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. The Diagnostics segment serves
the diagnostics market.
Overview of the First Quarter of Fiscal Year 2021
Our fiscal year ends on the Sunday nearest December 31. We report fiscal years
under a 52/53 week format and as a result, certain fiscal years will contain 53
weeks. The fiscal year ending January 2, 2022 ("fiscal year 2021") will include
52 weeks, and the fiscal year ended January 3, 2021 ("fiscal year 2020")
included 53 weeks.
Our overall revenue in the first quarter of fiscal year 2021 was $1,307.7
million and increased $655.3 million, or 100%, as compared to the first quarter
of fiscal year 2020, reflecting an increase of $599.1 million, or 236%, in our
Diagnostics segment revenue and an increase of $56.2 million, or 14%, in our
Discovery & Analytical Solutions segment revenue. The increase in our
Diagnostics segment revenue for the first quarter of fiscal year 2021 was driven
by growth across our core portfolio and COVID-19 product offerings. The increase
in our Discovery & Analytical Solutions segment revenue for the first quarter of
fiscal year 2021 was driven by an increase in our life sciences market and
applied markets revenue, as well as favorable changes in foreign exchange rates.
The increase in our life sciences market revenue was the result of an increase
in revenue in our pharmaceutical and biotechnology markets driven by continued
growth of our Informatics business, partially offset by the loss of the extra
week, rationalization of the Enterprise portfolio, and a decrease in revenue
from our academia and governmental markets driven by difficult regional
dynamics. The increase in our applied markets revenue was driven by increased
demand from our industrial, environmental and food markets.
Our consolidated gross margins increased 1,283 basis points in the first quarter
of fiscal year 2021, as compared to the first quarter of fiscal year 2020,
primarily due to higher sales volume, favorable shift in product mix, service
productivity and pricing initiatives, partially offset by increased amortization
expense. Our consolidated operating margins increased 2,892 basis points in the
first quarter of fiscal year 2021, as compared to the first quarter of fiscal
year 2020, primarily due to higher sales volume, which was partially offset by
increased costs related to amortization of acquired intangible assets,
investments in new product development and growth initiatives.
Overall, we believe that our strategic priorities and recent portfolio
transformations, coupled with our expanded range of product offerings, leading
market positions, global scale and financial strength provide us with a
foundation for continued 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 revenue recognition, warranty costs, bad debts, inventories,
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accounting for business combinations and dispositions, long-lived assets, income
taxes, restructuring, pensions and other postretirement benefits, contingencies
and litigation. 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 our
policies regarding revenue recognition, warranty costs, allowances for doubtful
accounts, inventory valuation, business combinations, value of long-lived
assets, including goodwill and other intangibles, employee compensation and
benefits, restructuring activities, gains or losses on dispositions and income
taxes.
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
ended January 3, 2021 (our "2020 Form 10-K"), as filed with the Securities and
Exchange Commission. There have been no significant changes in our critical
accounting policies and estimates during the three months ended April 4, 2021.

Consolidated Results of Continuing Operations
Revenue
Revenue for the three months ended April 4, 2021 was $1,307.7 million, as
compared to $652.4 million for the three months ended April 5, 2020, an increase
of $655.3 million, or approximately 100%, which includes an approximate 5%
increase in revenue attributable to acquisitions and divestitures and a 3%
increase in revenue attributable to favorable changes in foreign exchange rates.
The analysis in the remainder of this paragraph compares segment revenue for the
three months ended April 4, 2021 as compared to the three months ended April 5,
2020 and includes the effect of foreign exchange rate fluctuations, acquisitions
and divestitures. Our Diagnostics segment revenue was $853.1 million for the
three months ended April 4, 2021, as compared to $254.0 million for the three
months ended April 5, 2020, an increase of $599.1 million, or 236%, primarily
due to growth across our core portfolio and COVID-19 product offerings. Our
Discovery & Analytical Solutions segment revenue was $454.6 million for the
three months ended April 4, 2021, as compared to $398.4 million for the three
months ended April 5, 2020, an increase of $56.2 million, or 14%, driven by an
increase in our life sciences market and applied markets revenue, as well as
favorable 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 $1.2 million of revenue for
the three months ended April 4, 2021 and $0.2 million of revenue for the three
months ended April 5, 2020 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 ended April 4, 2021 was $522.5 million, as
compared to $344.4 million for the three months ended April 5, 2020, an increase
of $178.2 million, or approximately 52%. As a percentage of revenue, cost of
revenue decreased to 40.0% for the three months ended April 4, 2021, from 52.8%
for the three months ended April 5, 2020, resulting in an increase in gross
margin of 1,283 basis points to 60.0% for the three months ended April 4, 2021,
from 47.2% for the three months ended April 5, 2020. Amortization of intangible
assets increased and was $20.3 million for the three months ended April 4, 2021,
as compared to $16.1 million for the three months ended April 5, 2020.
Stock-based compensation expense was $0.4 million for the three months ended
April 4, 2021 as compared to $0.3 million for the three months ended April 5,
2020. The amortization of purchase accounting adjustments to record the
inventory from certain acquisitions added an incremental expense of $3.0 million
for the three months ended April 4, 2021, as compared to $1.1 million for the
three months ended April 5, 2020. In addition to the above items, the overall
increase in gross margin was primarily the result of higher volume, favorable
shift in product mix, service productivity and pricing initiatives, partially
offset by increased amortization expense.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months ended April 4,
2021 were $251.4 million, as compared to $208.6 million for the three months
ended April 5, 2020, an increase of $42.8 million, or 20.5%. As a percentage of
revenue, selling, general and administrative expenses decreased and were 19.2%
for the three months ended April 4, 2021, as compared to 32.0% for the three
months ended April 5, 2020. Amortization of intangible assets increased and was
$33.9 million for the three months ended April 4, 2021, as compared to $31.2
million for the three months ended April 5, 2020. Stock-based compensation
expense was $4.6 million for the three months ended April 4, 2021 as compared to
$2.5 million for the three months ended April 5, 2020. Other purchase accounting
adjustments added an incremental expense of $0.2 million for the three months
ended April 4, 2021, as compared to decreasing expense by $12.3 million for the
three months ended April 5, 2020.
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Acquisition and divestiture-related expenses added an incremental expense of
$9.7 million for the three months ended April 4, 2021, as compared to an
incremental expense of $12.4 million for the three months ended April 5, 2020.
Legal costs for significant litigation matters and settlements added an
incremental expense of $0.4 million for the three months ended April 5, 2020. 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 and innovation, amplified by pandemic-related cost controls
and disruptions in the prior year.
Research and Development Expenses
Research and development expenses for the three months ended April 4, 2021 were
$60.2 million, as compared to $48.9 million for the three months ended April 5,
2020, an increase of $11.3 million, or 23.1%. As a percentage of revenue,
research and development expenses decreased and were 4.6% for the three months
ended April 4, 2021, as compared to 7.5% for the three months ended April 5,
2020. Stock-based compensation expense was $0.2 million for the three months
ended April 4, 2021, as compared to $0.3 million for the three months ended
April 5, 2020. 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 2021
consisting of workforce reductions principally intended to realign resources to
emphasize growth initiatives and integrate new acquisitions (the "Q1 2021
Plan").We implemented a restructuring plan in the third quarter of fiscal year
2020 consisting of workforce reductions principally intended to realign
resources to emphasize growth initiatives (the "Q3 2020 Plan"). We implemented a
restructuring plan in the first quarter of fiscal year 2020 consisting of
workforce reductions and closure of excess facilities principally intended to
realign resources to emphasize growth initiatives (the "Q1 2020 Plan"). Details
of the plans initiated in previous years (the "Previous Plans") are discussed
more fully in Note 5 to the audited consolidated financial statements in the
2020 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 2021 and 2020 in continuing operations:
                                        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
                                                               (In thousands, except headcount data)
Q1 2021 Plan              77             $        3,941          $      1,615          $            -          $          -          $ 5,556                Q4 FY2021                                       -
Q3 2020 Plan              23                      2,080                   901                       -                     -            2,981                Q2 FY2021                                       -
Q1 2020 Plan              32                      2,312                 1,134                      92                   682            4,220                Q4 FY2020                                   Q1 FY2022


We do not currently expect to incur any future charges for these plans. We
expect to make payments under the Previous Plans for remaining residual lease
obligations, with terms varying in length, through fiscal year 2022.
We recorded pre-tax charges of $0.2 million and $1.4 million associated with
relocating facilities during the three months ended April 4, 2021 and April 5,
2020, respectively, in the Discovery & Analytical Solutions segment. We expect
to make payments on these relocation activities through end of fiscal year 2021.
Interest and Other Expense, Net
Interest and other expense, net, consisted of the following:
                                                     Three Months Ended
                                                   April 4,        April 5,
                                                     2021            2020
                                                       (In thousands)
Interest income                                  $      (411)     $   (265)
Interest expense                                      14,126        13,665

Change in fair value of financial securities         (19,298)            -
Other income, net                                     (7,123)       (3,407)

Total interest and other (income) expense, net $ (12,706) $ 9,993


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Interest and other (income) expense, net, for the three months ended April 4,
2021 was $(12.7) million, as compared to $10.0 million for the three months
ended April 5, 2020, a decrease of $22.7 million. The decrease in interest and
other (income) expense, net, for the three months ended April 4, 2021, as
compared to the three months ended April 5, 2020, was primarily due to a change
in fair value of financial securities of $19.3 million that was recognized
during the three months ended April 4, 2021 and an increase in other income, net
of $3.7 million, partially offset by an increase of $0.5 million in interest
expense for the three months ended April 4, 2021, as compared to the three
months ended April 5, 2020. The increase of $3.7 million in other income, net
for the three months ended April 4, 2021, as compared to the three months ended
April 5, 2020, consisted primarily of higher foreign exchange gain related to
foreign currency transactions and translation. The other components of net
periodic pension credit were $3.7 million and $1.7 million for the three months
ended April 4, 2021 and April 5, 2020, respectively. These amounts were included
in other income, net.
Provision for Income Taxes
For the three months ended April 4, 2021, the provision for income taxes from
continuing operations was $101.1 million, as compared to $1.0 million for the
three months ended April 5, 2020. The effective tax rate from continuing
operations was 21.1% for the three months ended April 4, 2021 as compared to
2.8% for the three months ended April 5, 2020. The higher effective tax rate
during the three months ended April 4, 2021, as compared to the three months
ended April 5, 2020, was due to certain higher tax rate jurisdictions projected
to have higher income in fiscal year 2021 as compared to fiscal year 2020 and a
net tax expense related to discrete items of $2.0 million for the three months
ended April 4, 2021, as compared to $4.9 million of net tax benefit for the
three months ended April 5, 2020. The discrete tax impact in the first three
months 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. The discrete tax benefits in the first three months of fiscal year 2020
included excess tax benefits on stock compensation of $1.6 million and $3.8
million associated with a valuation allowance reversal.

Reporting Segment Results of Continuing Operations
Discovery & Analytical Solutions
Revenue for the three months ended April 4, 2021 was $454.6 million, as compared
to $398.4 million for the three months ended April 5, 2020, an increase of $56.2
million, or 14%, which includes an approximate 5% increase in revenue
attributable to acquisitions and divestitures and a 3% increase in revenue
attributable to favorable changes in foreign exchange rates. The life sciences
market revenue accounted for $31.5 million of the increase while the applied
markets revenue was $24.7 million of the increase. The analysis in the remainder
of this paragraph compares selected revenue by end market for the three months
ended April 4, 2021, as compared to the three months ended April 5, 2020, and
includes the effect of foreign exchange fluctuations, acquisitions and
divestitures. The increase in our life sciences market revenue was the result of
an increase in revenue in our pharmaceutical and biotechnology markets driven by
continued growth of our Informatics business, partially offset by the loss of
the extra week, rationalization of the Enterprise portfolio, and a decrease in
revenue from our academia and governmental markets driven by difficult regional
dynamics. The increase in our applied markets revenue was driven by increased
demand from our industrial, environmental and food markets.
Operating income from continuing operations for the three months ended April 4,
2021 was $42.9 million, as compared to $28.5 million for the three months ended
April 5, 2020, an increase of $14.4 million, or 51%. Amortization of intangible
assets was $20.4 million for the three months ended April 4, 2021, as compared
to $20.7 million for the three months ended April 5, 2020. Restructuring and
other charges, net, were $4.1 million for the three months ended April 4, 2021,
as compared to $3.9 million for the three months ended April 5, 2020. The
amortization of purchase accounting adjustments to record the inventory from
certain acquisitions was $1.1 million for the three months ended April 4, 2021,
as compared to $0.8 million for the three months ended April 5, 2020.
Acquisition and divestiture-related expenses, contingent consideration and other
costs added an incremental expense of $7.0 million for the three months ended
April 4, 2021, as compared to $24,000 for the three months ended April 5, 2020.
Legal costs for significant litigation matters and settlements was $0.4 million
for the three months ended April 5, 2020. In addition to the factors noted
above, operating income increased for the three months ended April 4, 2021, as
compared to the three months ended April 5, 2020, 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 ended April 4, 2021 was $853.1 million, as compared
to $254.0 million for the three months ended April 5, 2020, an increase of
$599.1 million, or 236%, which includes an approximate 5% increase in revenue
attributable to acquisitions and divestitures and 4% increase in revenue
attributable to favorable changes in foreign exchange rates. As a result of
adjustments to deferred revenue related to certain acquisitions required by
business combination accounting
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rules, we did not recognize $0.2 million of revenue in our Diagnostics segment
for each of the three months ended April 4, 2021 and April 5, 2020 that
otherwise would have been recorded by the acquired businesses during each of the
respective periods. The increase in our Diagnostics segment revenue for the
three months ended April 4, 2021 was driven by growth across our core and
COVID-19 portfolio.
Operating income from continuing operations for the three months ended April 4,
2021 was $441.5 million, as compared to $29.6 million for the three months ended
April 5, 2020, an increase of $411.9 million, or 1,392%. Amortization of
intangible assets increased and was $33.7 million for the three months ended
April 4, 2021, as compared to $26.5 million for the three months ended April 5,
2020. Restructuring and other charges, net, were $1.6 million for the three
months ended April 4, 2021, as compared to $1.9 million for the three months
ended April 5, 2020. The amortization of purchase accounting adjustments to
record the inventory from certain acquisitions was $1.9 million for the three
months ended April 4, 2021, as compared to $0.3 million for the three months
ended April 5, 2020. Acquisition and divestiture-related expenses, contingent
consideration and other costs added an incremental expense of $4.1 million for
the three months ended April 4, 2021, as compared to $0.2 million for the three
months ended April 5, 2020. In addition to the factors noted above, operating
income increased for the three months ended April 4, 2021, as compared to the
three months ended April 5, 2020, primarily as a result of higher sales volume
and favorable product mix, partially offset by increased investments in new
product development and growth initiatives.

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 and the capital markets,
particularly the 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 and fund any larger acquisitions and other long-term liabilities,
such as contributions to our postretirement benefit plans.
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.
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, including as a result of the
COVID-19 pandemic.
At April 4, 2021, we had cash and cash equivalents of $988.2 million, of which
$390.3 million was held by our non-U.S. subsidiaries, and we had $989.0 million
of additional borrowing capacity available under our senior unsecured revolving
credit facility. We had no other liquid investments at April 4, 2021.
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 the U.S. including foreign operations,
capital investments, acquisitions and repayment of debt. In addition, we
transfer cash to the U.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. The tax cost and related tax payments
are not expected to be material to the execution of our business, investment and
acquisition strategies. During the three months ended April 4, 2021, we paid a
foreign tax assessment of $8.8 million, however, we are appealing the underlying
tax decision.
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On July 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 on July 27, 2022 unless terminated earlier by the Board and
may be suspended or discontinued at any time. During the three months ended
April 4, 2021, we repurchased 233,000 shares of common stock under the
Repurchase Program for an aggregate cost of $33.6 million. As of April 4, 2021,
$216.4 million remained available for aggregate repurchases of shares under the
Repurchase Program.
In addition, the 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 and to satisfy obligations related to the
exercise of stock options made pursuant to our equity incentive plans. During
the three months ended April 4, 2021, we repurchased 61,791 shares of common
stock for this purpose at an aggregate cost of $9.2 million.
The repurchased shares have been reflected as additional authorized but unissued
shares, with the payments reflected in common stock and capital in excess of par
value. Any repurchased shares will be available for use in connection with
corporate programs. If we continue to repurchase shares, the Repurchase Program
will be funded using our existing financial resources, including cash and cash
equivalents, and our senior unsecured revolving credit facility.
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 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.
During the three months ended April 4, 2021, we contributed $1.8 million, in the
aggregate, to pension plans outside of the United States and expect to
contribute an additional $5.5 million by the end of fiscal year 2021. During the
three months ended April 4, 2021, we contributed $20.0 million to our defined
benefit pension plan in the United States for the plan year 2019. 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.
Our pension plans have not experienced a material impact on liquidity or
counterparty exposure due to the volatility and uncertainty in the credit
markets. We recognize actuarial gains and losses in operating results in the
fourth quarter of the year in which the gains and losses occur, unless there is
an interim remeasurement required for one of our plans. It is difficult to
reliably predict the magnitude of such adjustments for gains and losses in
fiscal year 2021. These adjustments are primarily driven by events and
circumstances beyond our control, including changes in interest rates, the
performance of the financial markets and mortality assumptions. To the extent
the discount rates decrease or the value of our pension and postretirement
investments decrease, a loss to operations will be recorded in fiscal year 2021.
Conversely, to the extent the discount rates increase or the value of our
pension and postretirement investments increase more than expected, a gain will
be recorded in fiscal year 2021.
Cash Flows
Operating Activities. Net cash provided by continuing operations was $473.5
million for the three months ended April 4, 2021, as compared to net cash
provided by continuing operations of $60.1 million for the three months ended
April 5, 2020, an increase in cash provided by operating activities of $413.5
million. The cash provided by operating activities for the three months ended
April 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, and a net
cash increase in working capital of $28.3 million. During the three months ended
April 4, 2021, we contributed $1.8 million, in the aggregate, to pension plans
outside of the United States and $20.0 million to our defined benefit pension
plan in the United States for the plan year 2019.
Investing Activities. Net cash used in investing activities was $461.9 million
for the three months ended April 4, 2021, as compared to $22.0 million for the
three months ended April 5, 2020, an increase of $439.8 million. For the three
months ended April 4, 2021, the net cash used in investing activities was a
result of cash used for acquisitions of $443.5 million, capital expenditures of
$14.3 million and purchases of investments of $4.0 million. Cash used for
capital expenditures was $20.5 million for the three months ended April 5, 2020.
The capital expenditures in each period were primarily for manufacturing,
software and other capital equipment purchases. During the three months ended
April 5, 2020, we used $1.6 million for
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purchases of investments, which was partially offset by $0.1 million each of
proceeds from disposition of businesses and assets and proceeds from surrender
of life insurance policies.
Financing Activities. Net cash provided by financing activities was $583.0
million for the three months ended April 4, 2021, as compared to net cash used
in financing activities of $24.6 million for the three months ended April 5,
2020, an increase in cash provided by financing activities of $607.6 million.
The cash provided by financing activities during the three months ended April 4,
2021 was a result of proceeds from the sale of unsecured senior notes, proceeds
from borrowings, proceeds from settlement of forward foreign exchange contracts
and proceeds from the issuance of common stock under stock plans. During the
three months ended April 4, 2021, proceeds from the sale of unsecured senior
notes were $799.9 million and our debt borrowings totaled $584.0 million. These
were partially offset by debt payments of $743.5 million and debt issuance costs
of $7.9 million during the three months ended April 4, 2021. This compares to
debt borrowings of $125.0 million, which were more than offset by debt payments
of $141.0 million during the three months ended April 5, 2020. Proceeds from
settlement of forward foreign exchange contracts were $6.0 million during the
three months ended April 4, 2021, as compared to $8.7 million for the three
months ended April 5, 2020. Proceeds from the issuance of common stock under our
stock plans were $5.0 million during the three months ended April 4, 2021, as
compared to $1.1 million for the three months ended April 5, 2020. This cash
provided by financing activities during the three months ended April 4, 2021 was
partially offset by repurchase of our common stock pursuant to our Repurchase
Program and equity incentive plans, net payments on other credit facilities and
payments of dividends. During the three months ended April 4, 2021, we
repurchased 233,000 shares of common stock under the Repurchase Program and
61,791 shares of our 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 and
to satisfy obligations related to the exercise of stock options made pursuant to
our equity incentive plans, for a total cost of $42.8 million. This compares to
repurchases of 66,360 shares of our common stock pursuant to our equity
incentive plans for the three months ended April 5, 2020, for a total cost of
$6.3 million. During the three months ended April 4, 2021, we had net payments
on other credit facilities of $9.8 million as compared to $4.3 million for the
three months ended April 5, 2020. During the three months ended April 4, 2021,
we paid $7.9 million in dividends as compared to $7.8 million for the three
months ended April 5, 2020.
Borrowing Arrangements
See Note 8, Debt, in the Notes to Condensed Consolidated Financial Statements
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 2021 and in each quarter of fiscal year 2020. At
April 4, 2021, we had accrued $7.9 million for dividends declared on January 28,
2021 for the first quarter of fiscal year 2021 that were paid on May 7, 2021. On
April 29, 2021, we announced that our Board had declared a quarterly dividend of
$0.07 per share for the second quarter of fiscal year 2021 that will be payable
in August 2021. 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.

Contractual Obligations
On March 8, 2021, we issued $400.0 million aggregate principal amount of 2031
Notes in a registered public offering and received $399.9 million of net
proceeds from the issuance. The 2031 Notes were issued at 99.965% of the
principal amount, which resulted in a discount of $0.1 million. As of April 4,
2021, the 2031 Notes had an aggregate carrying value of $396.1 million, net of
$0.1 million of unamortized original issue discount and $3.8 million of
unamortized debt issuance costs. The 2031 Notes mature in March 2031 and bear
interest at an annual rate of 2.55%.
On March 8, 2021, we issued $400.0 million aggregate principal amount of 2051
Notes in a registered public offering and received $400.00 million of net
proceeds from the issuance. The 2051 Notes were issued at 99.999% of the
principal amount, which resulted in a discount of $4,000. As of April 4, 2021,
the 2051 Notes had an aggregate carrying value of $395.3 million, net of $4,000
of unamortized original issue discount and $4.7 million of unamortized debt
issuance costs. The 2051 Notes mature in March 2051 and bear interest at an
annual rate of 3.625%.
On April 9, 2021, we redeemed all of our outstanding 2021 Notes and paid an
aggregate principal amount of $337.1 million.
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Except as discussed above, our contractual obligations, as described in the
contractual obligations table contained in Item 7. "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the 2020 Form 10-K
have not changed materially.

Effects of Recently Adopted and Issued Accounting Pronouncements See Note 1, Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements for a summary of recently adopted and issued accounting pronouncements.

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