Item 8. Financial Statements and Supplemental Data

TABLE OF CONTENTS

Report of Independent Registered Public Accounting Firm	57
Consolidated Statements of Operations for Each of the Three Fiscal Years in the Period Ended December 29, 2013	58
Consolidated Statements of Comprehensive Income for Each of the Three Fiscal Years in the Period Ended December 29, 2013	59
Consolidated Balance Sheets as of December 29, 2013 and December 30, 2012	60
Consolidated Statements of Stockholders’ Equity for Each of the Three Fiscal Years in the Period Ended December 29, 2013	61
Consolidated Statements of Cash Flows for Each of the Three Fiscal Years in the Period Ended December 29, 2013	62
Notes to Consolidated Financial Statements	63

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of PerkinElmer, Inc.

Waltham, Massachusetts

We have audited the accompanying consolidated balance sheets of PerkinElmer, Inc. and subsidiaries (the “Company”) as of December 29, 2013 and December 30, 2012, and the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 29, 2013. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and the financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of PerkinElmer, Inc. and subsidiaries as of December 29, 2013 and December 30, 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 29, 2013, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 29, 2013, based on the criteria established in Internal Control—Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2014 expressed an unqualified opinion on the Company’s internal control over financial reporting.

/s / DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 25, 2014

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Fiscal Years Ended

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands, except per share data)
Revenue
Product revenue	$	1,498,070			$	1,474,674			$	1,319,510
Service revenue	668,162				640,531				598,998
Total revenue	2,166,232				2,115,205				1,918,508
Cost of product revenue	783,584				762,989				686,812
Cost of service revenue	405,674				389,010				383,896
Selling, general and administrative expenses	585,850				632,734				624,393
Research and development expenses	133,023				132,639				115,821
Restructuring and contract termination charges, net	33,928				25,137				13,452
Impairment of assets	6,731				74,153				3,006
Operating income from continuing operations	217,442				98,543				91,128
Interest and other expense, net	64,110				47,956				26,774
Income from continuing operations before income taxes	153,332				50,587				64,354
(Benefit from) provision for income taxes	(14,592		)		(17,854		)		63,182
Income from continuing operations	167,924				68,441				1,172
(Loss) gain on disposition of discontinued operations before income taxes	(1,810		)		2,405				1,999
(Benefit from) provision for income taxes on disposition of discontinued operations	(1,098		)		906				(4,484		)
(Loss) gain on disposition of discontinued operations	(712		)		1,499				6,483
Net income	$	167,212			$	69,940			$	7,655
Basic earnings per share:
Income from continuing operations	$	1.50			$	0.60			$	0.01
(Loss) income from discontinued operations and dispositions	(0.01		)		0.01				0.06
Net income	$	1.49			$	0.61			$	0.07
Diluted earnings per share:
Income from continuing operations	$	1.48			$	0.60			$	0.01
(Loss) income from discontinued operations and dispositions	(0.01		)		0.01				0.06
Net income	$	1.47			$	0.61			$	0.07

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Fiscal Years Ended

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Net income	$	167,212			$	69,940			$	7,655
Other comprehensive income
Foreign currency translation adjustments	8,756				11,363				1,814
Unrecognized prior service costs, net of tax	(658		)		(82		)		107
Reclassification adjustments for losses on derivatives included in net income, net of tax	2,892				1,196				1,196
Unrealized gains (losses) on securities, net of tax	8				30				(59		)
Other comprehensive income	10,998				12,507				3,058
Comprehensive income	$	178,210			$	82,447			$	10,713

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

CONSOLIDATED BALANCE SHEETS

As of the Fiscal Years Ended

	December 29, 2013				December 30, 2012
	(In thousands, except share and per share data)
Current assets:
Cash and cash equivalents	$	173,242			$	171,444
Accounts receivable, net	470,028				457,011
Inventories	261,036				247,688
Other current assets	140,532				95,611
Total current assets	1,044,838				971,754
Property, plant and equipment, net	185,373				210,516
Marketable securities and investments	1,319				1,149
Intangible assets, net	460,430				529,901
Goodwill	2,143,120				2,122,788
Other assets, net	111,632				65,654
Total assets	$	3,946,712			$	3,901,762
Current liabilities:
Current portion of long-term debt	$	2,624			$	1,772
Accounts payable	167,196				168,943
Accrued restructuring and contract termination charges	26,374				21,364
Accrued expenses and other current liabilities	404,064				388,026
Current liabilities of discontinued operations	2,538				995
Total current liabilities	602,796				581,100
Long-term debt	932,104				938,824
Long-term liabilities	417,325				442,026
Total liabilities	1,952,225				1,961,950
Commitments and contingencies (see Note 16)
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 112,626,000 and 115,036,000 shares at December 29, 2013 and December 30, 2012, respectively	112,626				115,036
Capital in excess of par value	119,906				209,610
Retained earnings	1,684,364				1,548,573
Accumulated other comprehensive income	77,591				66,593
Total stockholders’ equity	1,994,487				1,939,812
Total liabilities and stockholders’ equity	$	3,946,712			$	3,901,762

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

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three Fiscal Years Ended December 29, 2013

	Common Stock Amount				Capital in Excess of Par Value				Retained Earnings				Accumulated Other Comprehensive Income				Total Stockholders’ Equity
	(In thousands)
Balance, January 2, 2011	$	115,715			$	224,013			$	1,534,635			$	51,028			$	1,925,391
Net income	—				—				7,655				—				7,655
Other comprehensive income	—				—				—				3,058				3,058
Dividends	—				—				(31,607		)		—				(31,607		)
Exercise of employee stock options and related income tax benefits	1,138				31,196				—				—				32,334
Issuance of common stock for employee benefit plans	103				2,094				—				—				2,197
Purchases of common stock	(4,084		)		(105,921		)		—				—				(110,005		)
Issuance of common stock for long-term incentive program	285				8,372				—				—				8,657
Stock compensation	—				4,536				—				—				4,536
Balance, January 1, 2012	$	113,157			$	164,290			$	1,510,683			$	54,086			$	1,842,216
Net income	—				—				69,940				—				69,940
Other comprehensive income	—				—				—				12,507				12,507
Dividends	—				—				(32,050		)		—				(32,050		)
Exercise of employee stock options and related income tax benefits	1,611				32,395				—				—				34,006
Issuance of common stock for employee benefit plans	54				1,269				—				—				1,323
Purchases of common stock	(82		)		(2,022		)		—				—				(2,104		)
Issuance of common stock for long-term incentive program	296				8,659				—				—				8,955
Stock compensation	—				5,019				—				—				5,019
Balance, December 30, 2012	$	115,036			$	209,610			$	1,548,573			$	66,593			$	1,939,812
Net income	—				—				167,212				—				167,212
Other comprehensive income	—				—				—				10,998				10,998
Dividends	—				—				(31,421		)		—				(31,421		)
Exercise of employee stock options and related income tax benefits	947				18,895				—				—				19,842
Issuance of common stock for employee benefit plans	90				2,642				—				—				2,732
Purchases of common stock	(3,728		)		(123,670		)		—				—				(127,398		)
Issuance of common stock for long-term incentive program	281				7,976				—				—				8,257
Stock compensation	—				4,453				—				—				4,453
Balance, December 29, 2013	$	112,626			$	119,906			$	1,684,364			$	77,591			$	1,994,487

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Fiscal Years Ended

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Operating activities:
Net income	$	167,212			$	69,940			$	7,655
Less: loss (income) from discontinued operations and dispositions, net of income taxes	712				(1,499		)		(6,483		)
Income from continuing operations	167,924				68,441				1,172
Adjustments to reconcile income from continuing operations to net cash provided by continuing operations:
Restructuring and contract termination charges, net	33,928				25,137				13,452
Depreciation and amortization	128,471				126,865				110,921
Stock-based compensation	14,053				21,031				15,482
Pension and other postretirement expense	(18,176		)		35,336				74,974
Deferred taxes	(29,907		)		(65,551		)		(289		)
Contingencies and non-cash tax matters	(34,455		)		1,382				5,482
Amortization of deferred debt issuance costs, interest rate hedges and accretion of discounts	6,502				3,517				5,651
(Gains) losses on dispositions, net	(1,566		)		—				113
Amortization of acquired inventory revaluation	203				5,214				4,092
Asset Impairments	6,731				74,153				3,006
Changes in assets and liabilities which (used) provided cash, excluding effects from companies purchased and divested:
Accounts receivable, net	(14,440		)		(44,626		)		(20,597		)
Inventories, net	(13,851		)		(8,213		)		(2,200		)
Accounts payable	(1,800		)		(7,876		)		(1,776		)
Excess tax benefit from exercise of common stock options	—				(1,767		)		(9,321		)
Accrued expenses and other	(85,564		)		(79,468		)		33,841
Net cash provided by operating activities of continuing operations	158,053				153,575				234,003
Net cash provided by (used in) operating activities of discontinued operations	538				(1,405		)		(9,129		)
Net cash provided by operating activities	158,591				152,170				224,874
Investing activities:
Capital expenditures	(38,991		)		(42,408		)		(30,592		)
Proceeds from dispositions of property, plant and equipment, net	52,202				—				456
Changes in restricted cash balances	—				487				1,250
Proceeds from surrender of life insurance policies	783				—				814
Activity related to acquisitions and investments, net of cash and cash equivalents acquired	(15,699		)		(40,858		)		(914,041		)
Net cash used in investing activities of continuing operations	(1,705		)		(82,779		)		(942,113		)
Net cash provided by investing activities of discontinued operations	494				2,470				32,252
Net cash used in investing activities	(1,211		)		(80,309		)		(909,861		)
Financing activities:
Payments on revolving credit facility	(538,000		)		(435,850		)		(763,000		)
Proceeds from revolving credit facility	677,000				395,000				787,000
Prepayment of long-term debt	(150,000		)		—				—
Premium on prepayment of long-term debt	(11,119		)		—				—
Proceeds from sale of senior debt	—				—				496,860
Payments of debt issuance costs	—				(416		)		(10,531		)
Proceeds from (payments on) other credit facilities	5,281				5,274				(2,303		)
Settlement of cash flow hedges	1,363				4,050				—
Payments for acquisition-related contingent consideration	—				(12,459		)		(137		)
Excess tax benefit from exercise of common stock	—				1,767				9,321
Proceeds from issuance of common stock under stock plans	20,313				32,478				23,736
Purchases of common stock	(127,398		)		(2,104		)		(110,005		)
Dividends paid	(31,600		)		(31,903		)		(31,829		)
Net cash (used in) provided by financing activities of continuing operations	(154,160		)		(44,163		)		399,112
Net cash used in financing activities of discontinued operations	—				—				(1,908		)
Net cash (used in) provided by financing activities	(154,160		)		(44,163		)		397,204
Effect of exchange rate changes on cash and cash equivalents	(1,422		)		1,404				10,039
Net increase (decrease) in cash and cash equivalents	1,798				29,102				(277,744		)
Cash and cash equivalents at beginning of year	171,444				142,342				420,086
Cash and cash equivalents at end of year	$	173,242			$	171,444			$	142,342
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest	$	39,904			$	40,447			$	12,184
Income taxes	$	36,675			$	53,281			$	41,644

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1:	Nature of Operations and Accounting Policies

Nature of Operations: PerkinElmer, Inc. is a leading provider of products, services and solutions to the diagnostics, research, environmental, industrial and laboratory services markets. Through its advanced technologies, solutions and services, critical issues are addressed that help to improve the health and safety of people and their environment. The results are reported within two reporting segments: Human Health and Environmental Health.

The consolidated financial statements include the accounts of PerkinElmer, Inc. and its subsidiaries (the “Company”). All intercompany balances and transactions have been eliminated in consolidation.

The Company has two operating segments; Human Health and Environmental Health. The Company’s Human Health segment concentrates on developing diagnostics, tools and applications to help detect diseases earlier and more accurately and to accelerate the discovery and development of critical new therapies. Within the Human Health segment, the Company serves both the diagnostics and research markets. The Company’s Environmental Health segment provides products, services and solutions to facilitate the creation of safer food and consumer products, more secure surroundings and efficient energy resources. The Environmental Health segment serves the environmental, industrial and laboratory services markets.

The Company realigned its organization at the beginning of fiscal year 2013. The Company's Informatics business, as well as its field service on products previously sold by the Company's former Bio-discovery business, were moved from the Environmental Health segment into the Human Health segment. The results reported for fiscal year 2013 reflect this new alignment of the Company's operating segments. Financial information relating to fiscal years 2012 and 2011 has been retrospectively adjusted to reflect the changes to the operating segments.

The Company’s fiscal year ends on the Sunday nearest December 31. The Company reports fiscal years under a 52/53 week format. Under this method, certain years will contain 53 weeks. Each of the fiscal years ended December 29, 2013, December 30, 2012 and January 1, 2012 included 52 weeks. The fiscal year ending December 28, 2014 will also include 52 weeks.

The Company has evaluated subsequent events from December 29, 2013 through the date of the issuance of these consolidated financial statements and has determined that no material subsequent events have occurred that would affect the information presented in these consolidated financial statements.

Accounting Policies and Estimates: The preparation of consolidated financial statements in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”) requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates. The Company bases its estimates on historical experience and on various other assumptions that are believed 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.

Revenue Recognition: The Company’s product revenue is recorded when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable, and collectability is reasonably assured. For products that include installation, and if the installation meets the criteria to be considered a separate element, product revenue is recognized upon delivery, and installation revenue is recognized when the installation is complete. For revenue that includes customer-specified acceptance criteria, revenue is recognized after the acceptance criteria have been met. Certain of the Company’s products require specialized installation. Revenue for these products is deferred until installation is completed. Revenue from services is deferred and recognized over the contractual period, or as services are rendered.

In limited circumstances, the Company has arrangements that include multiple elements that are delivered at different points of time, such as revenue from products and services with a remaining service or storage component, such as cord blood processing and storage. For these arrangements, the revenue is allocated to each of the deliverables based upon their relative selling prices as determined by a selling-price hierarchy. A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. A delivered item that does not qualify as a separate unit of accounting is combined with the other undelivered items in the arrangement and revenue is recognized for those combined deliverables as a single unit of accounting. The selling price used for each deliverable is based upon vendor-specific objective evidence ("VSOE") if such evidence is available, third-party evidence ("TPE") if VSOE is not available, and management's best estimate of selling price ("BESP") if neither VSOE nor TPE are available. TPE is the price of the Company's or any competitor's largely interchangeable products or services in stand-alone sales to similarly-situated customers.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

BESP is the price at which the Company would sell the deliverable if it were sold regularly on a stand-alone basis, considering market conditions and entity-specific factors.

Revenue from software licenses and services was 5% of the Company's total revenue for fiscal year 2013, 3% of the Company's total revenue for fiscal year 2012, and 2% of the Company's total revenue for fiscal year 2011. The Company sells its software licenses with maintenance services and, in some cases, also with consulting services. For the undelivered elements, the Company determines VSOE of fair value to be the price charged when the undelivered element is sold separately. The Company determines VSOE for maintenance sold in connection with a software license based on the amount that will be separately charged for the maintenance renewal period. The Company determines VSOE for consulting services by reference to the amount charged for similar engagements when a software license sale is not involved.

The Company recognizes revenue from software licenses sold together with maintenance and/or consulting services upon shipment using the residual method, provided that the above criteria have been met. If VSOE of fair value for the undelivered elements cannot be established, the Company defers all revenue from the arrangement until the earlier of the point at which such sufficient VSOE does exist or all elements of the arrangement have been delivered, or if the only undelivered element is maintenance, then the Company recognizes the entire fee ratably over the maintenance period.

The Company sells products and accessories predominantly through its direct sales force. As a result, the use of distributors is generally limited to geographic regions where the Company has no direct sales force. The Company does not offer product return or exchange rights (other than those relating to defective goods under warranty) or price protection allowances to its customers, including its distributors. Payment terms granted to distributors are the same as those granted to end-user customers and payments are not dependent upon the distributors’ receipt of payment from their end-user customers. Sales incentives related to distributor revenue are also the same as those for end-user customers.

Service revenues represent the Company’s service offerings including service contracts, field service including related time and materials, diagnostic testing, cord blood processing and storage, and training. Service revenues are recognized as the service is performed. Revenues for service and storage contracts are recognized over the contract period.

Warranty Costs: The Company provides for estimated warranty costs for products at the time of their sale. Warranty liabilities are estimated using expected future repair costs based on historical labor and material costs incurred during the warranty period.

Shipping and Handling Costs: The Company reports shipping and handling revenue in revenue, to the extent they are billed to customers, and the associated costs in cost of product revenue.

Inventories: Inventories, which include material, labor and manufacturing overhead, are valued at the lower of cost or market. Inventories are accounted for using the first-in, first-out method of determining inventory costs. Inventory quantities on-hand are regularly reviewed, and where necessary, provisions for excess and obsolete inventory are recorded based primarily on the Company’s estimated forecast of product demand and production requirements.

Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. This method also requires the recognition of future tax benefits such as net operating loss carryforwards, to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. A valuation allowance is established for any deferred tax asset for which realization is not more likely than not. With respect to earnings expected to be indefinitely reinvested offshore, the Company does not accrue tax for the repatriation of such foreign earnings.

The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. These reserves are based on a determination of whether and how much of a tax benefit taken by the Company in its tax filings or positions is more likely than not to be realized following resolution of any potential contingencies present related to the tax benefit. Potential interest and penalties associated with such uncertain tax positions is recorded as a component of income tax expense. See Note 6, below, for additional details.

Property, Plant and Equipment: The Company depreciates plant and equipment using the straight-line method over its estimated useful lives, which generally fall within the following ranges: buildings- 10 to 40 years; leasehold improvements-estimated useful life or remaining term of lease, whichever is shorter; and machinery and equipment- 3 to 7 years. Certain tooling costs are capitalized and amortized over a 3-year life, while repairs and maintenance costs are expensed.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Asset Retirement Obligations: The Company records obligations associated with its lease obligations, the retirement of tangible long-lived assets and the associated asset-retirement costs in accordance with authoritative guidance on asset retirement obligations. The Company reviews legal obligations associated with the retirement of long-lived assets that result from contractual obligations or the acquisition, construction, development and/or normal use of the assets. If it is determined that a legal obligation exists, regardless of whether the obligation is conditional on a future event, the fair value of the liability for an asset retirement obligation is recognized in the period in which it is incurred, if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset, and this additional carrying amount is depreciated over the life of the asset. The difference between the gross expected future cash flow and its present value is accreted over the life of the related lease as an operating expense. The amounts recorded in the consolidated financial statements are not material to any year presented.

Pension and Other Postretirement Benefits: The Company sponsors both funded and unfunded U.S. and non-U.S. defined benefit pension plans and other postretirement benefits. The Company immediately recognizes actuarial gains and losses in operating results in the year in which the gains and losses occur. Actuarial gains and losses are measured annually as of fiscal year end and accordingly will be recorded in the fourth quarter, unless the Company is required to perform an interim remeasurement. The remaining components of pension expense, primarily service and interest costs and assumed return on plan assets, are recorded on a quarterly basis. The Company’s funding policy provides that payments to the U.S. pension trusts shall at least be equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Non-U.S. plans are accrued for, but generally not fully funded, and benefits are paid from operating funds.

Translation of Foreign Currencies: For foreign operations, asset and liability accounts are translated at current exchange rates; income and expenses are translated using weighted average exchange rates for the reporting period. Resulting translation adjustments, as well as translation gains and losses from certain intercompany transactions considered permanent in nature, are reported in accumulated other comprehensive income, a separate component of stockholders’ equity. Gains and losses arising from transactions and translation of period-end balances denominated in currencies other than the functional currency are included in other expense, net, and were not material.

Business Combinations: Business combinations are accounted for at fair value. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; previously held equity interests are valued at fair value upon the acquisition of a controlling interest; in-process research and development (“IPR&D”) is recorded at fair value as an intangible asset at the acquisition date; restructuring costs associated with a business combination are expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. All changes that do not qualify as measurement period adjustments are included in current period earnings. The accounting for business combinations requires estimates and judgment 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 value 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. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, require acceleration of the amortization expense of finite-lived intangible assets, or the recognition of additional consideration which would be expensed.

Goodwill and Other Intangible Assets: The Company’s intangible assets consist of (i) goodwill, which is not being amortized; (ii) indefinite lived intangibles, which consist of certain trademarks and trade names that are not subject to amortization; and (iii) amortizing intangibles, which consist of patents, trade names and trademarks, licenses, customer relationships, and purchased technologies, which are being amortized over their estimated useful lives.

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 the amount of an impairment loss, and is only performed if the carrying value exceeds the fair value of the reporting unit. This annual impairment assessment is performed by the Company on the later of January 1 or the first day of each fiscal year. This same impairment test will be performed at other times during the course of the year, should an event occur which suggests that the recoverability of goodwill should be reconsidered. Non-amortizing intangibles are also subject to an annual impairment test. 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. In addition, the Company evaluates the remaining useful life of its non-amortizing intangible assets 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 of non-amortizing intangible assets are no longer indefinite, the assets will be tested for impairment. These intangible

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

assets will then be amortized prospectively over their estimated remaining useful life and accounted for in the same manner as other intangible assets that are subject to amortization. Recoverability of amortizing intangible assets is assessed only when events have occurred that may give rise to impairment. When a potential impairment has been identified, forecasted undiscounted net cash flows of the operations to which the asset relates are compared to the current carrying value of the long-lived assets present in that operation. If such cash flows are less than such carrying amounts, long-lived assets, including such intangibles, are written down to their respective fair values. See Note 12, below, for additional details.

Stock-Based Compensation: The Company accounts for stock-based compensation expense based on estimated grant date fair value, generally using the Black-Scholes option-pricing model. The fair value is recognized, net of estimated forfeitures, as expense in the consolidated financial statements over the requisite service period. The determination of fair value and the timing of expense using option pricing models such as the Black-Scholes model require the input of highly subjective assumptions, including the expected forfeiture rate, life of the option and the expected price volatility of the underlying stock. The Company estimates the expected forfeiture and expected life assumptions based on historical experience. In determining the Company’s expected stock price volatility assumption, the Company reviews both the historical and implied volatility of the Company’s common stock, with implied volatility based on the implied volatility of publicly traded options on the Company’s common stock. The Company has one stock-based compensation plan from which it makes grants, which is described more fully in Note 18, below.

Marketable Securities and Investments: The cost of securities sold is based on the specific identification method. If securities are classified as available for sale, the Company records these investments at their fair values with unrealized gains and losses included in accumulated other comprehensive income. Under the cost method of accounting, equity investments in private companies are carried at cost and are adjusted for other-than-temporary declines in fair value, additional investments or distributions.

Cash and Cash Equivalents: The Company considers all highly liquid unrestricted instruments with a purchased maturity of three months or less to be cash equivalents. The carrying amount of cash equivalents approximates fair value due to the short maturities of these instruments.

Environmental Matters: The Company accrues for costs associated with the remediation of environmental pollution when it is probable that a liability has been incurred and the Company’s proportionate share of the amount can be reasonably estimated. The recorded liabilities have not been discounted.

Research and Development: Research and development costs are expensed as incurred. The fair value of acquired in-process research and development ("IPR&D") costs are recorded at fair value as an intangible asset at the acquisition date and amortized once the product is ready for sale or expensed if abandoned.

Restructuring Charges: In recent fiscal years, the Company has undertaken a series of restructuring actions related to the alignment with the Company’s growth strategy, the impact of acquisitions, divestitures and the integration of its business units. In connection with these initiatives, the Company has recorded restructuring charges, as more fully described in Note 4, below. Generally, costs associated with an exit or disposal activity are recognized when the liability is incurred. Costs related to employee separation arrangements requiring future service beyond a specified minimum retention period are recognized over the service period. Costs related to lease terminations are recorded at the fair value of the liability based on the remaining lease rental payments, reduced by estimated sublease rentals that could be reasonably obtained for the property, at the date the Company ceases use.

Comprehensive Income: In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, requiring the presentation of reclassifications out of accumulated other comprehensive income on the face of the financial statements or as a separate disclosure in the notes to the financial statements. The reclassifications out of accumulated other comprehensive income and into net income were not material for the fiscal years ending December 29, 2013, December 30, 2012 and January 1, 2012. See Note 19 for additional details.

Comprehensive income is defined as net income or loss and other changes in stockholders’ equity from transactions and other events from sources other than stockholders. Comprehensive income is reflected in the consolidated statements of comprehensive income.

Derivative Instruments and Hedging: Derivatives are recorded on the consolidated balance sheets at fair value. Accounting for gains or losses resulting from changes in the values of those derivatives depends on the use of the derivative instrument and whether it qualifies for hedge accounting.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

For a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently amortized into net earnings when the hedged exposure affects net earnings. Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge by matching the terms of the contract to the underlying transaction. The Company classifies the cash flows from hedging transactions in the same categories as the cash flows from the respective hedged items. Once established, cash flow hedges are generally recorded in other comprehensive income, unless an anticipated transaction is no longer likely to occur, and subsequently amortized into net earnings when the hedged exposure affects net earnings. Discontinued or dedesignated cash flow hedges are immediately settled with counterparties, and the related accumulated derivative gains or losses are recognized into net earnings on the consolidated financial statements. Settled cash flow hedges related to forecasted transactions that remain probable are recorded as a component of other comprehensive income and are subsequently amortized into net earnings when the hedged exposure affects net earnings. Forward contract effectiveness for cash flow hedges is calculated by comparing the fair value of the contract to the change in value of the anticipated transaction using forward rates on a monthly basis. As of December 29, 2013, the Company had no outstanding cash flow hedges, and as of December 30, 2012, the Company had two outstanding cash flow hedges with Euro denominated notional amounts of €50.0 million. The Company also has entered into foreign currency forward contracts that are not designated as hedging instruments for accounting purposes. These contracts are recorded at fair value, with the changes in fair value recognized into net earnings on the consolidated financial statements.

Recently Issued Accounting Pronouncements: From time to time, new accounting pronouncements are issued by the FASB and are adopted by the Company as of the specified effective dates. The Company believes that the impact of recently issued pronouncements will not have a material impact on the Company's consolidated financial position, results of operations, and cash flows or do not apply to the Company's operations.

Note 2:	Business Combinations

Acquisitions in fiscal year 2013

The Company completed the acquisition of four businesses for total consideration of $11.4 million, in cash. As of the closing dates, the Company potentially had to pay additional contingent consideration for the four acquired businesses of up to $2.2 million, which at closing had an estimated fair value of $1.1 million. The excess of the purchase price over the fair value 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, and has been allocated to goodwill, none of which is tax deductible. The Company reported the operations for these acquisitions within the results of the Company's operations from the acquisition dates. As of December 29, 2013, the purchase accounting allocations related to these acquisitions were preliminary.

Acquisition in fiscal year 2012

Acquisition of Haoyuan Biotech Co., Ltd. In November 2012, the Company acquired all outstanding stock of Shanghai Haoyuan Biotech Co., Ltd. ("Haoyuan"). Haoyuan is a provider of nucleic acid-based blood screening solutions for the blood banking and clinical diagnostics markets. The Company expects this acquisition to extend the Company's capabilities into nucleic acid blood screening, as well as deepen its position in the growing molecular clinical diagnostics market in China. The Company paid the shareholders of Haoyuan $38.0 million in cash for the stock of Haoyuan. The Company recorded a receivable of $2.7 million from the shareholders of Haoyuan as a reduction of purchase price for the settlement of certain contingencies. This receivable was collected in fiscal year 2013. As of the closing date, the Company potentially had to pay the shareholders additional contingent consideration of up to $30.0 million, which at closing had an estimated fair value of $1.9 million. 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 has been allocated to goodwill, none of which is tax deductible. The Company reported the operations for this acquisition within the results of the Company’s Human Health segment from the acquisition date.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The total purchase price has been allocated to the estimated fair values of assets acquired and liabilities assumed as follows:

	Haoyuan
	(In thousands)
Fair value of business combination:
Cash payments	$	38,000
Contingent consideration	1,900
Working capital and other adjustments	(2,729		)
Less: cash acquired	(175		)
Total	$	36,996
Identifiable assets acquired and liabilities assumed:
Current assets	$	2,389
Property, plant and equipment	2,906
Identifiable intangible assets:
Core technology	17,700
Trade names	400
IPR&D	300
Goodwill	19,682
Deferred taxes	(2,656		)
Liabilities assumed	(3,725		)
Total	$	36,996

The weighted average amortization periods of identifiable definite-lived intangible assets for core technology and trade names were 8 years.

Acquisitions in fiscal year 2011

Acquisition of Caliper Life Sciences, Inc. In November 2011, the Company acquired all of the outstanding stock of Caliper Life Sciences, Inc. ("Caliper"). Caliper is a provider of imaging and detection solutions for life sciences research, diagnostics and environmental markets. Caliper develops and sells integrated systems, consisting of instruments, software, reagents, laboratory automation tools, and assay development and discovery services, primarily to pharmaceutical, biotechnology, and diagnostics companies, and government and other not-for-profit research institutions. The Company paid the shareholders of Caliper $646.3 million in cash for the stock of Caliper. 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 has been allocated to goodwill, none of which is tax deductible. The Company has reported the operations for this acquisition within the results of the Company’s Human Health segment from the acquisition date. Identifiable definite-lived intangible assets, such as core technology, licenses, customer relationships, and trade names, acquired as part of this acquisitions had weighted average amortization periods of 5 years for core technology, 6 years for licenses, 7 years for customer relationships, and 7 years for trade names.

In addition to the Caliper acquisition, the Company completed the acquisition of seven businesses in fiscal year 2011 for total consideration of $333.6 million, in cash. As of the closing dates, the Company potentially had to pay additional contingent consideration for the seven acquired businesses of up to $50.8 million, which at closing had an estimated fair value of $20.1 million. The excess of the purchase price over the fair value 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, and has been allocated to goodwill, of which $4.7 million is tax deductible. The Company reported the operations for these acquisitions within the results of the operations from the acquisition dates. Identifiable definite-lived intangible assets, such as customer relationships, core technology, IPR&D, licenses, and trade names, acquired as part of these acquisitions had weighted average amortization periods between 7 years and 11 years.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The total purchase price for the acquisitions in fiscal year 2011 have been allocated to the estimated fair values of assets acquired and liabilities assumed as follows:

	Caliper				Other
	(In thousands)
Fair value of business combination:
Cash payments	$	646,317			$	333,581
Contingent consideration	—				20,124
Working capital and other adjustments	—				32
Less: cash acquired	(43,576		)		(26,923		)
Total	$	602,741			$	326,814
Identifiable assets acquired and liabilities assumed:
Current assets	$	55,027			$	16,857
Property, plant and equipment	14,580				1,661
Identifiable intangible assets:
Core technology	52,000				35,724
Trade names	14,200				3,374
Licenses	18,000				3,000
Customer relationships	93,000				96,910
IPR&D	—				3,839
Goodwill	353,103				236,573
Deferred taxes	52,472				(45,017		)
Deferred revenue	(6,554		)		(10,496		)
Liabilities assumed	(43,087		)		(15,611		)
Total	$	602,741			$	326,814

Caliper's revenue and pre-tax loss from continuing operations for the period from the acquisition date to January 1, 2012 were $29.3 million and $3.0 million, respectively. The following unaudited pro forma information presents the combined financial results for the Company and Caliper as if the acquisition of Caliper had been completed at the beginning of fiscal year 2011:

	January 1, 2012
	(In thousands)
Pro Forma Statement of Operations Information (Unaudited):
Revenue	$	2,042,730
Loss from continuing operations	(25,854		)
Basic loss per share:
Continuing operations	$	(0.23	)
Diluted loss per share:
Continuing operations	$	(0.23	)

The unaudited pro forma information for fiscal year 2011 has been calculated after applying the Company's accounting policies and the impact of acquisition date fair value adjustments. The fiscal year 2011 unaudited pro forma loss from continuing operations was adjusted to exclude approximately $18.1 million of acquisition-related transaction costs. In addition, the fiscal year 2011 unaudited pro forma loss from continuing operations was adjusted to exclude nonrecurring expenses related to the fair value adjustments associated with the acquisition of Caliper that were recorded by the Company related to the completion of this acquisition. The pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments, such as fair value adjustment to inventory and deferred revenue, 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 fiscal year 2011, or of future results of the consolidated entities.

The Company does not consider the acquisitions completed during fiscal years 2013, 2012, and 2011, with the exception of the Caliper acquisition, to be material to its consolidated results of operations; therefore, the Company is only presenting pro forma financial information of operations for the Caliper acquisition. The aggregate revenue and results of operations for the acquisitions completed during fiscal years 2013 and 2012 for the period from their respective acquisition dates to December 29, 2013 and December 30, 2012 were minimal. The aggregate revenue for the acquisitions, with the exception of Caliper, completed during fiscal year 2011 for the period from their respective acquisition dates to January 1, 2012 was $32.4 million and the results of operations were minimal. The Company has also determined that the presentation of the results of operations for each of those acquisitions, from the date of acquisition, is impracticable due to the integration of the operations upon acquisition.

As of December 29, 2013 the purchase price allocations for acquisitions completed in fiscal years 2012 and 2011 were final. The preliminary allocation of the purchase price for acquisitions completed in fiscal year 2013 were based upon an initial valuation. The Company's estimates and assumptions underlying the initial valuation are subject to change within the measurement period, which is up to one year from the acquisition date. The primary areas of the preliminary purchase price allocation 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 date during the measurement period. During the measurement period, the Company will adjust assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. Adjustments to the preliminary allocation of the purchase price during the measurement period require the revision of comparative prior period financial information when reissued in subsequent financial statements. The effect of adjustments to the allocation of the purchase price made during the measurement period would be as if the adjustments had been completed on the acquisition date. The effects of any such adjustments, if material, may cause changes in depreciation, amortization, or other income or expense recognized in prior periods. All changes that do not qualify as adjustments made during the measurement period are included in current period earnings.

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 or product development milestones during the earnout period. The Company may have to pay contingent consideration, related to all acquisitions with open contingency periods, of up to $31.3 million as of December 29, 2013. As of December 29, 2013, the Company has recorded contingent consideration obligations relating to its acquisitions of Dexela Limited, Haoyuan and Tetra Teknolojik Sistemler Limited Sirketi, with an estimated fair value of $4.9 million. The earnout periods for each of these acquisitions do not exceed three years from the acquisition date. If the actual results differ from the estimates and judgments used in these fair values, the amounts recorded in the 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 consideration which would be expensed.

In connection with the purchase price allocations for acquisitions, the Company estimates the fair value of deferred revenue assumed with its acquisitions. The estimated fair value of deferred revenue is determined by the legal performance obligation at the date of acquisition, and is generally based on the nature of the activities to be performed and the related costs to be incurred after the acquisition date. The fair value of an assumed liability related to deferred revenue is estimated based on the current market cost of fulfilling the obligation, plus a normal profit margin thereon. The estimated costs to fulfill the deferred revenue are based on the historical direct costs related to providing the services. The Company does not include any costs associated with selling effort, research and development, or the related fulfillment margins on these costs. In most acquisitions, profit associated with selling effort is excluded because the acquired businesses would have concluded the selling effort on the support contracts prior to the acquisition date. The estimated research and development costs are not included in the fair value determination, as these costs are not deemed to represent a legal obligation at the time of acquisition. The sum of

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

the costs and operating income approximates, in theory, the amount that the Company would be required to pay a third-party to assume the obligation.

Total transaction costs related to acquisition activities for fiscal years 2013, 2012, and 2011 were $0.1 million, $1.2 million and $10.7 million, respectively. These transaction costs were expensed as incurred and recorded in selling, general and administrative expenses in the Company's consolidated statements of operations.

Note 3:	Discontinued Operations

As part of the Company’s continuing efforts to focus on higher growth opportunities, the Company has discontinued certain businesses. 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 for all periods presented. Any remaining liabilities of these businesses have been presented separately, and are reflected within liabilities from discontinued operations in the accompanying consolidated balance sheets as of December 29, 2013 and December 30, 2012.

The Company recorded the following pre-tax gains and losses, which have been reported as a net gain or loss on disposition of discontinued operations during the three fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Gain (loss) on disposition of Photoflash business	$	493			$	2,459			$	(134	)
Loss on disposition of Technical Services business	(2,100		)		—				—
Net (loss) gain on disposition of other discontinued operations	(203		)		(54		)		2,133
Net (loss) gain on disposition of discontinued operations before income taxes	$	(1,810	)		$	2,405			$	1,999

In June 2010, the Company sold its Photoflash business, which was included in the Company's Environmental Health segment, for $13.5 million, including an adjustment for net working capital, plus potential additional contingent consideration. The Company recognized a pre-tax gain of $0.5 million in fiscal year 2013 and a pre-tax gain of $2.5 million in fiscal year 2012 for contingent consideration related to this sale.

In August 1999, the Company sold the assets of its Technical Service business for approximately $250.0 million in cash and the assumption by the buyer of certain liabilities of the Technical Services business. During fiscal year 2013, the Company recorded a pre-tax loss of $2.1 million for a contingency related to this business.

During fiscal years 2013, 2012, and 2011, the Company settled various commitments related to the divestiture of other discontinued operations. The Company recognized a pre-tax gain of $2.1 million in fiscal year 2011. The fiscal year 2011 pre-tax gain included a $4.0 million gain for contingent consideration related to the sale of the Company's semiconductor business in fiscal year 2006, which was partially offset by a pre-tax loss of $1.8 million related to updating the net working capital adjustment associated with the sale of the Company's Illumination and Detection Solutions ("IDS") business in fiscal year 2010.

The Company recognized a tax benefit of $1.1 million on discontinued operations in fiscal year 2013, a tax provision of $0.9 million on discontinued operations in fiscal year 2012 and a tax benefit of $4.5 million in fiscal year 2011 on discontinued operations. The recognition of $4.5 million income tax benefit in fiscal year 2011 was primarily the result of a change in estimate related to the federal income tax liability associated with the repatriation of the unremitted earnings of the IDS and Photoflash businesses, as further described in Note 6, below, partially offset by the tax provision on the contingent consideration received in fiscal year 2011 related to the sale of the Company's semiconductor business in fiscal year 2006.

Note 4:	Restructuring and Contract Termination Charges, Net

The Company has undertaken a series of restructuring actions related to the impact of acquisitions and divestitures, alignment with the Company’s growth strategy and the integration of its business units. 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 and are included as a component of operating expenses from continuing operations.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The restructuring plans for the fourth and third quarters of fiscal year 2013 were principally intended to shift certain of the Company's research and development resources into a newly opened Center for Innovation. The restructuring plan for the second quarter of fiscal year 2013 was principally intended to shift certain of the Company's operations into a newly established shared service center as well as realign operations, research and development resources and production resources as a result of previous acquisitions. The restructuring plan for the first quarter of fiscal year 2013 was principally intended to focus resources on higher growth end markets. The restructuring plan for the fourth quarter of fiscal year 2012 was principally intended to shift resources to higher growth geographic regions and end markets. The restructuring plan for the third quarter of fiscal year 2012 was principally intended to shift certain of the Company's operations into a newly established shared service center. The restructuring plans for the first and second quarters of fiscal year 2012 were principally intended to realign operations, research and development resources and production resources as a result of previous acquisitions.

A description of the restructuring plans and the activity recorded are as follows:

Q4 2013 Restructuring Plan

During the fourth quarter of fiscal year 2013, the Company’s management approved a plan principally intended to shift certain of the Company's research and development resources into a newly opened Center for Innovation (the “Q4 2013 Plan”). As a result of the Q4 2013 Plan, the Company recognized a $8.2 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space and recognized a $3.0 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities. As part of the Q4 2013 Plan, the Company reduced headcount by 74 employees. All employees were notified of termination under the Q4 2013 Plan by December 29, 2013.

The following table summarizes the Q4 2013 Plan activity:

	Severance				Closure of Excess Facility Space				Total
	(In thousands)
Provision	$	3,912			$	7,271			$	11,183
Amounts paid and foreign currency translation	(1,924		)		(417		)		(2,341		)
Balance at December 29, 2013	$	1,988			$	6,854			$	8,842

The Company anticipates that the remaining severance payments of $2.0 million for workforce reductions will be substantially completed by the end of the second quarter of fiscal year 2014. The Company also anticipates that the remaining payments of $6.9 million, net of estimated sublease income, for the closure of the excess facility space will be paid through fiscal year 2019, in accordance with the terms of the applicable leases.

Q3 2013 Restructuring Plan

During the third quarter of fiscal year 2013, the Company’s management approved a plan principally intended to shift certain of the Company's research and development resources into a newly opened Center for Innovation (the “Q3 2013 Plan”). As a result of the Q3 2013 Plan, the Company recognized a $0.5 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space. As part of the Q3 2013 Plan, the Company reduced headcount by 30 employees. All employees were notified of termination under the Q3 2013 Plan by September 29, 2013.

The following table summarizes the Q3 2013 Plan activity:

	Severance				Closure of Excess Facility Space				Total
	(In thousands)
Provision	$	394			$	138			$	532
Amounts paid and foreign currency translation	(257		)		(138		)		(395		)
Balance at December 29, 2013	$	137			$	—			$	137

The Company anticipates that the remaining severance payments of $0.1 million for workforce reductions will be completed by the end of the second quarter of fiscal year 2014. The closure of the facility space will not require any additional payments.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Q2 2013 Restructuring Plan

During the second quarter of fiscal year 2013, the Company’s management approved a plan principally intended to shift certain of the Company's operations into a newly established shared service center as well as realign operations, research and development resources, and production resources as a result of previous acquisitions (the “Q2 2013 Plan”). As a result of the Q2 2013 Plan, the Company initially recognized a $9.9 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space, and recognized a $8.8 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space. Subsequent to the initial charge, the Company recorded an additional $0.6 million pre-tax restructuring charge in the Human Health segment for services that were provided for one-time benefits in which the employee was required to render service beyond the legal notification period. As part of the Q2 2013 Plan, the Company reduced headcount by 265 employees. All employees were notified of termination under the Q2 2013 Plan by June 30, 2013.

The following table summarizes the Q2 2013 Plan activity:

	Severance				Closure of Excess Facility Space				Total
	(In thousands)
Provision	$	18,746			$	572			$	19,318
Amounts paid and foreign currency translation	(5,996		)		(572		)		(6,568		)
Balance at December 29, 2013	$	12,750			$	—			$	12,750

The Company anticipates that the remaining severance payments of $12.8 million for workforce reductions will be substantially completed by the end of the fourth quarter of fiscal year 2014, as local law requires some severance to be paid in monthly installments through the fourth quarter of fiscal year 2014. The closure of the facility space will not require any additional payments.

Q1 2013 Restructuring Plan

During the first quarter of fiscal year 2013, the Company’s management approved a plan to focus resources on higher growth end markets (the “Q1 2013 Plan”). As a result of the Q1 2013 Plan, the Company recognized a $2.3 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and recognized a $0.2 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities. As part of the Q1 2013 Plan, the Company reduced headcount by 62 employees. All employees were notified of termination under the Q1 2013 Plan by March 31, 2013.

The following table summarizes the Q1 2013 Plan activity:

	Severance
	(In thousands)
Provision	$	2,585
Amounts paid and foreign currency translation	(2,377		)
Balance at December 29, 2013	$	208

The Company anticipates that the remaining severance payments of $0.2 million for workforce reductions will be substantially completed by the end of the fourth quarter of fiscal year 2014.

Q4 2012 Restructuring Plan

During the fourth quarter of fiscal year 2012, the Company’s management approved a plan to shift resources to higher growth geographic regions and end markets (the “Q4 2012 Plan”). As a result of the Q4 2012 Plan, the Company recognized a $0.6 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and recognized a $2.4 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities. As part of the Q4 2012 Plan, the Company reduced headcount by 54 employees. All employees were notified of termination under the Q4 2012 Plan by December 30, 2012.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the Q4 2012 Plan activity:

	Severance
	(In thousands)
Provision	$	2,936
Amounts paid and foreign currency translation	(254		)
Balance at December 30, 2012	2,682
Amounts paid and foreign currency translation	(2,089		)
Balance at December 29, 2013	$	593

The Company anticipates that the remaining severance payments of $0.6 million for workforce reductions will be substantially completed by the end of the second quarter of fiscal year 2014.

Q3 2012 Restructuring Plan

During the third quarter of fiscal year 2012, the Company’s management approved a plan to shift certain of the Company's operations into a newly established shared service center (the “Q3 2012 Plan”). As a result of the Q3 2012 Plan, and during fiscal year 2012, the Company recognized $3.9 million pre-tax restructuring charges in each of the Human Health and Environmental Health segments related to a workforce reduction from reorganization activities. During fiscal year 2013, the Company recorded a pre-tax restructuring reversal of $0.3 million in each of the Human Health and Environmental Health segments due to lower than expected costs associated with remaining severance payments. As part of the Q3 2012 Plan, the Company reduced headcount by 66 employees. All employees were notified of termination under the Q3 2012 Plan by September 30, 2012.

The following table summarizes the Q3 2012 Plan activity:

	Severance
	(In thousands)
Provision	$	7,446
Change in estimate	326
Amounts paid and foreign currency translation	(219		)
Balance at December 30, 2012	7,553
Change in estimate	(524		)
Amounts paid and foreign currency translation	(3,271		)
Balance at December 29, 2013	$	3,758

The Company anticipates that the remaining severance payments of $3.8 million for workforce reductions will be substantially completed by the end of the fourth quarter of fiscal year 2014, as local law requires some severance to be paid in monthly installments through the fourth quarter of fiscal year 2014.

Q2 2012 Restructuring Plan

During the second quarter of fiscal year 2012, the Company’s management approved a plan to realign operations, research and development resources, and production resources as a result of previous acquisitions (the “Q2 2012 Plan”). As a result of the Q2 2012 Plan, and during fiscal year 2012, the Company recognized a $7.2 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and recognized a $0.2 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities. During fiscal year 2013, the Company recorded an additional $2.1 million pre-tax restructuring charge in the Human Health segment for services that were provided for one-time benefits in which the employee was required to render service beyond the legal notification period. In addition during fiscal year 2013, the Company recorded a pre-tax restructuring reversal of $0.3 million due to lower than expected costs associated with remaining severance payments. The Company expects to recognize an additional $0.1 million of incremental restructuring expense in future periods as services are provided for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits. This expense will be recognized ratably over the required service period. As part of the Q2 2012 Plan, the Company will reduce headcount by 203 employees. All employees were notified of termination under the Q2 2012 Plan by July 1, 2012.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the Q2 2012 Plan activity:

	Severance
	(In thousands)
Provision	$	7,422
Amounts paid and foreign currency translation	(2,836		)
Balance at December 30, 2012	4,586
Provision	2,115
Change in estimate	(294		)
Amounts paid and foreign currency translation	(5,072		)
Balance at December 29, 2013	$	1,335

The Company anticipates that the remaining severance payments of $1.3 million for workforce reductions will be substantially completed by the end of the fourth quarter of fiscal year 2014.

Q1 2012 Restructuring Plan

During the first quarter of fiscal year 2012, the Company’s management approved a plan to realign operations and production resources as a result of previous acquisitions (the “Q1 2012 Plan”). As a result of the Q1 2012 Plan, and during fiscal year 2012, the Company recognized a $5.4 million pre-tax restructuring charge in the Human Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space and recognized a $1.0 million pre-tax restructuring charge in the Environmental Health segment related to a workforce reduction from reorganization activities. During fiscal year 2013, the Company recorded a pre-tax restructuring reversal of $0.4 million in the Human Health segment and a pre-tax restructuring reversal of $0.1 million in the Environmental Health segment due to lower than expected costs associated with remaining severance payments. As part of the Q1 2012 Plan, the Company reduced headcount by 112 employees. All employees were notified of termination and the Company completed all actions related to the closure of excess facility space under the Q1 2012 Plan by April 1, 2012.

The following table summarizes the Q1 2012 Plan activity:

	Severance				Closure of Excess Facility Space				Total
	(In thousands)
Provision	$	6,315			$	79			$	6,394
Amounts paid and foreign currency translation	(5,034		)		(79		)		(5,113		)
Balance at December 30, 2012	1,281				—				1,281
Change in estimate	(537		)		—				(537		)
Amounts paid and foreign currency translation	(619		)		—				(619		)
Balance at December 29, 2013	$	125			$	—			$	125

The Company anticipates that the remaining severance payments of $0.1 million for workforce reductions will be substantially completed by the end of the fourth quarter of fiscal year 2014. The closure of the excess facility space will not require any additional payments.

Previous Restructuring and Integration Plans

The principal actions of the restructuring and integration plans from fiscal years 2001 through 2011 were workforce reductions related to the integration of the Company’s businesses in order to reduce costs and achieve operational efficiencies as well as workforce reductions in both the Human Health and Environmental Health segments by shifting resources into geographic regions and end markets that are more consistent with the Company’s growth strategy. During fiscal year 2013, the Company paid $2.4 million related to these plans and recorded a reversal of $1.1 million primarily related to lower than expected costs associated with workforce reductions within both the Human Health and the Environmental Health segments. As of December 29, 2013, the Company had $7.5 million of remaining liabilities associated with these restructuring and integration plans, primarily for residual lease obligations related to closed facilities and remaining severance payments for workforce reductions in both the Human Health and Environmental Health segments. The Company expects to make payments for these leases, the terms of which vary in length, through fiscal year 2022.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Contract Termination Charges

The Company has terminated various contractual commitments in connection with certain disposal activities and have recorded charges, to the extent applicable, 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 an additional pre-tax charge of $0.7 million in fiscal year 2013, a pre-tax charge of $1.5 million in fiscal year 2012 and a pre-tax charge of $2.0 million in fiscal year 2011, primarily as a result of terminating various contractual commitments in the Environmental Health segment. The Company made payments for these obligations of $1.0 million during fiscal year 2013, $2.9 million during fiscal year 2012, and $0.4 million during fiscal year 2011. The remaining balance of these accruals as of December 29, 2013 was $0.3 million.

Note 5:	Interest and Other Expense, Net

Interest and other expense, net, consisted of the following for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Interest income	$	(650	)		$	(747	)		$	(1,884	)
Interest expense	49,924				45,787				24,783
Other expense, net	14,836				2,916				3,875
Total interest and other expense, net	$	64,110			$	47,956			$	26,774

In December 2013, the Company redeemed all of its 6% senior unsecured notes due in 2015 (the “2015 Notes”) for a redemption price that included the outstanding principal amount of $150.0 million and a prepayment premium of $11.1 million, which is included in other expense, net. The transaction also resulted in the write-off of $2.8 million for the remaining unamortized derivative losses for previously settled cash flow hedges and the write-off of $0.2 million for the remaining deferred debt issuance costs. Both of these amounts are included in interest expense.

Note 6:	Income Taxes

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 tabular reconciliation of the total amounts of unrecognized tax benefits is as follows for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Unrecognized tax benefits, beginning of period	$	58,110			$	51,740			$	39,226
Gross increases—tax positions in prior period	325				10,653				2,753
Gross decreases—tax positions in prior period	(10,539		)		(4,665		)		(4,729		)
Gross increases—current-period tax positions	2,222				3,343				2,451
Gross increases—related to acquisitions	—				—				14,412
Settlements	(3,643		)		(2,822		)		(430		)
Lapse of statute of limitations	(6,495		)		(595		)		(2,224		)
Foreign currency translation adjustments	(570		)		456				281
Unrecognized tax benefits, end of period	$	39,410			$	58,110			$	51,740

The Company classifies interest and penalties as a component of income tax expense. At December 29, 2013, the Company had accrued interest and penalties of approximately $4.0 million and $0.4 million, respectively. During fiscal year 2013, the Company recognized a benefit of approximately $3.9 million for interest and a benefit of $3.7 million for penalties in its total tax provision primarily due to settlements and statues that had lapsed. During fiscal year 2012, the Company

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

recognized a charge of approximately $1.1 million for interest and a benefit of $2.2 million for penalties in its total tax provision. During fiscal year 2011, the Company recognized interest and penalties of approximately $0.5 million and zero, respectively, in its total tax provision. At December 29, 2013, the Company had gross tax effected unrecognized tax benefits of $39.4 million, of which $33.4 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 $4.0 million of its uncertain tax positions at December 29, 2013, 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 statues of limitations and potential settlements. Various tax years after 2006 remain open to examination by certain jurisdictions in which the Company has significant business operations, such as China, Finland, Germany, Italy, Netherlands, Singapore, the United Kingdom and the United States. The tax years under examination vary by jurisdiction.

During fiscal year 2013, the Company recorded net discrete income tax benefits of $24.0 million primarily for reversals of uncertain tax position reserves and resolution of other tax matters.

The components of (loss) income from continuing operations before income taxes were as follows for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
U.S.	$	(82,253	)		$	(118,546	)		$	(145,298	)
Non-U.S.	235,585				169,133				209,652
Total	$	153,332			$	50,587			$	64,354

On a U. S. income tax basis, the Company has reported significant taxable income over the three year period ended December 29, 2013. The Company has utilized tax attributes to minimize cash taxes paid on that taxable income.

The components of the provision for (benefit from) income taxes for continuing operations were as follows:

	Current Expense (Benefit)				Deferred Expense (Benefit)				Total
	(In thousands)
Fiscal year ended December 29, 2013
Federal	$	(1,292	)		$	(29,961	)		$	(31,253	)
State	1,582				(2,147		)		(565		)
Non-U.S.	15,025				2,201				17,226
Total	$	15,315			$	(29,907	)		$	(14,592	)
Fiscal year ended December 30, 2012
Federal	$	(5,234	)		$	(34,920	)		$	(40,154	)
State	2,617				(2,794		)		(177		)
Non-U.S.	50,314				(27,837		)		22,477
Total	$	47,697			$	(65,551	)		$	(17,854	)
Fiscal year ended January 1, 2012
Federal	$	18,309			$	8,615			$	26,924
State	3,397				(4,583		)		(1,186		)
Non-U.S.	41,765				(4,321		)		37,444
Total	$	63,471			$	(289	)		$	63,182

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The total provision for income taxes included in the consolidated financial statements is as follows for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Continuing operations	$	(14,592	)		$	(17,854	)		$	63,182
Discontinued operations	(1,098		)		906				(4,484		)
Total	$	(15,690	)		$	(16,948	)		$	58,698

A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision (benefit) is as follows for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Tax at statutory rate	$	53,663			$	17,708			$	22,526
Non-U.S. rate differential, net	(36,377		)		(26,652		)		(37,797		)
U.S. taxation of multinational operations	3,658				1,727				1,487
State income taxes, net	(2,145		)		3,265				(5,536		)
Prior year tax matters	(23,534		)		3,389				(9,079		)
Estimated taxes on repatriation	—				—				79,662
Federal tax credits	(5,452		)		(1,657		)		(1,509		)
Change in valuation allowance	(4,675		)		(14,446		)		11,364
Other, net	270				(1,188		)		2,064
Total	$	(14,592	)		$	(17,854	)		$	63,182

The tax effects of temporary differences and attributes that gave rise to deferred income tax assets and liabilities as of December 29, 2013 and December 30, 2012 were as follows:

	December 29, 2013				December 30, 2012
	(In thousands)
Deferred tax assets:
Inventory	$	9,850			$	9,893
Reserves and accruals	30,269				19,845
Accrued compensation	15,920				15,803
Net operating loss and credit carryforwards	132,710				165,274
Accrued pension	23,353				34,016
Restructuring reserve	6,853				7,951
Deferred revenue	42,687				42,054
All other, net	1,666				1,432
Total deferred tax assets	263,308				296,268
Deferred tax liabilities:
Postretirement health benefits	(3,894		)		(3,472		)
Depreciation and amortization	(163,269		)		(191,075		)
Repatriation accrual	—				(31,447		)
Total deferred tax liabilities	(167,163		)		(225,994		)
Valuation allowance	(63,139		)		(67,814		)
Net deferred tax assets	$	33,006			$	2,460

At December 29, 2013, the Company had state net operating loss carryforwards of $275.0 million, foreign net operating loss carryforwards of $177.2 million, state tax credit carryforwards of $11.9 million, general business tax credit carryforwards

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

of $29.6 million, and foreign tax credit carryforwards of $5.0 million. These are subject to expiration in years ranging from 2014 to 2032, and without expiration for certain foreign net operating loss carryforwards and certain state credit carryforwards. At December 29, 2013, the Company also had U.S. federal net operating loss carryforwards of $113.4 million as a result of acquisitions. The Company acquired estimated utilizable U.S. federal loss carryforwards of $223.4 million as a result of the Caliper acquisition during fiscal year 2011, of which $88.8 million remain at December 29, 2013. The utilization of these losses and credits is subject to annual limitations based on Section 382 of the Internal Revenue Code of 1986, as amended. These federal losses and credits will expire in fiscal years 2014 through 2030.

Valuation allowances take into consideration limitations imposed upon the use of the tax attributes and reduce the value of such items to the likely net realizable amount. The Company regularly evaluates positive and negative evidence available to determine if valuation allowances are required or if existing valuation allowances are no longer required. Valuation allowances have been provided on state net operating loss and state tax credit carryforwards and on certain foreign tax attributes that the Company has determined are not more likely than not to be realized. There were $10.4 million of valuation allowances provided on acquired tax attributes in connection with business combinations occurring in fiscal year 2011. The decrease in the valuation allowance in fiscal year 2013 is primarily due to the anticipated utilization of attributes in certain foreign jurisdictions. The change in the Company's valuation allowance during fiscal year 2012 was primarily due to the reversal of valuation allowances for two of the Company’s non-U.S. subsidiaries when it became more likely than not that the subsidiaries’ deferred tax assets would be realized.

Current deferred tax assets of $78.3 million and $34.9 million were included in other current assets at December 29, 2013 and December 30, 2012, respectively. Long-term deferred tax liabilities of $45.3 million and $32.4 million were included in other long-term liabilities at December 29, 2013 and December 30, 2012, respectively.

The components of net deferred tax assets (liabilities) as of December 29, 2013 and December 30, 2012 were as follows:

	December 29, 2013				December 30, 2012
	(In thousands)
U.S.	$	22,565			$	(10,919	)
Non-U.S.	10,441				13,379
Total	$	33,006			$	2,460

As a result of the sale of the IDS and Photoflash businesses in fiscal year 2010, the Company concluded that the remaining operations within those foreign subsidiaries previously containing IDS and Photoflash operations did not require the same level of capital as previously required, and therefore the Company planned to repatriate approximately $250.0 million of previously unremitted earnings and provided for the estimated taxes on the repatriation of those earnings. The impact of this tax provision in fiscal year 2010 was an increase to the Company’s tax provision of $65.8 million in discontinued operations. The Company utilized existing tax attributes to minimize the cash taxes paid on the repatriation. As of January 1, 2012, the Company had completed the repatriation of the previously unremitted earnings of the IDS and Photoflash businesses, and reduced the recorded estimated tax liability associated with the repatriation by $6.7 million. This change in estimate was recorded as a credit to discontinued operations during fiscal year 2011.

As a result of the Caliper acquisition, the Company concluded in fiscal year 2011 that certain foreign operations did not require the same level of capital as previously expected, and therefore the Company planned to repatriate approximately $350.0 million of previously unremitted earnings and has provided for the estimated taxes on the repatriation of those earnings. As a result of the planned repatriation, the Company recorded an increase to the Company’s tax provision of $79.7 million in continuing operations in fiscal year 2011. The Company utilized tax attributes, primarily those acquired in the Caliper acquisition, to minimize the cash taxes paid on the repatriation. As of December 29, 2013, the Company had completed the repatriation of the $350.0 million of foreign earnings.

Taxes have not been provided on unremitted earnings of international subsidiaries that the Company considers indefinitely reinvested because the Company plans to keep these amounts indefinitely reinvested overseas except for instances where the Company can remit such earnings to the U.S. without an associated net tax cost. The Company's indefinite reinvestment determination is based on the future operational and capital requirements. As of December 29, 2013, the amount of foreign earnings that the Company has the intent and ability to keep invested outside the U.S. indefinitely and for which no U.S. tax cost has been provided was approximately $607.0 million. It is not practical to calculate the unrecognized deferred tax liability on those earnings.

Note 7:	Earnings Per Share

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 for the fiscal years ended:

	December 29, 2013			December 30, 2012			January 1, 2012
	(In thousands)
Number of common shares—basic	112,254			113,728			112,976
Effect of dilutive securities:
Stock options	982			847			739
Restricted stock awards	267			285			149
Number of common shares—diluted	113,503			114,860			113,864
Number of potentially dilutive securities excluded from calculation due to antidilutive impact	485			1,288			2,281

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.

Note 8:	Accounts Receivable, Net

Accounts receivable were net of reserves for doubtful accounts of $30.2 million and $23.4 million as of December 29, 2013 and December 30, 2012, respectively.

Note 9:	Inventories, Net

Inventories as of December 29, 2013 and December 30, 2012 consisted of the following:

	December 29, 2013				December 30, 2012
	(In thousands)
Raw materials	$	92,891			$	74,924
Work in progress	15,505				12,768
Finished goods	152,640				159,996
Total inventories, net	$	261,036			$	247,688

Note 10:	Property, Plant and Equipment, Net

Property, plant and equipment, at cost, as of December 29, 2013 and December 30, 2012, consisted of the following:

	December 29, 2013				December 30, 2012
	(In thousands)
Land	$	1,779			$	8,050
Building and leasehold improvements	174,449				180,821
Machinery and equipment	327,956				324,608
Total property, plant and equipment	504,184				513,479
Accumulated depreciation	(318,811		)		(302,963		)
Total property, plant and equipment, net	$	185,373			$	210,516

Depreciation expense on property, plant and equipment for the fiscal years ended December 29, 2013, December 30, 2012 and January 1, 2012 was $38.1 million, $35.6 million and $30.9 million, respectively.

Note 11:	Marketable Securities and Investments

Investments as of December 29, 2013 and December 30, 2012 consisted of the following:

	December 29, 2013				December 30, 2012
	(In thousands)
Marketable securities	$	1,319			$	1,149

Marketable securities include equity and fixed-income securities held to meet obligations associated with the Company’s supplemental executive retirement plan and other deferred compensation plans. The Company has, accordingly, classified these securities as long-term.

The net unrealized holding gain and loss on marketable securities, net of deferred income taxes, reported as a component of other comprehensive income in stockholders’ equity, was a $0.01 million gain in fiscal year 2013 and $0.03 million gain in fiscal year 2012. The proceeds from the sales of securities and the related gains and losses are not material for any period presented.

Marketable securities classified as available for sale as of December 29, 2013 and December 30, 2012 consisted of the following:

	Market				Gross Unrealized Holding
Value				Cost				Gains				(Losses)
				(In thousands)
December 29, 2013
Equity securities	$	740			$	871			$	—			$	(131	)
Fixed-income securities	308				308				—				—
Other	271				334				—				(63		)
	$	1,319			$	1,513			$	—			$	(194	)
December 30, 2012
Equity securities	$	657			$	804			$	—			$	(147	)
Fixed-income securities	294				294				—				—
Other	198				261				—				(63		)
	$	1,149			$	1,359			$	—			$	(210	)

Note 12:	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.

As discussed in Note 23, the Company realigned its organization at the beginning of fiscal year 2013, which resulted in a change in the composition of the Company's reporting units and reportable segments. The Company's Informatics business, as well as its field service on products previously sold by the Company's former Bio-discovery business, were moved from the Environmental Health segment into the Human Health segment. The results reported for fiscal year 2013 reflect this new alignment of the Company's operating segments. Financial information relating to fiscal years 2012 and 2011 has been retrospectively adjusted to reflect the changes to the operating segments. As a result of the realignment, the Company reallocated goodwill from the Environmental Health segment to the Human Health segment based on the relative fair value, determined using the income approach, of the businesses within the historical Environmental Health segment. The change resulted in $215.7 million of goodwill being allocated from the Environmental Health segment to the Human Health segment.

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 the amount of an impairment loss, and is only performed if the carrying value exceeds the fair value of the reporting unit. The Company performed its annual

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

impairment testing for its reporting units as of January 1, 2013, its annual impairment date for fiscal year 2013, which was based on the change in the reporting structure. The Company concluded based on the first step of the process that there was no goodwill impairment, and the fair value exceeded the carrying value by more than 30.0% for each reporting unit.

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 rate 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 long-term terminal growth rates for the Company’s reporting units ranged from 4.5% to 6.0% for the fiscal year 2013 impairment analysis. The range for the discount rates for the reporting units was 10.5% to 12.0%. Keeping all other variables constant, a 10.0% change in any one of the input assumptions for the various reporting units would still allow the Company to conclude, based on the first step of the process, that there was no impairment of goodwill.

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. In addition, the Company currently evaluates the remaining useful life of its non-amortizing intangible assets 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 of non-amortizing intangible assets are no longer indefinite, the assets will be tested for impairment. These intangible assets will then be amortized prospectively over their estimated remaining useful lives 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 1, 2013, and concluded that there was no impairment of non-amortizing intangible assets.

As part of integrating the Company's recent acquisitions, in the fourth quarter of fiscal year 2012, the Company decided that prospectively it would primarily focus on the PerkinElmer trade name. Accordingly, the Company undertook a review of certain of its trade names within its portfolio as part of a realignment of its marketing strategy. The process resulted in the Company determining that the lives of certain trade names that it intends to phase out should be shortened, and in certain cases non-amortizing trade names were determined to no longer be indefinite-lived. Accordingly, the Company tested the recoverability of these identified indefinite-lived and definite-lived intangibles and concluded that the fair values of certain trade name intangible assets were less than the carrying amounts of those assets. For non-amortizing trade names the Company compared the fair values, which was determined using a relief from royalty method, to the carrying values, considering the revised useful lives. For amortizing trade names, the Company first determined if the undiscounted cash flows associated with the intangibles exceeded the carrying values. If the undiscounted cash flows did not exceed the carrying values, the Company determined the fair values of the trade names using a relief from royalty method, considering the revised useful lives. As a result, the remaining adjusted fair values of $6.1 million for trade names are being amortized over the period of time until the trade names are expected to be phased out, having weighted average remaining useful lives of 3 years.

Additionally during fiscal year 2012, the Company recorded an intangible asset impairment charge of $74.2 million which was equal to the excess of the carrying amounts of the intangible assets over the fair value of such assets. The Company recognized $73.4 million pre-tax impairment charges in the Human Health segment and also recognized $0.7 million pre-tax impairment charges in the Environmental Health segment.

An assessment of the recoverability of amortizing intangible assets takes place when events have occurred that may give rise to an impairment. During fiscal year 2013, the Company recorded a charge of $6.7 million for the impairment of certain long-lived assets within the Human Health segment, as the carrying amounts of the long-lived assets were not recoverable and exceeded their fair value. The Company recorded a charge of $3.0 million for the impairment of intangible assets during fiscal year 2011 within the Human Health segment for the full impairment of license agreements that the Company no longer intends to use. These non-cash impairments of long-lived assets, including intangible assets, have been recorded as a separate component of operating expenses.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The changes in the carrying amount of goodwill for fiscal years 2013 and 2012 are as follows (the January 1, 2012 and December 30, 2012 balances have been retrospectively adjusted to reflect the realignment of the Company, see Note 23):

	Human Health				Environmental Health				Consolidated
	(In thousands)
Adjusted balance at January 1, 2012	$	1,606,913			$	487,322			$	2,094,235
Foreign currency translation	5,892				2,979				8,871
Acquisitions, earnouts and other	19,682				—				19,682
Adjusted balance at December 30, 2012	1,632,487				490,301				2,122,788
Foreign currency translation	12,867				2,300				15,167
Acquisitions, earnouts and other	2,978				2,187				5,165
Balance at December 29, 2013	$	1,648,332			$	494,788			$	2,143,120

Identifiable intangible asset balances at December 29, 2013 by category and by business segment were as follows:

	Human Health				Environmental Health				Consolidated
	(In thousands)
Patents	$	36,791			$	2,800			$	39,591
Less: Accumulated amortization	(22,205		)		(2,002		)		(24,207		)
Net patents	14,586				798				15,384
Trade names and trademarks	35,972				86				36,058
Less: Accumulated amortization	(16,371		)		(86		)		(16,457		)
Net trade names and trademarks	19,601				—				19,601
Licenses	71,580				7,600				79,180
Less: Accumulated amortization	(45,835		)		(7,095		)		(52,930		)
Net licenses	25,745				505				26,250
Core technology	187,387				114,683				302,070
Less: Accumulated amortization	(88,811		)		(80,515		)		(169,326		)
Net core technology	98,576				34,168				132,744
Customer relationships	305,038				16,357				321,395
Less: Accumulated amortization	(127,397		)		(5,436		)		(132,833		)
Net customer relationships	177,641				10,921				188,562
IPR&D	4,257				5,226				9,483
Less: Accumulated amortization	(695		)		(1,483		)		(2,178		)
Net IPR&D	3,562				3,743				7,305
Net amortizable intangible assets	339,711				50,135				389,846
Non-amortizable intangible assets:
Trade names and trademarks	—				70,584				70,584
Total	$	339,711			$	120,719			$	460,430

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Identifiable intangible asset balances at December 30, 2012 by category and business segment were as follows:

	Human Health				Environmental Health				Consolidated
	(As adjusted)
	(In thousands)
Patents	$	91,948			$	16,021			$	107,969
Less: Accumulated amortization	(74,831		)		(15,123		)		(89,954		)
Net patents	17,117				898				18,015
Trade names and trademarks	37,511				183				37,694
Less: Accumulated amortization	(13,707		)		(179		)		(13,886		)
Net trade names and trademarks	23,804				4				23,808
Licenses	72,674				7,933				80,607
Less: Accumulated amortization	(41,493		)		(5,875		)		(47,368		)
Net licenses	31,181				2,058				33,239
Core technology	268,902				138,643				407,545
Less: Accumulated amortization	(146,662		)		(101,848		)		(248,510		)
Net core technology	122,240				36,795				159,035
Customer relationships	321,732				5,905				327,637
Less: Accumulated amortization	(105,764		)		(2,620		)		(108,384		)
Net customer relationships	215,968				3,285				219,253
IPR&D	4,163				3,300				7,463
Less: Accumulated amortization	(376		)		(1,120		)		(1,496		)
Net IPR&D	3,787				2,180				5,967
Net amortizable intangible assets	414,097				45,220				459,317
Non-amortizable intangible assets:
Trade names and trademarks	—				70,584				70,584
Total	$	414,097			$	115,804			$	529,901

Total amortization expense related to definite-lived intangible assets was $90.4 million in fiscal year 2013, $91.2 million in fiscal year 2012 and $80.0 million in fiscal year 2011. Estimated amortization expense related to definite-lived intangible assets for each of the next five years is $83.2 million in fiscal year 2014, $69.2 million in fiscal year 2015, $60.2 million in fiscal year 2016, $50.7 million in fiscal year 2017, and $39.1 million in fiscal year 2018.

The Company entered into a strategic agreement in fiscal year 2012 under which it acquired certain intangible assets and received a license to certain core technology for an analytics and data discovery platform, as well as the exclusive right to distribute the platform in certain scientific research and development markets. During fiscal year 2012, the Company paid $6.8 million for net intangible assets and $25.0 million for prepaid royalties. During fiscal year 2013, the Company extended the existing agreement for an additional year. In addition, the Company entered into a new agreement to expand the distribution rights to the clinical and other related markets and acquired additional intangible assets. During fiscal year 2013, the Company paid $7.0 million for net intangible assets and $40.3 million for prepaid royalties. The prepaid royalties have been recorded primarily as other long-term assets. The Company does not expect to pay any additional prepaid royalties within the next twelve months. The Company expenses royalties as revenue is recognized. These intangible assets are being amortized over their estimated useful lives. The Company has reported the amortization of these intangible assets within the results of the Company's Human Health segment from the execution date.

Note 13:	Debt

Senior Unsecured Revolving Credit Facility. On January 8, 2014, the Company refinanced its debt held under the senior unsecured revolving credit facility and entered into a new senior unsecured revolving credit facility. The Company's former senior unsecured revolving credit facility provided for $700.0 million of revolving loans and had an initial maturity of December 16, 2016. As of December 29, 2013, undrawn letters of credit in the aggregate amount of $12.0 million were treated as issued and outstanding under the former senior unsecured revolving credit facility. As of December 29, 2013, the Company had $291.0 million available for additional borrowing under the former facility. The interest rates under the former senior unsecured revolving credit facility were based on the Eurocurrency rate at the time of borrowing plus a margin, or the base rate

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

from time to time. The base rate was the higher of (i) the rate of interest in effect for such day as publicly announced from time to time by Bank of America, N.A. as its "prime rate," (ii) the Federal Funds rate plus 50 basis points or (iii) one-month Libor plus 1.00%. The Eurocurrency margin as of December 29, 2013 was 130 basis points. The weighted average Eurocurrency interest rate as of December 29, 2013 was 0.17%, resulting in a weighted average effective Eurocurrency rate, including the margin, of 1.47%, which was the interest applicable to borrowings outstanding under the Eurocurrency rate as of December 29, 2013. At December 29, 2013 and December 30, 2012, the Company had $397.0 million and $258.0 million, respectively of borrowings in U.S. Dollars outstanding under the former senior unsecured revolving credit facility with interest based primarily on the above described Eurocurrency rate. The credit agreement for the former facility contained affirmative, negative and financial covenants and events of default similar to those contained in the Company's new credit facility.

The new senior unsecured revolving credit facility provides for $700.0 million of revolving loans and has an initial maturity of January 8, 2019. The interest rates under the new senior unsecured revolving credit facility will be based on the Eurocurrency rate at the time of borrowing plus a margin, or the base rate from time to time. The base rate will be the higher of (i) the rate of interest in effect for such day as publicly announced from time to time by JPMorgan Chase Bank, N.A. as its "prime rate," (ii) the Federal Funds rate plus 50 basis points or (iii) one-month Libor plus 1.00%. The new credit agreement for the facility contains affirmative, negative and financial covenants and events of default similar to those contained in the Company's credit agreement for its previous facility. The financial covenants in the Company's new senior unsecured revolving credit facility include a debt-to-capital ratio, and two contingent covenants, a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio, applicable if the Company's credit rating is downgraded below investment grade. The Company uses the senior unsecured revolving credit facilities for general corporate purposes, which may include working capital, refinancing existing indebtedness, capital expenditures, share repurchases, acquisitions and strategic alliances.

6% Senior Unsecured Notes due in 2015. On May 30, 2008, the Company issued $150.0 million aggregate principal amount of senior unsecured notes due in 2015 in a private placement and received $150.0 million of proceeds from the issuance. The 2015 Notes were scheduled to mature in May 2015 and paid interest at an annual rate of 6%. Interest on the 2015 Notes was payable semi-annually on May 30th and November 30th of each year. The Company had the option to redeem some or all of the 2015 Notes at a make-whole redemption price plus accrued and unpaid interest. In December 2013, the Company redeemed all of the 2015 Notes for a redemption price that included the outstanding principal amount of $150.0 million and a prepayment premium of $11.1 million, which is included in other expense, net. The transaction also resulted in the write-off of $2.8 million for the remaining unamortized derivative losses for previously settled cash flow hedges and the write-off of $0.2 million for the remaining deferred debt issuance costs. Both of these amounts are included in interest expense.

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 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 December 29, 2013, the 2021 Notes had an aggregate carrying value of $497.4 million, net of $2.6 million of unamortized original issue discount. 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.

Financing Lease Obligations. In September 2012, the Company entered into agreements with the lessors of buildings that the Company is currently occupying and leasing to expand those buildings. The Company provided a portion of the funds needed for the construction of the additions to the buildings, which resulted in the Company being considered the owner of the buildings during the construction period. At the end of the construction period, the Company will not be reimbursed by the lessors for all of the construction costs. The Company is therefore deemed to have continuing involvement and the leases will 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 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 December 29, 2013, the Company had $40.3 million recorded for these financing lease obligations, of which $2.6 million was recorded as short-term debt and $37.7 million was recorded as long-term

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

debt. At December 30, 2012, the Company had $34.6 million recorded for these financing lease obligations, of which $1.7 million was recorded as short-term debt and $32.9 million was recorded as long-term debt. The buildings are being depreciated on a straight-line basis over the terms of the leases to their estimated residual values, which will equal the remaining financing obligation at the end of the lease term. At the end of the lease term, the remaining balances in property, plant and equipment, net and debt will be reversed against each other.

The following table summarizes the maturities of the Company’s indebtedness as of December 29, 2013:

	Sr. Unsecured Revolving Credit Facility Maturing 2016(1)				5.0% Sr. Notes Maturing 2021				Financing Lease Obligations				Total
	(In thousands)
2014	$	—			$	—			$	2,624			$	2,624
2015	—				—				2,632				2,632
2016	397,000				—				2,641				399,641
2017	—				—				2,649				2,649
2018	—				—				2,802				2,802
2019 and thereafter	—				500,000				26,948				526,948
Total before unamortized discount	397,000				500,000				40,296				937,296
Unamortized discount	—				(2,568		)		—				(2,568		)
Total	$	397,000			$	497,432			$	40,296			$	934,728

---

(1)	On January 8, 2014, the Company refinanced its debt held under the senior unsecured revolving credit facility and entered into a new senior unsecured revolving credit facility, with an initial maturity of January 8, 2019.

Note 14:	Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities as of December 29, 2013 and December 30, 2012 consisted of the following:

	December 29, 2013				December 30, 2012
	(In thousands)
Payroll and incentives	$	53,049			$	55,342
Employee benefits	41,019				42,485
Deferred revenue	164,723				154,247
Federal, non-U.S. and state income taxes	11,783				16,091
Other accrued operating expenses	133,490				119,861
Total accrued expenses and other current liabilities	$	404,064			$	388,026

Note 15:	Employee Benefit Plans

Savings Plan: The Company has a 401(k) Savings Plan for the benefit of all qualified U.S. employees, with such employees receiving matching contributions in the amount equal to 100.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits. Such matching contributions have been in effect since February 1, 2011 for all employees except former employees of Caliper, who received matching contributions of 50.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits until December 31, 2012, and received matching contributions of 100.0% of the first 5.0% of eligible compensation up to applicable Internal Revenue Service limits after December 31, 2012. Savings plan expense was $12.8 million in fiscal year 2013, $12.3 million in fiscal year 2012 and $10.6 million in fiscal year 2011.

Pension Plans: The Company has a defined benefit pension plan covering certain U.S. employees and non-U.S. pension plans for certain non-U.S. employees. The principal U.S. defined benefit pension plan was closed to new hires effective January 31, 2001, and benefits for those employed by the Company’s former Life Sciences businesses were frozen as of that date. Plan benefits were frozen as of March 2003 for those employed by the Company’s former Analytical Instruments business

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

and corporate employees. Plan benefits were frozen as of January 31, 2011 for all remaining employees that were still actively accruing in the plan. The plans provide benefits that are based on an employee’s years of service and compensation near retirement.

Net periodic pension (credit) cost for U.S. and non-U.S. plans included the following components for fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Service cost	$	3,664			$	3,852			$	3,880
Interest cost	21,334				23,164				25,169
Expected return on plan assets	(25,106		)		(20,768		)		(22,534		)
Actuarial (gain) loss	(16,464		)		28,355				64,005
Amortization of prior service cost	(267		)		(242		)		(221		)
Net periodic pension (credit) cost	$	(16,839	)		$	34,361			$	70,299

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table sets forth the changes in the funded status of the principal U.S. pension plan and the principal non-U.S. pension plans and the amounts recognized in the Company’s consolidated balance sheets as of December 29, 2013 and December 30, 2012.

	December 29, 2013								December 30, 2012
Non-U.S.				U.S.				Non-U.S.				U.S.
(In thousands)
Actuarial present value of benefit obligations:
Accumulated benefit obligations	$	277,125			$	279,299			$	271,153			$	301,770
Change in benefit obligations:
Projected benefit obligations at beginning of year	$	278,707			$	301,770			$	231,325			$	297,001
Service cost	2,589				1,075				2,502				1,350
Interest cost	9,834				11,500				11,235				11,929
Benefits paid and plan expenses	(11,218		)		(17,817		)		(10,625		)		(17,568		)
Participants’ contributions	391				—				432				—
Plan settlement	(918		)		—				—				—
Actuarial loss (gain)	1,678				(17,229		)		38,541				9,058
Effect of exchange rate changes	7,153				—				5,297				—
Projected benefit obligations at end of year	$	288,216			$	279,299			$	278,707			$	301,770
Change in plan assets:
Fair value of plan assets at beginning of year	$	114,515			$	221,755			$	97,836			$	195,022
Actual return on plan assets	17,201				8,818				12,710				27,301
Benefits paid and plan expenses	(11,218		)		(17,817		)		(10,625		)		(17,568		)
Employer’s contributions	20,200				37,000				10,882				17,000
Participants’ contributions	391				—				432				—
Plan settlement	(918		)		—				—				—
Effect of exchange rate changes	3,533				—				3,280				—
Fair value of plan assets at end of year	143,704				249,756				114,515				221,755
Net liabilities recognized in the consolidated balance sheets	$	(144,512	)		$	(29,543	)		$	(164,192	)		$	(80,015	)
Net amounts recognized in the consolidated balance sheets consist of:
Noncurrent assets	$	6,879			$	—			$	—			$	—
Current liabilities	(7,360		)		—				(7,398		)		—
Noncurrent liabilities	(144,031		)		(29,543		)		(156,794		)		(80,015		)
Net liabilities recognized in the consolidated balance sheets	$	(144,512	)		$	(29,543	)		$	(164,192	)		$	(80,015	)
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	(1,745	)		$	—			$	(2,048	)		$	—
Net amounts recognized in accumulated other comprehensive income	$	(1,745	)		$	—			$	(2,048	)		$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	3.77		%		4.77		%		3.62		%		3.92		%
Rate of compensation increase	3.23		%		None				2.88		%		None

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Actuarial assumptions used to determine net periodic pension cost during the year were as follows:

	December 29, 2013						December 30, 2012						January 1, 2012
	Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.
Discount rate	3.62	%		3.92	%		4.91	%		4.10	%		5.14	%		5.30	%
Rate of compensation increase	2.88	%		None			3.22	%		3.50	%		3.42	%		3.50	%
Expected rate of return on assets	5.50	%		7.50	%		5.40	%		7.75	%		6.70	%		8.10	%

The following table provides a breakdown of the non-U.S. benefit obligations and fair value of assets for pension plans that have benefit obligations in excess of plan assets:

	December 29, 2013				December 30, 2012
	(In thousands)
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Projected benefit obligations	$	151,391			$	278,707
Fair value of plan assets	—				114,515
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligations	$	148,235			$	271,153
Fair value of plan assets	—				114,515

Assets of the defined benefit pension plans are primarily equity and debt securities. Asset allocations as of December 29, 2013 and December 30, 2012, and target asset allocations for fiscal year 2014 are as follows:

	Target Allocation						Percentage of Plan Assets at
	December 28, 2014						December 29, 2013						December 30, 2012
Asset Category	Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.
Equity securities	45-55%			40-50%			51	%		43	%		71	%		55	%
Debt securities	45-55%			50-60%			48	%		57	%		29	%		39	%
Other	0-5%			0-5%			1	%		0	%		0	%		6	%
Total	100	%		100	%		100	%		100	%		100	%		100	%

The Company maintains target allocation percentages among various asset classes based on investment policies established for the pension plans which are designed to maximize the total rate of return (income and appreciation) after inflation within the limits of prudent risk taking, while providing for adequate near-term liquidity for benefit payments.

The Company’s expected returns on assets assumptions are derived from management’s estimates, as well as other information compiled by management, including studies that utilize customary procedures and techniques. The studies include a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy given the anticipated requirements of the plans to determine the average rate of earnings expected on the funds invested to provide for the pension plans benefits. While the study gives appropriate consideration to recent fund performance and historical returns, the assumption is primarily a long-term, prospective rate.

The Company's discount rate assumptions are derived from a range of factors, including a yield curve composed of the rates of return on high-quality fixed-income corporate bonds available at the measurement date and the related expected duration for the obligations.

The target allocations for plan assets are listed in the above table. Equity securities primarily include investments in large-cap and mid-cap companies located in the United States and abroad, and equity index funds. Debt securities include corporate bonds of companies from diversified industries, high-yield bonds, and U.S. government securities. Other types of investments include investments in non-U.S. government index linked bonds, multi-strategy hedge funds and venture capital funds that follow several different strategies.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The fair values of the Company’s pension plan assets as of December 29, 2013 and December 30, 2012 by asset category, classified in the three levels of inputs described in Note 21 to the consolidated financial statements are as follows:

	Fair Value Measurements at December 29, 2013 Using:
Total Carrying Value at December 29, 2013				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In thousands)
Cash	$	4,458			$	4,458			$	—			$	—
Equity Securities:
U.S. large-cap	34,127				34,127				—				—
International large-cap value	27,595				27,595				—				—
Emerging markets growth	12,517				12,517				—				—
Equity index funds	73,796				—				73,796				—
Domestic real estate funds	2,471				2,471				—				—
Commodity funds	8,179				8,179				—				—
Fixed income securities:
Non-U.S. Treasury Securities	18,344				—				18,344				—
Corporate and U.S. debt instruments	132,828				45,215				87,613				—
Corporate bonds	22,619				—				22,619				—
High yield bond funds	6,170				6,170				—				—
Other types of investments:
Multi-strategy hedge funds	22,689				—				—				22,689
Venture capital funds	8				—				—				8
Non-U.S. government index linked bonds	27,659				—				27,659				—
Total assets measured at fair value	$	393,460			$	140,732			$	230,031			$	22,697

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

	Fair Value Measurements at December 30, 2012 Using:
Total Carrying Value at December 30, 2012				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In thousands)
Cash	$	13,940			$	13,940			$	—			$	—
Equity Securities:
U.S. large-cap	37,674				37,674				—				—
International large-cap value	37,239				37,239				—				—
U.S. small-cap	3,567				3,567				—				—
Emerging markets growth	12,390				12,390				—				—
Equity index funds	80,999				—				80,999				—
Domestic real estate funds	2,235				2,235				—				—
Commodity funds	8,940				8,940				—				—
Fixed income securities:
Corporate debt instruments	565				—				565				—
Corporate and U.S. debt instruments	73,362				18,985				54,377				—
Corporate bonds	22,497				—				22,497				—
High yield bond funds	11,624				11,624				—				—
Other types of investments:
Multi-strategy hedge funds	20,262				—				—				20,262
Venture capital funds	7				—				—				7
Private funds	162				—				—				162
Non-U.S. government index linked bonds	10,807				—				10,807				—
Total assets measured at fair value	$	336,270			$	146,594			$	169,245			$	20,431

Valuation Techniques: Valuation techniques utilized need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies utilized at December 29, 2013 compared to December 30, 2012. The following is a description of the valuation techniques utilized to measure the fair value of the assets shown in the table above.

Equity Securities: Shares of registered investment companies that are publicly traded are categorized as Level 1 assets; they are valued at quoted market prices that represent the net asset value of the fund. These instruments have active markets.

Equity index funds are mutual funds that are not publicly traded and are comprised primarily of underlying equity securities that are publicly traded on exchanges. Price quotes for the assets held by these funds are readily observable and available. Equity index funds are categorized as Level 2 assets.

Fixed Income Securities: Fixed income mutual funds that are publicly traded are valued at quoted market prices that represent the net asset value of securities held by the fund and are categorized as Level 1 assets.

Fixed income index funds that are not publicly traded are stated at net asset value as determined by the issuer of the fund based on the fair value of the underlying investments and are categorized as Level 2 assets.

Individual fixed income bonds are categorized as Level 2 assets except where sufficient quoted prices exist in active markets, in which case such securities are categorized as Level 1 assets. These securities are valued using third-party pricing services. These services may use, for example, model-based pricing methods that utilize observable market data as inputs. Broker dealer bids or quotes of securities with similar characteristics may also be used.

Other Types of Investments: Non-U.S. government index link bond funds are not publicly traded and are stated at net asset value as determined by the issuer of the fund based on the fair value of the underlying investments. Underlying investments consist of bonds in which payment of income on the principal is related to a specific price index and are categorized as Level 2 assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Hedge funds, private equity funds and venture capital funds are valued at fair value by using the net asset values provided by the investment managers and are updated, if necessary, using analytical procedures, appraisals, public market data and/or inquiry of the investment managers. The net asset values are determined based upon the fair values of the underlying investments in the funds. These other investments invest primarily in readily available marketable securities and allocate gains, losses, and expense to the investor based on the ownership percentage as described in the fund agreements. They are categorized as Level 3 assets.

The Company's policy is to recognize significant transfers between levels at the actual date of the event.

A reconciliation of the beginning and ending Level 3 assets for fiscal years 2013, 2012, and 2011 is as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
Common Collective Trusts/Private Funds				Venture Capital Funds				Multi-strategy Hedge Funds				Total
(In thousands)
Balance at January 2, 2011	$	—			$	14			$	20,073			$	20,087
Realized losses	—				—				(84		)		(84		)
Unrealized losses	—				(7		)		(704		)		(711		)
Balance at January 1, 2012	—				7				19,285				19,292
Realized gains	1,162				—				—				1,162
Unrealized gains	19				—				977				996
Purchases	9,448				—				—				9,448
Issuances, Sales and Settlements	(10,467		)		—				—				(10,467		)
Balance at December 30, 2012	162				7				20,262				20,431
Realized gains	7				—				—				7
Unrealized (losses) gains	(19		)		1				2,427				2,409
Issuances, Sales and Settlements	(150		)		—				—				(150		)
Balance at December 29, 2013	$	—			$	8			$	22,689			$	22,697

With respect to plans outside of the United States, the Company expects to contribute $11.1 million in the aggregate during fiscal year 2014. During fiscal year 2013, the Company made contributions of $37.0 million for the 2012 plan year to its defined benefit pension plan in the United States. During fiscal year 2013, the Company contributed $20.2 million, in the aggregate, to plans outside of the United States, which includes an additional contribution of $10.0 million to its defined benefit pension plan in the United Kingdom. During fiscal year 2012, the Company contributed $17.0 million for the 2011 plan year to its defined benefit pension plans in the United States, and $10.9 million in the aggregate to its defined benefit pension plans outside of the United States.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:

	Non-U.S.				U.S.
	(In thousands)
2014	$	11,878			$	17,836
2015	12,931				17,848
2016	13,312				17,916
2017	13,627				17,990
2018	14,156				18,219
2019-2023	77,736				91,400

The Company also sponsors a supplemental executive retirement plan to provide senior management with benefits in excess of normal pension benefits. Effective July 31, 2000, this plan was closed to new entrants. At December 29, 2013 and December 30, 2012, the projected benefit obligations were $21.1 million and $23.2 million, respectively. Assets with a fair

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

value of $0.3 million and $0.2 million, segregated in a trust (which is included in marketable securities and investments on the consolidated balance sheets), were available to meet this obligation as of December 29, 2013 and December 30, 2012, respectively. Pension income and expenses for this plan was approximately income of $0.4 million in fiscal year 2013, expense of $2.5 million in fiscal year 2012 and expense of $4.9 million in fiscal year 2011.

Postretirement Medical Plans: The Company provides healthcare benefits for eligible retired U.S. employees under a comprehensive major medical plan or under health maintenance organizations where available. Eligible U.S. employees qualify for retiree health benefits if they retire directly from the Company and have at least ten years of service. Generally, the major medical plan pays stated percentages of covered expenses after a deductible is met and takes into consideration payments by other group coverage and by Medicare. The plan requires retiree contributions under most circumstances and has provisions for cost-sharing charges. Effective January 1, 2000, this plan was closed to new hires. For employees retiring after 1991, the Company has capped its medical premium contribution based on employees’ years of service. The Company funds the amount allowable under a 401(h) provision in the Company’s defined benefit pension plan. Assets of the plan are primarily equity and debt securities and are available only to pay retiree health benefits.

Net periodic postretirement medical benefit credit included the following components for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Service cost	$	106			$	106			$	85
Interest cost	135				144				163
Expected return on plan assets	(965		)		(877		)		(884		)
Actuarial (gain) loss	(182		)		(929		)		705
Amortization of prior service cost	—				—				(253		)
Net periodic postretirement medical benefit credit	$	(906	)		$	(1,556	)		$	(184	)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table sets forth the changes in the postretirement medical plan’s funded status and the amounts recognized in the Company’s consolidated balance sheets as of December 29, 2013 and December 30, 2012.

	December 29, 2013				December 30, 2012
	(In thousands)
Actuarial present value of benefit obligations:
Retirees	$	1,331			$	1,475
Active employees eligible to retire	470				431
Other active employees	2,009				1,913
Accumulated benefit obligations at beginning of year	3,810				3,819
Service cost	106				106
Interest cost	135				144
Benefits paid	(189		)		(205		)
Actuarial (gain) loss	(520		)		(54		)
Change in accumulated benefit obligations during the year	(468		)		(9		)
Retirees	1,159				1,331
Active employees eligible to retire	388				470
Other active employees	1,795				2,009
Accumulated benefit obligations at end of year	3,342				3,810
Change in plan assets:
Fair value of plan assets at beginning of year	12,958				11,411
Actual return on plan assets	438				1,547
Fair value of plan assets at end of year	13,396				12,958
Net assets recognized in the consolidated balance sheets	$	10,054			$	9,148
Net amounts recognized in the consolidated balance sheets consist of:
Noncurrent assets	$	10,054			$	9,148
Net assets recognized in the consolidated balance sheets	$	10,054			$	9,148
Net amounts recognized in accumulated other comprehensive income consist of:
Prior service cost	$	—			$	—
Net amounts recognized in accumulated other comprehensive income	$	—			$	—
Actuarial assumptions as of the year-end measurement date:
Discount rate	4.77		%		3.86		%

Actuarial assumptions used to determine net cost during the year are as follows:

	December 29, 2013			December 30, 2012			January 1, 2012
Discount rate	3.86	%		4.00	%		5.30	%
Expected rate of return on assets	7.50	%		7.75	%		8.10	%

The Company maintains a master trust for plan assets related to the U.S. defined benefit plans and the U.S. postretirement medical plan. Accordingly, investment policies, target asset allocations and actual asset allocations are the same as those disclosed for the U.S. defined benefit plans.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The fair values of the Company’s plan assets at December 29, 2013 and December 30, 2012 by asset category, classified in the three levels of inputs described in Note 21, are as follows:

	Fair Value Measurements at December 29, 2013 Using:
Total Carrying Value at December 29, 2013				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In thousands)
Cash	$	167			$	167			$	—			$	—
Equity Securities:
U.S. large-cap	1,831				1,831				—				—
International large-cap value	1,480				1,480				—				—
Emerging markets growth	672				672				—				—
Domestic real estate funds	133				133				—				—
Commodity funds	439				439				—				—
Fixed income securities:
Corporate debt instruments	7,126				2,426				4,700				—
High yield bond funds	331				331				—				—
Other types of investments:
Multi-strategy hedge funds	1,217				—				—				1,217
Total assets measured at fair value	$	13,396			$	7,479			$	4,700			$	1,217

	Fair Value Measurements at December 30, 2012 Using:
Total Carrying Value at December 30, 2012				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
(In thousands)
Cash	$	798			$	798			$	—			$	—
Equity Securities:
U.S large-cap	2,202				2,202				—				—
International large-cap value	2,177				2,177				—				—
U.S. small-cap	209				209				—				—
Emerging markets growth	724				724				—				—
Domestic real estate funds	131				131				—				—
Commodity funds	523				523				—				—
Fixed income securities:
Corporate debt instruments	33				—				33				—
Corporate and U.S. debt instruments	4,288				1,110				3,178				—
High yield bond funds	679				679				—				—
Other types of investments:
Multi-strategy hedge funds	1,184				—				—				1,184
Private funds	9				—				—				9
Venture capital funds	1				—				—				1
Total assets measured at fair value	$	12,958			$	8,553			$	3,211			$	1,194

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Valuation Techniques: Valuation techniques are the same as those disclosed for the U.S. defined benefit plans above.

A reconciliation of the beginning and ending Level 3 assets for fiscal years 2013, 2012, and 2011 is as follows:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3):
Common Collective Trusts/Private Funds				Venture Capital Funds				Multi-strategy Hedge Funds				Total
(In thousands)
Balance at January 2, 2011	$	—			$	1			$	1,086			$	1,087
Realized gains	—				—				84				84
Unrealized losses	—				—				(41		)		(41		)
Purchases	—				—				—				—
Issuances, Sales and Settlements	—				—				—				—
Balance at January 1, 2012	—				1				1,129				1,130
Realized gains	68				—				—				68
Unrealized gains	1				—				55				56
Purchases	552				—				—				552
Issuances, Sales and Settlements	(612		)		—				—				(612		)
Balance at December 30, 2012	9				1				1,184				1,194
Realized gains	—				—				—				—
Unrealized (losses) gains	(1		)		(1		)		33				31
Purchases	—				—				—				—
Issuances, Sales and Settlements	(8		)		—				—				(8		)
Balance at December 29, 2013	$	—			$	—			$	1,217			$	1,217

The Company does not expect to make any contributions to the postretirement medical plan during fiscal year 2014.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:

Postretirement Medical Plan
	(In thousands)
2014	$	202
2015	205
2016	210
2017	217
2018	224
2019-2023	1,227

Deferred Compensation Plans: During fiscal year 1998, the Company implemented a nonqualified deferred compensation plan that provides benefits payable to officers and certain key employees or their designated beneficiaries at specified future dates, or upon retirement or death. The plan was amended to eliminate deferral elections from participants for plan years beginning January 1, 2011. Benefit payments under the plan are funded by contributions from participants, and for certain participants, contributions are funded by the Company. The obligations related to the deferred compensation plan totaled $1.0 million and $0.9 million at December 29, 2013 and December 30, 2012, respectively.

Note 16:	Contingencies

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. During fiscal year 2013, the Company accrued an additional $5.7

million related to a particular site for increased monitoring and mitigation activities. The Company has accrued $13.5 million as of December 29, 2013, which represents 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. This amount is not discounted and does not reflect the recovery of any material amounts through insurance or indemnification arrangements. These 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 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 consolidated financial statements. While it is possible that a loss exceeding the amounts recorded in the consolidated financial statements may be incurred, the potential exposure is not expected to be materially different from those amounts recorded.

Enzo Biochem, Inc. and Enzo Life Sciences, Inc. (collectively, “Enzo”) filed a complaint dated October 23, 2002 in the United States District Court for the Southern District of New York, Civil Action No. 02-8448, seeking injunctive and monetary relief against Amersham plc, Amersham BioSciences, PerkinElmer, Inc., PerkinElmer Life Sciences, Inc., Sigma-Aldrich Corporation, Sigma Chemical Company, Inc., Molecular Probes, Inc., and Orchid BioSciences, Inc. The complaint alleges that the Company breached its distributorship and settlement agreements with Enzo, infringed Enzo's patents, engaged in unfair competition and fraud, and committed torts against Enzo by, among other things, engaging in commercial development and exploitation of Enzo's patented products and technology, separately and together with the other defendants. The Company filed an answer and a counterclaim alleging that Enzo's patents are invalid. In 2007, after the court issued a decision in 2006 regarding the construction of the claims in Enzo's patents that effectively limited the coverage of certain of those claims and, the Company believes, excluded certain of the Company's products from the coverage of Enzo's patents, summary judgment motions were filed by the defendants. The case was assigned to a new district court judge in January 2009 and in March 2009, the new judge denied the pending summary judgment motions without prejudice and ordered a stay of the case until the federal appellate court decided Enzo's appeal of the judgment of the United States District Court for the District of Connecticut in Enzo Biochem vs. Applera Corp. and Tropix, Inc. (the “Connecticut Case”), which involved a number of the same patents and which could materially affect the scope of Enzo's case against the Company. In March 2010, the United States Court of Appeals for the Federal Circuit affirmed-in-part and reversed-in-part the judgment in the Connecticut Case. The district court permitted the Company and the other defendants to jointly file a motion for summary judgment on certain patent and other issues common to all of the defendants. On September 12, 2012, the court granted in part and denied in part the Company's motion for summary judgment of non-infringement. On December 21, 2012, the Company filed a second motion for summary judgment on claims that were not addressed in the first motion, which the court also granted in part and denied in part. The case is expected to go to trial in March 2014.

The Company believes it has meritorious defenses to the matter described above, and it is contesting the action vigorously. While this matter is subject to uncertainty, in the opinion of the Company’s management, based on its review of the information available at this time, the resolution of this matter will not have a material adverse effect on the Company’s consolidated financial statements.

The Company is also subject to various other 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 other contingencies at December 29, 2013 should not have a material adverse effect on the Company’s 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.

Note 17:	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 consolidated balance sheets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

A summary of warranty reserve activity for the fiscal years ended December 29, 2013, December 30, 2012 and January 1, 2012 is as follows:

	(In thousands)
Balance at January 2, 2011	$	8,250
Provision charged to income	15,001
Payments	(15,154		)
Adjustments to previously provided warranties, net	926
Foreign currency translation and acquisitions	1,389
Balance at January 1, 2012	10,412
Provision charged to income	17,750
Payments	(18,022		)
Adjustments to previously provided warranties, net	801
Foreign currency translation and acquisitions	62
Balance at December 30, 2012	11,003
Provision charged to income	17,291
Payments	(17,116		)
Adjustments to previously provided warranties, net	(693		)
Foreign currency translation and acquisitions	49
Balance at December 29, 2013	$	10,534

Note 18:	Stock Plans

Stock-Based Compensation:

In addition to the Company’s Employee Stock Purchase Plan, the Company utilizes one stock-based compensation plan, the 2009 Incentive Plan (the “2009 Plan”). Under the 2009 Plan, which includes shares of the Company’s common stock previously granted under the Amended and Restated 2001 Incentive Plan and the 2005 Incentive Plan that were canceled or forfeited without the shares being issued, 10.7 million shares of the Company’s common stock are authorized for stock option grants, restricted stock awards, performance units and stock grants as part of the Company’s compensation programs.

The following table summarizes total pre-tax compensation expense recognized related to the Company’s stock options, restricted stock, restricted stock units, performance units and stock grants, net of estimated forfeitures, included in the Company’s consolidated statements of operations for fiscal years 2013, 2012, and 2011:

	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
Cost of product and service revenue	$	1,304			$	1,276			$	1,139
Research and development expenses	853				769				583
Selling, general and administrative expenses	11,896				18,986				13,760
Total stock-based compensation expense	$	14,053			$	21,031			$	15,482

The total income tax benefit recognized in the consolidated statements of operations for stock-based compensation was $4.4 million in fiscal year 2013, $6.8 million in fiscal year 2012 and $5.1 million in fiscal year 2011. Stock-based compensation costs capitalized as part of inventory were $0.4 million and $0.3 million as of December 29, 2013 and December 30, 2012, respectively. The excess tax benefit recognized from stock awards, classified as a financing cash activity, was zero in fiscal year 2013, $1.8 million in fiscal year 2012 and $9.3 million in fiscal year 2011.

Stock Options: The Company has granted options to purchase common shares at prices equal to the market price of the common shares on the date the option is granted. Conditions of vesting are determined at the time of grant. Options are generally exercisable in equal annual installments over a period of three years, and will generally expire seven years after the date of grant. Options replaced in association with business combination transactions are generally issued with the same terms of the respective plans under which they were originally issued.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The fair value of each option grant is estimated using the Black-Scholes option pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility was calculated primarily based on the historical volatility of the Company’s stock. The average expected life was based on the contractual term of the option and historic exercise experience. The risk-free interest rate is based on United States Treasury zero-coupon issues with a remaining term equal to the expected life assumed at the date of grant. Forfeitures are estimated based on voluntary termination behavior, as well as an analysis of actual option forfeitures. The Company’s weighted-average assumptions used in the Black-Scholes option pricing model were as follows for the fiscal years ended:

	December 29, 2013			December 30, 2012			January 1, 2012
Risk-free interest rate	0.9	%		0.6	%		1.9	%
Expected dividend yield	0.8	%		1.2	%		1.1	%
Expected lives	5 years			4 years			4 years
Expected stock volatility	38.5	%		38.7	%		38.1	%

The following table summarizes stock option activity for the three fiscal years ended December 29, 2013:

	December 29, 2013							December 30, 2012							January 1, 2012
	Number of Shares			Weighted- Average Price				Number of Shares			Weighted- Average Price				Number of Shares			Weighted- Average Price
	(Shares in thousands)
Outstanding at beginning of year	4,266			$	21.64			5,346			$	20.57			6,983			$	21.86
Granted	518			33.62				756			26.28				847			24.20
Exercised	(947	)		21.45				(1,611	)		20.16				(1,138	)		20.86
Canceled	(8	)		22.88				(210	)		22.34				(1,237	)		30.29
Forfeited	(335	)		23.04				(15	)		21.98				(109	)		18.27
Outstanding at end of year	3,494			$	23.34			4,266			$	21.64			5,346			$	20.57
Exercisable at end of year	2,392			$	20.66			2,677			$	20.00			3,549			$	20.74

The aggregate intrinsic value for stock options outstanding at December 29, 2013 was $51.7 million with a weighted-average remaining contractual term of 3.5 years. The aggregate intrinsic value for stock options exercisable at December 29, 2013 was $41.8 million with a weighted-average remaining contractual term of 2.7 years. At December 29, 2013, there were 3.4 million stock options that were vested, and expected to vest in the future, with an aggregate intrinsic value of $51.3 million and a weighted-average remaining contractual term of 3.5 years.

The weighted-average per-share grant-date fair value of options granted during fiscal years 2013, 2012, and 2011 was $10.82, $7.36, and $7.03, respectively. The total intrinsic value of options exercised during fiscal years 2013, 2012, and 2011 was $13.8 million, $13.1 million, and $6.9 million, respectively. Cash received from option exercises for fiscal years 2013, 2012, and 2011 was $20.3 million, $32.5 million, and $23.7 million, respectively. The total compensation expense recognized related to the Company’s outstanding options was $4.4 million in fiscal year 2013, $5.1 million in fiscal year 2012 and $4.5 million in fiscal year 2011.

There was $5.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options granted as of December 29, 2013. This cost is expected to be recognized over a weighted-average period of 1.7 years, and will be adjusted for any future changes in estimated forfeitures.

Restricted Stock Awards: The Company has awarded shares of restricted stock and restricted stock units to certain employees at no cost to them, which cannot be sold, assigned, transferred or pledged during the restriction period. The restricted stock and restricted stock units vest through the passage of time, assuming continued employment. The fair value of the award at the time of the grant is expensed on a straight line basis primarily in selling, general and administrative expenses over the vesting period, which is generally three years. These awards were granted under the Company’s 2009 Plan, 2005 Incentive Plan and 2001 Incentive Plan. Recipients of the restricted stock have the right to vote such shares and receive dividends.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes restricted stock award activity for the three fiscal years ended December 29, 2013:

	December 29, 2013							December 30, 2012							January 1, 2012
	Number of Shares			Weighted- Average Grant- Date Fair Value				Number of Shares			Weighted- Average Grant- Date Fair Value				Number of Shares			Weighted- Average Grant- Date Fair Value
	(Shares in thousands)
Nonvested at beginning of year	781			$	24.71			672			$	23.62			578			$	22.00
Granted	289			33.87				358			25.86				460			26.31
Vested	(346	)		22.98				(184	)		23.19				(272	)		23.96
Forfeited	(75	)		28.76				(65	)		24.03				(94	)		24.58
Nonvested at end of year	649			$	29.24			781			$	24.71			672			$	23.62

The fair value of restricted stock awards vested during fiscal years 2013, 2012, and 2011 was $8.0 million, $4.3 million, and $6.5 million, respectively. The total compensation expense recognized related to the restricted stock awards was $7.5 million in fiscal year 2013, $8.2 million in fiscal year 2012 and $6.5 million in fiscal year 2011.

As of December 29, 2013, there was $9.0 million of total unrecognized compensation cost, net of forfeitures, related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 1.2 fiscal years.

Performance Units: The Company’s performance unit program provides a cash award based on the achievement of specific performance criteria. A target number of units are granted at the beginning of a three-year performance period. The number of units earned at the end of the performance period is determined by multiplying the number of units granted by a performance factor ranging from 0% to 200%. Awards are determined by multiplying the number of units earned by the stock price at the end of the performance period, and are paid in cash and accounted for as a liability based award. The compensation expense associated with these units is recognized over the period that the performance targets are expected to be achieved. The Company granted 98,056 performance units, 122,675 performance units, and 89,828 performance units during fiscal years 2013, 2012, and 2011, respectively. The weighted-average per-share grant-date fair value of performance units granted during fiscal years 2013, 2012, and 2011 was $34.06, $26.18, and $26.71, respectively. The total compensation expense related to these performance units was $1.4 million, $7.1 million, and $3.7 million for fiscal years 2013, 2012, and 2011, respectively. As of December 29, 2013, there were 282,044 performance units outstanding subject to forfeiture, with a corresponding liability of $4.8 million recorded in accrued expenses and long-term liabilities.

Stock Awards: The Company’s stock award program provides non-employee Directors an annual equity award. For fiscal years 2013, 2012, and 2011 the award equaled the number of shares of the Company’s common stock which has an aggregate fair market value of $100,000 on the date of the award. The stock award is prorated for non-employee Directors who serve for only a portion of the year. The compensation expense associated with these stock awards is recognized when the stock award is granted. In fiscal years 2013, 2012, and 2011, each non-employee Director was awarded 3,263 shares, 3,580 shares, and 3,544 shares, respectively. The Company also granted 955 shares to a new non-employee Director during fiscal year 2012. The weighted-average per-share grant-date fair value of stock awards granted during fiscal years 2013, 2012, and 2011 was $30.65, $27.87, and $28.22, respectively. In fiscal years 2013, 2012, and 2011, the total compensation expense recognized related to these stock awards was $0.7 million, $0.7 million and $0.8 million, respectively.

Employee Stock Purchase Plan: In April 1999, the Company’s shareholders approved the 1998 Employee Stock Purchase Plan. In April 2005, the Compensation and Benefits Committee of the Board voted to amend the Employee Stock Purchase Plan, effective July 1, 2005, whereby participating employees have the right to purchase common stock at a price equal to 95% of the closing price on the last day of each six-month offering period. The number of shares which an employee may purchase, subject to certain aggregate limits, is determined by the employee’s voluntary contribution, which may not exceed 10% of the employee’s base compensation. During fiscal year 2013, the Company issued 89,521 shares of common stock under the Company’s Employee Stock Purchase Plan at a weighted-average price of $30.51 per share. During fiscal year 2012, the Company issued 53,961 shares under this plan at a weighted-average price of $24.51 per share. During fiscal year 2011, the Company issued 102,970 shares under this plan at a weighted-average price of $21.33 per share. At December 29, 2013 there remains available for sale to employees an aggregate of 1.1 million shares of the Company’s common stock out of the 5.0 million shares authorized by shareholders for issuance under this plan.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 19:	Stockholders’ Equity

Comprehensive Income:

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

	Foreign Currency Translation Adjustment, net of tax				Unrecognized Prior Service Costs, net of tax				Unrealized (Losses) Gains on Securities, net of tax				Unrealized and Realized (Losses) Gains on Derivatives, net of tax				Accumulated Other Comprehensive Income
	(In thousands)
Balance, January 2, 2011	$	54,350			$	2,062			$	(100	)		$	(5,284	)		$	51,028
Current year change	1,814				107				(59		)		1,196				3,058
Balance, January 1, 2012	56,164				2,169				(159		)		(4,088		)		54,086
Current year change	11,363				(82		)		30				1,196				12,507
Balance, December 30, 2012	67,527				2,087				(129		)		(2,892		)		66,593
Current year change	8,756				(658		)		8				2,892				10,998
Balance, December 29, 2013	$	76,283			$	1,429			$	(121	)		$	—			$	77,591

During fiscal year 2013, pre-tax losses of $4.8 million were reclassified from accumulated other comprehensive income into interest and other expense, net, related to previously settled cash flow hedges, which includes $2.8 million for the remaining unamortized derivative losses that were reclassified when the Company redeemed all of its 2015 Notes. The Company recognized a tax provision of $1.9 million related to these amounts reclassified out of accumulated other comprehensive income for fiscal year 2013. During both fiscal years 2012 and 2011, pre-tax losses of $2.0 million were reclassified from accumulated other comprehensive income into interest and other expense, net related to previously settled cash flow hedges. The Company recognized a tax provision of $0.8 million related to these amounts reclassified out of accumulated other comprehensive income in both fiscal years 2012 and 2011. During fiscal years 2013, 2012, and 2011, pre-tax expense of $0.7 million, pre-tax expense of $0.1 million, and pre-tax income of $0.1 million, respectively, were reclassified from accumulated other comprehensive income into selling, general and administrative expenses as a component of net periodic benefit cost.

Stock Repurchase Program:

On October 24, 2012, the Board of Directors (the "Board") authorized the Company to repurchase up to 6.0 million shares of common stock under a stock repurchase program (the "Repurchase Program"). The Repurchase Program will expire on October 24, 2014 unless terminated earlier by the Board, and may be suspended or discontinued at any time. During fiscal year 2013, the Company repurchased approximately 3.6 million shares of common stock in the open market at an aggregate cost of $123.0 million, including commissions, under the Repurchase Program. During fiscal year 2012, the Company did not repurchase any shares of common stock under any stock repurchase program. During fiscal year 2011, the Company repurchased approximately 4.0 million shares of common stock in the open market at an aggregate cost of $107.8 million, including commissions. The repurchases made during fiscal year 2011 were made pursuant to the Company's stock repurchase program originally announced in October 2008 that expired in October 2012. As of December 29, 2013, approximately 2.4 million shares authorized by the Board under the Repurchase Program remained available for repurchase.

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. During fiscal year 2013, the Company repurchased 127,544 shares of common stock for this purpose at an aggregate cost of $4.4 million. During fiscal year 2012, the Company repurchased 82,186 shares of common stock for this purpose at an aggregate cost of $2.1 million. During fiscal year 2011, the Company repurchased 84,243 shares of common stock for this purpose at an aggregate cost of $2.2 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 per share in each quarter of fiscal years 2013 and 2012. At December 29, 2013, the Company has accrued $7.9 million for dividends declared on October 24, 2013 for the fourth quarter of fiscal year 2013 payable in February 2014. On January 24, 2014, the Company announced that the Board had declared a quarterly dividend of $0.07 per share for the first quarter of fiscal year 2014 that will be payable in May 2014. In the future, the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 20:	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 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% of the Company’s business is conducted outside of the United States, generally in foreign currencies. The fluctuations in foreign currency can increase the costs of financing, investing and operating the business. 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.

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. 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 consolidated balance sheets. Unrealized gains and losses on the Company’s foreign currency contracts are recognized immediately in earnings for hedges designated as fair value and, for hedges designated as cash flow, the related unrealized gains or losses are deferred as a component of other comprehensive income in the accompanying consolidated balance sheets. Deferred gains and losses are recognized in income in the period in which the underlying anticipated transaction occurs and impacts earnings.

Principal hedged currencies include the British Pound, Euro, Japanese Yen and Singapore Dollar. The Company held forward foreign exchange contracts, designated as fair value hedges, with U.S. equivalent notional amounts totaling $138.4 million at December 29, 2013, $64.3 million at December 30, 2012, and $268.9 million at January 1, 2012, and the fair value of these foreign currency derivative contracts was insignificant. The gains and losses realized on foreign currency derivative contracts are not material. The duration of these contracts was generally 30 days or less during fiscal years 2013, 2012, and 2011.

As of December 29, 2013, the Company had no cash flow hedges outstanding, and as of December 30, 2012, the Company had two outstanding cash flow hedges. During fiscal year 2012, the Company entered into two forward foreign exchange contracts with settlement dates in fiscal year 2013 and combined Euro denominated notional amounts of €50.0 million, designated as cash flow hedges. During fiscal year 2013 the Company settled these Euro denominated forward foreign exchange contracts. The derivative gains were amortized into interest and other expense, net when the hedged exposures affected interest and other expense, net. Such amounts were not material for fiscal year 2013.

In May 2008, the Company settled forward interest rate contracts with notional amounts totaling $150.0 million upon the issuance of its 2015 Notes, and recognized $8.4 million, net of taxes of $5.4 million, of accumulated derivative losses in other comprehensive income. During each of fiscal years 2013, 2012, and 2011, the Company amortized a pre-tax loss of $2.0 million into interest and other expense, net. In addition, during fiscal year 2013, the Company redeemed all of its 2015 Notes and recognized a pre-tax loss of $2.8 million for the remaining unamortized derivative losses into interest and other expense, net.

The Company does not expect any pre-tax losses to be reclassified from accumulated other comprehensive income into interest and other expense, net within the next twelve months.

Note 21:	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 December 29, 2013.

The Company uses the market approach technique to value its financial instruments and there were no changes in valuation techniques during fiscal years 2013 and 2012. 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 December 29, 2013 and December 30, 2012 classified in one of the three classifications described above:

	Fair Value Measurements at December 29, 2013 Using:
	Total Carrying Value at December 29, 2013				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
	(In thousands)
Marketable securities	$	1,319			$	1,319			$	—			$	—
Foreign exchange derivative assets	293				—				293				—
Foreign exchange derivative liabilities	(396		)		—				(396		)		—
Contingent consideration	(4,926		)		—				—				(4,926		)

	Fair Value Measurements at December 30, 2012 Using:
	Total Carrying Value at December 30, 2012				Quoted Prices in Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
	(In thousands)
Marketable securities	$	1,149			$	1,149			$	—			$	—
Foreign exchange derivative assets	274				—				274				—
Foreign exchange derivative liabilities, net	(294		)		—				(294		)		—
Contingent consideration	(3,017		)		—				—				(3,017		)

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 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.

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: The Company has classified its net liabilities for contingent consideration relating to its acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which included probability weighted cash flows. 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. Increases or decreases in the fair value of contingent consideration liabilities primarily result from changes in the estimated probabilities of achieving revenue thresholds or product development milestones during the earnout period. The Company may have to pay contingent consideration, related to all acquisitions with open contingency periods, of up to $31.3 million as of December 29, 2013. As of December 29, 2013, the Company has recorded contingent consideration obligations

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

relating to its acquisitions of Dexela Limited, Haoyuan and Tetra Teknolojik Sistemler Limited Sirketi, with an estimated fair value of $4.9 million. The earnout periods for each of these acquisitions do not exceed three years from the acquisition date, and the remaining weighted average earnout period at December 29, 2013 was two years.

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

	(In thousands)
Balance at January 2, 2011	$	(1,731	)
Additions	(20,131		)
Amounts paid and foreign currency translation	1,908
Change in fair value (included within selling, general and administrative expenses)	(344		)
Balance at January 1, 2012	(20,298		)
Additions	(1,900		)
Amounts paid and foreign currency translation	17,433
Change in fair value (included within selling, general and administrative expenses)	1,748
Balance at December 30, 2012	(3,017		)
Additions	(1,100		)
Amounts paid and foreign currency translation	135
Change in fair value (included within selling, general and administrative expenses)	(944		)
Balance at December 29, 2013	$	(4,926	)

During the fourth quarter of fiscal year 2012, the Company recorded $74.2 million of pre-tax intangible asset impairment charges related to certain trade names. A description of these impairment charges is included within Note 12. The fair value measurements were determined using a relief from royalty method, which incorporates unobservable inputs, thereby classifying the fair value measurements as a Level 3 measurement within the fair value hierarchy. The primary inputs used in the relief from royalty method, an income-based approach, included estimated prospective cash flows considering the revised useful lives and an estimated royalty rate that would be used by a market participant. The royalty rates ranged from 0.5% to 1.0%, the discount rates ranged from 11.0% to 12.0%, and the useful lives ranged from 1 to 8 years. The identified indefinite-lived intangibles related to the above impairment charges, had a carrying value of $76.4 million and a fair value of $4.5 million as of the impairment date, resulting in an impairment loss of $71.9 million. The identified definite-lived intangibles related to the above impairment charges, had a carrying value of $3.8 million and a fair value of $1.5 million as of the impairment date, resulting in an impairment loss of $2.3 million.

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.

The Company’s senior unsecured revolving credit facility, which provides for $700.0 million of revolving loans, had amounts outstanding, excluding letters of credit, of $397.0 million and $258.0 million as of December 29, 2013 and December 30, 2012, respectively. 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. The Company had no change in credit standing during fiscal year 2013. Consequently, the carrying value of the current year and prior year credit facilities approximate fair value and would be classified as Level 2.

The Company’s 2015 Notes, with a face value of $150.0 million, had an aggregate carrying value of $150.0 million and a fair value of $165.4 million as of December 30, 2012. The Company's 2021 Notes, with a face value of $500.0 million, had an aggregate carrying value of $497.4 million, net of $2.6 million of unamortized original issue discount, and a fair value of $513.0 million as of December 29, 2013. The 2021 Notes had an aggregate carrying value of $497.2 million, net of $2.8 million of unamortized original issue discount, and a fair value of $558.3 million as of December 30, 2012. The fair value of the 2021 Notes is estimated using market quotes from brokers and are based on current rates offered for similar debt. The Company's financing lease obligations had an aggregate carrying value of $40.3 million and $34.6 million as of December 29, 2013 and December 30, 2012, respectively, and approximated the fair value as there has been minimal change in the Company's incremental borrowing rate. As of December 29, 2013, the 2021 Notes and financing lease obligations were classified as Level 2.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As of December 29, 2013, 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.

Note 22:	Leases

The Company leases certain property and equipment under operating leases. Rental expense charged to continuing operations for fiscal years 2013, 2012, and 2011 amounted to $52.7 million, $60.3 million, and $49.1 million, respectively. Minimum rental commitments under noncancelable operating leases are as follows: $56.5 million in fiscal year 2014, $39.1 million in fiscal year 2015, $27.2 million in fiscal year 2016, $22.5 million in fiscal year 2017, $19.5 million in fiscal year 2018 and $91.5 million in fiscal year 2019 and thereafter.

On August 22, 2013, the Company sold one of its facilities located in Boston, Massachusetts for net proceeds of $47.6 million. Simultaneously with the closing of the sale of the property, the Company entered into a lease agreement to lease back the property for its continued use. The lease has an initial term of 15 years and the Company has the right to extend the term of the lease for two additional periods of ten years each. The lease is accounted for as an operating lease and the Company has deferred $26.5 million of gains which will be amortized in operating expenses over the initial lease term of 15 years. During fiscal year 2013, the Company amortized $0.6 million of deferred gains related to the lease. At December 29, 2013, $25.9 million of these deferred gains remained to be amortized, recorded in long-term liabilities.

Note 23:	Industry Segment and Geographic Area Information

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 Company’s management reviews the results of the Company’s operations by the Human Health and Environmental Health operating segments. The accounting policies of the operating segments are the same as those described in Note 1.

The Company realigned its organization at the beginning of fiscal year 2013. The Company's Informatics business, as well as its field service on products previously sold by the Company's former Bio-discovery business, were moved from the Environmental Health segment into the Human Health segment. The results reported for fiscal year 2013 reflect this new alignment of the Company's operating segments. Financial information relating to fiscal years 2012 and 2011 has been retrospectively adjusted to reflect the changes to the operating segments. The principal products and services of these two operating segments are:

•	Human Health. Develops diagnostics, tools and applications to help detect diseases earlier and more accurately and to accelerate the discovery and development of critical new therapies. The Human Health segment serves both the diagnostics and research markets.

•	Environmental Health. Provides products, services and solutions to facilitate the creation of safer food and consumer products, more secure surroundings and efficient energy resources. The Environmental Health segment serves the environmental, industrial and laboratory services markets.

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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Revenue and operating income (loss) by operating segment, excluding discontinued operations, are shown in the table below for the fiscal years ended:

	December 29, 2013				December 30, 2012				January 1, 2012
					(As adjusted)
	(In thousands)
Human Health
Product revenue	$	957,022			$	926,733			$	761,665
Service revenue	252,734				247,909				216,227
Total revenue	1,209,756				1,174,642				977,892
Operating income from continuing operations(1)	146,100				59,196				89,725
Environmental Health
Product revenue	541,048				547,941				557,845
Service revenue	415,428				392,622				382,771
Total revenue	956,476				940,563				940,616
Operating income from continuing operations(1)	97,052				111,844				108,922
Corporate
Operating loss from continuing operations(2)	(25,710		)		(72,497		)		(107,519		)
Continuing Operations
Product revenue	$	1,498,070			$	1,474,674			$	1,319,510
Service revenue	668,162				640,531				598,998
Total revenue	2,166,232				2,115,205				1,918,508
Operating income from continuing operations	217,442				98,543				91,128
Interest and other expense, net (see Note 5)	64,110				47,956				26,774
Income from continuing operations before income taxes	$	153,332			$	50,587			$	64,354

---

(1)

Pre-tax impairment charges have been included in the Human Health and Environmental Health operating income from continuing operations. The Company recognized a $6.7 million pre-tax impairment charge in the Human Health segment in fiscal year 2013. The Company recognized $73.4 million of pre-tax impairment charges in the Human Health segment and also recognized $0.7 million of pre-tax impairment charges in the Environmental Health segment in fiscal year 2012. The Company recognized a $3.0 million pre-tax impairment charge in the Human Health segment in fiscal year 2011.

(2)	Activity related to the mark-to-market adjustment on postretirement benefit plans have been included in the Corporate operating loss from continuing operations, and together constituted pre-tax income of $17.6 million in fiscal year 2013, a pre-tax loss of $31.8 million in fiscal year 2012, and a pre-tax loss of $67.9 million in fiscal year 2011.

Additional information relating to the Company’s reporting segments is as follows for the three fiscal years ended December 29, 2013:

	Depreciation and Amortization Expense												Capital Expenditures
	December 29, 2013				December 30, 2012				January 1, 2012				December 29, 2013				December 30, 2012				January 1, 2012
					(As adjusted)												(As adjusted)
	(In thousands)												(In thousands)
Human Health	$	100,174			$	101,336			$	81,938			$	20,910			$	24,525			$	16,570
Environmental Health	25,915				23,001				27,288				16,532				14,488				12,015
Corporate	2,382				2,528				1,695				1,549				3,395				2,007
Continuing operations	$	128,471			$	126,865			$	110,921			$	38,991			$	42,408			$	30,592

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Additional information relating to the Company’s reporting segments is as follows for the fiscal years ended:

	Total Assets
	December 29, 2013				December 30, 2012				January 1, 2012
					(As adjusted)
	(In thousands)
Human Health	$	2,698,640			$	2,714,366			$	2,674,243
Environmental Health	1,213,801				1,153,444				1,150,015
Corporate	34,271				33,952				31,181
Net current and long-term assets of discontinued operations	—				—				202
Total assets	$	3,946,712			$	3,901,762			$	3,855,641

The following geographic area information for continuing operations includes revenue based on location of external customer for the three fiscal years ended December 29, 2013 and net long-lived assets based on physical location as of December 29, 2013 and December 30, 2012:

	Revenue
	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
U.S.	$	835,637			$	822,951			$	725,849
International:
China	254,838				216,425				164,005
United Kingdom	133,611				118,611				102,366
Germany	99,153				105,735				113,472
Japan	95,676				114,300				89,977
France	81,719				84,395				85,395
Italy	78,120				69,599				74,925
Other international	587,478				583,189				562,519
Total international	1,330,595				1,292,254				1,192,659
Total sales	$	2,166,232			$	2,115,205			$	1,918,508

	Net Long-Lived Assets
	December 29, 2013				December 30, 2012				January 1, 2012
	(In thousands)
U.S.	$	216,821			$	205,083			$	147,883
International:
China	30,682				30,134				22,145
Finland	13,635				11,851				12,833
United Kingdom	9,882				2,960				2,508
Singapore	6,812				6,366				5,663
Netherlands	4,037				3,900				4,074
Italy	2,735				3,303				3,288
Germany	2,591				2,353				2,225
Brazil	1,967				1,515				1,637
Japan	1,772				2,310				2,552
Other international	7,306				7,932				12,589
Total international	81,419				72,624				69,514
Total net long-lived assets	$	298,240			$	277,707			$	217,397

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Note 24:	Quarterly Financial Information (Unaudited)

Selected quarterly financial information is as follows for the fiscal years ended:

	First Quarter				Second Quarter				Third Quarter				Fourth Quarter(1)(2)				Year
	(In thousands, except per share data)
December 29, 2013
Revenue	$	505,378			$	543,297			$	524,277			$	593,280			$	2,166,232
Gross profit	224,885				242,299				233,512				276,278				976,974
Restructuring and contract termination charges, net	3,310				19,277				1,126				10,215				33,928
Operating income from continuing operations	35,901				39,664				57,196				84,681				217,442
Income from continuing operations before income taxes	23,861				26,799				44,856				57,816				153,332
Income from continuing operations	32,289				26,936				40,299				68,400				167,924
Net income	32,216				27,925				40,198				66,873				167,212
Basic earnings per share:
Income from continuing operations	$	0.28			$	0.24			$	0.36			$	0.61			$	1.50
Net income	0.28				0.25				0.36				0.60				1.49
Diluted earnings per share:
Income from continuing operations	$	0.28			$	0.24			$	0.36			$	0.60			$	1.48
Net income	0.28				0.25				0.36				0.59				1.47
Cash dividends declared per common share	0.07				0.07				0.07				0.07				0.28
December 30, 2012
Revenue	$	510,890			$	521,790			$	509,604			$	572,921			$	2,115,205
Gross profit	232,014				238,794				230,740				261,658				963,206
Restructuring and contract termination charges, net	6,159				5,203				9,672				4,103				25,137
Operating income from continuing operations	36,382				49,787				43,218				(30,844		)		98,543
Income (loss) from continuing operations before income taxes	23,552				38,429				31,346				(42,740		)		50,587
Income (loss) from continuing operations	22,076				33,568				28,989				(16,192		)		68,441
Net income (loss)	22,569				33,633				29,594				(15,856		)		69,940
Basic earnings per share:
Income (loss) from continuing operations	$	0.20			$	0.30			$	0.25			$	(0.14	)		$	0.60
Net income (loss)	0.20				0.30				0.26				(0.14		)		0.61
Diluted earnings per share:
Income (loss) continuing operations	$	0.19			$	0.29			$	0.25			$	(0.14	)		$	0.60
Net income (loss)	0.20				0.29				0.26				(0.14		)		0.61
Cash dividends declared per common share	0.07				0.07				0.07				0.07				0.28

---

(1)

The fourth quarter of fiscal year 2013 includes pre-tax income of $17.6 million as a result of the mark-to-market adjustment on postretirement benefit plans. See Note 1 for a discussion of this accounting policy. The fourth quarter of fiscal year 2013 also includes pre-tax impairment charges of $6.7 million as the carrying amounts of certain long-lived assets were not recoverable and exceeded their fair value. The fourth quarter of fiscal year 2013 also includes a tax benefit of $9.2 million related to discrete items primarily for lapses in statues of limitations and audit settlements.

(2)	The fourth quarter of fiscal year 2012 includes a pre-tax loss of $31.8 million as a result of the mark-to-market adjustment on postretirement benefit plans. See Note 1 for a discussion of this accounting policy. The fourth quarter of fiscal year

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2012 also includes pre-tax impairment charges of $74.2 million as a result of a review of certain trade names within the Company's portfolio as part of a realignment of its marketing strategy.