REVVITY INC

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 revolving 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. The sale of the Business generated approximately $2.27 billion in cash proceeds. We expect to continue to use these proceeds for a combination of funding upcoming debt maturities, opportunistic share repurchases and continued strategic and value creating acquisitions.

At June 30, 2024, we had cash and cash equivalents of$1,248.1 million, of which $430.9 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 use a variety of cash redeployment and financing strategies to ensure that our worldwide cash is available in the locations in which it is needed. At June 30, 2024, we had investments in U.S. treasury securities with a carrying amount of$706.1 million whose proceeds upon maturity are intended to be utilized to repay our outstanding 0.850% Senior Unsecured Notes due in September 2024 (“2024 Notes”).

In connection with the sale of the Business, we expect to receivethe remaining balance related to the Brand Fee of$65.6 million as of June 30, 2024, in installments through the first quarter of 2025.

On April 27, 2023, our Board of Directors(our“Board”)authorized us to repurchase shares of common stock for an aggregate amount up to $600.0 million under a stock repurchase program (the “Repurchase Program”). The Repurchase Program will expire on April 26, 2025, unless terminated earlier by the Board and may be suspended or discontinued at any time. During the three months ended June 30, 2024, we repurchased 188,532 shares of common stock under the Repurchase Program for an aggregate cost of $19.3 million. During the six months ended June 30, 2024, we repurchased 251,702 shares of common stock under the Repurchase Program for an aggregate cost of $25.8 million. As of June 30, 2024, $329.6 million remained available for aggregate repurchases of shares under the Repurchase Program. If we continue to repurchase shares, the Repurchase Program will be funded using our existing financial resources, including cash and cash equivalents, and our existing senior unsecured revolving credit facility.

As of June 30, 2024, we may have to pay contingent consideration related to acquisitions with open contingency periods of up to $80.9 million. As of June 30, 2024, we have recorded contingent consideration obligations of $30.5 million, of which $12.5 million was recorded in accrued expenses and other current liabilities, and $18.0 million was recorded in long-term liabilities. The maximum earnout period for acquisitions with open contingency periods is 7.4 years from June 30, 2024, and the remaining weighted average expected earnout period at June 30, 2024 was 4.6 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 or fund our strategic transactions.

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 six months ended June 30, 2024, we contributed $3.4 million, in theaggregate, to pension plans outside of the United States, and expect to contribute anadditional $3.5 million by the end of fiscal year 2024. 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.

We may from time to time, evaluate various opportunities to deploy capital towards the repayment or early retirement of our outstanding debt, including without limitation through the purchase of U.S. treasury securities whose proceeds upon maturity may be utilized to repay outstanding debt securities or used to fund our operations. 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.

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.

Cash Flows

Operating Activities. Net cash provided by operating activities of ourcontinuing operations was $332.5 million for the six months ended June 30, 2024, as compared to $28.0 million for the six months ended July 2, 2023, an increase of $304.4 million, primarily due to higher income from continuing operations and less cash used for investments in working capital during the six months ended June 30, 2024 as compared to the six months ended July 2, 2023. The cash provided by operating activities for the six months ended June 30, 2024 was principally a result of income from continuing operations of $101.3 million, adjustments for non-cash charges aggregating to $261.6 million, including depreciation and amortization of $215.1 million, and a net cash decrease in working capital of $30.4 million. The cash provided by operating activities for the six months ended July 2, 2023 was principally a result of income from continuing operations of $83.5 million, and adjustments for non-cash charges aggregating to $271.1 million, including depreciation and amortization of $217.9 million, as well as net cash decrease in working capital of $326.5 million.

Investing Activities. Net cash used in investing activitiesof our continuing operationswas $44.2 million for the six months ended June 30, 2024, as compared to $771.8 million for the six months ended July 2, 2023, a decrease of $727.6 million. For the six months ended June 30, 2024, the net cash used for capital expenditures was $39.9 million, as compared to $34.9 million for the six months ended July 2, 2023. During the six months ended June 30, 2024, purchases of investments and notes receivables were $4.3 million, as compared to $5.0 million for the six months ended July 2, 2023. During the six months ended July 2, 2023, purchases of investments in U.S. treasury securities amounted to $831.2 million, and net cash used for acquisitions was $0.7 million, which were partially offset by proceeds from maturity of U.S. treasury securities totaling $100.0 million.

Financing Activities. Net cash used in financing activities was $61.5 million for the six months ended June 30, 2024, as compared to $341.5 million for the six months ended July 2, 2023, a decrease in net cash used in financing activities of $280.0 million. During the six months ended June 30, 2024, we made net payments of$11.2 millionon debts, as compared to $43.6 million during the six months ended July 2, 2023. The changes in both periods reflect our intentions to pay down debt, which we expect to continue throughout fiscal year 2024. During the six months ended June 30, 2024, we repurchased shares of our common stock for a total cost of $30.3 million, as compared to $273.3 million in the prior year period. We paid $8.7 million for acquisition-related contingent consideration during the six months ended June 30, 2024, as compared to $10.1 million in the prior year period. We paid $17.3 million in dividends for the six months ended June 30, 2024, as compared to $17.6 million for the six months ended July 2, 2023. The cash used in financing activities during the six months ended June 30, 2024 was partially offset by proceeds from the issuance of common stock under our stock plans of $6.0 million during the six months ended June 30, 2024, as compared to $3.2 million for the six months ended July 2, 2023.

Borrowing Arrangements

At June 30, 2024, our 2024 Notes had$711.5 million in outstanding principal and we had investments in U.S. treasury securities with a carrying amount of $706.1 million whose proceeds upon maturity are intended to be utilized to repay the outstanding 2024 Notes. See Note 6, Debt, in the Notes to Condensed Consolidated Financial Statements and Note 13, Debt, to our audited consolidated financial statements in the 2023 Form 10-Kfor a detailed discussion of our borrowing arrangements.