0.1 million bears a variable interest rate based on the Euribor rate plus a margin of 1.5%. An aggregate amount of $5.3 million of the bank loans are secured by mortgages on real property and the remaining ~~financing obligation at~~$14.4 million are unsecured. Certain credit agreements for the ~~end~~unsecured bank loans include financial covenants which are based on an equity ratio or an equity ratio and minimum interest coverage ratio.

In addition, the Company had secured bank loans in the aggregate amount of ~~the lease term. At the end~~$1.1 million and $1.9 million as of ~~the lease term, the remaining balances~~April 5, 2020 and December 29, 2019, respectively. The secured bank loans of $1.1 million bear fixed annual interest rates between 1.95% and 20.0% and are required to be repaid in ~~property, plant and equipment, net and debt will be reversed against each other.~~monthly installments until 2027.

Basic earnings per share was computed by dividing net income by the weighted-average number of common shares outstanding during the period less restricted unvested shares. Diluted earnings per share was computed by dividing net income by the weighted-average number of common shares outstanding plus all potentially dilutive common stock equivalents, primarily shares issuable upon the exercise of stock options using the treasury stock method. The following table reconciles the number of shares utilized in the earnings per share calculations:



	Three Months Ended
	April 5, 2020	March 31, 2019
	(In thousands)
Number of common shares—basic	111,121	110,543
Effect of dilutive securities:
Stock options	480	631
Restricted stock awards	43	119
Number of common shares—diluted	111,644	111,293
Number of potentially dilutive securities excluded from calculation due to antidilutive impact	491	485

Antidilutive securities include outstanding stock options with exercise prices and average unrecognized compensation cost in excess of the average fair market value of common stock for the related period. Antidilutive options were excluded from the calculation of diluted net income per share and could become dilutive in the future.

The Company discloses information about its operating segments based on the way that management organizes the segments within the Company for making operating decisions and assessing financial performance. The Company evaluates the

performance of its operating segments based on revenue and operating income. Intersegment revenue and transfers are not significant. The accounting policies of the operating segments are the same as those described in Note 1 to the audited consolidated financial statements in the ~~2016~~2019 Form 10-K.

Effective October 3, 2016, the Company realigned its businesses to better organize around customer requirements, positioning the Company to grow in attractive end markets and expand share with the Company's core product offerings. Diagnostics became a standalone operating segment and the Company formed a new operating segment, Discovery & Analytical Solutions. The results reported for the three and nine months ended October 1, 2017 reflect this new alignment of the Company's operating segments. Financial information in this report relating to the three and nine months ended October 2, 2016 has been retrospectively adjusted to reflect this change to the Company's operating segments.

The principal products and services of the Company's ~~two~~2 operating segments are:

~~Discovery & Analytical Solutions. Provides products and services targeted towards the environmental, industrial, food, life sciences research and laboratory services markets.~~

~~Diagnostics~~. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, emerging market diagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.


•	Discovery & Analytical Solutions. Provides products and services targeted towards the life sciences and applied markets.


•	Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, immunodiagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.

The Company has included the expenses for its corporate headquarters, such as legal, tax, audit, human resources, information technology, and other management and compliance costs, as well as the activity related to the mark-to-market adjustment on postretirement benefit plans, as “Corporate” below. The Company has a process to allocate and recharge expenses to the reportable segments when these costs are administered or paid by the corporate headquarters based on the extent to which the segment benefited from the expenses. These amounts have been calculated in a consistent manner and are included in the Company’s calculations of segment results to internally plan and assess the performance of each segment for all purposes, including determining the compensation of the business leaders for each of the Company’s operating segments. During the first quarter of fiscal year 2017, the Company changed the manner in which certain shared functional costs are allocated to the operating segments. Segment financial information relating to the three and nine months ended October 2, 2016 has been retrospectively adjusted to reflect this change to the cost allocation methodology. Accordingly, for the three and nine months ended October 2, 2016, operating income from continuing operations from the Discovery & Analytical Solutions segment decreased by $2.1 million and $8.4 million, respectively, with a corresponding increase in operating income from continuing operations of the Diagnostics segment.

Revenue and operating income (loss) from continuing operations by operating segment are shown in the table below:



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Discovery & Analytical Solutions
Product revenue	$	215,356		$	222,790
Service revenue	183,039			166,043
Total revenue	398,395			388,833
Operating income from continuing operations	28,513			36,927
Diagnostics
Product revenue	210,173			215,932
Service revenue	43,828			43,972
Total revenue	254,001			259,904
Operating income from continuing operations	29,591			31,486
Corporate
Operating loss from continuing operations	(13,422		)	(15,083		)
Continuing Operations
Product revenue	425,529			438,722
Service revenue	226,867			210,015
Total revenue	652,396			648,737
Operating income from continuing operations	44,682			53,330
Interest and other expense, net (see Note 5)	9,993			16,565
Income from continuing operations before income taxes	$	34,689		$	36,765

Three Months Ended Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Discovery & Analytical Solutions
Product revenue $ 222,618
$ 219,865
$ 665,068
$ 675,783
Service revenue 162,764
145,224
465,202
427,257
Total revenue 385,382
365,089
1,130,270
1,103,040
Operating income from continuing operations 47,615
46,051
129,675
127,137
Diagnostics
Product revenue 132,201
115,029
378,466
340,438
Service revenue 36,692
34,371
106,616
105,269
Total revenue 168,893
149,400
485,082
445,707
Operating income from continuing operations 44,054
41,618
115,105
113,232
Corporate
Operating loss from continuing operations (11,862 ) (11,888 ) (37,397 ) (37,745 )
Continuing Operations
Product revenue 354,819
334,894
1,043,534
1,016,221
Service revenue 199,456
179,595
571,818
532,526
Total revenue 554,275
514,489
1,615,352
1,548,747
Operating income from continuing operations 79,807
75,781
207,383
202,624
Interest and other (income) expense, net (see Note 5) (25,247 ) 11,263
(8,446 ) 27,742
Income from continuing operations before income taxes $ 105,054
$ 64,518
$ 215,829
$ 174,882

Note 11: Stockholders’ Equity

Comprehensive Income:

The components of accumulated other comprehensive loss consisted of the following:



	April 5, 2020			December 29, 2019
	(In thousands)
Foreign currency translation adjustments	$	(279,030	)	$	(200,437	)
Unrecognized prior service costs, net of income taxes	1,052			1,052
Unrealized net losses on securities, net of income taxes	(349		)	(261		)
Accumulated other comprehensive loss	$	(278,327	)	$	(199,646	)

October 1,
2017 January 1,
2017
(In thousands)
Foreign currency translation adjustments $ (53,718 ) $ (100,923 )
Unrecognized prior service costs, net of income taxes 399
399
Unrealized net losses on securities, net of income taxes (256 ) (337 )
Accumulated other comprehensive loss $ (53,575 ) $ (100,861 )

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Stock Repurchases:

On July ~~27, 2016,~~23, 2018, the Board of Directors (the "Board") authorized the Company to repurchase ~~up to 8.0 million~~ shares of common stock for an aggregate amount up to $250.0 million under a stock repurchase program (the "Repurchase Program"). The Repurchase Program will expire on July ~~26, 2018~~23, 2020 unless terminated earlier by the Board and may be suspended or discontinued at any time. During the ~~nine~~three months ended ~~October 1, 2017,~~April 5, 2020, the Company had no stock repurchases under the Repurchase Program. As of ~~October 1, 2017, 8.0~~April 5, 2020, $197.8 million ~~shares~~ remained available for ~~repurchase~~aggregate repurchases of shares under the Repurchase Program.

In addition, the Board has authorized the Company to repurchase shares of common stock to satisfy minimum statutory tax withholding obligations in connection with the vesting of restricted stock awards and restricted stock unit awards granted pursuant to the Company’s equity incentive plans and to satisfy obligations related to the exercise of stock options made pursuant to the Company's equity incentive plans. During the three months ended ~~October 1, 2017,~~April 5, 2020, the Company repurchased ~~3,132~~66,360 shares of common stock for this purpose at an aggregate cost of ~~$0.2~~$6.3 million. ~~During the~~ ~~nine~~ ~~months ended~~ ~~October 1, 2017, the Company repurchased~~ ~~73,672~~ ~~shares of common stock for this purpose at an aggregate cost of~~ ~~$4.0 million~~. The repurchased shares have been reflected as additional authorized but unissued shares, with the payments reflected in common stock and capital in excess of par value.

Dividends:

The Board declared a regular quarterly cash dividend of ~~$0.07~~$0.07 per share for the first ~~three quarters~~quarter of fiscal year ~~2017~~2020 and in each quarter of fiscal year ~~2016~~.2019. At ~~October 1, 2017~~,April 5, 2020, the Company ~~had~~has accrued ~~$7.7~~$7.8 million for dividends declared on ~~July 24, 2017~~January 23, 2020 for the ~~third~~first quarter of fiscal year ~~2017~~2020 that ~~will be payable~~were paid on ~~November 10, 2017.~~May 8, 2020. On ~~October 27, 2017,~~April 30, 2020, the Company announced that the Board had declared a quarterly dividend of $0.07 per share for the ~~fourth~~second quarter of fiscal year ~~2017~~2020 that will be payable ~~on February 9, 2018.~~in August 2020. In the future, the Board may determine to reduce or eliminate the Company’s common stock dividend in order to fund investments for growth, repurchase shares or conserve capital resources.

Note 12: Stock Plans

~~In addition~~The Company’s 2019 Incentive Plan (the “2019 Plan”) authorizes the issuance of incentive stock options intended to qualify under Section 422 of the ~~Company's Employee Stock Purchase~~Internal Revenue Code of 1986, as amended, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and cash awards as part of the Company’s compensation programs. The 2019 Plan was approved by the ~~Company utilizes one stock-based compensation plan,~~Company’s Board on January 24, 2019 and by the Company’s shareholders on April 23, 2019. The 2019 Plan replaced the Company’s 2009 Incentive Plan (the “2009 Plan”)~~. Under~~, under which the ~~2009 Plan, 10.0 million shares of the Company's~~Company’s common stock ~~are authorized~~was made available for stock option grants, restricted stock awards, performance restricted stock units, performance units and stock ~~grants~~awards as part of the Company’s compensation programs. ~~In addition to~~Upon shareholder approval of the 2019 Plan, 6.25 million shares of the Company’s common stock, ~~originally authorized for issuance under the 2009 Plan, the 2009 Plan includes~~as well as shares of the Company’s common stock previously granted under the ~~Amended and Restated 2001 Incentive Plan and the 2005 Incentive~~2009 Plan that ~~were~~expire, terminate or are otherwise surrendered, canceled, forfeited or ~~forfeited without~~repurchased by the Company at their original issuance price subject to a contractual repurchase right, became available for grant under the 2019 Plan. Awards granted under the 2009 Plan prior to its expiration remain outstanding. As part of the Company’s compensation programs, the Company also offers shares ~~being issued.~~of its common stock under its Employee Stock Purchase Plan.

The following table summarizes total pre-tax compensation expense recognized related to the Company’s stock ~~options,~~option grants, restricted stock awards, performance restricted stock units, performance units and stock awards, included in the Company’s condensed consolidated statements of operations for the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016:~~March 31, 2019:



	Three Months Ended
	April 5, 2020		March 31, 2019
	(In thousands)
Cost of revenue	$	254	$	334
Research and development expenses	272		291
Selling, general and administrative expenses	2,524		5,472
Total stock-based compensation expense	$	3,050	$	6,097

Three Months Ended Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Cost of revenue $ 357
$ 284
$ 898
$ 778
Research and development expenses 373
202
1,077
602
Selling, general and administrative expenses 3,682
3,288
14,204
12,069
Total stock-based compensation expense $ 4,412
$ 3,774
$ 16,179
$ 13,449

The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was ~~$1.9~~$2.2 million and ~~$9.9~~$4.2 million for the three ~~and nine~~ months ended ~~October 1, 2017, respectively. The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was $2.3 million~~April 5, 2020 and ~~$9.2 million for the three and nine months ended October 2, 2016,~~March 31, 2019, respectively. Stock-based compensation costs capitalized as part of inventory ~~were $0.4~~was $0.3 million and ~~$0.3~~$0.4 million as of ~~October 1, 2017~~each of April 5, 2020 and ~~October 2, 2016,~~March 31, 2019, respectively.

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Stock Options: The fair value of each option grant is estimated using the Black-Scholes option pricing model. The Company’s weighted-average assumptions used in the Black-Scholes option pricing model were as follows:



	Three Months Ended
	April 5, 2020		March 31, 2019
Risk-free interest rate	0.9	%	2.6	%
Expected dividend yield	0.3	%	0.3	%
Expected term	5 years		5 years
Expected stock volatility	23.8	%	22.8	%

Three and Nine Months Ended
October 1,
2017 October 2,
2016
Risk-free interest rate 1.5 % 1.2 %
Expected dividend yield 0.4 % 0.6 %
Expected term 5 years
5 years
Expected stock volatility 22.4 % 25.2 %

The following table summarizes stock option activity for the ~~nine~~three months ended ~~October 1, 2017:~~April 5, 2020:



	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Total Intrinsic Value
	(In thousands)				(In years)	(In millions)
Outstanding at December 29, 2019	1,535		$	60.42
Granted	266		86.87
Exercised	(21	)	52.69
Forfeited	(30	)	85.13
Outstanding at April 5, 2020	1,750		$	64.10	3.7	$	24.0
Exercisable at April 5, 2020	1,296		$	56.01	2.7	$	23.9

Number
of
Shares

Weighted-
Average Exercise
Price

Weighted-Average
Remaining
Contractual Term

Total
Intrinsic
Value
(In thousands) (In years) (In millions)
Outstanding at January 1, 2017 2,287
$ 37.64

Granted 460
53.77

Exercised (454 ) 30.88

Forfeited (11 ) 49.34

Outstanding at October 1, 2017 2,282
$ 42.18
4.1 $ 61.1
Exercisable at October 1, 2017 1,344
$ 37.19
3.0 $ 42.7

The weighted-average per-share grant-date fair value of options granted during the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and March 31, 2019 was ~~$14.32~~$18.98 and ~~$11.79, respectively. The weighted-average per-share grant-date fair value of options granted during the three and nine months ended October 2, 2016 was $12.24 and $10.16,~~$22.66, respectively. The total intrinsic value of options exercised during the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and March 31, 2019 was ~~$0.7~~$0.9 million and ~~$12.8 million, respectively. The total intrinsic value of options exercised during the three and nine months ended October 2, 2016 was $3.6 million and $15.6~~$8.8 million, respectively. Cash received from option exercises for the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016~~March 31, 2019 was ~~$14.0~~$1.1 million and ~~$12.1~~$8.6 million, respectively.

The total compensation expense recognized related to the Company’s outstanding options was ~~$1.1~~$1.0 million and ~~$3.5~~$1.4 million for the three ~~and nine~~ months ended ~~October 1, 2017, respectively,~~April 5, 2020 and ~~$1.0 million and $3.4 million for the three and nine months ended October 2, 2016,~~March 31, 2019, respectively.

There was ~~$7.3~~$8.1 million of total unrecognized compensation cost related to nonvested stock options granted as of ~~October 1, 2017.~~April 5, 2020. This cost is expected to be recognized over a weighted-average period of ~~2.0~~2.3 years.

Restricted Stock Awards: The following table summarizes restricted stock award activity for the ~~nine~~three months ended ~~October 1, 2017:~~April 5, 2020:



	Number of Shares		Weighted- Average Grant- Date Fair Value
	(In thousands)
Nonvested at December 29, 2019	345		$	78.69
Granted	156		84.18
Vested	(165	)	70.80
Forfeited	(16	)	82.94
Nonvested at April 5, 2020	320		$	85.20

Number of
Shares

Weighted-
Average
Grant-
Date Fair
Value
(In thousands)
Nonvested at January 1, 2017 521
$ 46.48
Granted 227
54.44
Vested (214 ) 45.89
Forfeited (21 ) 49.64
Nonvested at October 1, 2017 513
$ 50.11

The fair value of restricted stock awards vested during the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and March 31, 2019 was ~~$0.5~~$11.6 million and ~~$9.8 million, respectively. The fair value of restricted stock awards vested during the three and nine months ended October 2, 2016 was $0.2 million and $8.0~~$9.3 million, respectively. The total compensation expense recognized related to the Company’s outstanding restricted stock awards was ~~$2.3~~$2.4 million and ~~$7.8~~$2.7 million for the three ~~and nine months ended~~

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~~October 1, 2017, respectively, and $2.0 million and $6.9 million for the three and nine~~ months ended ~~October 2, 2016,~~April 5, 2020 and March 31, 2019, respectively.

As of ~~October 1, 2017,~~April 5, 2020, there was ~~$15.9~~$23.1 million of total unrecognized compensation cost related to nonvested restricted stock awards. ~~That~~This cost is expected to be recognized over a weighted-average period of ~~1.7~~2.1 years.

Performance Restricted Stock Units: As part of the Company's executive compensation program, the Company granted ~~54,337~~89,986 performance restricted stock units during the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 that will vest based on performance of the Company. The weighted-average per-share grant date fair value of performance restricted stock units granted during the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 was ~~$52.78.~~$76.76. During the ~~nine~~three months ended ~~October 1, 2017, no~~April 5, 2020, 19,860 performance restricted stock units were forfeited. The total compensation expense recognized related to ~~the~~ performance restricted stock units was ~~$0.2~~$0.6 million and ~~$0.6~~$0.8 million for the three ~~and nine~~ months ended ~~October 1, 2017,~~April 5, 2020 and March 31, 2019, respectively. As of ~~October 1, 2017,~~April 5, 2020, there were ~~54,337~~131,842 performance restricted stock units outstanding.

Performance Units: ~~As part of the Company's executive compensation program, the Company granted 49,845 and 72,164~~ NaN performance units ~~during the nine months ended October 1, 2017 and October 2, 2016, respectively. The weighted-average per-share grant-date fair value of performance units~~were granted during the ~~nine~~three months ended ~~October 1, 2017 and October 2, 2016 was $52.69 and $42.79, respectively.~~April 5, 2020. During the ~~nine~~three months ended ~~October 1, 2017 and October 2, 2016, 15,139 and 19,584~~April 5, 2020, 1,948 performance units were ~~forfeited, respectively.~~forfeited. The total compensation (income) expense recognized related to performance units was ~~$0.8~~$(1.0) million and ~~$3.6~~$1.2 million for the three ~~and nine~~ months ended ~~October 1, 2017, respectively,~~April 5, 2020 and ~~$0.7 million and $2.4 million for the three and nine months ended October 2, 2016,~~March 31, 2019, respectively. As of ~~October 1, 2017,~~April 5, 2020, there were ~~164,481~~31,207 performance units outstanding and subject to forfeiture, with a corresponding liability of ~~$6.5~~$2.3 million recorded in accrued expenses and other current liabilities.

Stock Awards: The Company’s stock award program provides an annual equity award to non-employee directors. ~~The~~During the three months ended April 5, 2020, the Company ~~granted 1,598 and 1,821~~awarded 376 shares to ~~each~~ non-employee ~~member of the Board during the nine months ended October 1, 2017 and October 2, 2016, respectively.~~directors. The weighted-average per-share grant-date fair value of the stock awards granted during the ~~nine~~three months ended ~~October 1, 2017 and October 2, 2016~~April 5, 2020 was ~~$62.56 and $54.88, respectively.~~$76.33. The total compensation expense recognized related to ~~these~~the stock awards ~~was $0.7 million and $0.8 million~~were minimal for each of the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016, respectively.~~March 31, 2019.

Employee Stock Purchase Plan: During the ~~nine~~three months ended ~~October 1, 2017,~~April 5, 2020, the Company issued ~~18,483~~13,612 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of ~~$64.73~~$92.25 per share. During the ~~nine~~three months ended ~~October 2, 2016,~~March 31, 2019, the Company issued ~~23,898~~18,562 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of ~~$49.80~~$74.62 per share. At ~~October 1, 2017,~~April 5, 2020, an aggregate of ~~0.9~~0.8 million shares of the Company’s common stock remained available for sale to employees out of the 5.0 million shares authorized by shareholders for issuance under this plan.

Note 13: Goodwill and Intangible Assets, Net

The Company tests goodwill and non-amortizing intangible assets at least annually for possible impairment. Accordingly, the Company completes the annual testing of impairment for goodwill and non-amortizing intangible assets on the later of January 1 or the first day of each fiscal year. In addition to its annual test, the Company regularly evaluates whether events or circumstances have occurred that may indicate a potential impairment of goodwill or non-amortizing intangible assets.

The process of testing goodwill for impairment involves the determination of the fair value of the applicable reporting units. The test consists of ~~a two-step process. The first step is~~ the comparison of the fair value to the carrying value of the reporting unit to determine if the carrying value exceeds the fair value. ~~The second step measures~~If the ~~amount of an impairment loss, and is only performed if the~~ carrying ~~value exceeds the fair~~ value of the reporting ~~unit.~~unit exceeds its fair value, an impairment loss in an amount equal to that excess is recognized up to the amount of goodwill. The Company performed its annual impairment testing for its

reporting units as of January ~~2, 2017,~~1, 2020, its annual impairment testing date for fiscal year ~~2017.~~2020. The Company concluded ~~based on the first step of the process~~ that there was no goodwill impairment, and that the fair value exceeded the carrying value by more than 20.0% for each reporting unit, except for the Company's Informatics reporting unit which had a fair value that was less than 20% but greater than 10% more than its carrying value.impairment. The range of the long-term terminal growth rates for the Company’s reporting units was ~~0.0%~~3% to ~~3.00%~~5% for the fiscal year ~~2017~~2020 impairment analysis. The range for the discount rates for the reporting units was 9.0% to ~~13.5%~~14.5%. Keeping all other variables constant, a ~~10.0%~~10% change in any one of these input assumptions for the various reporting units ~~except for the Informatics reporting unit,~~ would still allow the Company to conclude ~~based on the first step of the process,~~ that there was no impairment of goodwill. As of January 2, 2017, the Company's Informatics reporting unit, which had a goodwill balance of $211.0 million, was at increased risk of an impairment charge given its ongoing weakness due to a highly competitive industry. Despite the increased risk associated with this

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reporting unit, the Company does not currently expect a significant change in the key estimates or assumptions driving the fair value of this reporting unit that would lead to a material impairment charge.

The Company has consistently employed the income approach to estimate the current fair value when testing for impairment of goodwill. A number of significant assumptions and estimates are involved in the application of the income approach to forecast operating cash flows, including markets and market share, sales volumes and prices, costs to produce, tax rates, capital spending, discount rates and working capital changes. Cash flow forecasts are based on approved business unit operating plans for the early years’ cash flows and historical relationships in later years. The income approach is sensitive to changes in long-term terminal growth rates and the discount rates. The long-term terminal growth rates are consistent with the Company’s historical long-term terminal growth rates, as the current economic trends are not expected to affect the long-term terminal growth rates of the Company. The Company corroborates the income approach with a market approach.

Non-amortizing intangibles are also subject to an annual impairment test. The Company has consistently employed the relief from royalty model to estimate the current fair value when testing for impairment of non-amortizing intangible assets. The impairment test consists of a comparison of the fair value of the non-amortizing intangible asset with its carrying amount. If the carrying amount of a non-amortizing intangible asset exceeds its fair value, an impairment loss in an amount equal to that excess is recognized. up to the amount of the amortizing intangible asset. In addition, the Company evaluates the remaining useful ~~lives~~life of its non-amortizing intangible ~~assets~~asset at least annually to determine whether events or circumstances continue to support an indefinite useful life. If events or circumstances indicate that the useful ~~lives~~life of the Company's non-amortizing intangible ~~assets are~~asset is no longer indefinite, the ~~assets~~asset will be tested for impairment. ~~These~~This intangible ~~assets~~asset will then be amortized prospectively over ~~their~~its estimated remaining useful ~~lives~~life and accounted for in the same manner as other intangible assets that are subject to amortization. The Company performed its annual impairment testing as of January ~~2, 2017~~1, 2020 and concluded that there was no impairment of its non-amortizing intangible ~~assets.~~asset. An assessment of the recoverability of amortizing intangible assets takes place when events have occurred that may give rise to an impairment. No such events occurred during the first ~~nine~~three months of fiscal year ~~2017.~~2020.

The changes in the carrying amount of goodwill for the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 were as follows:



	Discovery & Analytical Solutions			Diagnostics			Consolidated
	(In thousands)
Balance at December 29, 2019	$	1,498,820		$	1,612,407		$	3,111,227
Foreign currency translation	(27,914		)	(30,027		)	(57,941		)
Acquisitions, earn-outs and other	(1,592		)	—			(1,592		)
Balance at April 5, 2020	$	1,469,314		$	1,582,380		$	3,051,694

Discovery & Analytical Solutions

Diagnostics Consolidated
(In thousands)
Balance at January 1, 2017 $ 1,303,936
$ 944,030
$ 2,247,966
Foreign currency translation 30,356
23,394
53,750
Acquisitions and other (2,173 ) 73,466
71,293
Balance at October 1, 2017 $ 1,332,119
$ 1,040,890
$ 2,373,009

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Identifiable intangible asset balances at ~~October 1, 2017~~ ~~and~~ ~~January 1, 2017~~ by category were as follows:



	April 5, 2020			December 29, 2019
	(In thousands)
Patents	$	30,821		$	30,831
Less: Accumulated amortization	(27,776		)	(27,423		)
Net patents	3,045			3,408
Trade names and trademarks	85,627			87,997
Less: Accumulated amortization	(41,376		)	(40,295		)
Net trade names and trademarks	44,251			47,702
Licenses	58,259			58,496
Less: Accumulated amortization	(50,417		)	(49,733		)
Net licenses	7,842			8,763
Core technology	663,964			689,089
Less: Accumulated amortization	(327,039		)	(320,926		)
Net core technology	336,925			368,163
Customer relationships	1,136,931			1,161,526
Less: Accumulated amortization	(400,656		)	(378,188		)
Net customer relationships	736,275			783,338
IPR&D	1,366			1,328
Net amortizable intangible assets	1,129,704			1,212,702
Non-amortizing intangible asset:
Trade name	70,584			70,584
Total	$	1,200,288		$	1,283,286

October 1,
2017 January 1,
2017
(In thousands)
Patents $ 39,952
$ 39,901
Less: Accumulated amortization (34,421 ) (32,408 )
Net patents 5,531
7,493
Trade names and trademarks 44,188
40,086
Less: Accumulated amortization (27,229 ) (24,017 )
Net trade names and trademarks 16,959
16,069
Licenses 51,637
57,767
Less: Accumulated amortization (41,978 ) (46,507 )
Net licenses 9,659
11,260
Core technology 298,511
304,187
Less: Accumulated amortization (237,142 ) (233,720 )
Net core technology 61,369
70,467
Customer relationships 425,472
383,303
Less: Accumulated amortization (229,944 ) (213,062 )
Net customer relationships 195,528
170,241
IPR&D 86,992
78,515
Less: Accumulated amortization (5,197 ) (4,405 )
Net IPR&D 81,795
74,110
Net amortizable intangible assets 370,841
349,640
Non-amortizing intangible assets:
Trade name 70,584
70,584
Total $ 441,425
$ 420,224

Total amortization expense related to definite-lived intangible assets was ~~$17.7~~$47.3 million and ~~$52.3~~$38.7 million for the three ~~and nine~~ months ended ~~October 1, 2017, respectively,~~April 5, 2020 and ~~$16.9 million and $53.9 million for the three and nine months ended October 2, 2016,~~March 31, 2019, respectively. Estimated amortization expense related to ~~definite-lived~~amortizable intangible assets for each of the next five years is ~~$17.5~~$136.7 million for the remainder of fiscal year ~~2017, $70.2~~2020, $167.4 million for fiscal year ~~2018, $58.5~~2021, $151.4 million for fiscal year ~~2019, $50.0~~2022, $128.5 million for fiscal year ~~2020,~~2023, and ~~$37.0~~$108.1 million for fiscal year ~~2021.~~2024.

Note 14: Warranty Reserves

The Company provides warranty protection for certain products usually for a period of one year beyond the date of sale. The majority of costs associated with warranty obligations include the replacement of parts and the time for service personnel to respond to repair and replacement requests. A warranty reserve is recorded based upon historical results, supplemented by management’s expectations of future costs. Warranty reserves are included in “Accrued expenses and other current liabilities” on the condensed consolidated balance sheets.

~~Table of Contents~~

A summary of warranty reserve activity ~~for the~~ ~~three and nine~~ ~~months ended~~ ~~October 1, 2017~~ ~~and~~ ~~October 2, 2016~~is as follows:



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Balance at beginning of period	$	8,812		$	8,393
Provision charged to income	2,712			2,768
Payments	(3,266		)	(3,254		)
Adjustments to previously provided warranties, net	1,052			270
Foreign currency translation and acquisitions	(269		)	(18		)
Balance at end of period	$	9,041		$	8,159

Three Months Ended Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Balance at beginning of period $ 9,088
$ 9,596
$ 9,012
$ 9,843
Provision charged to income 3,326
3,585
9,706
11,037
Payments (3,488 ) (3,677 ) (10,625 ) (11,291 )
Adjustments to previously provided warranties, net (730 ) (459 ) (215 ) (708 )
Foreign currency translation and acquisitions 117
27
435
191
Balance at end of period $ 8,313
$ 9,072
$ 8,313
$ 9,072

Note 15: Employee Postretirement Benefit Plans

The following table summarizes the components of net periodic pension credit for the Company’s various defined benefit employee pension and postretirement ~~plans for the~~ ~~three and nine~~ ~~months ended~~ ~~October 1, 2017~~ ~~and~~ ~~October 2, 2016~~:plans:



	Defined Benefit Pension Benefits						Postretirement Medical Benefits
	Three Months Ended
	April 5, 2020			March 31, 2019			April 5, 2020			March 31, 2019
	(In thousands)
Service and administrative costs	$	1,907		$	1,633		$	18		$	22
Interest cost	3,144			4,159			24			29
Expected return on plan assets	(5,384		)	(6,176		)	(347		)	(294		)
Amortization of prior service costs	—			(39		)	—			—
Net periodic pension credit	$	(333	)	$	(423	)	$	(305	)	$	(243	)

Defined Benefit
Pension Benefits

Postretirement
Medical Benefits
Three Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Service cost $ 1,231
$ 1,094
$ 23
$ 25
Interest cost 4,160
4,701
32
35
Expected return on plan assets (6,568 ) (6,126 ) (279 ) (258 )
Amortization of prior service costs (49 ) (54 ) —
—
Net periodic benefit credit $ (1,226 ) $ (385 ) $ (224 ) $ (198 )

Defined Benefit
Pension Benefits

Postretirement
Medical Benefits
Nine Months Ended
October 1,
2017 October 2,
2016 October 1,
2017 October 2,
2016
(In thousands)
Service cost $ 3,667
$ 3,282
$ 69
$ 75
Interest cost 12,420
14,158
94
107
Expected return on plan assets (19,609 ) (18,488 ) (836 ) (776 )
Amortization of prior service costs (144 ) (163 ) —
—
Net periodic benefit credit $ (3,666 ) $ (1,211 ) $ (673 ) $ (594 )

During the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016,~~March 31, 2019, the Company contributed ~~$6.2~~$2.1 million ~~and $7.6 million, respectively,~~each, in the aggregate, to pension plans outside of the United States.

The Company recognizes actuarial gains and losses, unless an interim remeasurement is required, ~~in operating results~~ in the fourth quarter of the year in which the gains and losses occur, in accordance with the Company's accounting method for defined benefit pension plans and other postretirement benefits as described in Note 1 of the Company's audited consolidated financial statements and notes included in its ~~2016~~2019 Form 10-K. Such adjustments for gains and losses are primarily driven by events and circumstances beyond the Company's control, including changes in interest rates, the performance of the financial markets and mortality assumptions. Service costs for plans in active accrual are included in operating expenses.

Note 16: Derivatives and Hedging Activities

The Company uses derivative instruments as part of its risk management strategy only, and includes derivatives utilized as economic hedges that are not designated as hedging instruments. By nature, all financial instruments involve market and

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credit risks. The Company enters into derivative instruments with major investment grade financial institutions and has policies to monitor the credit risk of those counterparties. The Company does not enter into derivative contracts for trading or other speculative purposes, nor does the Company use leveraged financial instruments. Approximately ~~60%~~70% of the Company’s business is conducted outside of the United States, generally in foreign currencies. As a result, fluctuations in foreign currency exchange rates can increase the costs of financing, investing and operating the business.

In the ordinary course of business, the Company enters into foreign exchange contracts for periods consistent with its committed exposures to mitigate the effect of foreign currency movements on transactions denominated in foreign currencies. The intent of these economic hedges is to offset gains and losses that occur on the underlying exposures from these currencies, with gains and losses resulting from the forward currency contracts that hedge these exposures. Transactions covered by hedge contracts include intercompany and third-party receivables and payables. The contracts are primarily in European and Asian currencies, have maturities that do not exceed 12 months, have no cash requirements until maturity, and are recorded at fair value on the Company’s condensed consolidated balance sheets. The unrealized gains and losses on the Company’s foreign currency contracts are recognized immediately in interest and other expense, net. The cash flows related to the settlement of these hedges are included in cash flows from operating activities within the Company’s condensed consolidated statement of cash flows.

Principal hedged currencies include the Chinese Yuan, Euro, British Pound, ~~Euro,~~ Swedish Krona, ~~Japanese Yen~~ and Singapore Dollar. The Company held forward foreign exchange contracts, designated as economic hedges, with U.S. dollar equivalent notional amounts totaling ~~$140.0~~$272.4 million, ~~$137.5~~$277.6 million and ~~$128.5~~$171.7 million at ~~October 1, 2017, January 1, 2017~~April 5, 2020, December 29, 2019 and ~~October 2, 2016,~~March 31, 2019, respectively, and the fair value of these foreign currency derivative contracts was insignificant. The gains and losses realized on these foreign currency derivative contracts are not material. The duration of these contracts was generally 30 days or less during each of the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016.~~March 31, 2019.

In addition, in connection with certain intercompany loan agreements utilized to finance its acquisitions and stock repurchase program, the Company enters into forward foreign exchange contracts intended to hedge movements in foreign exchange rates prior to settlement of such intercompany loans denominated in foreign currencies. The Company records these hedges at fair value on the Company’s condensed consolidated balance sheets. The unrealized gains and losses on these hedges, as well as the gains and losses associated with the remeasurement of the intercompany loans, are recognized immediately in

interest and other expense, net. The cash flows related to the settlement of these hedges are included in cash flows from financing activities within the Company’s condensed consolidated statement of cash flows.

The outstanding forward exchange contracts designated as economic hedges, which were intended to hedge movements in foreign exchange rates prior to the settlement of certain intercompany loan agreements included combined Euro notional amounts of ~~€19.0~~€108.0 million and combined U.S. Dollar notional amounts of ~~$12.3~~$138.9 million as of ~~October 1, 2017;~~April 5, 2020, combined Euro notional amounts of ~~€58.6 million and combined Swedish Krona notional amounts of kr969.5 million as of January 1, 2017; and combined Euro notional amounts of €50.7~~€105.8 million and combined U.S. Dollar notional amounts of ~~$9.2~~$5.6 million as of ~~October 2, 2016.~~December 29, 2019, and combined Euro notional amounts of €22.8 million and combined U.S. Dollar notional amounts of $7.2 million as of March 31, 2019. The net gains and losses on these derivatives, combined with the gains and losses on the remeasurement of the hedged intercompany loans were not material for each of the three ~~and nine~~ months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016.~~March 31, 2019. The Company ~~paid $11.5~~received $8.7 million and ~~$0.1~~paid $1.7 million during the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016,~~March 31, 2019, respectively, from the settlement of these hedges.

~~In connection with the issuance of the 2026 Notes during~~During fiscal year ~~2016,~~2018, the Company designated a portion of the 2026 Notes to hedge its investments in certain foreign subsidiaries. ~~Realized and unrealized~~Unrealized translation adjustments from ~~these hedges~~a portion of the 2026 Notes were included in the foreign currency translation component of ~~accumulated other comprehensive income ("AOCI"),~~AOCI, which offsets translation adjustments on the underlying net assets of foreign subsidiaries. The cumulative translation gains or losses will remain in AOCI until the foreign subsidiaries are liquidated or sold. As of ~~October 1, 2017,~~April 5, 2020, the total notional amount of ~~foreign currency denominated debt~~the 2026 Notes that was designated to hedge investments in foreign subsidiaries was ~~€495.9~~€433.0 million. The unrealized foreign exchange ~~loss~~gains recorded in AOCI related to the net investment hedge was ~~$19.5~~$21.0 million and ~~$63.1~~$4.8 million for the three ~~and nine~~ months ended ~~October 1, 2017,~~April 5, 2020 and March 31, 2019, respectively.

~~On June 27, 2017,~~During fiscal year 2018, the Company designated the 2021 Notes to hedge its investments in ~~connection with~~certain foreign subsidiaries. Unrealized translation adjustments from the ~~planned acquisition~~2021 Notes were included in the foreign currency translation component of ~~EUROIMMUN,~~AOCI, which offsets translation adjustments on the underlying net assets of foreign subsidiaries. The cumulative translation gains or losses will remain in AOCI until the foreign subsidiaries are liquidated or sold. As of April 5, 2020, the total notional amount of the 2021 Notes that was designated to hedge investments in foreign subsidiaries was €299.9 million. The unrealized foreign exchange gains recorded in AOCI related to the net investment hedge were $11.8 million and $6.9 million for the three months ended April 5, 2020 and March 31, 2019, respectively.

During fiscal year 2019, the Company entered into ~~several~~a cross-currency swap designated as a net investment hedge to hedge the Euro currency exposure of the Company’s net investment in certain foreign subsidiaries. This agreement is a contract to exchange fixed-rate payments in one currency for fixed-rate payments in another currency. Changes in the fair value of this swap are recorded in equity as a component of AOCI in the same manner as foreign currency ~~forward contracts~~translation adjustments. In assessing the effectiveness of this hedge, the Company uses a method based on changes in spot rates to ~~purchase Euros to partly mitigate~~measure the impact of the foreign currency exchange ~~risk associated with~~rate fluctuations on both its foreign subsidiary net investment and the ~~payment~~related swap. Under this method, changes in the fair value of the ~~Euro-denominated purchase price. These currency forward contracts were not designated as~~ hedging ~~instruments and therefore the change~~instrument other than those due to changes in the ~~derivative fair value was marked to market through~~spot rate are initially recorded in AOCI as a translation adjustment, and then are amortized into other (income) expense, net in the condensed consolidated statement of ~~operations.~~operations using a systematic and rational method over the instrument’s term. Changes in the fair value associated with the effective portion (i.e. those changes due to the spot rate) are recorded in AOCI as a translation adjustment and are released and recognized in earnings only upon the sale or liquidation of the hedged net investment. The cross-currency swap has an initial notional value of €197.4 million, or $220.0 million, and matures on November 15, 2021. Interest on the cross-currency swap is payable semi-annually, in Euro, on May 15th and November 15th of each year based on the Euro notional value and a fixed rate of 2.47%. The Company ~~received $60.4~~receives interest in U.S. dollars on May 15th and November 15th of each year based on the U.S. dollar equivalent of the Euro notional value and a fixed rate of 5.00%. At April 5, 2020, the fair value of the cross-currency swap was $12.3 million, during the third quarter of fiscal year 2017 from the settlement of these foreign currency forward contracts. The cash flows related to the settlement of these foreign currency forward contracts are includedwhich was recorded in cash flows from investing activities within the Company’s condensed consolidated statement of cash flows. The outstanding foreign currency forward contracts have an aggregate notional amount totaling $1.18 billion as of October 1, 2017.

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The net foreign exchange gain included in other (income) expense, net related to these foreign currency forward contracts was $36.3 million and $42.6 million for the three and nine months ended October 1, 2017, respectively.

AOCI.

The Company does ~~not~~0t expect any material net pre-tax gains or losses to be reclassified from accumulated other comprehensive loss into interest and other expense, net within the next twelve months.

Note 17: Fair Value Measurements

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, derivatives, marketable securities and accounts receivable. The Company believes it had no significant concentrations of credit risk as of ~~October 1, 2017~~April 5, 2020.

The Company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020. The Company’s financial assets and liabilities carried at fair value are primarily comprised of marketable securities, derivative contracts used to hedge the Company’s currency risk, and acquisition-related contingent consideration. The Company has not elected to measure any additional financial instruments or other items at fair value.

Valuation Hierarchy: The following summarizes the three levels of inputs required to measure fair value. For Level 1 inputs, the Company utilizes quoted market prices as these instruments have active markets. For Level 2 inputs, the Company utilizes quoted market prices in markets that are not active, broker or dealer quotations, or utilizes alternative pricing sources with reasonable levels of price transparency. For Level 3 inputs, the Company utilizes unobservable inputs based on the best information available, including estimates by management primarily based on information provided by third-party fund managers, independent brokerage firms and insurance companies. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible.

The following tables show the assets and liabilities carried at fair value measured on a recurring basis as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017~~December 29, 2019 classified in one of the three classifications described above:


				Fair Value Measurements at October 1, 2017 Using:											Fair Value Measurements at April 5, 2020 Using:
	Total Carrying Value at October 1, 2017			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value at April 5, 2020			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In thousands)											(In thousands)
Marketable securities	$	2,049		$	2,049	$	—		$	—		$	2,888		$	2,888	$	—		$	—
Foreign exchange derivative assets	195			—		195			—			4,105			—		4,105			—
Foreign exchange derivative liabilities	(17,578		)	—		(17,578		)	—			(1,316		)	—		(1,316		)	—
Contingent consideration	(64,727		)	—		—			(64,727		)	(22,777		)	—		—			(22,777		)



				Fair Value Measurements at December 29, 2019 Using:
	Total Carrying Value at December 29, 2019			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In thousands)
Marketable securities	$	2,906		$	2,906	$	—		$	—
Foreign exchange derivative assets	451			—		451			—
Foreign exchange derivative liabilities	(1,538		)	—		(1,538		)	—
Contingent consideration	(35,481		)	—		—			(35,481		)

Fair Value Measurements at January 1, 2017 Using:
Total Carrying Value at January 1, 2017
Quoted Prices in
Active Markets
(Level 1)

Significant Other
Observable Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)
(In thousands)
Marketable securities $ 1,678
$ 1,678
$ —
$ —
Foreign exchange derivative assets 1,208
—
1,208
—
Foreign exchange derivative liabilities (1,370 ) —
(1,370 ) —
Contingent consideration (63,201 ) —
—
(63,201 )

Level 1 and Level 2 Valuation Techniques: The Company’s Level 1 and Level 2 assets and liabilities are comprised of investments in equity and fixed-income securities as well as derivative contracts. For financial assets and liabilities that utilize Level 1 and Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including common stock price quotes, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for Level 1 and Level 2 financial assets and liabilities.

Marketable securities: Include equity and fixed-income securities measured at fair value using the quoted market prices in active markets at the reporting date.

Foreign exchange derivative assets and liabilities: Include foreign exchange derivative contracts that are valued using quoted forward foreign exchange prices at the reporting date. The Company’s foreign exchange derivative contracts are subject to master netting arrangements that allow the Company and its counterparties to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company's condensed consolidated balance sheet on a net basis and are recorded in other assets. As of both ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017~~December 29, 2019, none of the master netting arrangements involved collateral.

Level 3 Valuation Techniques: The Company’s Level 3 liabilities are comprised of contingent consideration related to acquisitions. For liabilities that utilize Level 3 inputs, the Company uses significant unobservable inputs. Below is a summary of valuation techniques for Level 3 liabilities.

Contingent consideration: Contingent consideration is measured at fair value at the acquisition date using projected milestone dates, discount rates, probabilities of success and projected revenues (for revenue-based considerations). Projected risk-adjusted contingent payments are discounted back to the current period using a discounted cash flow model.

During fiscal year 2015, the Company acquired certain assets and assumed certain liabilities from Vanadis Diagnostics AB. Under the terms of the acquisition, the initial purchase consideration was $32.0 million, net of cash and the Company will be obligated to make potential future milestone payments, based on completion of a proof of concept, regulatory approvals and product sales, of up to $93.0 million ranging from 2016 to 2019. The fair value of the contingent consideration as of the acquisition date was estimated at $56.9 million. During the ~~third~~first quarter of fiscal year ~~2017,~~2020, the Company updated the fair value of the contingent consideration and recorded a liability of ~~$64.7~~$18.5 million as of ~~October 1, 2017.~~April 5, 2020. The key assumptions used to determine the fair value of the contingent consideration as of ~~October 1, 2017~~April 5, 2020 included projected milestone dates ~~of 2018 to 2019,~~within fiscal year 2020, discount rates ranging from ~~2.1%~~4.3% to ~~6.8%,~~7.7% and conditional and cumulative probabilities of success of each individual milestone ranging from 90% to ~~95% and cumulative probabilities of success for each individual milestone ranging from 65.8% to 95%~~100%. A significant delay in the product development (including projected regulatory milestone) achievement date in isolation could result in a significantly lower fair value measurement; a significant acceleration in the product development (including projected regulatory milestone) achievement date in isolation would not have a material impact on the fair value measurement; a significant change in the discount rate in isolation would not have a material impact on the fair value measurement; and a significant change in the probabilities of success in isolation could result in a significant change in fair value measurement.

The fair values of contingent consideration are calculated on a quarterly basis based on a collaborative effort of the Company’s regulatory, research and development, operations, finance and accounting groups, as appropriate. Potential valuation adjustments are made as additional information becomes available, including the progress towards ~~completion of a~~achieving proof of concept, regulatory approvals and ~~product sales~~revenue targets as compared to initial projections, the impact of market competition and market landscape shifts from non-invasive prenatal testing products, with the impact of such adjustments being recorded in the Company's consolidated statements of operations.

As of ~~October 1, 2017,~~April 5, 2020, the Company may have to pay contingent consideration, related to ~~an acquisition~~acquisitions with open contingency ~~period~~periods, of up to ~~$83.0~~$57.1 million. The expected maximum earnout period for the ~~acquisition~~acquisitions with an open contingency ~~period~~periods does not exceed ~~2.0~~2.8 years from ~~the acquisition date,~~April 5, 2020, and the remaining weighted average expected earnout period at ~~October~~April 5, 2020 was 1 ~~2017 was 1.4 years.~~

A reconciliation of the beginning and ending Level 3 net liabilities for contingent consideration is as follows:



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Balance at beginning of period	$	(35,481	)	$	(69,661	)
Amounts paid and foreign currency translation	379			18,414
Reclassified to other current liabilities for a milestone achieved	—			20,000
Change in fair value (included within selling, general and administrative expenses)	12,325			(3,102		)
Balance at end of period	$	(22,777	)	$	(34,349	)

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term maturities of these assets and liabilities. If measured at fair value, cash and cash equivalents would be classified as Level 1.

As of ~~October 1, 2017 and January 1, 2017,~~April 5, 2020, the Company’s senior unsecured revolving credit facility ~~which provides for $1.0 billion~~had a carrying value of $304.0 million, net of $3.2 million of unamortized debt issuance costs. As of December 29, 2019, the Company’s senior unsecured revolving ~~loans,~~credit facility had ~~no outstanding borrowings.~~a carrying value of $322.0 million, net of $3.4 million of unamortized debt issuance costs. The interest rate on the Company’s senior unsecured revolving credit facility is reset at least monthly to correspond to variable rates that reflect currently available terms and conditions for similar debt.

As of October 1, 2017, the Company’s senior unsecured term loan credit facility, which provides for $200.0 million of term loans, had no outstanding borrowings. The interest rate on the Company’s senior unsecured term loan credit facility will be reset at least monthly to correspond to variable rates that reflect currently available terms and conditions for similar debt. The Company had no change in credit standing during the first ~~nine~~three months of fiscal year ~~2017.~~2020. Consequently, the carrying value approximates fair value and were classified as Level 2.

The Company's 2026 Notes, with a face value of €500.0 million, had an aggregate carrying value of $532.9 million, net of $3.2 million of unamortized original issue discount and $3.2 million of unamortized debt issuance costs as of April 5, 2020. The 2026 Notes had an aggregate carrying value of $552.2 million, net of $3.5 million of unamortized original issue discount and $3.3 million of unamortized debt issuance costs as of December 29, 2019. The 2026 Notes had a fair value of €500.1 million and €518.5 million as of April 5, 2020 and December 29, 2019, respectively. The fair value of the 2026 Notes is estimated using market quotes from brokers and is based on current rates offered for similar debt.

The Company's 2021 Notes, with a face value of ~~$500.0~~€300.0 million, had an aggregate carrying value of ~~$496.4~~$322.6 million, net of ~~$1.5~~$0.1 million of unamortized original issue discount and ~~$2.1~~$0.9 million of unamortized debt issuance costs as of ~~October 1, 2017.~~ April 5, 2020.

The 2021 Notes had an aggregate carrying value of ~~$495.8~~$334.2 million, net of ~~$1.7~~$0.1 million of unamortized original issue discount and ~~$2.5~~$1.1 million of unamortized debt issuance costs as of ~~January 1, 2017.~~December 29, 2019. The 2021 Notes had a fair value of ~~$543.9~~€299.4 million and ~~$539.2~~€301.9 million as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017,~~December 29, 2019, respectively. The fair value of the 2021 Notes is estimated using market quotes from brokers and is based on current rates offered for similar debt.

The Company's ~~2026~~2029 Notes, with a face value of ~~€500~~$850.0 million, had an aggregate carrying value of ~~$581.5~~$839.9 million, net of ~~$4.7~~$2.7 million of unamortized original issue discount and ~~$4.4~~$7.4 million of unamortized debt issuance costs as of ~~October 1, 2017.~~April 5, 2020. The ~~2026~~2029 Notes had an aggregate carrying value of $839.9 million, net of $2.7 million of unamortized original issue discount and $7.4 million of unamortized debt issuance costs as of December 29, 2019. The 2029 Notes had a fair value of ~~€504.7~~$801.1 million and ~~€507.5~~$872.3 million as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017,~~December 29, 2019, respectively. The fair value of the ~~2026~~2029 Notes is estimated using market quotes from brokers and is based on current rates offered for similar debt.

As of April 5, 2020, the 2021 Notes, 2026 Notes and 2029 Notes were classified as Level 2.

The ~~Company's financing lease obligations~~Company’s other debt facilities had an aggregate carrying value of ~~$36.2~~$20.8 million and ~~$37.1~~$25.7 million as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017,~~December 29, 2019, respectively. As of April 5, 2020, these consisted of bank loans in the aggregate amount of $20.7 million bearing fixed interest rates between 1.1% and 20.0% and a bank loan in the amount of $0.1 million bearing a variable interest rate based on the Euribor rate plus a margin of 1.5%. The Company had no change in credit standing during the first three months of fiscal year 2020. Consequently, the carrying ~~values of the Company's financing lease obligations approximated their~~value approximates fair value ~~as there has been minimal change in the Company's incremental borrowing rate.~~

~~As of October 1, 2017, the 2021 Notes, 2026 Notes~~ and ~~financing lease obligations~~ were classified as Level 2.

As of ~~October 1, 2017,~~April 5, 2020, there has not been any significant impact to the fair value of the Company’s derivative liabilities due to credit risk. Similarly, there has not been any significant adverse impact to the Company’s derivative assets based on the evaluation of its counterparties’ credit risks.

The Company is conducting a number of environmental investigations and remedial actions at current and former locations of the Company and, along with other companies, has been named a potentially responsible party (“PRP”) for certain waste disposal sites. The Company accrues for environmental issues in the accounting period that the Company’s responsibility is established and when the cost can be reasonably estimated. The Company has accrued ~~$9.8~~$7.5 million and ~~$9.9~~$7.7 million as of ~~October 1, 2017~~April 5, 2020 and ~~January 1, 2017,~~December 29, 2019, respectively, which represents its management’s estimate of the cost of the remediation of known environmental matters and does not include any potential liability for related personal injury or property damage claims. These amounts were included in accrued expenses and other current liabilities. The Company's environmental accrual is not discounted and does not reflect the recovery of any material amounts through insurance or indemnification arrangements. The cost estimates are subject to a number of variables, including the stage of the environmental investigations, the magnitude

of the possible contamination, the nature of the potential remedies, possible joint and several liability, the time period over which remediation may occur, and the possible effects of changing laws and regulations. For sites where the Company has been named a PRP, management does not currently anticipate any additional liability to result from the inability of other significant named parties to contribute. The Company expects that the majority of such accrued amounts could be paid out over a period of up to ~~ten~~10 years. As assessment and remediation activities progress at each individual site, these liabilities are reviewed and adjusted to reflect additional information as it becomes available. There have been no environmental problems to date that have had, or are expected to have, a material adverse effect on the Company’s condensed consolidated financial statements. While it is possible that a loss exceeding the amounts recorded in the condensed consolidated financial statements may be incurred, the potential exposure is not expected to be materially different from those amounts recorded.

The Company is subject to various claims, legal proceedings and investigations covering a wide range of matters that arise in the ordinary course of its business activities. Although the Company has established accruals for potential losses that it believes are probable and reasonably estimable, in the opinion of the Company’s management, based on its review of the information available at this time, the total cost of resolving these contingencies at ~~October 1, 2017~~April 5, 2020 would not have a material adverse effect on the Company’s condensed consolidated financial statements. However, each of these matters is subject to uncertainties, and it is possible that some of these matters may be resolved unfavorably to the Company.

This quarterly report on Form 10-Q, including the following management’s discussion and analysis, contains forward-looking information that you should read in conjunction with the condensed consolidated financial statements and notes to the condensed consolidated financial statements that we have included elsewhere in this report. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Words such as “believes,” “plans,” “anticipates,” “intends,” “expects,” “will” and similar expressions are intended to identify forward-looking statements. Our actual results may differ materially from the plans, intentions or expectations we disclose in the forward-looking statements we make. We have included important factors below under the heading “Risk Factors” in Part II, Item 1A. that we believe could cause actual results to differ materially from the forward-looking statements we make. We are not obligated to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

We are a leading provider of products, services and solutions for the diagnostics, ~~food, environmental, industrial,~~ life sciences ~~research~~ and ~~laboratory services~~applied markets. Through our advanced technologies and differentiated solutions, we address critical issues that help to improve lives and the world around us.

We realigned our businesses at the beginning of the fourth quarter of fiscal year 2016 to better organize around customer requirements, positioning us to grow in attractive end markets and expand share with our core product offerings. Diagnostics became a standalone operating segment and we formed a new operating segment, Discovery & Analytical Solutions. The results reported for the three and nine months ended October 1, 2017 reflect this new alignment of our operating segments. Financial information in this report relating to the three and nine months ended October 2, 2016 has been retrospectively adjusted to reflect the change in our operating segments.

The principal products and services of our two operating segments are:

Discovery & Analytical Solutions. Provides products and services targeted towards the life sciences and applied markets.

Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, immunodiagnostics and applied genomics markets. The Diagnostics segment serves the diagnostics market.

~~Discovery & Analytical Solutions. Provides products and services targeted towards the environmental, industrial, food, life sciences research and laboratory services markets.~~

Overview of the ~~Third~~First Quarter of Fiscal Year ~~2017~~2020

Our fiscal year ends on the Sunday nearest December 31. We report fiscal years under a 52/53 week format and as a result, certain fiscal years will contain 53 weeks. The fiscal year ending ~~December 31, 2017~~January 3, 2021 ("fiscal year ~~2017"~~2020") will include 5253 weeks, and the fiscal year ended ~~January 1, 2017~~December 29, 2019 ("fiscal year ~~2016"~~2019") included 52 weeks.

Our overall revenue in the ~~third~~first quarter of fiscal year ~~2017~~2020 was ~~$554.3~~$652.4 million and increased ~~$39.8~~$3.7 million, or 8%1%, as compared to the ~~third~~first quarter of fiscal year ~~2016,~~2019, reflecting an increase of ~~$20.3~~$9.6 million, or 6%2%, in our Discovery & Analytical Solutions segment revenue and ~~an increase~~a decrease of ~~$19.5~~$5.9 million, or ~~13%~~2%, in our Diagnostics segment revenue. The increase in our Discovery & Analytical Solutions segment revenue for the ~~third~~first quarter of fiscal year ~~2017~~2020 was primarily ~~due to~~driven by an increase ~~of $15.7 million from~~in our ~~laboratory services~~life sciences market revenue and ~~an increase of $7.9 million from environmental, food and industrial markets revenue,~~the extra fiscal week partially offset by a decrease in our applied markets revenue, unfavorable changes in foreign exchange rates and reduced demand as a result of ~~$3.3 million from~~the COVID-19 pandemic resulting in lower sales volume in our product offerings in the industrial, environmental and food markets. The increase in our life sciences ~~research~~ market ~~revenue.~~revenue was the result of an increase in revenue in our pharma and biotech markets driven by continued growth of our Discovery, OneSource and Informatics businesses. The ~~increase~~decrease in our Diagnostics segment revenue for the ~~third~~first quarter of fiscal year ~~2017~~2020 was ~~primarily~~ driven by ~~growth~~reduced demand as a result of the COVID-19 pandemic, resulting in lower sales volume in our ~~emerging markets diagnostic offerings~~reproductive health and ~~sales of our applied genomics solutions.~~

~~In our Discovery & Analytical Solutions segment, we had~~immunodiagnostics businesses, and unfavorable changes in foreign exchange rates, partially offset by an increase in revenue ~~for~~from our applied genomics COVID-19 product offerings and the ~~third quarter of~~extra fiscal year 2017 as compared to the third quarter of fiscal year 2016. During the third quarter of fiscal year 2017, we continued to experience increased demand for our OneSource laboratory service business, which offers services designed to enable our customers to increase efficiencies and production time while reducing maintenance costs, all of which continue to be critical for them. We also experienced strong growth in our environmental, food and industrial markets. In the life sciences research market, we experienced continued decline in sales of radioactive reagents in our radio-nucleotide business.

In our Diagnostics segment, we experienced growth from continued expansion in our newborn and infectious disease screening businesses, particularly in the emerging markets. Birth rates in the United States continue to stabilize and demand for greater access to newborn screening in rural areas outside the United States is also increasing, as evidenced by prenatal trends we saw during the third quarter of fiscal year 2017. We also experienced strong growth in our advanced genomics front-end sample prep business in the Americas.

Our consolidated gross margins ~~increased 19~~decreased 23 basis points in the ~~third~~first quarter of fiscal year ~~2017,~~2020, as compared to the ~~third~~first quarter of fiscal year ~~2016,~~2019, primarily due to increased amortization expense and lower volume partially offset by a favorable shift in product mix, service productivity and ~~benefits from our initiatives to improve our supply chain.~~pricing initiatives. Our consolidated operating margins decreased 33137 basis points in the ~~third~~first quarter of fiscal year ~~2017,~~2020, as compared to the ~~third~~first quarter of fiscal year ~~2016,~~2019, primarily due to increased costs related to amortization of acquired intangible assets, investments in new product development and the extra fiscal week, which were partially offset by lower costs as a result of our cost containment and productivity initiatives.

We continue to believe that we are well positioned to take advantage of the spending trends in our end markets and to promote efficiencies in markets where current conditions may increase demand for certain services. Overall, we believe that our strategic focus on ~~diagnostics~~Diagnostics and ~~discovery~~Discovery and ~~analytical solutions~~Analytical Solutions markets, coupled with our deep portfolio of technologies and applications, leading market positions, global scale and financial strength will provide us with a foundation for growth.

The preparation of condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, warranty costs, bad debts, inventories, accounting for business combinations and dispositions, long-lived assets, income taxes, restructuring, pensions and other postretirement benefits, contingencies and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those policies that affect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements. We believe our critical accounting policies include our policies regarding revenue recognition, warranty costs, allowances for doubtful accounts, inventory valuation, business combinations, value of long-lived assets, including goodwill and other intangibles, employee compensation and benefits, restructuring activities, gains or losses on dispositions and income taxes.

For a more detailed discussion of our critical accounting policies and estimates, ~~please~~ refer to the Notes to our audited consolidated financial statements and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the fiscal year ended ~~January 1, 2017~~December 29, 2019 (our “~~2016~~2019 Form 10-K”), as filed with the Securities and Exchange Commission (the "SEC"). There have been no significant changes in our critical accounting policies and estimates during the ~~nine~~three months ended ~~October 1, 2017~~April 5, 2020.

Revenue for the three months ended ~~October 1, 2017~~April 5, 2020 was ~~$554.3~~$652.4 million, as compared to ~~$514.5~~$648.7 million for the three months ended ~~October 2, 2016,~~March 31, 2019, an increase of ~~$39.8~~$3.7 million, or 8%approximately 1%, which includes an approximate 2%3% increase in revenue attributable to acquisitions and divestitures and a ~~1% increase~~2% decrease in revenue attributable to ~~favorable~~unfavorable changes in foreign exchange rates. The analysis in the remainder of this paragraph compares segment revenue for the three months ended ~~October 1, 2017~~April 5, 2020 as compared to the three months ended ~~October 2, 2016~~March 31, 2019 and includes the effect of foreign exchange rate fluctuations, acquisitions and divestitures. Our Discovery & Analytical Solutions segment revenue was ~~$385.4~~$398.4 million for the three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$365.1~~$388.8 million for the three months ended ~~October 2, 2016,~~March 31, 2019, an increase of ~~$20.3~~$9.6 million, or 6%2%, primarily ~~due to~~driven by an increase ~~of $15.7 million from~~in our ~~laboratory services~~life sciences market revenue and ~~an increase of $7.9 million from environmental, food and industrial markets revenue,~~extra fiscal week partially offset by a decrease in our applied markets revenue, unfavorable changes in foreign exchange rates and reduced demand for our product offerings in the industrial, environmental and food markets as a result of ~~$3.3 million from our life sciences research market revenue.~~the COVID-19 pandemic. Our Diagnostics segment revenue was ~~$168.9~~$254.0 million for the three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$149.4~~$259.9 million for the three months ended ~~October 2, 2016,~~March 31, 2019, a decrease of $5.9 million, or 2%, primarily due to lower sales volume in our reproductive health and immunodiagnostics businesses as a result of the COVID-19 pandemic and unfavorable changes in foreign exchange rates, partially offset by an increase ~~of $19.5 million, or 13%, due to continued expansion~~ in revenue from our ~~newborn~~applied genomics COVID-19 product offerings and ~~infectious disease screening solutions and strong growth in applied genomics.~~the extra fiscal week. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize $0.2 million of revenue for each of the three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016 that otherwise would have been recorded by the acquired businesses during each of the respective periods.~~

Revenue for the nine months ended October 1, 2017 was $1,615.4 million, as compared to $1,548.7 million for the nine months ended October 2, 2016, an increase of $66.6 million, or 4%, which includes an approximate 2% increase in revenue attributable to acquisitions and divestitures and a 1% decrease in revenue attributable to unfavorable changes in foreign exchange rates. The analysis in the remainder of this paragraph compares segment revenue for the nine months ended October 1, 2017 as compared to the nine months ended October 2, 2016 and includes the effect of foreign exchange rate fluctuations, acquisitions and divestitures. Our Discovery & Analytical Solutions segment revenue was $1,130.3 million for the nine months ended October 1, 2017, as compared to $1,103.0 million for the nine months ended October 2, 2016, an increase of

$27.2 million, or 2%, primarily due to an increase of $32.0 million from our laboratory services market revenue and an increase of $9.7 million from our environmental, food and industrial markets revenue, partially offset by a decrease of $14.5 million from our life sciences research market revenue. Our Diagnostics segment revenue was $485.1 million for the nine months ended October 1, 2017, as compared to $445.7 million for the nine months ended October 2, 2016, an increase of $39.3 million, or 9%, due to continued expansion in our newborn, maternal fetal health and infectious disease screening solutions. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize $0.6 million of revenue for each of the nine months ended October 1, 2017 and October 2, 2016March 31, 2019 that otherwise would have been recorded by the acquired businesses during each of the respective periods.

Cost of revenue for the three months ended ~~October 1, 2017~~April 5, 2020 was ~~$285.5~~$344.4 million, as compared to ~~$265.9~~$340.9 million for the three months ended ~~October 2, 2016,~~March 31, 2019, an increase of ~~$19.5~~$3.4 million, or 7%. As a percentage of revenue, cost of revenue decreased to 51.5% for the three months ended October 1, 2017, from 51.7% for the three months ended October 2, 2016, resulting in an increase in gross margin of 19 basis points to 48.5% for the three months ended October 1, 2017, from 48.3% for the three months ended October 2, 2016. Amortization of intangible assets increased and was $7.1 million for the three months ended October 1, 2017, as compared to $7.0 million for the three months ended October 2, 2016. Stock-based compensation expense was $0.4 million for the three months ended October 1, 2017, as compared to $0.3 million for the three months ended October 2, 2016. In addition to the above items, the overall increase in gross margin was primarily the result of a favorable shift in product mix and benefits from our initiatives to improve our supply chain.

~~Cost of revenue for the nine months ended October 1, 2017 was $849.4 million, as compared to $811.6 million for the nine months ended October 2, 2016, an increase of $37.9 million, or 5%~~approximately 1%. As a percentage of revenue, cost of revenue increased to 52.8% for the three months ended April 5, 2020, from 52.6% for the ~~nine~~three months ended ~~October 1, 2017, from 52.4% for the nine months ended October 2, 2016,~~March 31, 2019, resulting in a decrease in gross margin of 1823 basis points to 47.2% for the three months ended April 5, 2020, from 47.4% for the ~~nine~~three months ended ~~October 1, 2017, from 47.6% for the nine months ended October 2, 2016.~~March 31, 2019. Amortization of intangible assets ~~decreased to $21.3~~increased and was $16.1 million for the ~~nine~~three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$23.3~~$14.8 million for the ~~nine~~three months ended ~~October 2, 2016.~~March 31, 2019. Stock-based compensation expense was ~~$0.9~~$0.3 million for each of the ~~nine~~three months ended ~~October 1, 2017, as compared to $0.8 million for the nine months ended October 2, 2016.~~April 5, 2020 and March 31, 2019. The amortization of purchase accounting adjustments to record the inventory from certain acquisitions added an incremental expense of ~~$4.2~~$1.1 million for the ~~nine~~three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$0.4~~$0.3 million for the ~~nine~~three months ended ~~October 2, 2016.~~March 31, 2019. In addition to the above items, the overall decrease in gross margin was primarily the result of ~~an unfavorable shift in product mix~~increased amortization expense and lower volume partially offset by ~~benefits from our initiatives to improve our supply chain.~~services productivity and pricing initiatives.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended ~~October 1, 2017~~April 5, 2020 were ~~$150.9~~$208.6 million, as compared to ~~$142.6~~$198.9 million for the three months ended ~~October 2, 2016,~~March 31, 2019, an increase of $~~8.3~~9.7 million, or ~~5.8%~~5%. As a percentage of revenue, selling, general and administrative expenses ~~decrease~~increased and were ~~27.2%~~32.0% for the three months ended ~~October 1, 2017~~April 5, 2020, as compared to ~~27.7%~~30.7% for the three months ended ~~October 2, 2016~~March 31, 2019. Amortization of intangible assets increased ~~to $10.5~~and was $31.2 million for the three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$9.8~~$23.9 million for the three months ended ~~October 2, 2016.~~March 31, 2019. Stock-based compensation expense was ~~$3.7~~$2.5 million for the three months ended ~~October 1, 2017,~~April 5, 2020 as compared to ~~$3.3~~$5.5 million for the three months ended ~~October 2, 2016.~~March 31, 2019. Other purchase accounting adjustments ~~added an incremental expense of $0.7~~decreased expenses by $12.3 million for the three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$4.1~~increasing expenses by $3.1 million for the three months ended ~~October 2, 2016.~~March 31, 2019. Acquisition and divestiture-related expenses added an incremental expense of ~~$5.4~~$12.4 million for the three months ended ~~October 1, 2017,~~April 5, 2020, as compared to ~~$0.1~~$1.6 million for the three months ended ~~October 2, 2016.~~March 31, 2019. Legal costs for significant litigation matters were $0.4 million for each of the three months ended April 5, 2020 and March 31, 2019. In addition to the above items, the increase in selling, general and administrative expenses was primarily ~~due~~the result of costs related to ~~higher commissions~~growth investments and ~~marketing expenses,~~the extra fiscal week, which were partially offset by lower costs ~~as a result of~~resulting from cost containment and productivity initiatives.

Selling, general and administrative expenses for the nine months ended October 1, 2017 were $443.9 million, as compared to $438.1 million for the nine months ended October 2, 2016, an increase of $5.8 million, or 1%. As a percentage of revenue, selling, general and administrative expenses decreased and were 27.5% for the nine months ended October 1, 2017, as compared to 28.3% for the nine months ended October 2, 2016. Amortization of intangible assets increased and was $30.7 million for the nine months ended October 1, 2017, as compared to $30.1 million for the nine months ended October 2, 2016. Stock-based compensation expense was $14.2 million for the nine months ended October 1, 2017, as compared to $12.1 million for the nine months ended October 2, 2016. Other purchase accounting adjustments added an incremental expense of $1.6 million for the nine months ended October 1, 2017, as compared to $9.7 million for the nine months ended October 2, 2016. Acquisition and divestiture-related expenses added an incremental expense of $11.7 million for the nine months ended October 1, 2017, as compared to $0.6 million for the nine months ended October 2, 2016. Other than the items listed above, selling, general and administrative expenses were generally consistent year over year.

Research and Development Expenses

Research and development expenses for the three months ended ~~October 1, 2017~~April 5, 2020 were ~~$34.9~~$48.9 million, as compared to ~~$29.5~~$48.0 million for the three months ended ~~October 2, 2016~~March 31, 2019, an increase of $~~5.4~~0.9 million, or ~~18%~~2%. As a percentage of revenue, research and development expenses increased and were ~~6.3%~~7.5% for the three months ended ~~October 1, 2017~~April 5, 2020, as compared to ~~5.7%~~7.4% for the three months ended ~~October 2, 2016. Amortization of intangible assets~~March 31, 2019. Stock-based compensation expense was ~~$0.1~~$0.3 million for each of the three months ended ~~October 1, 2017~~April 5, 2020 and ~~October 2, 2016. Stock-based compensation expense was~~ ~~$0.4 million~~ ~~for the~~ ~~three~~ ~~months ended~~ ~~October 1, 2017, as compared to $0.2 million for the~~ ~~three~~ ~~months ended October 2, 2016.~~March 31, 2019. The increase in research and development expenses was ~~primarily~~driven by the ~~result of~~extra fiscal week, partially offset by improvements in leveraging our investments in new product ~~development, which was partially offset by lower costs as a result of cost containment and productivity initiatives.~~development.

~~Research and development expenses for the nine months ended October 1, 2017 were $101.7 million, as compared to $91.4 million for the nine months ended October 2, 2016, an increase~~ of $10.4 million, or 11%. As a percentage of revenue, research and development expenses increased and were 6.3% for the nine months ended October 1, 2017, as compared to 5.9% for the nine months ended October 2, 2016. Amortization of intangible assets decreased and was $0.2 million for the nine months ended October 1, 2017, as compared to $0.5 million for the nine months ended October 2, 2016. Stock-based compensation expense was $1.1 million for the nine months ended October 1, 2017, as compared to $0.6 million for the nine months ended October 2, 2016. The increase in research and development expenses was primarily the result of investments in new product development, which was partially offset by lower costs as a result of cost containment and productivity initiatives.

Restructuring and ~~Contract Termination Charges,~~Other Costs, Net

We have undertaken a series of restructuring actions related to the impact of acquisitions and divestitures, the alignment of our operations with our growth strategy, the integration of our business units and our productivity initiatives. The current portion of restructuring and contract termination charges is recorded in accrued restructuring and contract termination charges and the long-term portion of restructuring and contract termination charges is recorded in long-term liabilities. The activities associated with these plans have been reported as restructuring and ~~contract termination charges,~~other costs, net, as applicable, and are included as a component of income from continuing operations.

We implemented a restructuring plan in ~~each of~~ the first ~~and third quarters~~quarter of fiscal year ~~2017~~2020 consisting of workforce reductions and closure of excess facilities principally intended to realign resources to emphasize growth initiatives (the "Q1 2020 Plan"). We implemented a restructuring plan in each quarter of fiscal year 2019 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q1 ~~2017~~2019 Plan", "Q2 2019 Plan", "Q3 2019 Plan" and ~~"Q3 2017"~~"Q4 2019 Plan", respectively). We implemented a restructuring plan in the third quarter of fiscal year 2016 consisting of workforce reductions principally intended to focus resources on higher growth product lines (the "Q3 2016 Plan"). We implemented a restructuring plan in the second quarter of fiscal year 2016 consisting of workforce reductions principally intended to focus resources on higher growth end markets (the "Q2 2016 Plan"). Details of the plans initiated in previous years (the “Previous Plans”) are discussed more fully in Note 45 to the audited consolidated financial statements in the ~~2016~~2019 Form 10-K.



	Three Months Ended
	April 5, 2020			March 31, 2019
	(In thousands)
Net income	$	33,665		$	35,412
Other comprehensive loss:
Foreign currency translation adjustments	(78,593		)	3,066
Unrealized loss on securities, net of tax	(88		)	(120		)
Other comprehensive (loss) income	(78,681		)	2,946
Comprehensive (loss) income	$	(45,016	)	$	38,358


	October 1, 2017			January 1, 2017			April 5, 2020			December 29, 2019
	(In thousands, except share and per share data)						(In thousands, except share and per share data)
Current assets:
Cash and cash equivalents	$	709,488		$	359,265		$	195,146		$	191,877
Accounts receivable, net	440,649			425,588			626,150			725,184
Inventories	295,176			246,847			393,164			356,937
Other current assets	100,347			99,246			127,366			100,381
Current assets of discontinued operations	—			58,985
Total current assets	1,545,660			1,189,931			1,341,826			1,374,379
Property, plant and equipment:
At cost	475,106			427,903			703,266			701,580
Accumulated depreciation	(317,441		)	(282,409		)	(389,409		)	(383,357		)
Property, plant and equipment, net	157,665			145,494			313,857			318,223
Operating lease right-of-use assets							196,319			167,276
Intangible assets, net	441,425			420,224			1,200,288			1,283,286
Goodwill	2,373,009			2,247,966			3,051,694			3,111,227
Other assets, net	221,196			204,679			280,412			284,173
Long-term assets of discontinued operations	—			68,389
Total assets	$	4,738,955		$	4,276,683		$	6,384,396		$	6,538,564
Current liabilities:
Current portion of long-term debt	$	1,294		$	1,172		$	9,654		$	9,974
Accounts payable	163,735			168,033			233,227			235,855
Accrued restructuring and contract termination charges	10,066			7,479
Short-term accrued restructuring and other costs							11,298			11,559
Accrued expenses and other current liabilities	420,263			399,700			473,853			503,332
Current liabilities of discontinued operations	2,154			26,971			2,112			2,112
Total current liabilities	597,512			603,355			730,144			762,832
Long-term debt	1,109,269			1,045,254			2,010,525			2,064,041
Long-term liabilities	496,145			459,544			704,154			751,468
Long-term liabilities of discontinued operations	—			14,960
Operating lease liabilities							179,827			146,399
Total liabilities	2,202,926			2,123,113			3,624,650			3,724,740
Commitments and contingencies (see Note 18)
Stockholders’ equity:
Preferred stock—$1 par value per share, authorized 1,000,000 shares; none issued or outstanding	—			—			—			—
Common stock—$1 par value per share, authorized 300,000,000 shares; issued and outstanding 110,207,000 shares and 109,617,000 shares at October 1, 2017 and at January 1, 2017, respectively	110,207			109,617
Common stock—$1 par value per share, authorized 300,000,000 shares; issued and outstanding 111,306,000 shares and 111,140,000 shares at April 5, 2020 and December 29, 2019, respectively							111,306			111,140
Capital in excess of par value	50,036			26,130			90,236			90,357
Retained earnings	2,429,361			2,118,684			2,836,531			2,811,973
Accumulated other comprehensive loss	(53,575		)	(100,861		)	(278,327		)	(199,646		)
Total stockholders’ equity	2,536,029			2,153,570			2,759,746			2,813,824
Total liabilities and stockholders’ equity	$	4,738,955		$	4,276,683		$	6,384,396		$	6,538,564



	For the Three-Month Period Ended March 31, 2019
	Common Stock Amount			Capital in Excess of Par Value			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
	(In thousands)
Balance, December 30, 2018	$	110,597		$	48,772		$	2,602,067		$	(176,481	)	$	2,584,955
Impact of adopting ASU 2016-02	—			—			13,289			—			13,289
Net income	—			—			35,412			—			35,412
Other comprehensive income	—			—			—			2,946			2,946
Dividends	—			—			(7,742		)	—			(7,742		)
Exercise of employee stock options and related income tax benefits	186			8,424			—			—			8,610
Issuance of common stock for employee stock purchase plans	19			1,367			—			—			1,386
Purchases of common stock	(57		)	(5,236		)	—			—			(5,293		)
Issuance of common stock for long-term incentive program	146			3,392			—			—			3,538
Stock compensation	—			1,371			—			—			1,371
Balance, March 31, 2019	$	110,891		$	58,090		$	2,643,026		$	(173,535	)	$	2,638,472


	Nine Months Ended						Three Months Ended
	October 1, 2017			October 2, 2016			April 5, 2020			March 31, 2019
	(In thousands)						(In thousands)
Operating activities:
Net income	$	333,750		$	169,450		$	33,665		$	35,412
Income from discontinued operations and dispositions, net of income taxes	(138,416		)	(16,033		)
Loss from discontinued operations and dispositions, net of income taxes							50			41
Income from continuing operations	195,334			153,417			33,715			35,453
Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
Restructuring and contract termination charges, net	12,920			5,124
Adjustments to reconcile income from continuing operations to net cash provided by (used in) continuing operations:
Stock-based compensation							3,050			6,097
Restructuring and other costs, net							5,858			7,639
Depreciation and amortization	75,507			74,507			60,758			50,469
Loss (gain) on disposition of businesses and assets, net	301			(5,562		)
Stock-based compensation	16,179			13,449
Loss on disposition of businesses and assets, net							—			2,133
Change in fair value of contingent consideration	1,560			9,678			(12,325		)	3,102
Amortization of deferred debt financing costs and accretion of discount	1,936			1,507
Amortization of deferred debt financing costs and accretion of discounts							707			861
Amortization of acquired inventory revaluation	4,240			396			1,088			283
Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:
Accounts receivable, net	10,971			5,081			80,600			7,864
Inventories	(25,208		)	(14,022		)	(54,758		)	(38,441		)
Accounts payable	(12,459		)	5,863			3,164			(1,451		)
Accrued expenses and other	(116,118		)	(68,248		)	(61,807		)	(79,325		)
Net cash provided by operating activities of continuing operations	165,163			181,190
Net cash (used in) provided by operating activities of discontinued operations	(4,806		)	20,702
Net cash provided by operating activities	160,357			201,892
Net cash provided by (used in) operating activities of continuing operations							60,050			(5,316		)
Net cash used in operating activities of discontinued operations							—			—
Net cash provided by (used in) operating activities							60,050			(5,316		)
Investing activities:
Capital expenditures	(22,362		)	(24,411		)	(20,488		)	(19,875		)
Settlement of cash flow hedges	60,420			—
Proceeds from disposition of businesses	—			21,000
Purchases of investments							(1,638		)	(519		)
Purchases of licenses							—			(5,000		)
Proceeds from disposition of businesses and assets							60			550
Proceeds from surrender of life insurance policies	45			44			52			—
Changes in restricted cash balances	17,218			(2,000		)
Activity related to acquisitions, net of cash and cash equivalents acquired	(123,578		)	(71,924		)	—			(4,384		)
Net cash used in investing activities of continuing operations	(68,257		)	(77,291		)	(22,014		)	(29,228		)
Net cash provided by (used in) investing activities of discontinued operations	272,779			(900		)
Net cash provided by (used in) investing activities	204,522			(78,191		)
Net cash provided by investing activities of discontinued operations							—			—
Net cash used in investing activities							(22,014		)	(29,228		)
Financing activities:
Payments on borrowings	(146,965		)	(804,507		)	(141,000		)	(152,000		)
Proceeds from borrowings	146,952			375,507			125,000			179,000
Proceeds from sale of senior debt	—			546,190
Payments of debt financing costs	—			(7,868		)	—			(88		)
Settlement of cash flow hedges	(11,539		)	1,674			8,708			(1,675		)
Net payments on other credit facilities	(872		)	(835		)	(4,283		)	(3,476		)
Payments for acquisition-related contingent consideration	(8,940		)	(113		)	—			(12,100		)
Proceeds from issuance of common stock under stock plans	14,004			12,081			1,106			8,610
Purchases of common stock	(3,480		)	(151,447		)	(6,342		)	(5,293		)
Dividends paid	(23,077		)	(23,131		)	(7,781		)	(7,743		)
Net cash used in financing activities of continuing operations	(33,917		)	(52,449		)
Net cash used in financing activities of discontinued operations	(533		)	(193		)
Net cash used in financing activities	(34,450		)	(52,642		)
Effect of exchange rate changes on cash and cash equivalents	19,794			2,672
Net increase in cash and cash equivalents	350,223			73,731
Cash and cash equivalents at beginning of period	359,265			237,932
Cash and cash equivalents at end of period	$	709,488		$	311,663
Net cash (used in) provided by financing activities of continuing operations							(24,592		)	5,235
Net cash provided by financing activities of discontinued operations							—			—
Net cash (used in) provided by financing activities							(24,592		)	5,235
Effect of exchange rate changes on cash, cash equivalents and restricted cash							(10,169		)	450
Net increase (decrease) in cash, cash equivalents and restricted cash							3,275			(28,859		)
Cash, cash equivalents and restricted cash at beginning of period							191,894			166,315
Cash, cash equivalents and restricted cash at end of period							$	195,169		$	137,456

Supplemental disclosures of cash flow information
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the condensed consolidated statements of cash flows:
Cash and cash equivalents							$	195,146		$	134,252
Restricted cash included in other current assets							23			3,204
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows							$	195,169		$	137,456



	Reportable Segments
	Three Months Ended
	April 5, 2020						March 31, 2019
	Discovery & Analytical Solutions		Diagnostics		Total		Discovery & Analytical Solutions		Diagnostics		Total
	(In thousands)
Primary geographical markets
Americas	$	169,116	$	105,157	$	274,273	$	162,417	$	98,008	$	260,425
Europe	118,657		81,599		200,256		107,606		65,858		173,464
Asia	110,622		67,245		177,867		118,810		96,038		214,848
	$	398,395	$	254,001	$	652,396	$	388,833	$	259,904	$	648,737

Primary end-markets
Diagnostics	$	—	$	254,001	$	254,001	$	—	$	259,904	$	259,904
Life sciences	245,733		—		245,733		217,377		—		217,377
Applied markets	152,662		—		152,662		171,456		—		171,456
	$	398,395	$	254,001	$	652,396	$	388,833	$	259,904	$	648,737

Timing of revenue recognition
Products and services transferred at a point in time	$	267,907	$	231,653	$	499,560	$	275,438	$	239,247	$	514,685
Services transferred over time	130,488		22,348		152,836		113,395		20,657		134,052
	$	398,395	$	254,001	$	652,396	$	388,833	$	259,904	$	648,737



	For the Three-Month Period Ended April 5, 2020
	Common Stock Amount			Capital in Excess of Par Value			Retained Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	(In thousands)
Balance, December 29, 2019	$	111,140		$	90,357		$	2,811,973		$	(199,646	)	$	2,813,824
Impact of adopting ASU 2016-13 (see Note 1)	—			—			(1,328		)	—			(1,328		)
Net income	—			—			33,665			—			33,665
Other comprehensive loss	—			—			—			(78,681		)	(78,681		)
Dividends	—			—			(7,779		)	—			(7,779		)
Exercise of employee stock options and related income tax benefits	21			1,085			—			—			1,106
Issuance of common stock for employee stock purchase plans	14			1,242			—			—			1,256
Purchases of common stock	(66		)	(6,276		)	—			—			(6,342		)
Issuance of common stock for long-term incentive program	197			2,831			—			—			3,028
Stock compensation	—			997			—			—			997
Balance, April 5, 2020	$	111,306		$	90,236		$	2,836,531		$	(278,327	)	$	2,759,746



	2017 Acquisition
	(In thousands)
Fair value of business combination:
Cash payments	$	126,007
Other liability	1,273
Less: cash acquired	(2,429		)
Total	$	124,851
Identifiable assets acquired and liabilities assumed:
Current assets	$	15,825
Property, plant and equipment	9,643
Other assets	1,084
Identifiable intangible assets:
Core technology	3,500
Trade names	3,000
Customer relationships	43,000
Goodwill	74,238
Deferred taxes	(15,414		)
Liabilities assumed	(10,025		)
Total	$	124,851



	2016 Acquisitions
	(In thousands)
Fair value of business combination:
Cash payments	$	72,497
Working capital and other adjustments	(261		)
Less: cash acquired	(2,152		)
Total	$	70,084
Identifiable assets acquired and liabilities assumed:
Current assets	$	7,153
Property, plant and equipment	7,542
Identifiable intangible assets:
Core technology	6,600
Trade names	570
Customer relationships	14,900
Goodwill	42,843
Deferred taxes	(7,539		)
Liabilities assumed	(1,985		)
Total	$	70,084



	Balance at January 1, 2017		2017 Charges		2017 Changes in Estimates, Net		2017 Amounts Paid			Balance at October 1, 2017
	(In thousands)
Severance:
Q3 2017 Plan	$	—	$	2,342	$	—	$	(34	)	$	2,308
Q1 2017 Plan	—		6,631		—		(3,834		)	2,797
Q3 2016 Plan	1,208		—		—		(990		)	218
Q2 2016 Plan	1,436		—		—		(446		)	990

Facility:
Q1 2017 Plan	—		66		—		(9		)	57

Previous Plans	7,780		927		—		(2,408		)	6,299
Restructuring	10,424		9,966		—		(7,721		)	12,669
Contract Termination	117		2,909		45		(25		)	3,046
Total Restructuring and Contract Termination	$	10,541	$	12,875	$	45	$	(7,746	)	$	15,715



	Three and Nine Months Ended
	October 1, 2017		October 2, 2016
Risk-free interest rate	1.5	%	1.2	%
Expected dividend yield	0.4	%	0.6	%
Expected term	5 years		5 years
Expected stock volatility	22.4	%	25.2	%



	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Total Intrinsic Value
	(In thousands)				(In years)	(In millions)
Outstanding at January 1, 2017	2,287		$	37.64
Granted	460		53.77
Exercised	(454	)	30.88
Forfeited	(11	)	49.34
Outstanding at October 1, 2017	2,282		$	42.18	4.1	$	61.1
Exercisable at October 1, 2017	1,344		$	37.19	3.0	$	42.7



				Fair Value Measurements at January 1, 2017 Using:
	Total Carrying Value at January 1, 2017			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(In thousands)
Marketable securities	$	1,678		$	1,678	$	—		$	—
Foreign exchange derivative assets	1,208			—		1,208			—
Foreign exchange derivative liabilities	(1,370		)	—		(1,370		)	—
Contingent consideration	(63,201		)	—		—			(63,201		)



	Issuer Repurchases of Equity Securities
Period	Total Number of Shares Purchased⁽¹⁾	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs⁽²⁾	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
July 3, 2017 - July 30, 2017	1,966	$	69.46	—	8,000,000
July 31, 2017 - August 27, 2017	261	64.13		—	8,000,000
August 28, 2017 - October 1, 2017	905	68.72		—	8,000,000
Activity for quarter ended October 1, 2017	3,132	$	68.80	—	8,000,000



Exhibit Number		Exhibit Name

10.1		~~Loan~~Second Amendment to Credit Agreement, dated as of ~~August 11, 2017,~~February 27, 2020, among PerkinElmer, Inc., ~~the lenders from time to time party thereto,~~PerkinElmer Health Sciences, Inc., PerkinElmer Life Sciences International Holdings, PerkinElmer Global Holdings S.à r.l. and ~~JPMorgan Chase~~PerkinElmer Health Sciences B.V., as Borrowers, Bank of America, N.A. as Administrative Agent, ~~Sole Bookrunner~~Swing Line Lender and ~~Sole Lead Arranger (incorporated herein by reference to~~an L/C Issuer, the Lenders party thereto and the other L/C Issuers party thereto, attached hereto as Exhibit ~~10.1 to the Company's Current Report on Form 8-K filed with the SEC on August 15, 2017 (File No. 001-05075)).~~10.1.

10.2		~~Amendment No.~~Form of Restricted Stock Unit Agreement (Time-based vesting) with single-trigger vesting acceleration upon a change of control for grants to executive officers under the 2019 Incentive Plan, filed with the Commission on April 1, ~~dated~~2020 as ~~of August 11, 2017~~Exhibit 99.1 to Credit Agreement, dated as of August 11, 2016, by and among PerkinElmer, Inc., Wallac Oy, and PerkinElmer Health Sciences, Inc., as borrowers, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated herein by reference to Exhibit 10.2 to the Company's Current Reportour current report on Form 8-K ~~filed with the SEC on August 15, 2017~~ (File No. 001-05075)). and herein incorporated by reference.

~~31.1~~ 10.3		Form of Restricted Stock Unit Agreement (Time-based vesting) with double-trigger vesting acceleration upon a change of control for grants to executive officers under the 2019 Incentive Plan, filed with the Commission on April 1, 2020 as Exhibit 99.2 to our current report on Form 8-K (File No. 001-05075) and herein incorporated by reference.

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance ~~Document.~~Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).



	PERKINELMER, INC.

~~November 7, 2017~~May 12, 2020	By:	/s/ F~~RANK~~ ~~A. WILSON~~JAMES M. MOCK
		~~Frank A. Wilson~~James M. Mock Senior Vice President and Chief Financial Officer (Principal Financial Officer)



	PERKINELMER, INC.

~~November 7, 2017~~May 12, 2020	By:	/s/ ANDREW OKUN
		Andrew Okun Vice President and Chief Accounting Officer (Principal Accounting Officer)