Revvity (RVTY) 10-K risk factor changes: FY2014 vs FY2013

We have in the past supplemented, and may in the future supplement, our internal growth by acquiring businesses and licensing technologies that complement or augment our existing product lines, such as our acquisition of [removed: Shanghai Haoyuan Biotech Co., Ltd. ("Haoyuan")] [added: Perten] in the fourth quarter of fiscal year [removed: 2012.][added: 2014.]

We are subject to the rules of the Securities and Exchange Commission requiring disclosure as to whether certain materials known as conflict minerals (tantalum, tin, [removed: gold] [added: gold, tungsten] and [removed: tungsten),] [added: their derivatives),] which may be contained in our products are mined from the Democratic Republic of the Congo and adjoining countries.

Our sales originating outside the United States represented the majority of our total revenue in fiscal year [removed: 2013.][added: 2014.]

| • | [added: embargoes,] trade protection measures and import or export licensing requirements, |

We rely on several centralized information technology systems throughout our company to [added: develop, manufacture and] provide products and services, keep financial records, process orders, manage inventory, process shipments to customers and operate other critical functions.

As of December [removed: 29, 2013,] [added: 28, 2014,] our total assets included [removed: $2.6] [added: $2.8] billion of net intangible assets.

Net intangible assets consist principally of goodwill associated with acquisitions and costs associated with securing patent rights, trademark rights, [added: customer relationships,] core technology and technology licenses, net of accumulated amortization.

Over the last several [removed: quarters,] [added: years,] stock markets in general and our common stock in particular have experienced significant price and volume volatility.

| • | operating results that vary from [added: our financial guidance or] the expectations of securities analysts and investors, |

On October [removed: 24, 2013,] [added: 23, 2014,] we announced that our Board had declared a quarterly dividend of $0.07 per share for the fourth quarter of fiscal year [removed: 2013] [added: 2014] that will be payable in February [removed: 2014.][added: 2015.]

[removed: On January 24, 2014, we announced that our Board had] declared a quarterly dividend of $0.07 per share for the first quarter of fiscal year [removed: 2014] [added: 2015] that will be payable in May [removed: 2014.][added: 2015.]

| • | policies in foreign countries benefiting domestic manufacturers or other policies detrimental to companies headquartered in the United States, |

On January 23, 2015, we announced that our Board had

| | |

| --- | --- |

Each of the fiscal years ended December [added: 28, 2014, December] 29, [removed: 2013,] [added: 2013 and] December 30, 2012 [removed: and January 1, 2012] included 52 weeks.

The fiscal year ending [removed: December 28, 2014] [added: January 3, 2016] will [removed: also] include [removed: 52] [added: 53] weeks.

Overview of Fiscal Year [removed: 2013][added: 2014]

During fiscal year [removed: 2013,] [added: 2014,] we continued to see good performance from acquisitions, investments in our ongoing technology and sales and marketing initiatives.

Our overall revenue in fiscal year [removed: 2013] [added: 2014] increased [removed: $51.0] [added: $79.6] million, or [removed: 2%,] [added: 4%,] as compared to fiscal year [removed: 2012,] [added: 2013,] reflecting an increase of [removed: $35.1] [added: $42.3] million, or [removed: 3%,] [added: 4%,] in our Human Health segment revenue and an increase of [removed: $15.9] [added: $37.3] million, or [removed: 2%,] [added: 4%,] in our Environmental Health segment revenue.

[removed: The] [added: This] increase in our Human Health segment revenue during fiscal year 2013 was due to growth in [removed: our] [added: the] diagnostics [removed: business] [added: market as birth rates in the United States increased and] from continued expansion of our prenatal, newborn and infectious disease screening [removed: solutions,] [added: solutions in key regions outside the United States, particularly in emerging markets such] as [added: China, the Middle East and Africa, and Korea, as] well as increased demand for our informatics offerings and in-vivo imaging systems in the research market.

[removed: The increase in our] [added: Our] Environmental Health segment revenue [removed: during] [added: for] fiscal year 2013 [removed: was] [added: as compared to fiscal year 2012 increased $15.9 million, or 2%,] due to [removed: growth] [added: an increase] in [removed: our] laboratory services [removed: business,] [added: market revenue of $23.2 million,] partially offset by [removed: decreased demand for some of our products] [added: decreases] in [removed: the] environmental and industrial [removed: markets.][added: markets revenue of $7.3 million.]

In our Human Health segment during fiscal year [removed: 2013] [added: 2014] as compared to fiscal year [removed: 2012,] [added: 2013,] we experienced growth in [removed: the] [added: our] diagnostics [removed: market] [added: business] as birth rates [removed: in the United States] increased and from continued expansion of our prenatal, newborn and infectious disease screening solutions in [removed: key regions outside the United States, particularly in] emerging markets such as [removed: China, the Middle East and Africa] [added: China] and [removed: Korea,] [added: Brazil,] as well as [added: from] increased demand for our [removed: informatics offerings and in-vivo] [added: medical] imaging [removed: systems] [added: business' new wireless cassette detector used] in [removed: the research market.][added: diagnostic imaging and veterinary applications.]

During fiscal year [removed: 2013,] [added: 2014,] we continued to experience growth in our laboratory services [removed: business by] [added: business, which included] the addition of new customers to our OneSource multivendor service [removed: offering, partially offset by decreased demand across some of our products in the environmental and industrial markets.][added: offering.]

Our consolidated gross margins decreased [removed: 44] [added: 34] basis points in fiscal year [removed: 2013,] [added: 2014,] as compared to fiscal year [removed: 2012,] [added: 2013,] due to [removed: pricing pressure and] unfavorable changes in product [removed: mix] [added: mix,] with an increase in sales of lower gross margin product offerings, [removed: partially offset by the fiscal year 2013] [added: pricing pressure, a higher] mark-to-market [removed: income] [added: loss] for our postretirement benefit [removed: plans,] [added: plans in fiscal year 2014] as compared to [removed: the mark-to-market loss in] fiscal year [removed: 2012,] [added: 2013,] and [removed: productivity improvements.][added: negative impacts from foreign currency exchange rates.]

Our consolidated operating margin [removed: increased 538] [added: decreased 114] basis points in fiscal year [removed: 2013,] [added: 2014,] as compared to fiscal year [removed: 2012,] [added: 2013,] primarily due to [removed: lower] [added: a] pre-tax [removed: impairment charges] [added: loss] of [removed: $6.7] [added: $75.9] million in fiscal year [removed: 2013] [added: 2014] as compared to [removed: $74.2 million in fiscal year 2012, a] pre-tax [removed: gain] [added: income] of $17.6 million in fiscal year 2013 [removed: as compared to a pre-tax loss of $31.8 million in fiscal year 2012] for the mark-to-market adjustments for our postretirement plans and [removed: cost containment and productivity initiatives, which were partially offset by higher restructuring costs and] lower gross margins.

Revenue for fiscal year 2013 was [removed: $2,166.2] [added: $2,157.6] million, as compared to [removed: $2,115.2] [added: $2,105.2] million for fiscal year 2012, an increase of [removed: $51.0] [added: $52.4] million, or 2%, which includes an approximate 1% increase in revenue attributable to acquisitions and an approximate 0.4% decrease in revenue attributable to changes in foreign exchange rates.

The total increase in revenue reflects a [removed: $35.1] [added: $42.3] million, or [removed: 3%,] [added: 4%,] increase in our Human Health segment revenue, due to an increase in diagnostics market revenue of [removed: $22.0] [added: $39.8] million and an increase in research market revenue of [removed: $13.1] [added: $2.5] million.

Our Environmental Health segment revenue increased [removed: $15.9] [added: $37.3] million, or [removed: 2%,] [added: 4%,] due to an increase in laboratory services market revenue of [removed: $23.2 million, partially offset by decreases] [added: $33.8 million and an increase] in environmental and industrial markets revenue of [removed: $7.3] [added: $3.5] million.

Revenue for fiscal year [removed: 2012] [added: 2013] was [removed: $2,115.2] [added: $1,201.1] million, as compared to [removed: $1,918.5] [added: $1,164.6] million for fiscal year [removed: 2011,] [added: 2012,] an increase of [removed: $196.7] [added: $36.5] million, or [removed: 10%,] [added: 3%,] which includes an approximate [removed: 7%] [added: 2%] increase in revenue attributable to acquisitions and an approximate [removed: 2%] [added: 0.3%] decrease in revenue attributable to changes in foreign exchange rates.

The analysis in the remainder of this paragraph compares segment revenue for fiscal year [removed: 2012] [added: 2014] as compared to fiscal year [removed: 2011] [added: 2013] and includes the effect of foreign exchange rate fluctuations and acquisitions.

The total increase in revenue reflects a [removed: $196.8] [added: $36.5] million, or [removed: 20%,] [added: 3%,] increase in our Human Health segment revenue, due to an increase in [removed: research] [added: diagnostics] market revenue of [removed: $148.1] [added: $22.8] million and an increase in [removed: diagnostics] [added: research] market revenue of [removed: $48.7] [added: $13.7] million.

[removed: Our] [added: The increase in revenue in our] Environmental Health segment [removed: revenue for fiscal year 2012 as compared to fiscal year 2011 included] [added: was a result of] an increase in revenue of [removed: $10.3] [added: $33.8] million from the laboratory services [removed: market, which was almost completely offset by decreases] [added: market and an increase] in revenue of [removed: $10.3] [added: $3.5] million from the environmental and industrial markets.

As a result of adjustments to deferred revenue related to certain acquisitions required by business combination rules, we did not recognize [removed: $26.2] [added: $2.9] million of revenue primarily related to our informatics business in our Human Health segment for fiscal year [removed: 2012] [added: 2014] and [removed: $30.8] [added: $7.3] million for fiscal year [removed: 2011] [added: 2013] that otherwise would have been recorded by the acquired businesses during each of the respective periods.

Cost of revenue for fiscal year 2013 was [removed: $1,189.3] [added: $1,181.4] million, as compared to [removed: $1,152.0] [added: $1,143.7] million for fiscal year 2012, an increase of approximately [removed: $37.3] [added: $37.8] million, or 3%.

As a percentage of revenue, cost of revenue increased to [removed: 54.9%] [added: 54.8%] in fiscal year 2013 from [removed: 54.5%] [added: 54.3%] in fiscal year 2012, resulting in a decrease in gross margin of approximately [removed: 44] [added: 43] basis points to [removed: 45.1%] [added: 45.2%] in fiscal year 2013 from [removed: 45.5%] [added: 45.7%] in fiscal year 2012.

Amortization of intangible assets increased and was [removed: $53.1] [added: $52.0] million for fiscal year 2013, as compared to [removed: $51.8] [added: $50.7] million for fiscal year 2012.

[added: The mark-to-market adjustment for] postretirement benefit plans was a loss of $0.8 million for fiscal year 2013, as compared to [removed: a loss of] $3.7 million for fiscal year 2012.

[removed: The amortization of purchase] accounting adjustments to record the inventory from certain acquisitions [removed: added an expense of approximately] [added: was] $0.2 million for fiscal year 2013, as compared to $5.2 million for fiscal year 2012.

Acquisition related costs for integration, contingent consideration and other costs added an [added: incremental] expense of $0.2 million for fiscal year 2013.

Cost of revenue for fiscal year [removed: 2012] [added: 2014] was [removed: $1,152.0] [added: $1,232.6] million, as compared to [removed: $1,070.7] [added: $1,181.4] million for fiscal year [removed: 2011,] [added: 2013,] an increase of approximately [removed: $81.3] [added: $51.2] million, or [removed: 8%.][added: 4%.]

Amortization of intangible assets decreased and was [removed: $51.8] [added: $49.7] million for fiscal year [removed: 2012,] [added: 2014,] as compared to [removed: $53.4] [added: $52.0] million for fiscal year [removed: 2011.][added: 2013.]

The mark-to-market adjustment for postretirement benefit plans was a loss of [removed: $3.7] [added: $8.4] million for fiscal year [removed: 2012,] [added: 2014,] as compared to a loss of [removed: $4.2] [added: $0.8] million for fiscal year [removed: 2011.][added: 2013.]

Stock-based compensation expense increased and was [removed: $1.3] [added: $12.5] million for fiscal year [removed: 2012,] [added: 2014,] as compared to [removed: $1.1] [added: $11.9] million for fiscal year [removed: 2011.][added: 2013.]

The amortization of purchase accounting adjustments to record the inventory from certain acquisitions [removed: added an expense of approximately $5.2 million for fiscal year 2012, as compared to $4.1] [added: was $0.2] million for fiscal year [removed: 2011.][added: 2013.]

In addition to the factors noted above, [removed: the increase in gross margin was primarily the result of increased sales volume,] [added: pricing pressure, unfavorable] changes in product [removed: mix] [added: mix,] with [removed: growth] [added: an increase] in sales of [removed: higher] [added: lower] gross margin product [removed: offerings] [added: offerings,] and [removed: productivity improvements, partially offset by] increased costs related to [removed: acquisitions.][added: growth investments decreased operating income for fiscal year 2013, which was partially offset by increased sales volume and cost containment and productivity initiatives]

Selling, general and administrative expenses for fiscal year 2013 were [removed: $585.9] [added: $581.9] million, as compared to [removed: $632.7] [added: $627.4] million for fiscal year 2012, a decrease of approximately [removed: $46.9] [added: $45.5] million, or 7%.

As a percentage of revenue, selling, general and administrative expenses decreased and were 27.0% in fiscal year 2013, compared to [removed: 29.9%] [added: 29.8%] in fiscal year 2012.

Stock-based compensation expense decreased and was $11.9 million for fiscal year 2013, as compared to [removed: $19.0] [added: $18.6] million for fiscal year 2012.

Acquisition related costs for integration, contingent consideration and other costs added an [added: incremental] expense of $1.1 million for fiscal year 2013 and $0.3 million for fiscal year 2012.

Selling, general and administrative expenses for fiscal year [removed: 2012] [added: 2014] were [removed: $632.7] [added: $659.3] million, as compared to [removed: $624.4] [added: $581.9] million for fiscal year [removed: 2011,] [added: 2013,] an increase of approximately [removed: $8.3] [added: $77.4] million, or [removed: 1%.][added: 13%.]

As a percentage of revenue, selling, general and administrative expenses [removed: decreased] [added: increased] and were [removed: 29.9%] [added: 29.5%] in fiscal year [removed: 2012,] [added: 2014,] compared to [removed: 32.5%] [added: 27.0%] in fiscal year [removed: 2011.][added: 2013.]

Amortization of intangible assets increased and was [removed: $38.9] [added: $0.6] million for fiscal year [removed: 2012,] [added: 2014,] as compared to [removed: $25.9] [added: $0.3] million for fiscal year [removed: 2011.][added: 2013.]

The mark-to-market adjustment for postretirement benefit plans was a loss of [removed: $27.9] [added: $67.1] million for fiscal year [removed: 2012,] [added: 2014,] as compared to [removed: a loss] [added: income] of [removed: $62.9] [added: $18.1] million for fiscal year [removed: 2011.][added: 2013.]

Stock-based compensation expense increased and was [removed: $19.0] [added: $0.9] million for fiscal year [removed: 2012,] [added: 2013,] as compared to [removed: $13.8] [added: $0.7] million for fiscal year [removed: 2011.][added: 2012.]

The extra week during fiscal year 2015 will be included in the third quarter.

The increase in our Human Health segment revenue during fiscal year 2014 was primarily due to growth in our diagnostics market from our newborn and prenatal screening and infectious disease testing solutions as well as from our medical imaging business' new wireless cassette detector.

The increase in our Environmental Health segment revenue during fiscal year 2014 was primarily due to an increase in our services revenue, which included our OneSource multivendor service offerings within our laboratory service market.

In the research market we experienced growth related to our informatics, radiometric detection, and high-content screening offerings, as well as our microfluidics technology licensing program.

This growth in the research market was partially offset by declines in some products in our research market due to weakness in the global academic end market, specifically in Europe, as well as the expiration of certain patents in our licensing portfolio.

These increases were partially offset by decreased demand across some of our products in the environmental and industrial markets, primarily in the Asian industrial end markets.

These items were partially offset by increased sales volume and cost containment and productivity initiatives.

These items were partially offset by increased sales volume, cost containment and productivity initiatives and lower restructuring charges.

2014 Compared to 2013.

2014 Compared to 2013.

As a percentage of revenue, cost of revenue increased to 55.1% in fiscal year 2014 from 54.8% in fiscal year 2013, resulting in a decrease in gross margin of approximately 34 basis points to 44.9% in fiscal year 2014 from 45.2% in fiscal year 2013.

The amortization of purchase accounting adjustments to record the inventory from certain acquisitions was $2.4 million for fiscal year 2014, as compared to $0.2 million for fiscal year 2013.

These items were partially offset by increased sales volume and cost containment and productivity initiatives.

The amortization of purchase

2014 Compared to 2013.

During fiscal year 2014, we recorded a benefit of $2.3 million for cost reimbursements related to a particular site, of which $1.2 million was for future monitoring and mitigation activities, as compared to an expense of $4.6 million for environmental costs for fiscal year 2013.

2014 Compared to 2013.

In addition to the above items, the decrease in research and development expenses was primarily the result of the consolidation of research and development activities into our newly opened Center for Innovation.

We implemented a restructuring plan in the third quarter of fiscal year 2014 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q3 2014 Plan").

The following table summarizes the number of employees reduced, the initial restructuring and contract termination charges by operating segment, and the expected dates payments will be substantially completed for restructuring actions during fiscal years 2014, 2013, and 2012.

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| | | | | | | | | | | | | | | | | | | | | | | | | | |

| | Workforce Reductions | | | | | | | | | | Closure of Excess Facility or Contract Termination Charges | | | | | | | | Total | | | | (Expected) Date Payments Substantially Completed by | | |

| | Headcount Reduction | | Human Health | | | | Environmental Health | | | | Human Health | | | | Environmental Health | | | | | Severance | | Excess Facility or Contract Termination | | | |

| | (In thousands, except headcount data) | | | | | | | | | | | | | | | | | | | | | | | | |

| Q3 2014 Plan | 152 | | $ | 6,863 | | | $ | 6,188 | | | $ | — | | | $ | — | | | $ | 13,051 | | | Q3 FY2015 | | — |

| Q2 2014 Plan | 22 | | 460 | | | | 275 | | | | — | | | | — | | | | 735 | | | | Q2 FY2015 | | — |

| Q1 2014 Plan | 17 | | 370 | | | | 197 | | | | — | | | | — | | | | 567 | | | | Q4 FY2014 | | — |

| | | | | | | | | | | | | | | | | | | | | | | | | | |

| Q4 2013 Plan | 73 | | 902 | | | | 3,006 | | | | 7,271 | | | | — | | | | 11,179 | | | | Q4 FY2014 | | Q1 FY2019 |

| Q3 2013 Plan | 29 | | 394 | | | | — | | | | 138 | | | | — | | | | 532 | | | | Q1 FY2014 | | Q4 FY2013 |

| Q2 2013 Plan(1) | 264 | | 9,395 | | | | 8,737 | | | | 522 | | | | 50 | | | | 18,704 | | | | Q4 FY2014 | | Q3 FY2014 |

| 2013 Contract Termination Charges | N/A | | N/A | | | | N/A | | | | — | | | | 696 | | | | 696 | | | | N/A | | Q4 FY2015 |

| | | | | | | | | | | | | | | | | | | | | | | | | | |

| Q4 2012 Plan | 54 | | 523 | | | | 2,413 | | | | — | | | | — | | | | 2,936 | | | | Q1 FY2014 | | — |

| Q3 2012 Plan(2) | 61 | | 3,671 | | | | 3,728 | | | | — | | | | — | | | | 7,399 | | | | Q3 FY2014 | | — |

| Q2 2012 Plan(3) | 203 | | 3,976 | | | | 242 | | | | — | | | | — | | | | 4,218 | | | | Q3 FY2014 | | — |

| Q1 2012 Plan(4) | 112 | | 5,252 | | | | 388 | | | | 79 | | | | — | | | | 5,719 | | | | Q1 FY2013 | | Q2 FY2012 |

| 2012 Contract Termination Charges | N/A | | N/A | | | | N/A | | | | $ | — | | | $ | 1,470 | | | $ | 1,470 | | | N/A | | Q4 FY2015 |

We realigned our organization at the beginning of fiscal year 2013, to allow us to implement our strategy and propel our vision to improve global health by innovating technologies that help make healthcare more effective, affordable and accessible around the world.

Our Informatics business, as well as our field service on products previously sold by our former Bio-discovery business, were moved from our Environmental Health segment into our Human Health segment.

The results reported for fiscal year 2013 reflect this new alignment of our 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 our 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. |

As a result of the realignment, we 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.

This growth was partially offset by slight declines in our medical imaging business despite continued growth in our complementary metal-oxide-semiconductor imaging technology, as well as declines in our radiometric detection businesses within the research market, as a result of sequestration concerns in the United States, European austerity and weakening research markets in Asia, particularly in Japan.

2012 Compared to 2011.

The mark-to-market adjustment for

As a percentage of revenue, cost of revenue decreased to 54.5% in fiscal year 2012 from 55.8% in fiscal year 2011, resulting in an increase in gross margin of approximately 135 basis points to 45.5% in fiscal year 2012 from 44.2% in fiscal year 2011.

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| Previous Plans | | $ | 22,611 | | | $ | 11,480 | | | $ | (17,100 | ) | | $ | 3,829 | | | $ | 20,820 | | | $ | (857 | ) | | $ | (8,911 | ) | | $ | 11,052 | | | $ | (1,145 | ) | | $ | (2,420 | ) | | $ | 7,487 | |

| Q1 2012 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | 6,394 | | | | (5,113 | | ) | | 1,281 | | | | (537 | | ) | | (619 | | ) | | 125 | | |

| Q2 2012 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | 7,422 | | | | (2,836 | | ) | | 4,586 | | | | 1,821 | | | | (5,072 | | ) | | 1,335 | | |

| Q3 2012 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | 7,772 | | | | (219 | | ) | | 7,553 | | | | (524 | | ) | | (3,271 | | ) | | 3,758 | | |

| Q4 2012 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,936 | | | | (254 | | ) | | 2,682 | | | | — | | | | (2,089 | | ) | | 593 | | |

| Q2 2013 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 19,318 | | | | (6,568 | | ) | | 12,750 | | |

| Q4 2013 Plan | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 11,183 | | | | (2,341 | | ) | | 8,842 | | |

| Restructuring | | 22,611 | | | | 11,480 | | | | (17,100 | | ) | | 3,829 | | | | 20,820 | | | | 23,667 | | | | (17,333 | | ) | | 27,154 | | | | 33,233 | | | | (25,152 | | ) | | 35,235 | | |

| Contract termination charges | | 486 | | | | 1,972 | | | | (391 | | ) | | — | | | | 2,067 | | | | 1,470 | | | | (2,941 | | ) | | 596 | | | | 695 | | | | (991 | | ) | | 300 | | |

| Total restructuring and termination charges | | $ | 23,097 | | | $ | 13,452 | | | $ | (17,491 | ) | | $ | 3,829 | | | $ | 22,887 | | | $ | 25,137 | | | $ | (20,274 | ) | | $ | 27,750 | | | $ | 33,928 | | | $ | (26,143 | ) | | $ | 35,535 | |

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 our 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.

These future cost savings will be primarily a decrease to cost of revenue and a decrease to selling, general and administrative expenses.

During the fourth quarter of fiscal year 2013, our management approved a plan principally intended to shift certain of our research and development resources into a newly opened Center for Innovation (the “Q4 2013 Plan”).

As a result of the Q4

2013 Plan, we recognized a $8.2 million pre-tax restructuring charge in our 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 our Environmental Health segment related to a workforce reduction from reorganization activities.

As part of the Q4 2013 Plan, we reduced headcount by 74 employees.

All employees were notified of termination under the Q4 2013 Plan by December 29, 2013, and we anticipate 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.

We also anticipate 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.

The following table summarizes the components of our Q4 2013 Plan activity recognized by segment:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | Human Health | | | | Environmental Health | | | | Total | | |

| Severance | $ | 906 | | | $ | 3,006 | | | $ | 3,912 | |

We believe we had no significant concentrations of credit risk as of December [removed: 29, 2013.][added: 28, 2014.]

We held forward foreign exchange contracts, designated as fair value hedges, with U.S. [added: dollar] equivalent notional amounts totaling [added: $95.0 million at December 28, 2014,] $138.4 million at December 29, 2013 and $64.3 million at December 30, 2012, and the fair value of these foreign currency derivative contracts was insignificant.

The duration of these contracts was generally 30 days or less during fiscal years [added: 2014,] 2013, [removed: 2012,] and [removed: 2011.][added: 2012.]

During [removed: fiscal year] [added: December] 2012, we entered into [removed: 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.

The derivative gains were [removed: amortized into interest and other expense, net when] [added: recognized in] the [added: period in which the underlying] hedged exposures [removed: affected] [added: occurred and impacted earnings, and were recorded in] interest and other expense, net.

During each of fiscal years [removed: 2013, 2012,] [added: 2013] and [removed: 2011,] [added: 2012,] we amortized a pre-tax loss of $2.0 million into interest and other expense, net.

Although we attempt to manage our foreign currency exchange risk through the above activities, when the U.S. dollar weakens against other currencies in which we transact business, [removed: generally] sales and net income will [added: in general] be positively but not proportionately impacted.

As of December [removed: 29, 2013,] [added: 28, 2014,] this computation estimated that there is a 5% chance that the market value of the underlying exposures and the corresponding derivative instruments either increase or decrease due to foreign currency fluctuations by more than [removed: $0.6] [added: $0.5] million.

Specifically, during each of the four quarters ended in fiscal year [removed: 2013,] [added: 2014,] the Value-At-Risk ranged between [removed: $0.4] [added: $0.2] million and [removed: $1.0] [added: $0.9] million, with an average of approximately [removed: $0.6] [added: $0.5] million.

As of December [removed: 29, 2013,] [added: 28, 2014,] our debt portfolio consisted of [removed: $397.0] [added: $516.0] million of variable rate debt.

In addition, our cash and cash equivalents, for which we receive interest at variable rates, were [removed: $173.2] [added: $174.8] million at December [removed: 29, 2013.][added: 28, 2014.]

(i) Changes in interest rates can cause interest charges on our variable rate debt, consisting of [removed: $397.0] [added: $516.0] million of revolving debt facilities, to fluctuate.

An increase of 10%, or approximately [removed: 15] [added: 13] basis points, in current interest rates would cause an additional pre-tax charge to our earnings of [removed: $0.6] [added: $0.7] million for fiscal year [removed: 2014.][added: 2015.]

As described above, an increase of 10%, or approximately [removed: 15] [added: 13] basis points, in current interest rates would cause our cash outflows to increase by [removed: $0.6] [added: $0.7] million for fiscal year [removed: 2014.][added: 2015.]

During fiscal year 2014, we entered into five forward foreign exchange contracts with settlement dates in fiscal year 2015 and combined Euro denominated notional amounts of €238.2 million, designated as cash flow hedges, that were intended to hedge movements in foreign exchange rates prior to settlement of certain intercompany loan agreements.

The fair value of these currency derivative contracts at December 28, 2014 was not material.

The unrealized gain, which was recorded in other

comprehensive income, will be recognized in interest and other expense, net, in the period in which the underlying hedged transaction occurs and impacts earnings.

Such amounts were not material for fiscal year 2014.

Conversely, when the U.S. dollar strengthens against other currencies in which we transact business, sales and net income will in general be negatively but not proportionately impacted.

During each of fiscal years 2013 and 2012, we amortized a pre-tax loss of $2.0 million into interest and other expense, net.

As of December 29, 2013, we had no cash flow hedges outstanding, and as of December 30, 2012, we had two outstanding cash flow hedges.

As of December [removed: 29, 2013,] [added: 28, 2014,] we employed approximately [removed: 7,600] [added: 7,700] employees in our continuing operations.

Strategic Business [removed: Re-Alignment:][added: ReAlignment:]

Acquisitions in [removed: fiscal year 2013:][added: Fiscal Year 2014:]

We reported the operations for these acquisitions within the results of our [removed: operations] [added: Human Health and Environmental Health segments] from the acquisition dates.

During fiscal year [removed: 2013,] [added: 2014,] we recorded [removed: a $23.7 million] pre-tax restructuring [removed: charge] [added: charges of $7.7 million] in our Human Health segment [added: and $6.7 million in our Environmental Health segment] related to a workforce reduction from reorganization [removed: activities and the closure of excess facility space, and recognized a $12.0 million][added: activities.]

Our management approved these plans principally to [removed: shift certain of our research and development resources into a newly opened Center for Innovation, to shift certain of our operations into a newly established shared service center, to] realign [removed: operations, research and development] resources [removed: and production resources as a result of previous acquisitions] [added: to emphasize growth initiatives] and to focus resources on higher growth end markets.

We also recorded [removed: a] [added: net] pre-tax restructuring [removed: reversal] [added: reversals] of [removed: $1.5] [added: $0.8] million [removed: primarily related to lower than expected costs primarily related to workforce reductions within] [added: in] our Human Health [removed: segment, as well as a reversal of $1.0] [added: segment and $1.7] million [removed: primarily] [added: in our Environmental Health segment] related to lower than expected costs associated with workforce [removed: reductions within our Environmental Health segment.][added: reductions, which were partially offset by higher than expected costs for the closure of excess facility space.]

[removed: During] [added: In addition during] fiscal year [removed: 2013,] [added: 2014,] we recorded a pre-tax [added: restructuring] charge of [removed: $0.7] [added: $1.5] million [added: in our Environmental Health segment] primarily as a result of terminating various contractual [removed: commitments in connection with certain disposal activities in our Environmental Health segment.][added: commitments.]

[removed: The] [added: This] pre-tax restructuring activity [removed: associated with these plans] has been reported as restructuring and contract termination charges and is included as a component of operating expenses from continuing operations.

The [added: New] Repurchase Program will expire on October [removed: 24, 2014] [added: 23, 2016] unless terminated earlier by our Board, and may be suspended or discontinued at any time.

During fiscal year [removed: 2013,] [added: 2014,] we repurchased [removed: approximately 3.6] [added: 1.4] million shares of common stock in the open market at an aggregate cost of [removed: $123.0] [added: $61.3] million, including commissions, under [removed: the Repurchase Program.][added: these repurchase programs.]

As of December [removed: 29, 2013,] [added: 28, 2014,] approximately [removed: 2.4] [added: 7.4] million shares authorized by our Board under the [added: New] Repurchase Program remained available for repurchase.

We performed our annual impairment testing on January 1, [removed: 2013,] [added: 2014,] the annual impairment date for our reporting units, and based on the first step of the impairment process (the comparison of the fair value to the carrying value of the reporting unit to determine if the carrying value exceeds the fair value), we concluded that there was no goodwill impairment.

Within [removed: the] [added: our] Human Health segment, we serve [removed: both] the diagnostics and research markets.

Our Human Health segment generated revenue of [removed: $1,209.8] [added: $1,243.4] million in fiscal year [removed: 2013.][added: 2014.]

We provide early detection for genetic disorders from [removed: pre-conception] [added: pregnancy] to early childhood, as well as [removed: digital x-ray] flat panel [added: X-ray] detectors and infectious disease testing for the diagnostics market.

Our screening products are designed to provide early and accurate insights into the health of expectant mothers during pregnancy and into the health of their [removed: newborns.][added: babies.]

Our instruments, reagents and software test and screen for [added: genetic abnormalities,] disorders and diseases, including Down syndrome, [added: hypothyroidism,] infertility and various metabolic conditions.

Our [removed: digital x-ray] flat panel [added: X-ray] detectors are used within [removed: x-ray] [added: X-ray] imaging systems to allow physicians to make fast and accurate diagnoses of conditions ranging from broken bones to reduced blood flow in vascular systems.

[added: In addition,] our [removed: digital x-ray] flat panel [added: X-ray] detectors are used within oncology radiation therapy systems to support more accurate tumor treatment.

In the research market, we provide a broad suite of solutions including reagents, liquid handling [added: systems,] and detection and imaging technologies that enable [removed: researchers] [added: scientists] to improve [removed: the] [added: life sciences research and] drug discovery [removed: process.][added: processes.]

These products, solutions and services enable pharmaceutical companies to create better therapeutics by helping to bring products to market [removed: faster and more efficiently.]

| • | The DELFIA® Xpress screening platform, which is a complete solution for prenatal [added: and maternal health] screening, and includes a [removed: fast,] [added: fast] continuous loading system supported by kits for both first and second trimester analyses, [added: including dried blood spot assays for prenatal screening,] and clinically validated LifeCycle™ software. A Placental Growth Factor assay is used to screen pregnant women for early-onset pre-eclampsia. |

| • | The GSP® Neonatal hTSH, T4 [removed: 17µ-OHP,] [added: 17α-OHP,] GALT [removed: IRT] [added: IRT, BTD, PKU, Total Galactose] and [removed: BTD] [added: G6PD] kits, which are used for screening congenital neonatal conditions from a drop of blood. |

| • | The XRD™ family of [removed: amorphous silicon digital x-ray] [added: a-Si] flat panel [added: X-ray] detectors, which provide imaging for medical applications such as radiation therapy and veterinary imaging as well as industrial imaging applications including pipeline inspection, manufacturing inspection, PCB inspection and 3D Cone Beam CT. |

| • | The Dexela® family of CMOS [removed: digital x-ray] flat panel [added: X-ray] detectors, which provide imaging for mammography, dental, and industrial imaging applications such as PCB inspection and 3D Cone Beam CT. |

| • | Radiometric detection solutions, including over 1,100 NEN® radiochemicals, the [removed: Tri-carb® and MicroBeta2®] [added: Tri-carb®, Quantulus™ GCT] families of liquid scintillation [removed: counters,] [added: analyzers, Wizard2® Gamma counters and MicroBeta2® plate based LSA,] which are used for beta, gamma and luminescence counting in microplate formats utilized in research, environmental and drug discovery applications. |

| • | The [removed: Opera® high content screening system and] Operetta® high content imaging system, which [removed: are] [added: is] used to automate imaging and analysis for cell-based assays for drug discovery and basic cellular science research laboratories. |

| • | The EnVision® Multilabel Plate [removed: Reader and EnSpire® Multimode Plate] Reader, which [removed: are] [added: is] targeted towards a wide range of high-throughput screening applications, including those using [added: AlphaScreen®,] AlphaLISA® and/or [removed: AlphaScreen® technology. The EnSpire reader has the option of Corning® Epic® label-free technology providing more physiologically relevant data for the identification of new therapeutic targets.] [added: AlphaPlex™ technologies.] |

| • | A wide range of homogeneous biochemical and cellular assay reagents, including LANCE® Ultra™ and [removed: Alpha Technology™] [added: Alpha™ Technology] assay platforms, which are used for drug discovery targets such as G-protein coupled receptors (“GPCR”), kinases, antibodies and epigenetic modification enzymes. |

| • | [removed: The] [added: AlphaScreen®,] AlphaLISA® [added: and AlphaPlex™] research assays, including over [removed: 100] [added: 200] no-wash biomarker kits for both biotherapeutics and small molecule development in a variety of therapeutic areas including cancer, [added: inflammation, metabolic disorders,] neurodegeneration and virology. |

| • | [removed: TSA™] [added: TSA®] Plus biotin kits, which can increase sensitivity of histochemistry and cytochemistry as much as 10 to 20 times. |

| • | In vivo imaging technologies for preclinical research, including the IVIS® Spectrum™ series and the FMT® series for 3D [removed: imaging,] [added: imaging and] the IVIS® Lumina™ series for 2D [removed: imaging, and the Quantum FX microCT.] [added: imaging.] These technologies are designed to provide for non-invasive longitudinal monitoring of disease progression, cell trafficking and gene expression patterns in living animals and are complemented by a broad portfolio of fluorescent and bioluminescent in vivo imaging reagents that can be useful for identifying, characterizing and quantifying a range of disease biomarkers and therapeutic efficacy in living animal models. |

| • | [removed: LapChip®] [added: LabChip® devices] for molecular diagnostics in clinical research laboratories, which [removed: uses] [added: use] microfluidic technology to perform reproducible, high-resolution, electrophoretic separations for analyzing multiplex polymerase chain reaction products for molecular biology applications. |

| • | Next-generation sequencing [removed: tools] [added: automation and nucleic acid quantitation] including LabChip® [removed: fractionation and separation systems,] [added: separation, as well as] Sciclone®, Zephyr® and JANUS® automated liquid handling workstations [removed: and Geospiza® data analysis program.] [added: for library preparation.] |

| • | Informatics platforms including [removed: Ensemble® for Chemistry™, Ensemble® for Biology™, Ensemble®] [added: E-Notebook] for [removed: QA/QC,] [added: Chemistry and Biology] iLab™, ChemDraw®, ChemBioOffice® and Labworks® which are integrated suites that focus on the complex and varied needs of understanding and managing data for productivity and collaboration. |

| • | Licensing for the exclusive, worldwide rights to the TIBCO® Spotfire® software platform in certain scientific research and development [added: markets, and certain clinical] markets through an exclusive strategic relationship with TIBCO Software, Inc. |

| • | An expanded portfolio of [removed: molecular] [added: molecular-based] infectious disease screening technologies for blood bank and clinical laboratory settings in China. The tools include a qualitative 3-in-1 assay for the detection of hepatitis B, hepatitis C and HIV, [removed: and] [added: as well as] assays for [removed: chlamydia trachomatis and neisseria gonorrhoeae.] [added: other communicable diseases.] |

Significant new products introduced or acquired for Human Health applications in fiscal year [removed: 2013] [added: 2014] include the following:

| • | An expanded portfolio of medical [removed: x-ray] [added: X-ray] detectors, including the [removed: Dexela® CMOS Cardiac detector, the XRpad™] [added: XRpad®] cassette sized [added: 4336 and 4343 F] Radiography [removed: detector] [added: detectors] and the XRD™ [added: 4343 RF] combined Radiography & Fluoroscopy detector. |

In January 2015, we approved and announced a new alignment of our businesses effective for fiscal year 2015 that is designed to enable us to both deliver complete solutions targeted towards certain end markets and to develop value-added applications and solutions to foster further expansion of those markets.

As part of this realignment, our OneSource multivendor service offering business that serves the life sciences end market will be moved from our Environmental Health segment into our Human Health segment.

Beginning in fiscal year 2015, we will report financial results under our Human Health and Environmental Health segments using this new alignment.

Acquisition of Perten Instruments Group AB.

In December 2014, we acquired all of the outstanding stock of Perten Instruments Group AB ("Perten").

Perten is a provider of analytical instruments and services for quality control of food, grain, flour and feed.

We expect this acquisition to enhance our industrial, environmental and safety business by expanding our product offerings to the academic and industrial end markets.

We paid the shareholders of Perten $269.9 million in cash for the stock of Perten.

We have reported the operations for this acquisition within the results of our Environmental Health segment from the acquisition date.

Other acquisitions.

In addition to the Perten acquisition, we completed the acquisition of two businesses in fiscal year 2014 for total consideration of $18.0 million in cash and $4.3 million of assumed debt.

We expect no significant impact on future operating results or cash flows from the restructuring activities executed in fiscal year 2014.

The Repurchase Program expired on October 24, 2014.

On October 23, 2014, our Board authorized us to repurchase up to 8.0 million shares of common stock under a new stock repurchase program (the "New Repurchase Program").

Discontinued Operations:

In May 2014, our management approved the shutdown of our microarray-based diagnostic testing laboratory in the United States, which had been reported within our Human Health segment.

We determined that, with the lack of adequate reimbursement from health care payers, the microarray-based diagnostic testing laboratory in the United States would need significant investment in its operations to reduce costs in order to effectively compete in the market.

The shutdown of the microarray-based diagnostic testing laboratory in the United States resulted in a $0.1 million net pre-tax loss primarily related to the disposal of fixed assets, which was partially offset by the sale of a building in fiscal year 2014.

faster and more efficiently.

| • | The XRpad® family of amorphous Silicon (a-Si) flat panel cassette X-ray detectors, which enable X-ray system manufacturers to upgrade their systems from film to digital and to produce exceptional image resolution and diagnostic capability for radiography especially when imaging small anatomical features such as bone fractures and lung nodules. |

| • | JANUS® BioTx™ Workstation for automated small scale purification, which offers column, tip and plate based chromatography on a single platform. |

| • | The Quantitative Pathology technologies for cancer immunology research including our Opal™ multiplexed tissue staining workflow. Vectra® automated quantitative pathology imaging system and inForm® advanced image analysis software. These enable the detection, visualization and quantification of multiple cell phenotypes within the same tissue section. |

| • | The Opera® Phenix™ high content screening system a platform for high speed phenotypic drug screening of complex cellular models. |

| • | The EnSight™ Multimode Plate Reader benchtop system, which offers well plate imaging alongside label-free and labeled detection technologies for target-based and phenotypic assays. |

| • | The Lamina™ multilabel slide scanner, a high throughput imaging system designed to assist research pathologists to study protein expression and the relationships between disease markers in formalin-fixed, paraffin-embedded (FFPE) tissue sections. |

| • | Mantra™ quantitative pathology workstation with inForm® image analysis software enables visualization, quantification and phenotyping of multiple types of immune cells simultaneously in intact FFPE tissue sections for cancer immunology research. |

| • | Opal™ multiplexed staining kits for amplified detection of immunohistochemistry utilized for biomarker assessment. |

| • | Solaris™ open air imaging platform, which is a research tool that enables translational in vivo preclinical imaging in small and large animals. |

| • | We collaborated with Sofie Biosciences to offer benchtop PET systems for in vivo preclinical imaging. The G4 PET/X-ray and G8 PET/CT delivers PET imaging with an intuitive user interface and efficient workflows, ensuring subject monitoring throughout preparation and imaging. |

| • | Quantum GX™ microCT platform is an in vivo microCT scanner that offers industry leading microCT resolution for pre-clinical imaging applications or eight second scan times for higher throughput with lower doses of radiation. With Quantum GX 3D data from the IVIS and FMT imaging platforms can be coregistered with microCT. |

| • | LabChip® GXII Touch™ for protein characterization in pharma and biotech research laboratories, which require analysis and recording of protein product critical quality attributes. |

| • | JANUS® chemagic™ Workstation, which combines magnetic bead nucleic acid isolation technology with a fully-supported automated liquid handler, enabling extraction for genomic analysis from a variety of human and veterinary blood, plasma and saliva sample types. |

| • | AlphaLISA® SureFire® Ultra Assays for screening therapeutic antibodies and small molecules on cultured cells or tissue lysates. |

| • | AlphaPlex™ reagent technology, a homogeneous, all-in-one-well multiplexing reagent system for performing ultra-sensitive immunoassay analyses. |

| • | CellCarrier® Ultra 384-well microplates, which are used in high content imaging applications such as phenotypic screening and three-dimensional disease model studies. |

| • | IVIS® Spectrum BL, a 2D and 3D optical imaging system designed to improve quantitative outcomes of bioluminescent, chemiluminescent and Cerenkov in vivo imaging. |

| • | High Content Profiler™ powered by TIBCO® Spotfire®, which provides automated workflows for quality control and hit classification for truly multi-parametric cellular drug screens. |

| • | Elements® electronic lab notebook, a cloud-based lab notebook that is delivered through a web browser to allow scientists to capture data, collaborate with colleagues, and search for results. |

Our industrial instrumentation is primarily used by customers focusing on quality assurance standards.

| • | The LAMBDA™ UV/Vis is a series of spectrophotometers, which provide sampling flexibility to enable measuring of a wide range of sample types from liquids, powders and solid materials both in regulated industries as well as QC/QA and research applications. |

We realigned our organization at the beginning of fiscal year 2013, to allow us to implement our strategy and propel our vision to improve global health by innovating technologies that help make healthcare more effective, affordable and accessible around the world.

Our Informatics business, as well as our field service on products previously sold by our former Bio-discovery business, were moved from our Environmental Health segment into our Human Health segment.

The results reported for fiscal year 2013 reflect this new alignment of our operating segments.

Financial information relating to fiscal years 2012 and 2011 has been retrospectively adjusted to reflect the changes to the operating segments.

We completed the acquisition of four businesses for total consideration of $11.4 million, in cash.

As of the closing dates, we 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 us, 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.

pre-tax restructuring charge in our Environmental Health segment related to a workforce reduction from reorganization activities and the closure of excess facility space.

We expect the impact of future cost savings on operating results and cash flows from restructuring activities executed in fiscal year 2013 will exceed $9.0 million annually beginning in fiscal year 2015, primarily as decreases to cost of revenue, selling, general and administrative expenses, and research and development expenses.

Redemption of 6% Senior Unsecured Notes Due in 2015:

In December 2013, we redeemed all of our 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.

In addition,

| • | Amorphous silicon digital x-ray flat panel detectors, which contain an enabling technology for digital x-ray imaging that replaces film and produces improved image resolution and diagnostic capability in applications such as radiography, cardiology, angiography and cancer treatments. |

| • | Signature Precision Panel™ prenatal and newborn tests, which are used to rapidly screen for aneuploidies of chromosomes 13, 18, 21, X and Y, as well as 20 severe microdeletion/duplication syndromes during pregnancy. Our newborn testing and diagnostics service portfolio was also expanded to include a panel to screen for six Lysosomal Storage Disorders. The panel tests for Krabbe disease, Gaucher's disease, Niemann-Pick disease (Type A and Type B), Pompe disease, Fabry disease and MPS 1. |

| • | Oncology testing services utilizing OncoChip® microarray technology for early diagnoses of hematological malignancies. |

| • | The UltraVIEW® VoX™ 3D live cell imaging system, which is a high-resolution, high speed, confocal imaging system that allows for the observation and measurement of cellular and molecular processes in real time. Volocity® 6.0 3D image analysis software allows scientists to understand intracellular and intercellular relationships for 3D data visualization, publication, restoration and analysis of images from a range of fluorescence microscopy and high content image systems. |

| • | A wide reagent portfolio including the HCA ImagAmp™ reagent kit for high content screening and cellular analysis applications, which is used in a variety of research areas including cell differentiation, cell toxicity, programmed cell death, drug discovery, protein expression and signaling pathway analysis. |

| • | An expanded epigenetic detection reagents portfolio specifically validated for drug discovery and life sciences research covering nine different histone marks, as well as p53, with more than 15 validated in vitro and cell-based assays to help researchers discover novel drug compounds directed against several epigenetic targets. |

| • | The Vectra® 2 automated slide imaging system, which is an integrated solution to advance the identification and validation of new drug targets to improve the assessment of drug response. |

| • | The Western Lighting ECL Pro™ non-radioactive light-emitting system, which detects proteins immobilized on a membrane in Western blots. |

| • | Geospiza GeneSifter® Analysis Edition, an integrated informatics platform for the visualization and analysis from sample to results of microarray and next-generation sequencing data. |

| • | The IVIS® Lumina™ Series III which provides an expandable, sensitive imaging system for both fluorescent and bioluminescent preclinical in vivo imaging. |

| • | RediFect™ lentiviral tools to create stably transfected cells to monitor tumor growth, track primary or stem cells in vivo and various other applications using IVIS in vivo imaging systems. |

| • | HER2Sense™ preclinical imaging agent, supporting breast cancer discovery research, which is the first fluorescent, discovery research imaging agent to be based on a commercial therapeutic antibody. |

| • | BacteriSense™ 645 Targeted Fluorescent Imaging Agent, which is used to monitor infections of both gram-negative and gram-positive bacteria. |

| • | FolateRSense™ 680 Targeted Fluoresent Imaging Agent, which is used to closely monitor and quantitate tumor growth and metabolism |

| • | BombesinRSense™ 680 Targeted Fluorescent Imaging Agent, which is used to target and identify bombesin receptors expressed in many types of cancer. |

| • | VivoTag® 680XL Protein Labeling Kit, which helps to prepare fluorescently labeled antibodies, proteins or peptides for small animal in vivo imaging applications. |

| • | The LAMBDA™ UV/Vis series, which is used to measure liquids, solids, pastes and powder samples and for regulatory tests requiring variable bandwidths. |

| • | AxION® eDoor™, which is a multi-vendor, web-based open access software that is designed to help manage multiple locations, chemists, instrument types and applications and includes “walk up” sample introduction with results delivered via Web, email and PDA. |

An adverse outcome in any litigation or proceeding could subject us to

We are currently involved in a lawsuit involving claims of violation of intellectual property rights.

See “Item 3.

Legal Proceedings” for a discussion of this matter.

these liabilities are reviewed and adjusted to reflect additional information as it becomes available.

| | | | | | (As adjusted) | | | | | | |

| Service revenue | 252,734 | | | | 247,909 | | | | 216,227 | | |

| Total revenue | 1,209,756 | | | | 1,174,642 | | | | 977,892 | | |

[removed: While this matter is subject to uncertainty,] [added: Although we have established accruals for potential losses that we believe are probable and reasonably estimable,] in the opinion of our management, based on its review of the information available at this time, the [removed: resolution] [added: total cost] of [removed: this matter will] [added: resolving these contingencies at December 28, 2014 should] not have a material adverse effect on our consolidated financial statements included in this annual report on Form 10-K.

We are [removed: also] subject to various [removed: other] claims, legal proceedings and investigations covering a wide range of matters that arise in the ordinary course of our business activities.

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 we breached our 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.

We 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, we believe, excluded certain of our 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 us.

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 us 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 our motion for summary judgment of non-infringement.

On December 21, 2012, we 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.

We believe we have meritorious defenses to the matter described above, and we are contesting the action vigorously.

Although we have established accruals for potential losses that we believe are probable and reasonably estimable, in the opinion of our 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 our consolidated financial statements included in this annual report on Form 10-K.

| | For the fiscal year ended December [removed: 29, 2013] [added: 28, 2014] |

The aggregate market value of the common stock, $1 par value per share, held by non-affiliates of the registrant on June [removed: 28, 2013,] [added: 27, 2014,] was [removed: $3,604,263,522] [added: $5,228,997,924] based upon the last reported sale of [removed: $32.50] [added: $46.79] per share of common stock on June [removed: 28, 2013.][added: 27, 2014.]

As of February [removed: 20, 2014,] [added: 19, 2015,] there were outstanding [removed: 112,851,324] [added: 113,026,313] shares of common stock, $1 par value per share.

Portions of PerkinElmer, Inc.’s Definitive Proxy Statement for its Annual Meeting of Shareholders to be held on April [removed: 22, 2014] [added: 28, 2015] are incorporated by reference into Part III of this Form 10-K.

| Item 1. | [removed: [Business](#s0D5374D42388B6BE04258321CB9F0159)] [added: [Business](#s7A096F8FC94ACD090699CA5B9B656A66)] | [removed: [3](#s0D5374D42388B6BE04258321CB9F0159)] [added: [3](#s7A096F8FC94ACD090699CA5B9B656A66)] |

| Item 1A. | [Risk [removed: Factors](#s8B250348EFCE11B65BAE83221A2F7EB4)] [added: Factors](#sC8246C749E69A7318E98CA5BBEBD9463)] | [removed: [13](#s8B250348EFCE11B65BAE83221A2F7EB4)] [added: [13](#sC8246C749E69A7318E98CA5BBEBD9463)] |

| Item 1B. | [Unresolved Staff [removed: Comments](#sF8AF20B3E26491DDCF9883221A45113E)] [added: Comments](#s3C3BB5C44E20F9135CDECA5BBED44F2D)] | [removed: [19](#sF8AF20B3E26491DDCF9883221A45113E)] [added: [20](#s3C3BB5C44E20F9135CDECA5BBED44F2D)] |

| Item 2. | [removed: [Properties](#sF4E833F895CCC987B7798321CBF2E64F)] [added: [Properties](#s26D80C2307DC808B6DEDCA5B98200E9F)] | [removed: [20](#sF4E833F895CCC987B7798321CBF2E64F)] [added: [20](#s26D80C2307DC808B6DEDCA5B98200E9F)] |

| Item 3. | [Legal [removed: Proceedings](#s2FF51620CAD017E6177183221A991F24)] [added: Proceedings](#sD72280C1D45629F32EF9CA5BBF27802B)] | [removed: [20](#s2FF51620CAD017E6177183221A991F24)] [added: [20](#sD72280C1D45629F32EF9CA5BBF27802B)] |

| Item 4. | [Mine Safety [removed: Disclosures](#s44D8A44C1E66EA11B03D83221ABA4530)] [added: Disclosures](#sEA3242F12621AB8AF563CA5BBF582B88)] | [removed: [21](#s44D8A44C1E66EA11B03D83221ABA4530)] [added: [20](#sEA3242F12621AB8AF563CA5BBF582B88)] |

| Item 5. | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#sB2CD1C4436A8C64AE2B18321D0BC0444)] [added: Securities](#sE397BF416F7745DDC993CA5B981DEE78)] | [removed: [24](#sB2CD1C4436A8C64AE2B18321D0BC0444)] [added: [23](#sE397BF416F7745DDC993CA5B981DEE78)] |

| Item 6. | [Selected Financial [removed: Data](#s2D52E74EFAFE047E0E058321CC2649D1)] [added: Data](#s5D4C57FF56FB9A74E686CA5B98BA7317)] | [removed: [27](#s2D52E74EFAFE047E0E058321CC2649D1)] [added: [26](#s5D4C57FF56FB9A74E686CA5B98BA7317)] |

| Item 7. | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#sE2629FB9459AE8E8C40B83221B92E0E6)] [added: Operations](#s519D14CF75E317DACC6BCA5BC024A140)] | [removed: [30](#sE2629FB9459AE8E8C40B83221B92E0E6)] [added: [29](#s519D14CF75E317DACC6BCA5BC024A140)] |

| Item 7A. | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#sBFD26CDCE7B4D7AEA37983221D5D0223)] [added: Risk](#s737692FD19755C25F38ACA5BC16E72EA)] | [removed: [54](#sBFD26CDCE7B4D7AEA37983221D5D0223)] [added: [51](#s737692FD19755C25F38ACA5BC16E72EA)] |

| Item 8. | [Financial Statements and Supplemental [removed: Data](#sC8019A877A22424166CC83221D78DD66)] [added: Data](#s311183F51B6D9FF45A8ECA5BC17A365D)] | [removed: [56](#sC8019A877A22424166CC83221D78DD66)] [added: [54](#s311183F51B6D9FF45A8ECA5BC17A365D)] |

| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#sA4C99B625D24ADB441718322245F7208)] [added: Disclosure](#sA5469F8E98355CE84641CA5BC86F3536)] | [removed: [109](#sA4C99B625D24ADB441718322245F7208)] [added: [106](#sA5469F8E98355CE84641CA5BC86F3536)] |

| Item 9A. | [Controls and [removed: Procedures](#s6261E0437F80777B80D9832224815112)] [added: Procedures](#s09DB8884CA0BFF921D8ECA5BC876B1D4)] | [removed: [109](#s6261E0437F80777B80D9832224815112)] [added: [106](#s09DB8884CA0BFF921D8ECA5BC876B1D4)] |

| Item 9B. | [Other [removed: Information](#s3E8B15185A6C6BA97985832224B28BDA)] [added: Information](#sEEA2244C5A1DE31EC497CA5BC885DFDC)] | [removed: [111](#s3E8B15185A6C6BA97985832224B28BDA)] [added: [108](#sEEA2244C5A1DE31EC497CA5BC885DFDC)] |

| Item 10. | [Directors, Executive Officers and Corporate [removed: Governance](#sC042595A2B41F01104BD83222504EC23)] [added: Governance](#sD2DA4EB89393890D3175CA5BC8CB3068)] | [removed: [112](#sC042595A2B41F01104BD83222504EC23)] [added: [109](#sD2DA4EB89393890D3175CA5BC8CB3068)] |

| Item 11. | [Executive [removed: Compensation](#sB2C7E2040DBD18EE1BA0832225274D53)] [added: Compensation](#s6A3600252D3A78E02AC2CA5BC8EC569D)] | [removed: [112](#sB2C7E2040DBD18EE1BA0832225274D53)] [added: [109](#s6A3600252D3A78E02AC2CA5BC8EC569D)] |

| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#s07D81FC28DEC21219F43832225595573)] [added: Matters](#sC6AAAF09D91D6F47B2E0CA5BC91E8BDF)] | [removed: [112](#s07D81FC28DEC21219F43832225595573)] [added: [109](#sC6AAAF09D91D6F47B2E0CA5BC91E8BDF)] |

| Item 13. | [Certain Relationships and Related Transactions, and Director [removed: Independence](#s0CA5760B3D7ABF5635EE8322257982CD)] [added: Independence](#sD127FB1E80A2DBFE5032CA5BC93FC7D8)] | [removed: [112](#s0CA5760B3D7ABF5635EE8322257982CD)] [added: [109](#sD127FB1E80A2DBFE5032CA5BC93FC7D8)] |

| Item 14. | [Principal Accountant Fees and [removed: Services](#s8F08A63A160C361F42B0832225ACD361)] [added: Services](#sDA01FD90BC453D340100CA5BC9715676)] | [removed: [112](#s8F08A63A160C361F42B0832225ACD361)] [added: [110](#sDA01FD90BC453D340100CA5BC9715676)] |

| Item 15. | [Exhibits and Financial Statement [removed: Schedules](#s72722F14C96498C76AFD8321CC06A091)] [added: Schedules](#s7859130AF770D33656DBCA5B9E01A19E)] | [removed: [113](#s72722F14C96498C76AFD8321CC06A091)] [added: [111](#s7859130AF770D33656DBCA5B9E01A19E)] |

10-K 1 pki-1228201410k.htm 10-K

| [Signatures](#s5CAA748404D0BF4257CFCA5BCA0CA7AE) | | [116](#s5CAA748404D0BF4257CFCA5BCA0CA7AE) |

10-K 1 pki-1229201310k.htm 10-K

| [Signatures](#s47AE8D3B6042DB3EEF848322261F4D07) | | [119](#s47AE8D3B6042DB3EEF848322261F4D07) |

As of December [removed: 29, 2013,] [added: 28, 2014,] our continuing operations occupied [removed: 2,398,511] [added: 2,440,435] square feet in over [removed: 106] [added: 124] locations.

We own [removed: 285,770] [added: 267,770] square feet of this space, and lease the balance.

We conduct our operations in manufacturing and assembly plants, research laboratories, administrative offices and other facilities located in 14 states and [removed: 35] [added: 36] foreign countries.

Facilities outside of the United States account for approximately [removed: 1,407,197] [added: 1,452,030] square feet of our owned and leased property, or approximately [removed: 59%] [added: 60%] of our total occupied space.

The following table indicates, as of December [removed: 29, 2013,] [added: 28, 2014,] the approximate square footage of real property owned and leased attributable to the continuing operations of our reporting segments:

| Corporate offices | — | | | [removed: 63,583] [added: 57,975] | | | [removed: 63,583] [added: 57,975] | |

| Human Health | 254,789 | | | 1,127,617 | | | 1,382,406 | |

| Environmental Health | 12,981 | | | 987,073 | | | 1,000,054 | |

| Continuing operations | 267,770 | | | 2,172,665 | | | 2,440,435 | |

| Human Health | 272,789 | | | 1,001,924 | | | 1,274,713 | |

| Environmental Health | 12,981 | | | 1,047,234 | | | 1,060,215 | |

| Continuing operations | 285,770 | | | 2,112,741 | | | 2,398,511 | |

Listed below are our executive officers as of February [removed: 25, 2014.][added: 24, 2015.]

| Robert F. Friel | | Chairman, Chief Executive Officer and President | | [removed: 58] [added: 59] |

| Frank A. Wilson | | Senior Vice President and Chief Financial Officer | | [removed: 55] [added: 56] |

| Joel S. Goldberg | | Senior Vice President, [added: Administration,] General Counsel and Secretary | | [removed: 45] [added: 46] |

| [removed: Daniel R. Marshak] [added: Andrew Okun] | | [removed: Senior] Vice President and Chief [removed: Scientific] [added: Accounting] Officer | | [removed: 56] [added: 45] |

| John R. Letcher | | Senior Vice President, Human Resources | | [removed: 52] [added: 53] |

| James Corbett | | Senior Vice President and President, [removed: Diagnostics / Life Sciences and Technology] [added: Human Health] | | [removed: 51] [added: 52] |

| Jon DiVincenzo | | Senior Vice President and President, Environmental Health | | [removed: 48] [added: 49] |

Mr. Friel [removed: was named] [added: currently serves as] our [added: Chairman,] Chief Executive Officer [removed: in February 2008.][added: and President.]

Mr. Friel joined [removed: us] [added: PerkinElmer] in February 1999 as our Senior Vice President and Chief Financial Officer.

[removed: In 2004, he] [added: Mr. Friel] was [removed: named] [added: our] Executive Vice President and Chief Financial [removed: Officer] [added: Officer,] with responsibility for business development and information [removed: technology,] [added: technology] in addition to his oversight of the finance [removed: function.][added: functions, from October 2004 until January 2006.]

[removed: From 1980] [added: Prior] to [removed: 1999,] [added: joining PerkinElmer,] he held several senior management positions with AlliedSignal, Inc., now Honeywell International.

He [removed: holds] [added: received] a Bachelor of Arts degree in economics from Lafayette College and a Master of Science degree in taxation from Fairleigh Dickinson University.

Mr. Friel is currently a director of CareFusion Corporation and Xylem [removed: Inc., and has served as a director of Fairchild Semiconductor Corp. and Millennium Pharmaceuticals,] Inc. He also previously served on the national board of trustees for the March of Dimes Foundation.

Mr. Wilson joined us in May 2009 [removed: and is] [added: as] our Senior Vice President and Chief Financial Officer.

Prior to joining [removed: us in May 2009,] [added: us,] Mr. Wilson held key financial and business management roles over 12 years at the Danaher Corporation, including Corporate Vice President of Investor Relations; Group Vice President of Business Development; Group Vice President of Finance for Danaher Motion Group; President of Gems Sensors; and Group Vice President of Finance for the Industrial Controls Group.

[removed: Before joining Danaher,] [added: Previously,] Mr. Wilson worked for several years at AlliedSignal Inc., now Honeywell International, where he last served as Vice President of Finance and Chief Financial Officer for Commercial Aviations Systems.

[removed: Prior to joining AlliedSignal Inc., he worked at] [added: His earlier experience includes] PepsiCo Inc. in financial and controllership positions of increasing responsibility, E.F. Hutton and Company, and KPMG Peat Marwick.

Mr. Goldberg joined us [removed: in July 2008] as our Senior Vice President, General Counsel and [removed: Secretary.][added: Secretary in July 2008.]

[removed: Prior to joining us in July 2008, Mr. Goldberg served as Vice President, Chief Compliance Officer and Secretary for Millennium Pharmaceuticals, Inc.] During his seven years with Millennium, he focused in the areas of mergers and acquisitions, strategic alliances, investment and financing transactions, securities and healthcare related compliance, and employment law.

Mr. Goldberg graduated from the Northeastern University School of Law and also holds a [removed: Masters in] [added: Master of] Business Administration from Northeastern University.

Mr. Letcher [removed: was appointed] [added: is] our Senior Vice President of Human [removed: Resources, in February 2010.][added: Resources.]

He joined us in 1999 as our Vice President of Human Resources for the Optoelectronics business unit [removed: and,] [added: and] in [removed: 2003,] [added: 2003] was named Vice President of Human Resources for the Life and Analytical Sciences business unit.

In 2008, Mr. Letcher was named [removed: our] Vice President [added: of] Human Resources for [removed: all] [added: PerkinElmer, Inc. He was named Senior Vice President] of [removed: our business units.][added: Human Resources in January 2010.]

Previously, he served as Director of Human Resources of ABB Americas, Inc., the [removed: U.S.] [added: United States] subsidiary of an international engineering company.

Prior to that, Mr. Letcher held the positions of Business Controller in ABB Americas, Inc.’s [removed: US] [added: United States] Power Generation Gas Turbine Power business; Vice President of Finance for General Ship Corporation and Senior Auditor for Arthur Andersen.

James Corbett, [removed: 51.][added: 52.]

Mr. Corbett was appointed [removed: our Senior Vice] President of [added: the] Diagnostics [removed: /] [added: business in May 2010 and was appointed President of the] Life Sciences and Technology [added: business] in May 2013.

Jon DiVincenzo, [removed: 48.][added: 49.]

Prior to joining us, Mr. DiVincenzo served as the President and Chief Executive Officer of Enzymatics, [added: now] a [added: part of Qiagen, a] provider of molecular biology reagents, [removed: in] [added: from 2012 to] 2013.

[removed: From 1994 through 2012, Mr. DiVincenzo] [added: He previously] worked at Millipore [removed: Corporation,] [added: for 18 years,] where he last served as President of the [removed: bioscience] [added: Bioscience] division and also led the [removed: lab water] [added: company's Lab Water] business.

Mr. DiVincenzo holds a Bachelor of Science [removed: degree] in mechanical engineering from Northeastern University where he currently serves on the College of Engineering's Advisory Council.

He is also a member of the Corporate Executive Board for Innovation and [removed: former] member of the Board of Directors of the Analytical Life Sciences and Diagnostics Association.

Andrew Okun, [removed: 44.][added: 45.]

Mr. Okun [removed: was appointed] [added: serves as] our Vice President and Chief Accounting [removed: Officer] [added: Officer, a position] in [added: which he has served since] April 2011.

Friel, 59.

Prior to being appointed President and Chief Executive Officer in February 2008 and Chairman in April 2009, Mr. Friel had served as President and Chief Operating Officer since August 2007, and as Vice Chairman and President of our Life and Analytical Sciences unit since January 2006.

Wilson, 56.

Goldberg, 46.

Prior to joining us, Mr. Goldberg spent seven years at Millennium Pharmaceuticals, Inc., where he most recently served as Vice President, Chief Compliance Officer and Secretary.

Previously, he was an associate of the law firm Edwards & Angell, LLP.

Letcher, 53.

Mr. Corbett was appointed President of our Human Health business in March 2014 and has been a Senior Vice President and officer of PerkinElmer since February 2012.

Mr. Corbett joined the Company in October of 2007 through our acquisition of ViaCord, where he served as President.

Prior to joining ViaCord, he co-founded CADx Systems, a company focused on the oncology market, where he held the position of Executive

Vice President and Director with responsibility for worldwide sales and marketing, technical support and business development.

Following the 2004 acquisition of CADx by iCAD, Inc., he was named Chief Commercial Officer.

In addition, Mr. Corbett worked for Abbott Laboratories for 14 years in a variety of sales and marketing positions including Worldwide Marketing Manager for Abbott Diagnostics Immunoassay Systems and Region Manager for Abbott Diagnostics.

Mr. Corbett also serves on the national board of trustees for the March of Dimes Foundation.

Mr. Okun joined us in 2001 and has served in financial and controllership positions of increasing responsibility, including Director of Finance for the Optoelectronics business from 2001 through 2005, Vice President of Finance from 2005 through 2009 and Vice President and Corporate Controller from 2009 through 2011.

Prior to joining us, Mr. Okun most recently worked for Honeywell International as a Site Controller as well as for Coopers & Lybrand.

Mr. Okun is a Certified Public Accountant and earned his Master of Business Administration from the University of Virginia.

He completed his undergraduate degree at the University of Santa Barbara.

| Maurice H. Tenney | | Senior Vice President and President, Global Operations and Customer Logistics | | 50 |

| Andrew Okun | | Vice President and Chief Accounting Officer | | 44 |

Friel, 58.

In January 2006, he was named our Vice Chairman, President of Life and Analytical Sciences and elected to our Board.

In July 2007, he was named President and Chief Operating Officer, effective August 1, 2007.

Wilson, 55.

Goldberg, 45.

Before joining Millennium, Mr. Goldberg was an associate at the law firm of Edwards & Angell, LLP, focusing on emerging companies, venture capital, securities and merger-related work.

Daniel R.

Marshak, 56.

Dr. Marshak was appointed our Senior Vice President in April 2008, having joined us as our Chief Scientific Officer in May 2006.

In addition to these responsibilities, in May 2010, Dr. Marshak was appointed President of our Emerging Diagnostics business.

Dr. Marshak previously held the position of President, Greater China for us.

Prior to joining us, Dr. Marshak was with Cambrex Corporation since 2000, most recently as Vice President and Chief Technology Officer for Biotechnology.

Dr. Marshak also previously held the positions of Senior Vice President and Chief Scientific Officer for Osiris Therapeutics, Inc. and Senior Staff Investigator, Cold Spring Harbor Laboratory.

Dr. Marshak received his Bachelor of Arts degree in biochemistry and molecular biology from Harvard University, and his doctorate in biochemistry and cell biology from The Rockefeller University.

Dr. Marshak performed postdoctoral research in pharmacology at Vanderbilt University and the National Institute of Health.

Dr. Marshak is the author of more than 100 scientific publications and an inventor on six United States patents.

Letcher, 52.

He joined us in November 2007 as President for the ViaCord business unit through the acquisition of ViaCell, Inc. Mr. Corbett also has served as Vice President and General Manager of the Americas for the Diagnostics business unit and has been President of our Diagnostics business unit since May 2010.

Prior to joining us, he held positions in Abbott Laboratories, BioChem Immunosystems, CADx Systems, and iCad.

Maurice (Dusty) H.

Tenney, III, 50.

Mr. Tenney was appointed our Senior Vice President and President, Global Operations and Customer Logistics in November 2013.

He joined us in 2001 as Vice President of Global Operations for the Analytical Instruments business unit and, in 2004, was named President of our Laboratory Services business unit.

In 2009 he was appointed President of our Environmental Health business unit (formerly known as our Analytical Sciences and Laboratory Services business unit).

Prior to joining us, he held positions with Honeywell, Lockheed Martin and GE Aerospace.

Mr. Tenney holds a Bachelor of Science degree in mechanical engineering from the University of Maryland and a Master of Science degree in mechanical engineering from the University of Vermont.

He joined us in 2001 as part of the controllership organization for the Optoelectronics business unit and over the next eight years Mr. Okun assumed positions of increasing responsibility in the areas of controllership and financial planning and analysis, including serving as Controller for the Optoelectronics business unit.

In 2009, Mr. Okun was named our Vice President and Corporate Controller.

Prior to joining us, he held positions with Honeywell, ultimately becoming the Site Controller for its Commercial Avionics business, and the position of Senior Tax Associate for Coopers & Lybrand.

Mr. Okun holds a Bachelor of Arts degree in economics from the University of California at Santa Barbara, a Masters in Business Administration from the University of Virginia, and is a Certified Public Accountant.

The following table sets forth the high and low per share closing sale prices for our common stock on that exchange for each quarter in fiscal years [removed: 2013] [added: 2014] and [removed: 2012.][added: 2013.]

| | [removed: 2012] [added: 2014] Fiscal Quarters | | | | | | | | | | | | | | |

As of February [removed: 20, 2014,] [added: 19, 2015,] we had approximately [removed: 4,750] [added: 4,529] holders of record of our common stock.

| November [removed: 25, 2013—December 29, 2013] [added: 24, 2014—December 28, 2014] | [removed: 5,016] [added: 54] | | | [removed: 38.49] [added: 40.95] | | | — | | | [removed: 2,400,000] [added: 7,400,000] | |

| Activity for quarter ended December [removed: 29, 2013] [added: 28, 2014] | [removed: 5,529] [added: 600,495] | | | [removed: 38.39] [added: 44.15] | | | [removed: —] [added: 600,000] | | | [removed: 2,400,000] [added: 7,400,000] | |

| (1) | On October 24, 2012, our Board [added: of Directors (our "Board")] authorized us to repurchase up to 6.0 million shares of common stock under a stock repurchase program (the "Repurchase Program"). The Repurchase Program [added: expired on October 24, 2014. On October 23, 2014, our Board authorized us to repurchase up to 8.0 million shares of common stock under a new stock repurchase program (the "New Repurchase Program"). The New Repurchase Program] will expire on October [removed: 24, 2014] [added: 23, 2016] unless terminated earlier by our Board, and may be suspended or discontinued at any time. During the fourth quarter of fiscal year [removed: 2013,] [added: 2014,] we [removed: did not repurchase any] [added: repurchased 0.6 million] shares of common stock in the open market [added: at an aggregate cost of $26.5 million, including commissions,] under the [added: New] Repurchase Program. As of December [removed: 29, 2013,] [added: 28, 2014,] approximately [removed: 2.4] [added: 7.4] million shares authorized by our Board under the [added: New] Repurchase Program remained available for repurchase. 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. |

| (2) | Our Board has authorized us 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 our equity incentive plans. During the fourth quarter of fiscal year [removed: 2013,] [added: 2014,] we repurchased [removed: 5,529] [added: 495] shares of common stock for this purpose. 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. |

During fiscal years [removed: 2013] [added: 2014] and [removed: 2012,] [added: 2013,] we declared regular quarterly cash dividends on our common stock.

| | [removed: 2012] [added: 2014] Fiscal Quarters | | | | | | | | | | | | | | | | [removed: 2012] [added: 2014] Total | | |

Set forth below is a line graph comparing the cumulative total shareholder return on our common stock against the cumulative total return of the S&P Composite-500 Index and a Peer Group Index for the five fiscal years from [removed: December 28, 2008] [added: January 3, 2010] to December [removed: 29, 2013.][added: 28, 2014.]

Our Peer Group Index consists of Affymetrix, Inc., Agilent Technologies Inc., [removed: Life Technologies Corporation,] Thermo Fisher Scientific Inc., and Waters Corporation.

[removed: ][added: ]

| | [removed: 28-Dec-08 | | | |] 03-Jan-10 | | | | 02-Jan-11 | | | | 01-Jan-12 | | | | 30-Dec-12 | | | | 29-Dec-13 | | | [added: | 28-Dec-14 | | |]

| High | | $46.21 | | | | $47.52 | | | | $48.25 | | | | $45.76 | |

| Low | 40.94 | | | | 41.97 | | | | 43.51 | | | | 39.83 | | |

| September 29, 2014—October 26, 2014 | 98 | | | 40.40 | | | — | | | 8,000,000 | |

| October 27, 2014—November 23, 2014 | 600,343 | | | 44.15 | | | 600,000 | | | 7,400,000 | |

The peer group is the same as the peer group used in the stock performance graph in our Annual Report on Form 10-K for fiscal year ended December 29, 2014, except that it does not include Life Technologies Corporation, which has been excluded due to its acquisition by Thermo Fisher Scientific Inc.

| PerkinElmer, Inc. | $ | 100.00 | | | $ | 127.04 | | | $ | 99.57 | | | $ | 156.15 | | | $ | 208.92 | | | $ | 225.03 | |

| S&P 500 Index | $ | 100.00 | | | $ | 115.06 | | | $ | 117.49 | | | $ | 136.30 | | | $ | 180.44 | | | $ | 205.14 | |

| Peer Group | $ | 100.00 | | | $ | 122.35 | | | $ | 103.41 | | | $ | 131.71 | | | $ | 206.88 | | | $ | 231.54 | |

| High | | $27.85 | | | | $28.08 | | | | $30.36 | | | | $32.29 | |

| Low | 20.37 | | | | 24.82 | | | | 23.88 | | | | 27.84 | | |

| September 30, 2013—October 27, 2013 | 115 | | | 37.23 | | | — | | | 2,400,000 | |

| October 28, 2013—November 24, 2013 | 398 | | | 37.53 | | | — | | | 2,400,000 | |

| PerkinElmer, Inc. | $ | 100.00 | | | $ | 156.75 | | | $ | 199.13 | | | $ | 156.08 | | | $ | 244.77 | | | $ | 327.48 | |

| S&P 500 Index | $ | 100.00 | | | $ | 126.46 | | | $ | 145.51 | | | $ | 148.59 | | | $ | 172.37 | | | $ | 228.19 | |

| Peer Group | $ | 100.00 | | | $ | 168.98 | | | $ | 201.24 | | | $ | 164.54 | | | $ | 208.80 | | | $ | 327.77 | |

The following table sets forth selected historical financial information as of and for each of the fiscal years in the five-year period ended December [removed: 29, 2013.][added: 28, 2014.]

We derived the selected historical financial information for the balance sheets for the fiscal years ended December [removed: 29, 2013] [added: 28, 2014] and December [removed: 30, 2012] [added: 29, 2013] and the statement of operations for each of the fiscal years in the three-year period ended December [removed: 29, 2013] [added: 28, 2014] from our audited consolidated financial statements which are included elsewhere in this annual report on Form 10-K.

We derived the selected historical financial information for the statements of operations for the fiscal years ended January [removed: 2, 2011] [added: 1, 2012] and January [removed: 3, 2010] [added: 2, 2011] from our audited consolidated financial statements which are not included in this annual report on Form 10-K.

We derived the selected historical financial information for the balance sheets as of [added: December 30, 2012,] January 1, [removed: 2012,] [added: 2012 and] January 2, 2011 [removed: and January 3, 2010] from our audited consolidated financial statements which are not included in this annual report on Form 10-K.

| | December [added: 28, 2014 | | | | December] 29, 2013 | | | | December 30, 2012 | | | | January 1, 2012 | | | | January 2, 2011 | | | [removed: | January 3, 2010 | | |]

| Interest and other expense (income), [removed: net(6)(7)] [added: net(5)(6)] | [added: 41,139 | | | |] 64,110 | | | | 47,956 | | | | 26,774 | | | | (8,383 | | ) | [removed: | 15,787 | | |]

| (Loss) income from discontinued operations and dispositions, net of income [removed: taxes(12)] [added: taxes(12)(13)] | [removed: (712] [added: (3,388] | | ) | | [removed: 1,499] [added: (7,055] | | [added: )] | | [removed: 6,483] [added: (1,349] | | [added: )] | | [removed: 252,075] [added: 4,272] | | | | [removed: 8,620] [added: 250,912] | | |

| Net income | $ | [removed: 167,212] [added: 157,778] | | | $ | [removed: 69,940] [added: 167,212] | | | $ | [removed: 7,655] [added: 69,940] | | | $ | [removed: 390,983] [added: 7,655] | | | $ | [removed: 82,081] [added: 390,983] | |

| Discontinued operations | [removed: (0.01] [added: (0.03] | | ) | | [removed: 0.01] [added: (0.06] | | [added: )] | | [removed: 0.06] [added: (0.01] | | [added: )] | | [removed: 2.15] [added: 0.04] | | | | [removed: 0.07] [added: 2.14] | | |

| Net income | $ | [removed: 1.49] [added: 1.40] | | | $ | [removed: 0.61] [added: 1.49] | | | $ | [removed: 0.07] [added: 0.61] | | | $ | [removed: 3.34] [added: 0.07] | | | $ | [removed: 0.71] [added: 3.34] | |

| Discontinued operations | [removed: (0.01] [added: (0.03] | | ) | | [removed: 0.01] [added: (0.06] | | [added: )] | | [removed: 0.06] [added: (0.01] | | [added: )] | | [removed: 2.14] [added: 0.04] | | | | [removed: 0.07] [added: 2.13] | | |

| Net income | $ | [removed: 1.47] [added: 1.39] | | | $ | [removed: 0.61] [added: 1.47] | | | $ | [removed: 0.07] [added: 0.61] | | | $ | [removed: 3.31] [added: 0.07] | | | $ | [removed: 0.70] [added: 3.31] | |

| Basic: | [removed: 112,254] [added: 112,593] | | | | [removed: 113,728] [added: 112,254] | | | | [removed: 112,976] [added: 113,728] | | | | [removed: 117,109] [added: 112,976] | | | | [removed: 116,250] [added: 117,109] | | |

| Diluted: | [removed: 113,503] [added: 113,739] | | | | [removed: 114,860] [added: 113,503] | | | | [removed: 113,864] [added: 114,860] | | | | [removed: 117,982] [added: 113,864] | | | | [removed: 116,590] [added: 117,982] | | |

| Total [removed: assets(12)] [added: assets(12)(13)] | $ | [removed: 3,946,712] [added: 4,134,075] | | | $ | [removed: 3,901,762] [added: 3,946,712] | | | $ | [removed: 3,855,641] [added: 3,901,762] | | | $ | [removed: 3,208,946] [added: 3,855,641] | | | $ | [removed: 3,058,754] [added: 3,208,946] | |

| Short-term debt | [removed: 2,624] [added: 1,075] | | | | [removed: 1,772] [added: 2,624] | | | | [removed: —] [added: 1,772] | | | | [removed: 2,255] [added: —] | | | | [removed: 146] [added: 2,255] | | |

| Long-term [removed: debt(6)(13)] [added: debt(5)(14)] | [removed: 932,104] [added: 1,051,892] | | | | [removed: 938,824] [added: 932,104] | | | | [removed: 944,908] [added: 938,824] | | | | [removed: 424,000] [added: 944,908] | | | | [removed: 558,197] [added: 424,000] | | |

| Stockholders’ [removed: equity(1)(14)] [added: equity(1)(15)] | [removed: 1,994,487] [added: 2,042,102] | | | | [removed: 1,939,812] [added: 1,994,487] | | | | [removed: 1,842,216] [added: 1,939,812] | | | | [removed: 1,925,391] [added: 1,842,216] | | | | [removed: 1,628,671] [added: 1,925,391] | | |

| Common shares [removed: outstanding(14)] [added: outstanding(15)] | [removed: 112,626] [added: 112,481] | | | | [removed: 115,036] [added: 112,626] | | | | [removed: 113,157] [added: 115,036] | | | | [removed: 115,715] [added: 113,157] | | | | [removed: 117,023] [added: 115,715] | | |

| (1) | Activity related to the mark-to-market adjustment on postretirement benefit plans was [added: a] pre-tax [removed: income] [added: loss] of [removed: $17.6] [added: $75.9] million in fiscal year [removed: 2013, a] [added: 2014,] pre-tax [removed: loss] [added: income] of [removed: $31.8] [added: $17.6] million in fiscal year [removed: 2012,] [added: 2013,] a pre-tax loss of [removed: $67.9] [added: $31.8] million in fiscal year [removed: 2011,] [added: 2012,] a pre-tax loss of [removed: $0.2] [added: $67.9] million in fiscal year [removed: 2010] [added: 2011] and a pre-tax loss of [removed: $6.4] [added: $0.2] million in fiscal year [removed: 2009.] [added: 2010.] |

| [removed: (3)] [added: (2)] | We recorded pre-tax restructuring and contract termination charges, net, of [removed: $33.9] [added: $13.4] million in fiscal year [removed: 2013, $25.1] [added: 2014, $33.9] million in fiscal year [removed: 2012, $13.5] [added: 2013, $25.1] million in fiscal year [removed: 2011, $19.0] [added: 2012, $13.4] million in fiscal year [removed: 2010] [added: 2011] and [removed: $18.0] [added: $18.6] million in fiscal year [removed: 2009.] [added: 2010.] |

| [removed: (4)] [added: (3)] | On April 27, 2010 we sold a building which provided net proceeds of $11.0 million. We recorded a pre-tax gain of $3.4 million in operating income. |

| [removed: (5)] [added: (4)] | In fiscal year 2013, we recorded pre-tax impairment charges of [removed: $6.7] [added: $0.2] million as the carrying amounts of certain long-lived assets were not recoverable and exceeded their fair value. In fiscal year 2012, we recorded pre-tax impairment charges of $74.2 million as a result of a review of certain of our trade names within our portfolio as part of a realignment of our marketing strategy. In fiscal year 2011, we recorded a pre-tax impairment charge of $3.0 million for the full impairment of license agreements that we no longer intend to use. |

| [removed: (6)] [added: (5)] | In fiscal [removed: year] [added: years 2014,] 2013, 2012 and [removed: fiscal year] 2011, interest expense was [added: $36.3 million,] $49.9 million, $45.8 million and $24.8 million, respectively, with higher interest expense in fiscal years 2013 and 2012 due primarily to increased debt and the higher interest rates on those debt balances with the issuance in fiscal year 2011 of the senior unsecured notes due in 2021. In fiscal year 2013, we redeemed all of our 6% senior unsecured notes due in 2015 (the “2015 Notes”) that included a prepayment premium of $11.1 million, which is included in other expense, net, the write-off of $2.8 million for the remaining unamortized derivative losses for previously settled cash flow hedges, which is included in interest expense, and the write-off of $0.2 million for the remaining deferred debt issuance costs, which is included in interest expense. [added: In fiscal year 2014, interest expense was lower due to lower debt outstanding throughout fiscal year 2014 and an increased mix of variable rate debt with lower interest rates due to the redemption of the 2015 Notes.] For fiscal year 2011, acquisition related financing costs added an additional expense of $3.1 million, and is included in interest expense. |

| [removed: (7)] [added: (6)] | In fiscal year 2010, we acquired the remaining fifty percent equity interest in our joint venture (the "ICPMS Joint Venture") with the company previously known as MDS, Inc. for the development and manufacturing of our Inductively Coupled Plasma Mass Spectrometry product line. The fair value of the acquisition was $67.7 million, including cash consideration of $35.0 million, non-cash consideration of $2.6 million for certain non-exclusive rights to intangible assets we own, and $30.4 million representing the fair value of our fifty percent equity interest in the ICPMS Joint Venture held prior to the acquisition. We recognized a pre-tax gain of $25.6 million from the re-measurement to fair value of our previously held equity interest in the ICPMS Joint Venture. This pre-tax gain is reported in interest and other expense (income), net, for fiscal year 2010. |

| (10) | The fiscal year 2011 effective tax rate on continuing operations of [removed: 98.2%] [added: 95.0%] was primarily due to the fiscal year 2011 provision of $79.7 million related to our planned $350.0 million repatriation of previously unremitted earnings. |

| (11) | The fiscal year 2010 effective tax rate on continuing operations of [removed: 16.3%] [added: 16.6%] was primarily due to the favorable impact related to the gain on the previously held equity interest in the ICPMS Joint Venture. |

| [removed: (12)] [added: (13)] | In November 2010, we sold our Illumination and Detection Solutions (“IDS”) business for approximately $500.0 million, $482.0 million net of payments for acquired cash balances, subject to an adjustment for working capital as of the closing date. We recognized a pre-tax gain of $315.3 million, inclusive of the net working capital adjustment, in [added: fiscal year 2010 as a result of the sale of our IDS business. The gain was recognized as a gain on the disposition of discontinued operations.] |

| [removed: (13)] [added: (14)] | In October 2011, we issued and sold ten-year senior notes at a rate of 5% with a face value of $500.0 million and received $496.9 million of net proceeds from the issuance. The debt, which matures in November 2021, is unsecured. |

| [removed: (14)] [added: (15)] | In fiscal year [added: 2014, we repurchased in the open market 1.4 million shares of our common stock at an aggregate cost of $61.3 million, including commissions under both the New Repurchase Program and the Repurchase Program. In fiscal year] 2013, we repurchased in the open market approximately 3.6 million shares of our common stock at an aggregate cost of $123.0 million, including commissions under the [removed: Stock] Repurchase Program. In fiscal year 2012, we did not repurchase any shares of our common stock under any stock repurchase program. In fiscal year 2011, we repurchased in the open market approximately 4.0 million shares of our common stock at an aggregate cost of $107.8 million, including commissions. In fiscal year 2010, we repurchased in the open market approximately 3.0 million shares of our common stock at an aggregate cost of $71.5 million, including commissions. [removed: In fiscal year 2009, we repurchased in the open market approximately 1.0 million shares of our common stock at an aggregate cost of $14.2 million, including commissions.] The repurchases made during fiscal years [removed: 2011, 2010,] [added: 2011] and [removed: 2009] [added: 2010] were made pursuant to our stock repurchase program originally announced in October 2008 that expired in October 2012. 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. |

| Revenue | $ | 2,237,219 | | | $ | 2,157,586 | | | $ | 2,105,188 | | | $ | 1,906,190 | | | $ | 1,692,643 | |

| Operating income from continuing operations(1)(2)(3)(4) | 210,742 | | | | 227,794 | | | | 103,120 | | | | 94,777 | | | | 159,488 | | |

| Income from continuing operations before income taxes | 169,603 | | | | 163,684 | | | | 55,164 | | | | 68,003 | | | | 167,871 | | |

| Income from continuing operations, net of income taxes(7)(8)(9)(10)(11) | 161,166 | | | | 174,267 | | | | 71,289 | | | | 3,383 | | | | 140,071 | | |

| Continuing operations | $ | 1.43 | | | $ | 1.55 | | | $ | 0.63 | | | $ | 0.03 | | | $ | 1.20 | |

| Continuing operations | $ | 1.42 | | | $ | 1.54 | | | $ | 0.62 | | | $ | 0.03 | | | $ | 1.19 | |

| | December 28, 2014 | | | | December 29, 2013 | | | | December 30, 2012 | | | | January 1, 2012 | | | | January 2, 2011 | | |

| (7) | The fiscal year 2014 effective tax rate on continuing operations of 5.0% was primarily due to income in lower tax rate jurisdictions, partially offset by losses in higher tax rate jurisdictions and a tax benefit of $7.0 million related to discrete items. |

| (12) | In May 2014, we approved the shutdown of our microarray-based diagnostic testing laboratory in the United States. The shutdown resulted in a $0.1 million net pre-tax loss primarily related to the disposal of fixed assets, which was partially offset by the sale of a building in fiscal year 2014. |

| | |

| --- | --- |

| Revenue | $ | 2,166,232 | | | $ | 2,115,205 | | | $ | 1,918,508 | | | $ | 1,701,767 | | | $ | 1,546,790 | |

| Operating income from continuing operations(1)(2)(3)(4)(5) | 217,442 | | | | 98,543 | | | | 91,128 | | | | 157,568 | | | | 115,946 | | |

| Income from continuing operations before income taxes | 153,332 | | | | 50,587 | | | | 64,354 | | | | 165,951 | | | | 100,159 | | |

| Income from continuing operations, net of income taxes(8)(9)(10)(11) | 167,924 | | | | 68,441 | | | | 1,172 | | | | 138,908 | | | | 73,461 | | |

| Continuing operations | $ | 1.50 | | | $ | 0.60 | | | $ | 0.01 | | | $ | 1.19 | | | $ | 0.63 | |

| Continuing operations | $ | 1.48 | | | $ | 0.60 | | | $ | 0.01 | | | $ | 1.18 | | | $ | 0.63 | |

| (2) | We adopted the authoritative guidance for stock compensation on January 2, 2006. The total incremental pre-tax compensation expense recorded in continuing operations related to stock options was $4.4 million in fiscal year 2013, $5.1 million in fiscal year 2012, $4.5 million in fiscal year 2011, $6.2 million in fiscal year 2010 and $7.9 million in fiscal year 2009. |

fiscal year 2010 as a result of the sale of our IDS business.

The gain was recognized as a gain on the disposition of discontinued operations.

| [Report of Independent Registered Public Accounting [removed: Firm](#sC01C7A35AB6B6B9E785083221D7CDB2E)] [added: Firm](#sA8EE23D5F8F30B85F09ECA5BC181988A)] | [removed: [57](#sC01C7A35AB6B6B9E785083221D7CDB2E)] [added: [55](#sA8EE23D5F8F30B85F09ECA5BC181988A)] |

| [Consolidated Statements of Operations for Each of the Three Fiscal Years in the Period Ended December [removed: 29, 2013](#s98BD4C806D602DC3C0D28321C0FE4431)] [added: 28, 2014](#s9B5AF924E7730EB36B11CA5B8EE06653)] | [removed: [58](#s98BD4C806D602DC3C0D28321C0FE4431)] [added: [56](#s9B5AF924E7730EB36B11CA5B8EE06653)] |

| [Consolidated Statements of Comprehensive Income for Each of the Three Fiscal Years in the Period Ended December [removed: 29, 2013](#s6E2A0337965A1502535B8321C1241360)] [added: 28, 2014](#sAC8C53FBDAE20AB229E3CA5B8E09746C)] | [removed: [59](#s6E2A0337965A1502535B8321C1241360)] [added: [57](#sAC8C53FBDAE20AB229E3CA5B8E09746C)] |

| [Consolidated Balance Sheets as of December [removed: 29, 2013] [added: 28, 2014] and December [removed: 30, 2012](#s35680B0B18D7535C3B498321C136F26C)] [added: 29, 2013](#sB993B0FA91AA8F47E2D4CA5B8E1A4BDB)] | [removed: [60](#s35680B0B18D7535C3B498321C136F26C)] [added: [58](#sB993B0FA91AA8F47E2D4CA5B8E1A4BDB)] |

| [Consolidated Statements of Stockholders’ Equity for Each of the Three Fiscal Years in the Period Ended December [removed: 29, 2013](#sA62E9B671454419B85D28321C16490A6)] [added: 28, 2014](#s3F0F3C38D268A4DD3755CA5B8FFF2192)] | [removed: [61](#sA62E9B671454419B85D28321C16490A6)] [added: [59](#s3F0F3C38D268A4DD3755CA5B8FFF2192)] |

| [Consolidated Statements of Cash Flows for Each of the Three Fiscal Years in the Period Ended December [removed: 29, 2013](#sB04DAACAA84A6725F7348321C1BAF20B)] [added: 28, 2014](#sE056D05F151866A8C5EFCA5B8F2E4E11)] | [removed: [62](#sB04DAACAA84A6725F7348321C1BAF20B)] [added: [60](#sE056D05F151866A8C5EFCA5B8F2E4E11)] |

| [Notes to Consolidated Financial [removed: Statements](#s40090BD610F6FD3F80F483221E55A31B)] [added: Statements](#sF27B67A836420DCD70D6CA5BC2B78752)] | [removed: [63](#s40090BD610F6FD3F80F483221E55A31B)] [added: [61](#sF27B67A836420DCD70D6CA5BC2B78752)] |

We have audited the accompanying consolidated balance sheets of PerkinElmer, Inc. and subsidiaries (the “Company”) as of December [removed: 29, 2013] [added: 28, 2014] and December [removed: 30, 2012,] [added: 29, 2013,] 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 [removed: 29, 2013.][added: 28, 2014.]

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of PerkinElmer, Inc. and subsidiaries as of December [removed: 29, 2013] [added: 28, 2014] and December [removed: 30, 2012,] [added: 29, 2013,] and the results of their operations and their cash flows for each of the three years in the period ended December [removed: 29, 2013,] [added: 28, 2014,] in conformity with accounting principles generally accepted in the United States of America.

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 [removed: 29, 2013,] [added: 28, 2014,] based on the criteria established in Internal Control—Integrated Framework [removed: (1992)] [added: (2013)] issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February [removed: 25, 2014] [added: 24, 2015] expressed an unqualified opinion on the Company’s internal control over financial reporting.

| | December [removed: 29, 2013] [added: 28, 2014] | | | | December [removed: 30, 2012] [added: 29, 2013] | | | | [removed: January 1,] [added: December 30,] 2012 | | |

| Product revenue | $ | [removed: 1,498,070] [added: 1,540,075] | | | $ | [removed: 1,474,674] [added: 1,498,070] | | | $ | [removed: 1,319,510] [added: 1,474,674] | |

| Cost of product revenue | [removed: 783,584] [added: 805,345] | | | | [removed: 762,989] [added: 783,584] | | | | [removed: 686,812] [added: 762,989] | | |

[removed: |] [added: Note 4:] Restructuring and [removed: contract termination charges, net | 33,928 | | | | 25,137 | | | | 13,452 | | |][added: Contract Termination Charges, Net]

| Interest and other expense, net | [removed: 64,110] [added: 41,139] | | | | [removed: 47,956] [added: 64,110] | | | | [removed: 26,774] [added: 47,956] | | |

| Income from continuing operations before income taxes | [removed: 153,332] [added: 169,603] | | | | [removed: 50,587] [added: 163,684] | | | | [removed: 64,354] [added: 55,164] | | |

| [removed: (Benefit from) provision] [added: Provision] for [added: (benefit from)] income taxes | [removed: (14,592] [added: 8,437] | | [removed: )] | | [removed: (17,854] [added: (10,583] | | ) | | [removed: 63,182] [added: (16,125] | | [added: )] |

| (Loss) gain on disposition of discontinued operations before income taxes | [removed: (1,810] [added: (260] | | ) | | [removed: 2,405] [added: (1,810] | | [added: )] | | [removed: 1,999] [added: 2,405] | | |

| [removed: (Benefit from) provision for] [added: Benefit from] income taxes on disposition of discontinued operations | [removed: (1,098] [added: (1,831] | | ) | | [removed: 906] [added: (5,107] | | [added: )] | | [removed: (4,484] [added: (823] | | ) |

| [removed: (Loss) gain] [added: Loss] on disposition of [added: other] discontinued operations | [removed: (712] [added: —] | | [removed: )] | | [removed: 1,499] [added: (203] | | [added: )] | | [removed: 6,483] [added: (54] | | [added: )] |

| Net income | $ | [removed: 167,212] [added: 157,778] | | | $ | [removed: 69,940] [added: 167,212] | | | $ | [removed: 7,655] [added: 69,940] | |

| Income from continuing operations | $ | [removed: 1.50] [added: 1.43] | | | $ | [removed: 0.60] [added: 1.55] | | | $ | [removed: 0.01] [added: 0.63] | |

| [removed: (Loss) income] [added: Loss] from discontinued operations and dispositions | [removed: (0.01] [added: (0.03] | | ) | | [removed: 0.01] [added: (0.06] | | [added: )] | | [removed: 0.06] [added: (0.01] | | [added: )] |

| Net income | $ | [removed: 1.49] [added: 1.40] | | | $ | [removed: 0.61] [added: 1.49] | | | $ | [removed: 0.07] [added: 0.61] | |

| Income from continuing operations | $ | [removed: 1.48] [added: 1.42] | | | $ | [removed: 0.60] [added: 1.54] | | | $ | [removed: 0.01] [added: 0.62] | |

| Net income | $ | [removed: 1.47] [added: 1.39] | | | $ | [removed: 0.61] [added: 1.47] | | | $ | [removed: 0.07] [added: 0.61] | |

| | (In thousands) | | | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Other comprehensive [added: (loss)] income | | | | | | | | | | | |

| Foreign currency translation adjustments | [removed: 8,756] [added: (52,951] | | [added: )] | | [removed: 11,363] [added: 8,756] | | | | [removed: 1,814] [added: 11,363] | | |

| Unrecognized prior service costs, net of tax | [removed: (658] [added: 146] | | [removed: )] | | [removed: (82] [added: (658] | | ) | | [removed: 107] [added: (82] | | [added: )] |

| Reclassification adjustments for losses on derivatives included in net income, net of tax | [removed: 2,892] [added: —] | | | | [removed: 1,196] [added: 2,892] | | | | 1,196 | | |

| Unrealized gains [removed: (losses)] on securities, net of tax | [removed: 8] [added: 14] | | | | [removed: 30] [added: 8] | | | | [removed: (59] [added: 30] | | [removed: )] |

| Other comprehensive [added: (loss)] income | [removed: 10,998] [added: (52,791] | | [added: )] | | [removed: 12,507] [added: 10,998] | | | | [removed: 3,058] [added: 12,507] | | |