Investment Management Fees and Operating Expenses
Management fees and operating expenses charged to the Plan for investments in the mutual funds and common collective trust funds are deducted from income
earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
Notes Receivable from Participants
Notes
receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest at the end of the period. No allowance for credit losses has been provided as of December 31, 2020 and 2019. Delinquent participant
loans are recorded as distributions based on the terms of the Plan document.
Payment of Benefits
Payments to participants are recorded upon distribution.
Administrative Expenses
Certain expenses of the
Plan are paid directly by the Company and are excluded from these financial statements. Fees related to notes receivable from participants and distributions are charged directly to the participants account and are included in administrative
expenses. Investment related expenses are included in net appreciation or depreciation in fair value of investments.
Recently Adopted and Issued
Accounting Pronouncements
In August 2018, the FASB issued Accounting Standards Update 2018-13,
Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurements which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. This guidance was adopted beginning on
January 1, 2020.
Subsequent Events
The
Plan evaluated all events and transactions that occurred after December 31, 2020 through June 16, 2021, the date these financial statements were available to be issued.
3.
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FAIR VALUE MEASUREMENTS
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Accounting Standards Codification 820, Fair Value Measurement (ASC 820), establishes a single authoritative definition of fair value, sets a
framework for measuring fair value, and requires additional disclosures about fair value measurements. In accordance with ASC 820, the Plan classifies its investments into Level 1, which refers to securities valued using quoted prices from
active markets for identical assets; Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available; and Level 3, which refers to securities valued based on significant
unobservable inputs. Assets are classified in their entirety based on the lowest Level of input that is significant to the fair value measurement. Valuation techniques maximize the use of relevant observable inputs and minimize the use of
unobservable inputs. The Plans policy is to recognize significant transfers between Levels at the beginning of the reporting period.
The following
is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2020 and 2019.
PerkinElmer Stock Fund
The PerkinElmer Stock Fund
is an employer stock unitized fund. The fund consists of PerkinElmer, Inc. common stock as well as short-term investments that provide liquidity for daily trading. PerkinElmer, Inc. common stock is valued at the quoted closing market price
from a national securities exchange and the short-term investments are valued at cost, which approximate fair value.
Mutual Funds
The Plans mutual funds are valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are
open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The
mutual funds held by the Plan are deemed to be actively traded.
Participant-Directed Brokerage Account
A self-directed brokerage account allows Plan participants the opportunity to invest in a wide array of securities. Participants can elect to direct their Plan
assets into individual securities by establishing a Plan level brokerage account. Investments in brokerage accounts are reported at fair value. The Plan receives prices for investments in brokerage accounts from a nationally recognized pricing
service that are based on observable market transactions.
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