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 nearestDecember 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 endingJanuary 2, 2022 ("fiscal year 2021") will include 52 weeks, and the fiscal year endedJanuary 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, 29 -------------------------------------------------------------------------------- Table of Contents 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 endedJanuary 3, 2021 (our "2020 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 4, 2021 . Consolidated Results of Continuing Operations Revenue Revenue for the three months endedApril 4, 2021 was$1,307.7 million , as compared to$652.4 million for the three months endedApril 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 endedApril 4, 2021 as compared to the three months endedApril 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 endedApril 4, 2021 , as compared to$254.0 million for the three months endedApril 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 endedApril 4, 2021 , as compared to$398.4 million for the three months endedApril 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 endedApril 4, 2021 and$0.2 million of revenue for the three months endedApril 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 endedApril 4, 2021 was$522.5 million , as compared to$344.4 million for the three months endedApril 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 endedApril 4, 2021 , from 52.8% for the three months endedApril 5, 2020 , resulting in an increase in gross margin of 1,283 basis points to 60.0% for the three months endedApril 4, 2021 , from 47.2% for the three months endedApril 5, 2020 . Amortization of intangible assets increased and was$20.3 million for the three months endedApril 4, 2021 , as compared to$16.1 million for the three months endedApril 5, 2020 . Stock-based compensation expense was$0.4 million for the three months endedApril 4, 2021 as compared to$0.3 million for the three months endedApril 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 endedApril 4, 2021 , as compared to$1.1 million for the three months endedApril 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 endedApril 4, 2021 were$251.4 million , as compared to$208.6 million for the three months endedApril 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 endedApril 4, 2021 , as compared to 32.0% for the three months endedApril 5, 2020 . Amortization of intangible assets increased and was$33.9 million for the three months endedApril 4, 2021 , as compared to$31.2 million for the three months endedApril 5, 2020 . Stock-based compensation expense was$4.6 million for the three months endedApril 4, 2021 as compared to$2.5 million for the three months endedApril 5, 2020 . Other purchase accounting adjustments added an incremental expense of$0.2 million for the three months endedApril 4, 2021 , as compared to decreasing expense by$12.3 million for the three months endedApril 5, 2020 . 30 -------------------------------------------------------------------------------- Table of Contents Acquisition and divestiture-related expenses added an incremental expense of$9.7 million for the three months endedApril 4, 2021 , as compared to an incremental expense of$12.4 million for the three months endedApril 5, 2020 . Legal costs for significant litigation matters and settlements added an incremental expense of$0.4 million for the three months endedApril 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 endedApril 4, 2021 were$60.2 million , as compared to$48.9 million for the three months endedApril 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 endedApril 4, 2021 , as compared to 7.5% for the three months endedApril 5, 2020 . Stock-based compensation expense was$0.2 million for the three months endedApril 4, 2021 , as compared to$0.3 million for the three months endedApril 5, 2020 . The increase in research and development expenses was driven by our investments in new product development. Restructuring and Other Costs, Net We implemented a restructuring plan in the first quarter of fiscal year 2021 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives and integrate new acquisitions (the "Q1 2021 Plan").We implemented a restructuring plan in the third quarter of fiscal year 2020 consisting of workforce reductions principally intended to realign resources to emphasize growth initiatives (the "Q3 2020 Plan"). We implemented a restructuring plan in the first quarter of fiscal year 2020 consisting of workforce reductions and closure of excess facilities principally intended to realign resources to emphasize growth initiatives (the "Q1 2020 Plan"). Details of the plans initiated in previous years (the "Previous Plans") are discussed more fully in Note 5 to the audited consolidated financial statements in the 2020 Form 10-K. The following table summarizes the reductions in headcount, the initial restructuring or contract termination charges by reporting segment, and the dates by which payments were substantially completed, or the dates by which payments are expected to be substantially completed, for restructuring actions implemented during fiscal years 2021 and 2020 in continuing operations: Workforce Reductions Closure of Excess Facility (Expected) Date Payments Substantially Completed by Discovery & Discovery & Headcount Analytical Analytical Reduction Solutions Diagnostics Solutions Diagnostics Total Severance Excess Facility (In thousands, except headcount data) Q1 2021 Plan 77$ 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$1.4 million associated with relocating facilities during the three months endedApril 4, 2021 andApril 5, 2020 , respectively, in the Discovery & Analytical Solutions segment. We expect to make payments on these relocation activities through end of fiscal year 2021. Interest and Other Expense, Net Interest and other expense, net, consisted of the following: Three Months Ended April 4, April 5, 2021 2020 (In thousands) Interest income$ (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
31 -------------------------------------------------------------------------------- Table of Contents Interest and other (income) expense, net, for the three months endedApril 4, 2021 was$(12.7) million , as compared to$10.0 million for the three months endedApril 5, 2020 , a decrease of$22.7 million . The decrease in interest and other (income) expense, net, for the three months endedApril 4, 2021 , as compared to the three months endedApril 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 endedApril 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 endedApril 4, 2021 , as compared to the three months endedApril 5, 2020 . The increase of$3.7 million in other income, net for the three months endedApril 4, 2021 , as compared to the three months endedApril 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 endedApril 4, 2021 andApril 5, 2020 , respectively. These amounts were included in other income, net. Provision for Income Taxes For the three months endedApril 4, 2021 , the provision for income taxes from continuing operations was$101.1 million , as compared to$1.0 million for the three months endedApril 5, 2020 . The effective tax rate from continuing operations was 21.1% for the three months endedApril 4, 2021 as compared to 2.8% for the three months endedApril 5, 2020 . The higher effective tax rate during the three months endedApril 4, 2021 , as compared to the three months endedApril 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 endedApril 4, 2021 , as compared to$4.9 million of net tax benefit for the three months endedApril 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 endedApril 4, 2021 was$454.6 million , as compared to$398.4 million for the three months endedApril 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 endedApril 4, 2021 , as compared to the three months endedApril 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 endedApril 4, 2021 was$42.9 million , as compared to$28.5 million for the three months endedApril 5, 2020 , an increase of$14.4 million , or 51%. Amortization of intangible assets was$20.4 million for the three months endedApril 4, 2021 , as compared to$20.7 million for the three months endedApril 5, 2020 . Restructuring and other charges, net, were$4.1 million for the three months endedApril 4, 2021 , as compared to$3.9 million for the three months endedApril 5, 2020 . The amortization of purchase accounting adjustments to record the inventory from certain acquisitions was$1.1 million for the three months endedApril 4, 2021 , as compared to$0.8 million for the three months endedApril 5, 2020 . Acquisition and divestiture-related expenses, contingent consideration and other costs added an incremental expense of$7.0 million for the three months endedApril 4, 2021 , as compared to$24,000 for the three months endedApril 5, 2020 . Legal costs for significant litigation matters and settlements was$0.4 million for the three months endedApril 5, 2020 . In addition to the factors noted above, operating income increased for the three months endedApril 4, 2021 , as compared to the three months endedApril 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 endedApril 4, 2021 was$853.1 million , as compared to$254.0 million for the three months endedApril 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 32 -------------------------------------------------------------------------------- Table of Contents rules, we did not recognize$0.2 million of revenue in our Diagnostics segment for each of the three months endedApril 4, 2021 andApril 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 endedApril 4, 2021 was driven by growth across our core and COVID-19 portfolio. Operating income from continuing operations for the three months endedApril 4, 2021 was$441.5 million , as compared to$29.6 million for the three months endedApril 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 endedApril 4, 2021 , as compared to$26.5 million for the three months endedApril 5, 2020 . Restructuring and other charges, net, were$1.6 million for the three months endedApril 4, 2021 , as compared to$1.9 million for the three months endedApril 5, 2020 . The amortization of purchase accounting adjustments to record the inventory from certain acquisitions was$1.9 million for the three months endedApril 4, 2021 , as compared to$0.3 million for the three months endedApril 5, 2020 . Acquisition and divestiture-related expenses, contingent consideration and other costs added an incremental expense of$4.1 million for the three months endedApril 4, 2021 , as compared to$0.2 million for the three months endedApril 5, 2020 . In addition to the factors noted above, operating income increased for the three months endedApril 4, 2021 , as compared to the three months endedApril 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. AtApril 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 atApril 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 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. 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 endedApril 4, 2021 , we paid a foreign tax assessment of$8.8 million , however, we are appealing the underlying tax decision. 33 -------------------------------------------------------------------------------- Table of Contents 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 4, 2021 , we repurchased 233,000 shares of common stock under the Repurchase Program for an aggregate cost of$33.6 million . As ofApril 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 endedApril 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 endedApril 4, 2021 , we contributed$1.8 million , in the aggregate, to pension plans outside ofthe United States and expect to contribute an additional$5.5 million by the end of fiscal year 2021. During the three months endedApril 4, 2021 , we contributed$20.0 million to our defined benefit pension plan inthe 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 endedApril 4, 2021 , as compared to net cash provided by continuing operations of$60.1 million for the three months endedApril 5, 2020 , an increase in cash provided by operating activities of$413.5 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 , and a net cash increase in working capital of$28.3 million . During the three months endedApril 4, 2021 , we contributed$1.8 million , in the aggregate, to pension plans outside ofthe United States and$20.0 million to our defined benefit pension plan inthe United States for the plan year 2019. Investing Activities. Net cash used in investing activities was$461.9 million for the three months endedApril 4, 2021 , as compared to$22.0 million for the three months endedApril 5, 2020 , an increase of$439.8 million . For the three months endedApril 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 endedApril 5, 2020 . The capital expenditures in each period were primarily for manufacturing, software and other capital equipment purchases. During the three months endedApril 5, 2020 , we used$1.6 million for 34 -------------------------------------------------------------------------------- Table of Contents 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 endedApril 4, 2021 , as compared to net cash used in financing activities of$24.6 million for the three months endedApril 5, 2020 , an increase in cash provided by financing activities of$607.6 million . The cash provided by financing activities during the three months endedApril 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 endedApril 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 endedApril 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 endedApril 5, 2020 . Proceeds from settlement of forward foreign exchange contracts were$6.0 million during the three months endedApril 4, 2021 , as compared to$8.7 million for the three months endedApril 5, 2020 . Proceeds from the issuance of common stock under our stock plans were$5.0 million during the three months endedApril 4, 2021 , as compared to$1.1 million for the three months endedApril 5, 2020 . This cash provided by financing activities during the three months endedApril 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 endedApril 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 endedApril 5, 2020 , for a total cost of$6.3 million . During the three months endedApril 4, 2021 , we had net payments on other credit facilities of$9.8 million as compared to$4.3 million for the three months endedApril 5, 2020 . During the three months endedApril 4, 2021 , we paid$7.9 million in dividends as compared to$7.8 million for the three months endedApril 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. AtApril 4, 2021 , we had accrued$7.9 million for dividends declared onJanuary 28, 2021 for the first quarter of fiscal year 2021 that were paid onMay 7, 2021 . OnApril 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 inAugust 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 OnMarch 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 ofApril 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 inMarch 2031 and bear interest at an annual rate of 2.55%. OnMarch 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 ofApril 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 inMarch 2051 and bear interest at an annual rate of 3.625%. OnApril 9, 2021 , we redeemed all of our outstanding 2021 Notes and paid an aggregate principal amount of$337.1 million . 35 -------------------------------------------------------------------------------- Table of Contents 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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