REVVITY, INC. This quarterly report on Form 10-Q, including the following management's discussion and analysis, contains forward-looking information that you should read in conjunction with the condensed consolidated financial statements and notes to the condensed consolidated financial statements that we have included elsewhere in this report. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Words such as "believes," "plans," "anticipates," "intends," "expects," "will" and similar expressions are intended to identify forward-looking statements. Our actual results may differ materially from the plans, intentions or expectations we disclose in the forward-looking statements we make. We have included important factors below under the heading "Risk Factors" in Part II, Item 1A. that we believe could cause actual results to differ materially from the forward-looking statements we make. We are not obligated to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Overview
We are a leading provider of products, services and solutions for the diagnostics, life sciences and applied markets. Through our advanced technologies and differentiated solutions, we address critical issues that help to improve lives and the world around us.
The principal products and services of our two operating segments are:
•Discovery & Analytical Solutions. Provides products and services targeted towards the life sciences and applied markets.
•Diagnostics. Develops diagnostics, tools and applications focused on clinically-oriented customers, especially within the reproductive health, immunodiagnostics and applied genomics markets.
Overview of the First Quarter of Fiscal Year 2022
Our overall revenue in the first quarter of fiscal year 2022 was$1,259.4 million which decreased by$48.2 million , or 4%, as compared to the first quarter of fiscal year 2021, reflecting a decrease of$196.0 million , or 23%, in our Diagnostics segment revenue offset by an increase of$147.8 million , or 33%, in our Discovery & Analytical Solutions segment revenue. The decrease in our Diagnostics segment revenue for the first quarter of fiscal year 2022 was driven by a decrease in revenue from our COVID-19 product offerings of$239.7 million , which was partially offset by increase in revenue across our core portfolio of$43.7 million . Additionally, due to the decrease in COVID-19 cases and related decreased need for COVID-19 testing, theCalifornia Department of Public Health ("CDPH") notified us onMarch 31, 2022 that it intends to end its contract with us for the supply and operation of theValencia Branch Laboratory effective onMay 15, 2022 . We shall recognize the unamortized contract liability pertaining to the nonrefundable prepayment as revenue over the remaining period throughMay 15, 2022 . The increase in our Discovery & Analytical Solutions segment revenue for the first quarter of fiscal year 2022 was driven by an increase in our life sciences market and applied markets revenue, partially offset by unfavorable changes in foreign exchange rates. The increase in our life sciences market revenue was the result of an increase in revenue from businesses acquired in fiscal year 2021 along with organic growth in our pharmaceutical and biotechnology markets. The increase in our applied markets revenue was driven by increased demand from our industrial and food markets, which were partially offset by decreased demand from our environmental market. Our consolidated gross margins decreased 611 basis points in the first quarter of fiscal year 2022, as compared to the first quarter of fiscal year 2021, primarily due to increased amortization expense and decreased COVID-19 revenue partially offset by a favorable shift in product mix and service productivity. Our consolidated operating margins decreased 1,554 basis points in the first quarter of fiscal year 2022, as compared to the first quarter of fiscal year 2021, primarily due to increased costs related to amortization of acquired intangible assets, and investments in new product development and growth initiatives. Overall, we believe that our strategic priorities and recent acquisitions, coupled with our expanded range of product offerings, leading market positions, global scale, and financial strength provide us with a foundation for continued revenue growth, strong margins and cash flows, and long-term earnings per share growth.
Critical Accounting Policies and Estimates
The preparation of condensed consolidated financial statements requires us to
make estimates and judgments that affect the reported amounts of assets,
liabilities, revenue and expenses and related disclosure of contingent assets
and liabilities. On an ongoing basis, we evaluate our estimates, including those
related to accounting for business combinations, long-lived assets,
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including goodwill and other intangible assets and employee compensation and benefits. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Critical accounting policies are those policies that affect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements. We believe our critical accounting policies include policies regarding business combinations, valuation of long-lived assets, including goodwill and other intangibles and employee compensation and benefits. For a more detailed discussion of our critical accounting policies and estimates, refer to the Notes to our audited consolidated financial statements and Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the fiscal year endedJanuary 2, 2022 (our "2021 Form 10-K"), as filed with theSecurities and Exchange Commission . There have been no significant changes in our critical accounting policies and estimates during the three months endedApril 3, 2022 .
Consolidated Results of Continuing Operations
Revenue
Revenue for the three months endedApril 3, 2022 was$1,259.4 million , as compared to$1,307.7 million for the three months endedApril 4, 2021 , a decrease of$48.2 million , or approximately 4%, which includes an approximate 2% decrease in revenue attributable to unfavorable changes in foreign exchange rates, partially offset by a 10% increase in revenue attributable to acquisitions and divestitures. The analysis in the remainder of this paragraph compares segment revenue for the three months endedApril 3, 2022 as compared to the three months endedApril 4, 2021 and includes the effect of foreign exchange rate fluctuations, acquisitions and divestitures. Our Diagnostics segment revenue was$657.1 million for the three months endedApril 3, 2022 , as compared to$853.1 million for the three months endedApril 4, 2021 , a decrease of$196.0 million , or 23%, primarily due to a decrease in revenue from our COVID-19 product offerings of$239.7 million and unfavorable changes in foreign exchange rates, which were partially offset by increase in revenue across our core portfolio of$43.7 million . Our Discovery & Analytical Solutions segment revenue was$602.4 million for the three months endedApril 3, 2022 , as compared to$454.6 million for the three months endedApril 4, 2021 , an increase of$147.8 million , or 33%, driven by an increase in revenue from our 2021 acquisitions, and an increase in our life sciences market and applied markets revenue, partially offset by unfavorable changes in foreign exchange rates. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize$0.2 million of revenue for the three months endedApril 3, 2022 and$1.2 million of revenue for the three months endedApril 4, 2021 that otherwise would have been recorded by the acquired businesses during each of the respective periods.
Cost of Revenue
Cost of revenue for the three months endedApril 3, 2022 was$580.2 million , as compared to$522.5 million for the three months endedApril 4, 2021 , an increase of$57.7 million , or approximately 11%. As a percentage of revenue, cost of revenue increased to 46.1% for the three months endedApril 3, 2022 , from 40.0% for the three months endedApril 4, 2021 , resulting in a decrease in gross margin of 611 basis points to 53.9% for the three months endedApril 3, 2022 , from 60.0% for the three months endedApril 4, 2021 . Amortization of intangible assets increased and was$40.1 million for the three months endedApril 3, 2022 , as compared to$20.3 million for the three months endedApril 4, 2021 . Amortization of intangible assets from our recent acquisitions amounted to$22.9 million for the three months endedApril 3, 2022 . The amortization of purchase accounting adjustments to record the inventory from certain acquisitions added an incremental expense of$16.9 million for the three months endedApril 3, 2022 , as compared to$3.0 million for the three months endedApril 4, 2021 . Purchase accounting adjustments for depreciation on property, plant and equipment added an incremental expense of$0.1 million for the three months endedApril 3, 2022 . The overall decrease in gross margin was partially offset by a favorable shift in product mix and service productivity.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months endedApril 3, 2022 were$334.4 million , as compared to$251.4 million for the three months endedApril 4, 2021 , an increase of$83.0 million , or 33.0%. As a percentage of revenue, selling, general and administrative expenses increased and were 26.6% for the three months endedApril 3, 2022 , as compared to 19.2% for the three months endedApril 4, 2021 . Amortization of intangible assets increased and was$62.6 million for the three months endedApril 3, 2022 , as compared to$33.9 million for the three months endedApril 4, 2021 . Amortization of intangible assets from our recent acquisitions amounted to$34.1 million for the three months endedApril 3, 2022 . Purchase accounting adjustments added an incremental expense of$0.7 million for the three months endedApril 3, 2022 , which 26
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primarily consisted of a change in contingent consideration, as compared to$0.2 million for the three months endedApril 4, 2021 . Acquisition and divestiture-related expenses added an incremental expense of$17.4 million for the three months endedApril 3, 2022 , as compared to$9.7 million for the three months endedApril 4, 2021 . Legal costs for significant litigation matters and settlements were$0.4 million for the three months endedApril 3, 2022 . In addition to the above items, the increase in selling, general and administrative expenses was primarily the result of costs related to investments in people, digital capabilities, innovation, and recent acquisitions.
Research and Development Expenses
Research and development expenses for the three months endedApril 3, 2022 were$76.6 million , as compared to$60.2 million for the three months endedApril 4, 2021 , an increase of$16.4 million , or 27.2%. Research and development expenses from our recent acquisitions were$13.7 million for the three months endedApril 3, 2022 . As a percentage of revenue, research and development expenses increased and were 6.1% for the three months endedApril 3, 2022 , as compared to 4.6% for the three months endedApril 4, 2021 . Stock compensation related to our acquisitions added an incremental expense of$1.5 million for the three months endedApril 3, 2022 . Purchase accounting adjustments for depreciation on property, plant and equipment added an incremental expense of$0.1 million for the three months endedApril 3, 2022 . The increase in research and development expenses was driven by our investments in new product development. Restructuring and Other Costs, Net We implemented a restructuring plan in the first quarter of fiscal year 2022 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives and integrate new acquisitions (the "Q1 2022 Plan"). We implemented restructuring plans in each quarter of fiscal year 2021 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives and integrate new acquisitions (the "Q1 2021 Plan", "Q2 2021 Plan", "Q3 2021 Plan" and "Q4 2021 Plan", respectively). Details of the plans initiated in previous years (the "Previous Plans") are discussed more fully in Note 4, Restructuring and Other Costs, Net, to our audited consolidated financial statements in the 2021 Form 10-K.
The following table summarizes the reductions in headcount, the initial restructuring or contract termination charges by reporting segment, and the dates by which payments were substantially completed, or the dates by which payments are expected to be substantially completed, for restructuring actions implemented during fiscal years 2022 and 2021:
Workforce Reductions Closure of Excess Facility (Expected) Date Payments Substantially Completed by
Discovery & Discovery &
Headcount Analytical Analytical
Reduction Solutions Diagnostics Solutions Diagnostics Total Severance Excess Facility
(Inthousands, except headcount data)
Q1 2022 Plan 81$ 5,832 $ 399 $ - $ -$ 6,231 Q4 FY2022 - Q4 2021 Plan 31 3,139 77 150 - 3,366 Q3 FY2022 Q1 FY2023 Q3 2021 Plan 39 420 366 - - 786 Q2 FY2022 - Q2 2021 Plan 25 968 564 - - 1,532 Q1 FY2022 - Q1 2021 Plan 77 3,941 1,615 - - 5,556 Q4 FY2021 - We terminated various contractual commitments in connection with certain disposal activities and have recorded charges for the costs of terminating these contracts before the end of their terms and the costs that will continue to be incurred for the remaining terms without economic benefit to us. We recorded net pre-tax charges of$6.3 million in the Discovery & Analytical Solutions segment during the three months endedApril 3, 2022 as a result of these contract terminations. We recorded net pre-tax gains of$0.4 million in the Diagnostics segment during the three months endedApril 3, 2022 as a result of changes in estimates from prior contract terminations. We recorded pre-tax charges of$1.3 million and$0.2 million associated with relocating facilities during the three months endedApril 3, 2022 andApril 4, 2021 , respectively, in the Discovery & Analytical Solutions segment. We expect to make payments on these relocation activities through end of fiscal year 2022. 27
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Interest and Other Expense, Net
Interest and other expense, net, consisted of the following:
Three Months Ended
April 3, April 4,
2022 2021
(In thousands)
Interest income $ (595) $ (411)
Interest expense 28,388 14,126
Change in fair value of financial securities 12,125 (19,298) Other components of net periodic pension credit (2,362) (3,719) Other income, net
(311) (3,404)
Total interest and other expense (income), net
The increase in interest and other expense (income), net, for the three months endedApril 3, 2022 , as compared to the three months endedApril 4, 2021 , was primarily due to an increase of$14.3 million in interest expense, which was the result of an overall increase in debt, a change in fair value of financial securities of$12.1 million that was recognized during the three months endedApril 3, 2022 as compared to$(19.3) million that was recognized during the three months endedApril 4, 2021 , an increase in other components of net periodic pension credit of$1.4 million and a decrease in other income, net of$3.1 million . Provision for Income Taxes
The provision for income taxes from continuing operations was
The effective tax rate from continuing operations was 18.7% for the three months endedApril 3, 2022 , as compared to 21.1% for the three months endedApril 4, 2021 . The lower effective tax rate during the three months endedApril 3, 2022 , as compared to the three months endedApril 4, 2021 , was primarily due to more income in higher tax rate jurisdictions during the first quarter of fiscal year 2021 and a one-time discrete expense of$1.5 million related to a tax accrual for foreign earnings that was recorded in the three months endedApril 4, 2021 . During the first three months of fiscal years 2022 and 2021, we recorded a net discrete benefit of$0.6 million and an income tax expense of$2.0 million , respectively. The discrete tax benefits in the first quarter of fiscal year 2022 included excess tax benefits on stock compensation of$1.8 million , partially offset by tax accruals for unrecognized tax benefits and tax rate changes. The discrete tax benefits in the first quarter of fiscal year 2021 included various tax return to provision adjustments totaling$1.8 million and a$1.5 million accrual for foreign earnings, which were partially offset by excess tax benefits on stock compensation of$3.1 million .
Reporting Segment Results of Continuing Operations
Discovery & Analytical Solutions
Revenue for the three months endedApril 3, 2022 was$602.4 million , as compared to$454.6 million for the three months endedApril 4, 2021 , an increase of$147.8 million , or 33%, which includes an approximate 23% increase in revenue attributable to acquisitions and divestitures and a 2% decrease in revenue attributable to unfavorable changes in foreign exchange rates. The life sciences market revenue increased by$135.2 million while the applied markets revenue increased by$12.5 million . The analysis in the remainder of this paragraph compares selected revenue by end market for the three months endedApril 3, 2022 , as compared to the three months endedApril 4, 2021 , and includes the effect of foreign exchange fluctuations, acquisitions and divestitures. The increase in our life sciences revenue was the result of an increase in revenue from businesses acquired in fiscal year 2021 along with organic growth in our pharmaceutical and biotechnology markets. The increase in our applied markets revenue was driven by increased demand from our industrial and food markets, which were partially offset by decreased demand from our environmental market. Operating income from continuing operations for the three months endedApril 3, 2022 was$14.5 million , as compared to$42.9 million for the three months endedApril 4, 2021 , a decrease of$28.4 million , or 66%. Amortization of intangible assets was$67.7 million for the three months endedApril 3, 2022 , as compared to$20.4 million for the three months ended 28
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April 4, 2021 . Amortization of intangible assets from our recent acquisitions amounted to$51.2 million for the three months endedApril 3, 2022 . Restructuring and other charges, net, were$13.4 million for the three months endedApril 3, 2022 , as compared to$4.1 million for the three months endedApril 4, 2021 . The amortization of purchase accounting adjustments to record the inventory from certain acquisitions was$16.6 million for the three months endedApril 3, 2022 , as compared to$1.1 million for the three months endedApril 4, 2021 . Acquisition and divestiture-related expenses, contingent consideration and other costs added an incremental expense of$14.0 million for the three months endedApril 3, 2022 , as compared to$7.0 million for the three months endedApril 4, 2021 . Legal costs for significant litigation matters and settlements were$0.4 million for the three months endedApril 3, 2022 . Excluding the factors noted above, operating income increased for the three months endedApril 3, 2022 , as compared to the three months endedApril 4, 2021 , primarily as a result of higher sales volume and favorable product mix, partially offset by increased investments in new product development and growth initiatives.
Diagnostics
Revenue for the three months endedApril 3, 2022 was$657.1 million , as compared to$853.1 million for the three months endedApril 4, 2021 , a decrease of$196.0 million , or 23%, which includes a 2% decrease in revenue attributable to unfavorable changes in foreign exchange rates, partially offset by an approximate 3% increase in revenue attributable to acquisitions and divestitures. As a result of adjustments to deferred revenue related to certain acquisitions required by business combination accounting rules, we did not recognize$0.2 million of revenue in our Diagnostics segment for each of the three months endedApril 3, 2022 andApril 4, 2021 that otherwise would have been recorded by the acquired businesses during each of the respective periods. The decrease in our Diagnostics segment revenue for the three months endedApril 3, 2022 was due to a decrease in revenue from our COVID-19 product offerings of$239.7 million and unfavorable changes in foreign exchange rates, which were partially offset by increase in revenue across our core portfolio of$43.7 million . Due to the termination of our contract with CDPH, we shall recognize the unamortized contract liability pertaining to the nonrefundable prepayment as revenue over the remaining period throughMay 15, 2022 . As ofMarch 31, 2022 , the unamortized contract liability was$126.2 million . The contract liability that we expect to recognize in revenue in the second quarter of fiscal year 2022 amounts to$117.8 million . Operating income from continuing operations for the three months endedApril 3, 2022 was$258.0 million , as compared to$441.5 million for the three months endedApril 4, 2021 , a decrease of$183.5 million , or 42%. Amortization of intangible assets increased and was$34.9 million for the three months endedApril 3, 2022 , as compared to$33.7 million for the three months endedApril 4, 2021 . Amortization of intangible assets from our recent acquisitions amounted to$5.8 million for the three months endedApril 3, 2022 . Restructuring and other charges, net, was$1.6 million for the three months endedApril 4, 2021 . The amortization of purchase accounting adjustments to record the inventory from certain acquisitions was$0.3 million for the three months endedApril 3, 2022 , as compared to$1.9 million for the three months endedApril 4, 2021 . Acquisition and divestiture-related expenses, contingent consideration and other costs added an incremental expense of$7.7 million for the three months endedApril 3, 2022 , as compared to$4.1 million for the three months endedApril 4, 2021 . Excluding the factors noted above, operating income decreased for the three months endedApril 3, 2022 , as compared to the three months endedApril 4, 2021 , primarily as a result of lower sales volume related to COVID-19 product offerings and unfavorable product mix.
Liquidity and Capital Resources
We require cash to pay our operating expenses, make capital expenditures, make strategic acquisitions, service our debt and other long-term liabilities, repurchase shares of our common stock and pay dividends on our common stock. Our principal sources of funds are from our operations, borrowing capacity available under our senior unsecured credit facility and access to debt markets. We anticipate that our internal operations will generate sufficient cash to fund our operating expenses, capital expenditures, smaller acquisitions, interest payments on our debt and dividends on our common stock. However, we expect to use external sources to satisfy the balance of our debt when due, any larger acquisitions and other long-term liabilities, such as contributions to our postretirement benefit plans. We and our subsidiaries may from time to time, in our sole discretion, purchase, repay, redeem or retire any of our outstanding debt securities (including any publicly issued debt securities), in privately negotiated or open market transactions, by tender offer or otherwise, or extend or refinance any of our outstanding indebtedness.
Principal factors that could affect the availability of our internally generated funds include:
•changes in sales due to weakness in markets in which we sell our products and services, and
•changes in our working capital requirements and capital expenditures.
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Principal factors that could affect our ability to obtain cash from external sources include:
•financial covenants contained in the financial instruments controlling our borrowings that limit our total borrowing capacity,
•increases in interest rates applicable to our outstanding variable rate debt,
•a ratings downgrade that could limit the amount we can borrow under our senior unsecured revolving credit facility and our overall access to the corporate debt market, •increases in interest rates or credit spreads, as well as limitations on the availability of credit, that affect our ability to borrow under future potential facilities on a secured or unsecured basis,
•a decrease in the market price for our common stock, and
•volatility in the public debt and equity markets.
AtApril 3, 2022 , we had cash and cash equivalents of$669.8 million , of which$532.0 million was held by our non-U.S. subsidiaries, and we had$1.5 billion of borrowing capacity available under our senior unsecured revolving credit facility. We had no other liquid investments atApril 3, 2022 . We utilize a variety of tax planning and financing strategies to ensure that our worldwide cash is available in the locations in which it is needed. We use our non-U.S. cash for needs outside of theU.S. including foreign operations, capital investments, acquisitions and repayment of debt. In addition, we transfer cash to theU.S. using nontaxable returns of capital, distribution of previously taxed income, as well as dividends, where the related income tax cost is managed efficiently. We have accrued tax expense on the unremitted earnings of foreign subsidiaries as required by the Tax Cuts and Jobs Act of 2017 (the "Tax Act") and where the foreign earnings are not considered permanently reinvested. In accordance with the Tax Act, we are making scheduled annual cash payments on our accrued transition tax. As of the end of fiscal year 2021, we identified approximately$1.2 billion in earnings that we no longer considered permanently reinvested. We intend to begin repatriating such earnings to theU.S. , in whole or in part, during fiscal year 2022, and have recorded a provision of approximately$37.1 million for theU.S. federal,U.S. state and non-U.S. taxes that would fall due when such earnings are repatriated. No additional income tax expense has been provided for any remaining undistributed foreign earnings, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested. OnJuly 31, 2020 , our Board of Directors (the "Board") authorized us to repurchase shares of common stock for an aggregate amount up to$250.0 million under a stock repurchase program (the "Repurchase Program"). The Repurchase Program will expire onJuly 27, 2022 unless terminated earlier by the Board and may be suspended or discontinued at any time. During the three months endedApril 3, 2022 , we repurchased 240,000 shares of common stock under the Repurchase Program for an aggregate cost of$43.4 million . As ofApril 3, 2022 ,$144.0 million remained available for aggregate repurchases of shares under the Repurchase Program. As ofApril 3, 2022 , we may have to pay contingent consideration related to acquisitions with open contingency periods of up to$111.3 million . As ofApril 3, 2022 , we have recorded contingent consideration obligations of$49.8 million , of which$1.1 million was recorded in accrued expenses and other current liabilities, and$48.7 million was recorded in long-term liabilities. The expected maximum earnout period for acquisitions with open contingency periods does not exceed 6.7 years fromApril 3, 2022 , and the remaining weighted average expected earnout period atApril 3, 2022 was 5.7 years. Distressed global financial markets could adversely impact general economic conditions by reducing liquidity and credit availability, creating increased volatility in security prices, widening credit spreads, increasing the cost of borrowings and decreasing valuations of certain investments. The widening of credit spreads may create a less favorable environment for certain of our businesses and may affect the fair value of financial instruments that we issue or hold. Increases in credit spreads, as well as limitations on the availability of credit at rates we consider to be reasonable, could affect our ability to borrow under future potential facilities on a secured or unsecured basis, which may adversely affect our liquidity and results of operations. In difficult global financial markets, we may be forced to fund our operations at a higher cost, or we may be unable to raise as much funding as we need to support our business activities. Our pension plans have not experienced a material impact on liquidity or counterparty exposure due to the volatility and uncertainty in the credit markets. During the three months endedApril 3, 2022 , we contributed$1.7 million , in the aggregate, to pension plans outside ofthe United States , and expect to contribute an additional$5.3 million by the end of fiscal year 2022. We could potentially have to make additional contributions in future periods for all pension plans. We expect to use existing cash and external sources to satisfy future contributions to our pension plans. 30
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Cash Flows
Operating Activities. Net cash provided by operating activities was$283.2 million for the three months endedApril 3, 2022 , as compared to$473.5 million for the three months endedApril 4, 2021 , a decrease of$190.3 million , primarily due to lower profitability and more cash used in working capital in the first quarter of fiscal year 2022 as compared to the prior period. The cash provided by operating activities for the three months endedApril 3, 2022 was principally a result of income from continuing operations of$177.0 million , and adjustments for non-cash charges aggregating to$180.3 million , including depreciation and amortization of$120.1 million , partially offset by net cash usage in working capital of$74.1 million . The cash provided by operating activities for the three months endedApril 4, 2021 was principally a result of income from continuing operations of$379.3 million , and adjustments for non-cash charges aggregating to$65.9 million , including depreciation and amortization of$70.2 million , partially offset by net cash provided by working capital of$28.3 million . During the three months endedApril 3, 2022 , we contributed$1.7 million , in the aggregate, to pension plans outside ofthe United States . Investing Activities. Net cash used in investing activities was$56.3 million for the three months endedApril 3, 2022 , as compared to$461.9 million for the three months endedApril 4, 2021 , a decrease of$405.5 million . For the three months endedApril 3, 2022 , the net cash used for capital expenditures and acquisitions were$29.4 million and$3.9 million , respectively, as compared to$14.3 million and$443.5 million , respectively, for the three months endedApril 4, 2021 . The capital expenditures in each period were primarily for manufacturing, software and other capital equipment purchases. During the three months endedApril 3, 2022 , purchases of investments were$23.0 million as compared to$4.0 million during the three months endedApril 4, 2021 . Financing Activities. Net cash used in financing activities was$164.9 million for the three months endedApril 3, 2022 , as compared to net cash provided by financing activities of$583.0 million for the three months endedApril 4, 2021 , a decrease in net cash provided by financing activities of$747.8 million . The cash used in financing activities during the three months endedApril 3, 2022 was a result of payments on borrowings, payments of term loan, repurchases of our common stock, payments of dividends, net payments on other credit facilities and settlement of cash flow hedges. During the three months endedApril 3, 2022 , we made payments on our term loan facility of$100.0 million , as compared to debt borrowings of$584.0 million and proceeds from the sale of unsecured senior notes of$799.9 million , which were partially offset by debt payments of$743.5 million and debt issuance costs of$7.9 million during the three months endedApril 4, 2021 . During the three months endedApril 3, 2022 , we repurchased shares of our common stock for a total cost of$55.6 million , as compared to$42.8 million in the prior period. During the three months endedApril 3, 2022 , we paid$8.8 million in dividends as compared to$7.9 million for the three months endedApril 4, 2021 . During the three months endedApril 3, 2022 , we had net payments on other credit facilities of$1.1 million as compared to$9.8 million for the three months endedApril 4, 2021 . We paid$0.8 million in settlement of hedges during the three months endedApril 3, 2022 , as compared to$6.0 million in cash received from settlement of hedges for the three months endedApril 4, 2021 . The cash used in financing activities during the three months endedApril 3, 2022 was partially offset by proceeds from the issuance of common stock under our stock plans of$1.4 million during the three months endedApril 3, 2022 , as compared to$5.0 million for the three months endedApril 4, 2021 . Borrowing Arrangements During the first quarter of fiscal year 2022, the Company repaid$100.0 million of the term loan facility, and subsequent to the end of first quarter, the Company has repaid an additional$230.0 million of the term loan facility. See Note 7, Debt, in the Notes to Condensed Consolidated Financial Statements and Note 13, Debt, to our audited consolidated financial statements in the 2021 Form 10-K for a detailed discussion of our borrowing arrangements.
Dividends
Our Board declared a regular quarterly cash dividend of$0.07 per share for the first quarter of fiscal year 2022 and in each quarter of fiscal year 2021. AtApril 3, 2022 , we had accrued$8.8 million for dividends declared onJanuary 27, 2022 for the first quarter of fiscal year 2022 that will be paid onMay 13, 2022 . OnApril 28, 2022 , we announced that our Board had declared a quarterly dividend of$0.07 per share for the second quarter of fiscal year 2022 that will be payable inAugust 2022 . In the future, our Board may determine to reduce or eliminate our common stock dividend in order to fund investments for growth, repurchase shares or conserve capital resources.
Effects of Recently Adopted and Issued Accounting Pronouncements
See Note 1, Nature of Operations and Accounting Policies, to our audited
consolidated financial statements in the 2021 Form 10-K for a summary of
recently adopted new accounting pronouncements. We have not adopted any new
accounting pronouncements during the three months ended
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