\nat least $2.88\n<\/p>\n<\/td>\n
\n0.46\n<\/p>\n<\/td>\n
\n0.01\n<\/p>\n<\/td>\n
\n0.04\n<\/p>\n<\/td>\n
\n0.03\n<\/p>\n<\/td>\n
\n0.31\n<\/p>\n<\/td>\n
\n0.01\n<\/p>\n<\/td>\n
\n0.07\n<\/p>\n<\/td>\n
\n-0.21\n<\/p>\n<\/td>\n
\nat least $3.60\n<\/p>\n<\/td>\n
\n66%\n<\/p>\n<\/td>\n
\n3%\n<\/p>\n<\/td>\n
\n63%\n<\/p>\n<\/td>\n
\n0%\n<\/p>\n<\/td>\n
\n3%\n<\/p>\n<\/td>\n
\n-3%\n<\/p>\n<\/td>\n
Explanation of Non-GAAP Financial Measures<\/b><\/p>\n
\nWe report our financial results in accordance with GAAP. However, management believe that, in order to more fully understand our short-term and long-term financial and operating trends, investors may wish to consider the impact of certain non-cash, non-recurring or other items, which result from facts and circumstances that vary in frequency and impact on continuing operations. Accordingly, we present non-GAAP financial measures as a supplement to the financial measures we present in accordance with GAAP. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by adjusting for certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.\n<\/p>\n
\n\nWe use the term \u201corganic revenue\u201d to refer to GAAP revenue, excluding the effect of foreign currency changes and including acquisitions growth from the comparable prior period, and including purchase accounting adjustments for revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules. We also exclude the impact of sales from divested businesses by deducting the effects of divested business revenue from the current and prior periods. We use the related term \u201corganic revenue growth\u201d to refer to the measure of comparing current period organic revenue with the corresponding period of the prior year.\n<\/p>\n
\nWe use the term \u201cadjusted earnings per share\u201d, or \u201cadjusted EPS\u201d, to refer to GAAP earnings per share, including revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules, and excluding discontinued operations, amortization of intangible assets, debt extinguishment costs, other purchase accounting adjustments, acquisition and divestiture-related expenses, acceleration of executive compensation, significant litigation matters and settlements, significant environmental charges, changes in the value of financial securities, disposition of businesses and assets, net, asset impairments and restructuring and other charges. We also exclude adjustments for mark-to-market accounting on post-retirement benefits, therefore only our projected costs have been used to calculate this non-GAAP measure. We also adjust for any tax impact related to the above items and exclude the impact of significant tax events.\n<\/p>\n
\nManagement includes or excludes the effect of each of the items identified below in the applicable non-GAAP financial measure referenced above for the reasons set forth below with respect to that item:\n<\/p>\n
- \n
- Amortization of intangible assets<\/span><\/i>\u2014 purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.\n<\/li>\n
- Debt extinguishment costs<\/span><\/i>\u2014we incur costs and income related to the extinguishment of debt; including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.\n<\/li>\n
- Revenue from contracts acquired in acquisitions that will not be fully recognized due to accounting rules<\/span><\/i>\u2014accounting rules require us to account for the fair value of revenue from contracts assumed in connection with our acquisitions. As a result, our GAAP results reflect the fair value of those revenues, which is not the same as the revenue that otherwise would have been recorded by the acquired entity. We include such revenue in our non-GAAP measures because we believe the fair value of such revenue does notaccurately reflect the performance of our ongoing operations for the period in which such revenue is recorded.\n<\/li>\n
- Other purchase accounting adjustments<\/span><\/i>\u2014accounting rules require us to adjust various balance sheet accounts, including inventory and deferred rent balances to fair value at the time of the acquisition. As a result, the expenses for these items in our GAAP results are not the same as what would have been recorded by the acquired entity. Accounting rules also require us to estimate the fair value of contingent consideration at the time of the acquisition, and any subsequent changes to the estimate or payment of the contingent consideration and purchase accounting adjustments are charged to expense or income. We exclude the impact of any changes to contingent consideration from our non-GAAP measures because we believe these expenses or benefits do notaccurately reflect the performance of our ongoing operations for the period in which such expenses or benefits are recorded.\n<\/li>\n
- Acquisition and divestiture-related expenses<\/span><\/i>\u2014we incur legal, due diligence, stay bonuses, incentive awards, interest expense, foreign exchange gains and losses, significant acquisition integration expenses and other costs related to acquisitions and divestitures. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.\n<\/li>\n
- Asset impairments<\/span>\u2014 <\/i>we incur expense related to asset impairments. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.\n<\/li>\n
- Acceleration of executive compensation<\/span>\u2014<\/i>the announced retirement of a senior executive resulted in an acceleration of compensation expense. We exclude these expenses from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.\n<\/li>\n
- Restructuring and other charges<\/span><\/i>\u2014restructuring and other charges consist of employee severance, other exit costs as well as the cost of terminating certain lease agreements or contracts as well as costs associated with relocating facilities. Management does not believe such costs accurately reflect the performance of our ongoing operations for the period in which such costs are reported.\n<\/li>\n
- Adjustments for mark-to-market accounting on post-retirement benefits<\/span><\/i>\u2014we exclude adjustments for mark-to-market accounting on post-retirement benefits, and therefore only our projected costs are used to calculate our non-GAAP measures. We exclude these adjustments because they do not represent what we believe our investors consider to be costs of producing our products, investments in technology and production, and costs to support our internal operating structure.\n<\/li>\n
- Significant litigation matters and settlements<\/span><\/i>\u2014we incur expenses related to significant litigation matters, including the costs to settle or resolve various claims and legal proceedings. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.\n<\/li>\n
- Significant environmental charges<\/span><\/i>\u2014we incur expenses related to significant environmental charges. Management does not believe such charges accurately reflect the performance of our ongoing operations for the periods in which such charges were incurred.\n<\/li>\n
- Disposition of businesses and assets, net<\/span><\/i>\u2014we exclude the impact of gains or losses from the disposition of businesses and assets from our adjusted earnings per share. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported.\n<\/li>\n
- Impact of foreign currency changes on the current period<\/span><\/i>\u2014we exclude the impact of foreign currency from these measures by using the prior period\u2019s foreign currency exchange rates for the current period because foreign currency exchange rates are subject to volatility and can obscure underlying trends.\n<\/li>\n
- Impact of significant tax events <\/span><\/i>\u2013 we exclude the impact of significant tax events, such as the Tax Cuts and Jobs Act of 2017. Management does not believe the impact of significant tax events accurately reflects the performance of our ongoing operations for the periods in which the impact of such events were recorded.\n<\/li>\n
- Changes in value of financial securities<\/span><\/i>\u2014we exclude the impact of changes in the value of financial securities. Management does not believe such gains or losses accurately reflect the performance of our ongoing operations for the period in which such gains or losses are reported.\n<\/li>\n<\/ul>\n\n
\nThe tax effect for discontinued operations is calculated based on the authoritative guidance in the Financial Accounting Standards Board\u2019s Accounting Standards Codification 740, Income Taxes. The tax effect for amortization of intangible assets, inventory fair value adjustments related to business acquisitions, changes to the fair values assigned to contingent consideration, debt extinguishment costs, other costs related to business acquisitions and divestitures, acceleration of executive compensation, significant litigation matters and settlements, significant environmental charges, changes in the fair value of financial securities, adjustments for mark-to-market accounting on post-retirement benefits, disposition of businesses and assets, net, restructuring and other charges, and the revenue from contracts acquired with various acquisitions is calculated based on operational results and applicable jurisdictional law, which contemplates tax rates currently in effect to determine our tax provision. The tax effect for the impact from foreign currency exchange rates on the current period is calculated based on the average rate currently in effect to determine our tax provision.\n<\/p>\n
\nThe non-GAAP financial measures described above are not meant to be considered superior to, or a substitute for, our financial statements prepared in accordance with GAAP. There are material limitations associated with non-GAAP financial measures because they exclude charges that have an effect on our reported results and, therefore, should not be relied upon as the sole financial measures by which to evaluate our financial results. Management compensates and believes that investors should compensate for these limitations by viewing the non-GAAP financial measures in conjunction with the GAAP financial measures. In addition, the non-GAAP financial measures included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies.\n<\/p>\n
\nEach of the non-GAAP financial measures listed above is also used by our management to evaluate our operating performance, communicate our financial results to our Board of Directors, benchmark our results against our historical performance and the performance of our peers, evaluate investment opportunities including acquisitions and discontinued operations, and determine the bonus payments for senior management and employees.\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20210111005309\/en\/<\/a><\/span><\/p>\n
\nInvestor Relations:
\n
Bryan Kipp
\n
(781) 663-5583
\n
bryan.kipp@perkinelmer.com<\/a><\/p>\n - Debt extinguishment costs<\/span><\/i>\u2014we incur costs and income related to the extinguishment of debt; including make-whole payments to debt holders, accelerated amortization of debt fees and discounts, and expense or income from hedges to lock in make whole payments. We exclude the impact of these items from our non-GAAP measures because we believe they do not reflect the performance of our ongoing operations.\n<\/li>\n