10-Q 1 pki-20220403.htm 10-Q pki-20220403
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________ 
FORM 10-Q
_______________________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 3, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
Commission File Number 001-5075
_______________________________________ 
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,Massachusetts02451
(Address of principal executive offices)(Zip Code)
(781663-6900
(Registrant’s telephone number, including area code)
______________________________________ 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol (s)Name of each exchange on which registered
Common stock, $1 par value per sharePKIThe New York Stock Exchange
1.875% Notes due 2026PKI 21AThe 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      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).    Yes      No  

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


Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting 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  
As of May 5, 2022, there were outstanding 126,148,473 shares of common stock, $1 par value per share.


TABLE OF CONTENTS
 
  Page
PART I. FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 6.


3


PART I. FINANCIAL INFORMATION

Item 1.Unaudited Financial Statements

PERKINELMER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 
 Three Months Ended
 April 3,
2022
April 4,
2021
 (In thousands, except per share data)
Product revenue$866,945 $811,552 
Service revenue392,497 496,137 
Total revenue1,259,442 1,307,689 
Cost of product revenue403,651 339,312 
Cost of service revenue176,560 183,231 
Total cost of revenue580,211 522,543 
Selling, general and administrative expenses334,393 251,410 
Research and development expenses76,609 60,216 
Restructuring and other costs, net13,384 5,744 
Operating income from continuing operations254,845 467,776 
Interest and other expense (income), net37,245 (12,706)
Income from continuing operations before income taxes217,600 480,482 
Provision for income taxes40,597 101,139 
Income from continuing operations177,003 379,343 
Loss on disposition of discontinued operations before income taxes  
Provision for income taxes on discontinued operations and dispositions41 38 
Loss from discontinued operations and dispositions(41)(38)
Net income$176,962 $379,305 
Basic earnings per share:
Income from continuing operations$1.40 $3.39 
Loss from discontinued operations and dispositions(0.00)(0.00)
Net income$1.40 $3.39 
Diluted earnings per share:
Income from continuing operations$1.40 $3.37 
Loss from discontinued operations and dispositions(0.00)(0.00)
Net income$1.40 $3.37 
Weighted average shares of common stock outstanding:
Basic126,137 112,028 
Diluted126,635 112,495 
Cash dividends declared per common share$0.07 $0.07 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


PERKINELMER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended
April 3,
2022
April 4,
2021
(In thousands)
Net income$176,962 $379,305 
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of income taxes(84,011)(72,305)
Unrealized (loss) gain on securities, net of income taxes(16)94 
Other comprehensive loss(84,027)(72,211)
Comprehensive income$92,935 $307,094 










The accompanying notes are an integral part of these condensed consolidated financial statements.
5


PERKINELMER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
April 3,
2022
January 2,
2022
 (In thousands, except share and per share data)
Current assets:
Cash and cash equivalents$669,755 $618,319 
Accounts receivable, net941,722 1,023,792 
Inventories645,924 624,714 
Other current assets197,110 173,955 
Total current assets2,454,511 2,440,780 
Property, plant and equipment, net547,035 545,605 
Operating lease right-of-use assets201,966 207,775 
Intangible assets, net3,942,878 4,063,104 
Goodwill7,367,284 7,416,584 
Other assets, net334,793 326,706 
Total assets$14,848,467 $15,000,554 
Current liabilities:
Current portion of long-term debt$3,729 $4,240 
Accounts payable376,694 355,458 
Accrued expenses and other current liabilities882,628 854,046 
Total current liabilities1,263,051 1,213,744 
Long-term debt4,863,978 4,979,737 
Deferred taxes and long-term liabilities1,354,991 1,480,469 
Operating lease liabilities180,105 185,359 
Total liabilities7,662,125 7,859,309 
Commitments and contingencies (see Note 14)
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 126,140,000 shares and 126,241,000 shares at April 3, 2022 and January 2, 2022, respectively126,140 126,241 
Capital in excess of par value2,721,690 2,760,522 
Retained earnings4,585,231 4,417,174 
Accumulated other comprehensive loss(246,719)(162,692)
Total stockholders’ equity7,186,342 7,141,245 
Total liabilities and stockholders’ equity$14,848,467 $15,000,554 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6


PERKINELMER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

 
For the Three-Month Period Ended April 3, 2022
Common
Stock
Shares
Common
Stock
Amount
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
(In thousands)
Balance, January 2, 2022126,241 $126,241 $2,760,522 $4,417,174 $(162,692)$7,141,245 
Net income — — 176,962 — 176,962 
Other comprehensive loss — — — (84,027)(84,027)
Dividends — — (8,905)— (8,905)
Exercise of employee stock options and related income tax benefits18 18 1,379 — — 1,397 
Purchases of common stock(307)(307)(55,285)— — (55,592)
Issuance of common stock for long-term incentive program188 188 12,282 — — 12,470 
Stock compensation  2,792   2,792 
Balance, April 3, 2022126,140 $126,140 $2,721,690 $4,585,231 $(246,719)$7,186,342 

For the Three-Month Period Ended April 4, 2021
Common
Stock
Shares
Common
Stock
Amount
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
(In thousands)
Balance, January 3, 2021112,090 $112,090 $148,101 $3,507,262 $(31,961)$3,735,492 
Net income — — 379,305 — 379,305 
Other comprehensive loss — — — (72,211)(72,211)
Dividends — — (7,846)— (7,846)
Exercise of employee stock options and related income tax benefits95 95 4,892 — — 4,987 
Issuance of common stock for employee stock purchase plans  8   8 
Purchases of common stock(295)(295)(42,484)— — (42,779)
Issuance of common stock for long-term incentive program176 176 4,274 — — 4,450 
Stock compensation  899   899 
Balance, April 4, 2021112,066 $112,066 $115,690 $3,878,721 $(104,172)$4,002,305 

 
The accompanying notes are an integral part of these condensed consolidated financial statements.
7


PERKINELMER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Three Months Ended
 April 3,
2022
April 4,
2021
 (In thousands)
Operating activities:
Net income$176,962 $379,305 
Loss from discontinued operations and dispositions, net of income taxes41 38 
Income from continuing operations177,003 379,343 
Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
Stock-based compensation15,262 5,157 
Restructuring and other costs, net13,384 5,744 
Depreciation and amortization120,052 70,186 
Change in fair value of contingent consideration693 240 
Amortization of deferred debt financing costs and accretion of discounts and debt extinguishment costs1,900 896 
Change in fair value of financial securities12,125 (19,298)
Amortization of acquired inventory revaluation16,868 2,981 
Changes in assets and liabilities which provided (used) cash, excluding effects from companies acquired:
Accounts receivable, net69,065 165,190 
Inventories(46,968)(15,008)
Accounts payable26,352 (5,048)
Accrued expenses and other(122,521)(116,883)
Net cash provided by operating activities of continuing operations283,215 473,500 
Investing activities:
Capital expenditures(29,431)(14,311)
Purchases of investments(22,995)(4,000)
Cash paid for acquisitions, net of cash, cash equivalents and restricted cash acquired(3,880)(443,543)
Net cash used in investing activities of continuing operations(56,306)(461,854)
Financing activities:
Payments on borrowings(220,000)(743,545)
Proceeds from borrowings220,000 584,000 
Payments of term loan(100,000) 
Proceeds from sale of senior unsecured notes 799,856 
Payments of debt financing and equity issuance costs (7,882)
Settlement of cash flow hedges(762)6,005 
Net payments on other credit facilities(1,064)(9,799)
Proceeds from issuance of common stock under stock plans1,397 4,987 
Purchases of common stock(55,592)(42,779)
Dividends paid(8,837)(7,852)
Net cash (used in) provided by financing activities of continuing operations(164,858)582,991 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(10,636)(6,849)
8


Net increase in cash, cash equivalents and restricted cash51,415 587,788 
Cash, cash equivalents and restricted cash at beginning of period619,337 402,613 
Cash, cash equivalents and restricted cash at end of period$670,752 $990,401 
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$669,755 $988,234 
Restricted cash included in other current assets997 2,167 
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows$670,752 $990,401 

The accompanying notes are an integral part of these condensed consolidated financial statements.
9


PERKINELMER, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 1: Basis of Presentation
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 2, 2022, filed with the SEC (the “2021 Form 10-K”). The balance sheet amounts at January 2, 2022 in this report were derived from the Company’s audited 2021 consolidated financial statements included in the 2021 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 months ended April 3, 2022 and April 4, 2021, respectively, are not necessarily indicative of the results for the entire fiscal year or any future period.

Note 2: Revenue

Disaggregation of revenue
In the following tables, revenue is disaggregated by primary geographical markets, primary end-markets and timing of revenue recognition.
Reportable Segments
Three Months Ended
April 3, 2022April 4, 2021
Discovery & Analytical SolutionsDiagnosticsTotalDiscovery & Analytical SolutionsDiagnosticsTotal
(In thousands)
Primary geographical markets
Americas$273,158 $327,936 $601,094 $175,115 $400,927 $576,042 
Europe158,238 198,168 356,406 135,458 311,743 447,201 
Asia170,970 130,972 301,942 144,036 140,410 284,446 
$602,366 $657,076 $1,259,442 $454,609 $853,080 $1,307,689 
Primary end-markets
Diagnostics$ $657,076 $657,076 $ $853,080 $853,080 
Life sciences412,409  412,409 277,201  277,201 
Applied markets189,957  189,957 177,408  177,408 
$602,366 $657,076 $1,259,442 $454,609 $853,080 $1,307,689 
Timing of revenue recognition
Products and services transferred at a point in time$461,314 $554,520 $1,015,834 $326,662 $615,106 $941,768 
Services transferred over time141,052 102,556 243,608 127,947 237,974 365,921 
$602,366 $657,076 $1,259,442 $454,609 $853,080 $1,307,689 
10


Major Customer Concentration
Revenues from one customer in the Company's Diagnostics segment represent approximately $112.7 million and $205.6 million of the Company's total revenue for the three months ended April 3, 2022 and April 4, 2021, respectively.
On March 31, 2022, the Company was notified by the California Department of Public Health (“CDPH”) that, due to the decrease in COVID-19 cases and the related decreased need for testing for COVID-19, the CDPH intends to end its contract with the Company for the supply and operation of the Valencia Branch Laboratory effective on May 15, 2022. The Company shall recognize the unamortized contract liability pertaining to the nonrefundable prepayment as revenue over the remaining period through May 15, 2022. As of March 31, 2022, the unamortized contract liability was $126.2 million. The contract liability that the Company expects to recognize in revenue in the second quarter of fiscal year 2022 amounts to $117.8 million.
Contract Balances
Contract assets: The unbilled receivables (contract assets) primarily relate to the Company's right to consideration for work completed but not billed at the reporting date. The unbilled receivables are transferred to trade receivables when billed to customers. Contract assets are generally classified as current assets and are included in "Accounts receivable, net" in the condensed consolidated balance sheets.
 (In thousands)
Balance at January 2, 2022$72,117 
Transferred to trade receivables from unbilled receivables recognized at the beginning of the period(37,062)
Increases as a result of recognition of revenue before billing to customers, excluding amounts transferred to trade receivables during the period27,156 
Balance at April 3, 2022$62,211 
Contract liabilities: The contract liabilities primarily relate to the advance consideration received from customers for products and related services for which transfer of control has not occurred at the balance sheet date. Contract liabilities are classified as either current in "Accounts payable" or "Accrued expenses and other current liabilities" or as long-term in "Long-term liabilities" in the condensed consolidated balance sheets based on the timing of when the Company expects to recognize revenue.
 (In thousands)
Balance at January 2, 2022$201,073 
Revenue recognized that was included in the contract liability balance at the beginning of the period(57,691)
Increases due to cash received, excluding amounts recognized as revenue during the period28,486 
Balance at April 3, 2022$171,868 

Note 3: Business Combinations
Acquisitions in fiscal year 2022
During the first quarter of fiscal year 2022, the Company completed the acquisition of two businesses for aggregate consideration of $13.5 million. Identifiable definite-lived intangible assets, such as core technology, acquired as part of these acquisitions had a weighted average amortization period of 5 years.
Acquisitions in fiscal year 2021
Acquisition of BioLegend, Inc. In fiscal year 2021, the Company completed the acquisition of BioLegend, Inc. ("BioLegend") and paid an aggregate consideration of $5.7 billion, net of cash acquired of $292.4 million, reflecting working capital and other adjustments (the "Aggregate Consideration"). The Aggregate Consideration was paid in a combination of $3.3 billion in cash and shares of the Company's common stock having a fair value of approximately $2.6 billion based on the $187.56 per share closing price of the Company's common stock on the New York Stock Exchange on September 17, 2021 (the "Stock Consideration"). The Stock Consideration consisted of 14,066,799 shares of the Company's common stock. BioLegend is recognized as a leading, global provider of life science antibodies and reagents, headquartered in San Diego, California, with approximately 700 employees. The operations for this acquisition is reported within the results of the Company's Discovery & Analytical Solutions segment from the acquisition date. The excess of the purchase price over the fair value of the acquired 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 is not tax deductible. Identifiable definite-lived intangible assets, such as core technology,
11


trade names, customer relationships and clone library, acquired as part of this acquisition had a weighted-average amortization period of 16.3 years.
BioLegend's revenue and net loss from the acquisition date to January 2, 2022 were $91.7 million and $25.8 million, respectively. The net loss includes $47.0 million of amortization of intangible assets recognized in the acquisition as well as $16.6 million of amortization of fair value adjustment to acquired inventory. The following unaudited pro forma information presents the combined financial results for the Company and BioLegend as if the acquisition of BioLegend had been completed at the beginning of fiscal year 2020:
Three Months Ended
April 4, 2021
(In thousands, except per share data)
Pro Forma Statement of Operations Information:
Revenue$1,385,114 
Income from continuing operations$370,624 
Basic earnings per share:
Income from continuing operations$2.94 
Diluted earnings per share:
Income from continuing operations$2.93 
The unaudited pro forma information for the first quarter of fiscal year 2021 has been calculated after applying the Company's accounting policies and the impact of acquisition date fair value adjustments. These pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments, such as increased interest expense on debt obtained to finance the transaction, and increased amortization for the fair value of acquired intangible assets.
The pro forma information does not reflect the effect of costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the combination occurred at the beginning of the period presented, or of future results of the consolidated entities. The actual results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.
Other acquisitions in 2021. During fiscal year 2021, the Company also completed the acquisition of seven other businesses for aggregate consideration of $1.2 billion. The acquired businesses include Oxford Immunotec Global PLC, a company based in Abingdon, UK with approximately 275 employees, for total consideration of $590.9 million and Nexcelom Bioscience Holdings, LLC, a company based in Lawrence, Massachusetts with approximately 130 employees, for total consideration of $267.3 million, and five other businesses, which were acquired for total consideration of $318.6 million. The excess of the purchase prices over the fair values of the acquired businesses' net assets represents cost and revenue synergies specific to the Company, as well as non-capitalizable intangible assets, such as employee workforces acquired, and has been allocated to goodwill, which is not tax deductible. 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 12.3 years.
12


The total purchase price for the acquisitions in fiscal year 2021 has been allocated to the estimated fair value of assets acquired and liabilities assumed as follows:
BioLegendOther
 (In thousands)
Fair value of business combination:
Cash payments$3,336,115 1,128,584 
Common stock issued2,638,369  
Other liability6,857 2,910 
Contingent consideration 45,031 
Working capital and other adjustments 183 
Less: cash acquired(292,377)(195,010)
Total$5,688,964 $981,698 
Identifiable assets acquired and liabilities assumed:
Current assets$184,704 $72,104 
Property, plant and equipment147,200 26,507 
Other assets9,330 15,564 
Identifiable intangible assets:
Core technology and clone library782,400 290,089 
Trade names and patents38,000 39,626 
Licenses8,979  
Customer relationships and backlog1,714,800 141,670 
Goodwill3,510,710 550,023 
Deferred taxes(668,920)(86,100)
Deferred revenue (1,197)
Debt assumed (4,628)
Liabilities assumed(38,239)(61,960)
Total$5,688,964 $981,698 
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. There were no material measurement period adjustments recognized in the current period.
The allocations of the purchase prices 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.
As of April 3, 2022, the Company may have to pay contingent consideration related to acquisitions with open contingency periods of up to $111.3 million. As of April 3, 2022, the Company has recorded contingent consideration obligations of $49.8 million, of which $1.1 million was recorded in accrued expenses and other current liabilities, and $48.7 million was recorded in long-term liabilities. As of January 2, 2022, the Company had recorded contingent consideration obligations with an estimated fair value of $58.0 million, of which $1.3 million was recorded in accrued expenses and other
13


current liabilities, and $56.7 million was recorded in long-term liabilities. The expected maximum earnout period for acquisitions with open contingency periods does not exceed 6.7 years from April 3, 2022, and the remaining weighted average expected earnout period at April 3, 2022 was 5.7 years. 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 for the three months ended April 3, 2022 and April 4, 2021 were $20.5 million and $4.4 million, respectively. These amounts included $7.5 million of stock compensation expense related to awards given to BioLegend employees for the three months ended April 3, 2022 and $5.4 million of net foreign exchange gain related to the Company's acquisition of Oxford and $5.4 million of incentive award associated with the Company's acquisition of Meizheng Group for the three months ended April 4, 2021. These acquisition and divestiture-related costs were expensed as incurred and recorded in selling, general and administrative expenses and interest and other expense, net in the Company's condensed consolidated statements of operations.

Note 4: Restructuring and Other Costs, Net
The Company implemented a restructuring plan in the first quarter of fiscal year 2022 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives and integrate new acquisitions (the "Q1 2022 Plan"). The Company implemented restructuring plans in each quarter of fiscal year 2021 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives and integrate new acquisitions (the "Q1 2021 Plan", "Q2 2021 Plan", "Q3 2021 Plan" and "Q4 2021 Plan", respectively). Details of the plans initiated in previous years (the “Previous Plans”) are discussed more fully in Note 4, Restructuring and Other Costs, Net, to the audited consolidated financial statements in the 2021 Form 10-K.
The following table summarizes the reductions in headcount, the initial restructuring or contract termination charges by 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 2022 and 2021:
Workforce ReductionsClosure of Excess FacilityTotal(Expected) Date Payments Substantially Completed by
Headcount ReductionDiscovery & Analytical SolutionsDiagnosticsDiscovery & Analytical SolutionsDiagnosticsSeveranceExcess Facility
(In thousands, except headcount data)
Q1 2022 Plan81$5,832 $399 $ $ $6,231 Q4 FY2022
Q4 2021 Plan313,139 77 150  3,366 Q3 FY2022Q1 FY2023
Q3 2021 Plan39420 366   786 Q2 FY2022
Q2 2021 Plan25968 564   1,532 Q1 FY2022
Q1 2021 Plan773,941 1,615   5,556 Q4 FY2021
The Company has terminated various contractual commitments in connection with certain disposal activities and has recorded charges for the costs of terminating these contracts before the end of their terms and the costs that will continue to be incurred for the remaining terms without economic benefit to the Company. The Company recorded net pre-tax charges of $6.3 million in the Discovery & Analytical Solutions segment during the three months ended April 3, 2022 as a result of these contract terminations. The Company recorded net pre-tax gains of $0.4 million in the Diagnostics segment during the three months ended April 3, 2022 as a result of changes in estimates from prior contract terminations.
The Company recorded pre-tax charges of $1.3 million and $0.2 million associated with relocating facilities during the three months ended April 3, 2022 and April 4, 2021, respectively, in the Discovery & Analytical Solutions segment. The Company expects to make payments on these relocation activities through end of fiscal year 2022.

14


Note 5: Interest and Other Expense, Net

Interest and other expense, net, consisted of the following:
 Three Months Ended
 April 3,
2022
April 4,
2021
 (In thousands)
Interest income$(595)$(411)
Interest expense28,388 14,126 
Change in fair value of financial securities
12,125 (19,298)
Other components of net periodic pension credit(2,362)(3,719)
Other income, net(311)(3,404)
Total interest and other expense (income), net$37,245 $(12,706)

Note 6: Inventories

Inventories consisted of the following:
April 3,
2022
January 2,
2022
 (In thousands)
Raw materials$239,937 $229,356 
Work in progress77,667 69,744 
Finished goods328,320 325,614 
Total inventories$645,924 $624,714 

15


Note 7: Debt

The Company’s debt consisted of the following:

April 3,
2022
Outstanding Principal
Unamortized Debt Discount
Unamortized Debt Issuance Costs
Net Carrying Amount
(In thousands)
Long-Term Debt:
Senior Unsecured Revolving Credit Facility$ $ $(3,181)$(3,181)
Unsecured Term Loan Credit Facility400,000  (477)399,523 
0.550% Senior Unsecured Notes due in 2023 ("2023 Notes")500,000 (131)(1,798)498,071 
0.850% Senior Unsecured Notes due in 2024 ("2024 Notes")800,000 (408)(4,519)795,073 
1.875% Senior Unsecured Notes due in 2026 ("2026 Notes")551,800 (2,341)(2,155)547,304 
1.900% Senior Unsecured Notes due in 2028 ("2028 Notes")500,000 (338)(4,078)495,584 
3.3% Senior Unsecured Notes due in 2029 ("2029 Notes")850,000 (2,199)(6,086)841,715 
2.55% Senior Unsecured Notes due in March 2031 ("March 2031 Notes")400,000 (123)(3,227)396,650 
2.250% Senior Unsecured Notes due in September 2031 ("September 2031 Notes")500,000 (1,458)(4,302)494,240 
3.625% Senior Unsecured Notes due in 2051 ("2051 Notes")400,000 (4)(4,333)395,663 
Other Debt Facilities, non-current3,336   3,336 
   Total Long-Term Debt$4,905,136 $(7,002)$(34,156)$4,863,978 
Current Portion of Long-term Debt:
Other Debt Facilities, current3,729   3,729 
   Total$4,908,865 $(7,002)$(34,156)$4,867,707 

16


January 2,
2022
Outstanding Principal
Unamortized Debt Discount
Unamortized Debt Issuance Costs
Net Carrying Amount
(In thousands)
Long-Term Debt:
Senior Unsecured Revolving Credit Facility$ $ $(3,362)$(3,362)
Unsecured Term Loan Credit Facility500,000 (14)(658)499,328 
2023 Notes500,000 (152)(2,093)497,755 
2024 Notes800,000 (447)(4,945)794,608 
2026 Notes568,600 (2,538)(2,280)563,782 
2028 Notes500,000 (348)(4,200)495,452 
2029 Notes850,000 (2,252)(6,234)841,514 
March 2031 Notes400,000 (126)(3,294)396,580 
September 2031 Notes500,000 (1,485)(4,380)494,135 
2051 Notes400,000 (4)(4,335)395,661 
Other Debt Facilities, non-current4,284   4,284