Revvity, Inc. Savings Plan
Notes to Financial Statements
5. Related-Party Transactions
Certain Plan investments are shares of mutual funds or interests in collective investment trusts and a common collective trust fund managed by Fidelity
Management and Research Company (FMR Co.), an affiliate of FMTC. These transactions qualify as party-in-interest transactions. Administrative fees paid
by the Plan for the investment management services provided by the trustee were $0 and $78,918 for the years ended December 31, 2023 and 2022, respectively.
The Plan receives revenue credits from FMTC on a quarterly basis. The revenue credit account can be used to pay Plan expenses or can be allocated to eligible
Plan participants as defined in the services agreements with FMTC and its affiliates. Revenue credits earned from this agreement and certain administrative fees are recorded net as other deductions in the statement of changes of net assets available
for benefits. During 2023, the Plan received $26,996 of revenue credits; $41,695 remained in the revenue credit account at December 31, 2023. During 2022, the Plan utilized $207,166 to pay plan expenses; there was a remaining credit of $14,699
as of December 31, 2022.
At December 31, 2023 and 2022, the Plan held 141,738 and 202,906 shares, respectively, of common stock of the Company,
the Plan Sponsor. During the years ended December 31, 2023 and 2022, the Plan recorded dividend income from the Companys stock of $47,557 and $58,426, respectively.
Participant notes receivable also qualify as party-in-interest transactions.
6. Federal Income Tax Status
The Internal Revenue
Service (IRS) determined and informed the Company by a letter dated May 29, 2014, that the Plan and related trust were designed in accordance with the applicable regulations of the Code. The Plan has since been amended and restated.
The IRS subsequently issued to the Company a favorable determination letter dated November 11, 2023, that the Plan and related trust were designed in
accordance with the applicable regulations of the Code. Therefore, the Plan and the related trust continue to be tax-exempt and no provision for income taxes has been included in the Plans financial
statements.
GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an
uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2023,
there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are
currently no audits for any tax periods in progress.
The Company noted certain operational errors for the period from November 28, 2022 to March 28,
2024, with respect to auto enrollment into the Plan. The Company has corrected the error in 2024 and is in the process of determining the amount of qualified nonelective employer contributions required to be remitted to the Plan on behalf of the
affected participants. The Company intends on remitting the qualified nonelective employer contributions to the Plan in 2024. This matter does not affect the tax status of the Plan.
7. Plan Termination
Although it has not expressed any
intention to do so, the Company has the right, under the Plan, to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA. In the event that the Plan is terminated, participants would remain
100% vested in their accounts.
8. Risks and Uncertainties
The Plan utilizes various investment instruments including common stock, mutual funds, collective investment trusts, and a common collective trust fund.
Investment securities, in general, are exposed to various risks such as interest rate, credit and overall market volatility. Due to the level
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