REVVITY INC
For the period ended Dec 29, 2024. Filed Feb 25, 2025.
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FY2024 · Filed Feb 25, 2025
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Item 8. Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Revvity, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Revvity, Inc. and subsidiaries (the “Company”) as of December 29, 2024 and December 31, 2023, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows, for each of the three years in the period ended December 29, 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 29, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 29, 2024, based on criteria established in Internal Control - Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Goodwill of Life Sciences Reporting Unit — Refer to Notes 1 and 11 to the financial statements
Critical Audit Matter Description
The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. As of December 29, 2024, the Company’s balance of goodwill was $6.5 billion, of which $4.3 billion was allocated to the Life Sciences reporting unit.
In connection with the annual impairment assessment as of November 1, 2024, the Company concluded that the fair value of each reporting unit exceeded the carrying value of each reporting unit and no impairment was recognized. The fair value of the Life Sciences reporting unit exceeded the carrying value by more than 10% but less than 20%. The Company determined the fair value of the Life Sciences reporting unit using a combination of an income approach and a discounted cash flow model. The discounted cash flow model required management to make significant estimates and assumptions related to the discount
rate and forecasts of future revenue. Changes in these assumptions could have a significant impact on the fair value of the reporting unit.
We identified the valuation of the Life Sciences reporting unit as a critical audit matter because of the significant estimates and assumptions management made to measure the fair value of the Life Sciences reporting unit. These fair value measurements required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s forecasts of future revenue and the selection of the discount rate for the Life Sciences reporting unit.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the forecasts of future revenue and selection of the discount rate included the following, among others:
–We tested the effectiveness of controls over management’s goodwill impairment evaluation, including those controls related to management’s forecasts and selection of the discount rate used in measuring the fair value of the Life Sciences reporting unit.
–We evaluated management’s ability to accurately forecast operating results by comparing actual results to management’s historical forecasts.
–We evaluated the reasonableness of management’s forecasts by comparing the forecasts to (1) historical results, (2) internal communications, budgets and other information obtained while performing the audit and (3) external information.
–With the assistance of our fair value specialists, we performed the following:
–We evaluated the discount rate, including testing the underlying source information and developing a range of independent estimates and comparing those to the discount rate selected by management.
–We tested the mathematical accuracy of the calculations.
/s /DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 25, 2025
We have served as the Company’s auditor since 2002.
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