Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (U.S.). The preparation of these financial statements requires us to make certain estimates and assumptions that may affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reported periods and related disclosures. These

estimates and assumptions are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates could occur in the future. We base our estimates on our historical experience, trends in the industry, and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from our estimates under different assumptions or conditions.

We believe that ~~our~~the application of ~~the following~~our accounting policies, each of which require significant judgments and estimates on the part of management, are the most critical to aid in fully understanding and evaluating our reported financial results. Our significant accounting policies are more fully described in Note 1, “Description of Business and Summary of Significant Accounting Policies”, to our consolidated financial statements ~~appearing elsewhere~~contained in Item 8, “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K.

We believe the following represent our critical accounting policies and estimates used in the preparation of our financial statements:

Revenue Recognition

We recognize revenue when all of the following conditions are satisfied: persuasive evidence of an arrangement exists, delivery has occurred or services have been provided, our price to the customer is fixed or determinable, and collectibility is reasonably assured.

Service revenue is generally evidenced by client contracts, which range in duration from a few weeks to a few years and typically take the form of an agreed upon rate per unit or fixed fee arrangements. Such contracts typically do not contain acceptance provisions based upon the achievement of certain study or laboratory testing results. Revenue of agreed upon rate per unit contracts is recognized as services are performed, based upon rates specified in the contract. In cases where performance spans reporting periods, revenue of fixed fee contracts is recognized as services are performed, measured on the ratio of outputs or performance obligations completed to the total contractual outputs or performance obligations to be provided. Changes in estimated effort to complete the fixed fee contract are reflected in the period in which the change becomes known. Changes in scope of work are common, especially under long-term contracts, and generally result in a change in contract value. Once the parties have agreed to the changes in scope and renegotiated pricing terms, the contract value is amended and revenue is typically recognized as described above.

Most contracts are terminable by the client, either immediately or upon notice. These contracts often require payment to us of expenses to wind down the project, fees earned to date or, in some cases, a termination fee. Such payments are included in revenues when earned.

We recognize product revenue, net of allowances for estimated returns, rebates and discounts, when title and risk of loss pass to customers. When we sell equipment with specified acceptance criteria, we assess our ability to meet the acceptance criteria in order to determine the timing of revenue recognition. We ~~would~~ defer revenue until completion of customer acceptance testing if we are not able to demonstrate the ability to meet such acceptance criteria.

A portion of our revenue is from multiple-element arrangements that include multiple products and/or services as deliverables in a single arrangement, with each deliverable, or a combination of the deliverables, representing a separate unit of accounting. We allocate revenues to each element in a multiple-element arrangement based upon the relative selling price of each deliverable. Revenue allocated to each deliverable is then recognized when all revenue recognition criteria are met. Judgments as to the identification of deliverables, units of accounting, the allocation of consideration to the deliverable, and the appropriate timing of revenue recognition are critical with respect to these arrangements.

At the inception of each arrangement that includes milestone payments, we evaluate whether each milestone is substantive. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) our performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from our performance to achieve the milestone; (b) the consideration relates solely to past performance; and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. We evaluate factors such as the scientific, clinical, regulatory, and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required, and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement in making this assessment. If a substantive milestone is achieved and collection of the related receivable is reasonably assured, we recognize revenue related to the milestone in its entirety in the period in which the milestone is achieved. If we were to achieve milestones that we consider substantive under any of our revenue arrangements, we may experience significant fluctuations in our revenue from quarter to quarter and year to year depending on the timing of achieving such substantive milestones. In those circumstances where a milestone is not substantive, we recognize as revenue, on the date

the milestone is achieved, an amount equal to the applicable percentage of the performance period that had elapsed as of the date the milestone was achieved, with the balance being deferred and recognized over the remaining period of performance. As of December 30, 2017, we had no significant milestones that were deemed substantive.

We record shipping charges billed to customers in total revenue and record shipping costs in cost of revenue (excluding amortization of intangible assets) for all periods presented.

Income Taxes

We prepare and file income tax returns based on our interpretation of each jurisdiction’s tax laws and regulations. In preparing our consolidated financial statements, we estimate our income tax liability in each of the jurisdictions in which we operate by estimating our actual current tax expense together with assessing temporary differences resulting from differing treatment of items for tax and financial reporting purposes. These differences result in deferred tax assets and liabilities, which are included in our consolidated balance sheets. Significant management judgment is required in assessing the realizability of our deferred tax assets. In performing this assessment, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. In making this determination, under the applicable financial accounting standards, we are allowed to consider the scheduled reversal of deferred tax liabilities, projected future taxable income, and the effects of tax planning strategies. ~~Our estimates of future taxable income include,~~

~~among other items, our estimates of future income tax deductions related to the exercise of stock options.~~ In the event that actual results differ from our estimates, we adjust our estimates in future periods and we may need to establish a valuation allowance, which could materially impact our financial position and results of operations.

We account for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. We evaluate uncertain tax positions on a quarterly basis and consider various factors, that include, but are not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in process audit activities and changes in facts or circumstances related to a tax position. We adjust the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Our liabilities for uncertain tax positions can be relieved only if the contingency becomes legally extinguished through either payment to the taxing authority or the expiration of the statute of limitations, the recognition of the benefits associated with the position meet the “more-likely-than-not” threshold or the liability becomes effectively settled through the ~~examination~~controversy process. We consider matters to be effectively settled once the taxing authority has completed all of its required or expected examination procedures, including all appeals and administrative reviews; we have no plans to appeal or litigate any aspect of the tax position; and we believe that it is highly unlikely that the taxing authority would re-examine the related tax position. We also accrue for potential interest and penalties related to unrecognized tax benefits in income tax expense.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as U.S. Tax Reform. U.S. Tax Reform makes broad and complex changes to the U.S. tax code, including, but not limited to, (i) reducing the U.S. federal statutory tax rate from 35% to 21%; (ii) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (iii) generally eliminating U.S federal income taxes on dividends from foreign subsidiaries; (iv) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (v) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (vi) creating the base erosion anti-abuse tax (BEAT), a new minimum tax; (vii) creating a new limitation on deductible interest expense; (viii) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017, and (ix) modifying the officer’s compensation limitation.

The provision for income taxes for fiscal year 2017 includes a $78.5 million estimate for the impact of the enactment of U.S. Tax Reform. The estimated impact of U.S. Tax Reform consists of $73.5 million relating to the one-time transition tax on unrepatriated earnings, $18.2 million of withholding and state taxes relating to withdrawal of our indefinite reinvestment assertion regarding unremitted earnings, and $13.2 million tax benefit for the revaluation of U.S. federal net deferred tax liabilities from 35% to 21%. The final impact of U.S. Tax Reform may differ from these estimates, due to, among other things, changes in interpretations, analysis and assumptions made by management, additional guidance that may be issued by the U.S. Department of the Treasury and the Internal Revenue Service, and any updates or changes to estimates we have utilized to calculate the transition impact. Therefore, our accounting for the elements of U.S. Tax Reform is incomplete. However, we were able to make reasonable estimates of the effects of U.S. Tax Reform.

Prior to the fourth quarter of fiscal year 2017, we asserted that the unremitted earnings of our foreign subsidiaries were deemed indefinitely reinvested as they were required to fund needs outside of the U.S. As a result of the deemed repatriation toll tax and

other effects of ~~December 27, 2014,~~U.S. Tax Reform enacted during the fourth quarter of fiscal year 2017, we have withdrawn our ~~non-U.S. subsidiaries’~~indefinite reinvestment assertion for all of our unremitted foreign earnings and have provided deferred taxes of $18.2 million for future withholding and state income taxes upon the repatriation of these earnings. In light of the reduced incremental tax cost of repatriating unremitted earnings, as well as other effects of U.S. Tax Reform, we have determined we can no longer overcome the presumption that all undistributed foreign earnings ~~included~~will ultimately be transferred to the U.S. parent entity.

In fiscal 2017, we adopted Accounting Standard Update (ASU) 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The standard reduces complexity in several aspects of the accounting for employee share-based compensation, including certain income tax consequences. Excess tax benefits and tax deficiencies are recognized in the consolidated ~~retained earnings aggregated $271.0 million. All undistributed foreign earnings~~statements of ~~non-U.S. subsidiaries, exclusive~~income on a prospective basis. The adoption to recognize excess tax benefits and tax deficiencies within the consolidated statements of ~~earnings that would~~income on a prospective basis could result in ~~little or no net income tax expense or which were previously taxed under current U.S. tax law, are reinvested indefinitely~~fluctuations in ~~operations outside~~ the U.S. This determination is made on a jurisdiction by jurisdiction basis and takes into account the liquidity requirements in both the U.S. and within our foreign subsidiaries. If we decide to repatriate funds in the future to execute our growth initiatives or to fund any other liquidity needs, the resulting tax consequences would negatively impact our results of operations through a higher effective tax rate period-over-period, depending on how many awards vest and ~~dilution~~the volatility of our ~~earnings.~~

stock price. During fiscal year 2017, the impact to the provision for income taxes within the consolidated statements of income was an excess tax benefit of $11.0 million. Further, for fiscal year 2017, we excluded the effect of windfall tax benefits from the hypothetical proceeds used to calculate the repurchase of shares under the treasury stock method for the calculation of diluted earnings per share.

Goodwill and Intangible Assets

We use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets, which represent a significant portion of the purchase price in many of our acquisitions, requires the use of significant judgment with regard to (i) the fair value; and (ii) whether such intangibles are amortizable or non-amortizable and, if the former, the period and the method by which the intangible asset will be amortized. We utilize commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of our weighted average cost of capital, adjusted for specific risks associated with the assets.

We review definite-lived intangible assets for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets. Actual cash flows arising from a particular intangible asset could vary from projected cash flows which could imply different carrying values from those established at the dates of acquisition and which could result in impairment of such asset.

During fiscal year 2016, we determined that the carrying values of certain DSA intangible assets were not recoverable and recorded an impairment charge of $1.9 million, which was included in costs of services provided (excluding amortization of intangible assets).

We evaluate goodwill ~~and indefinite-lived intangible assets~~ for impairment annually, during the fourth quarter, and when events occur or circumstances change that may reduce the fair value of the asset below its carrying amount. Events or circumstances that might require an interim evaluation include unexpected adverse business conditions, economic factors, unanticipated technological changes or competitive activities, loss of key personnel and acts by governments and courts. Estimates of future cash flows require assumptions related to revenue and operating income growth, asset-related expenditures, working capital levels and other factors. Different assumptions from those made in our analysis could materially affect projected cash flows and our evaluation of goodwill ~~and indefinite-lived intangible assets~~ for impairment.

We have the option to first assess qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. If we elect this option and believe, as a result of the qualitative assessment, that it is more-likely-than-not that the carrying value of goodwill is not recoverable, the quantitative two-step impairment test is required; otherwise, no further testing is required. Alternatively, we may elect to not first assess qualitative factors and immediately perform the quantitative two-step impairment test. In the first step, we compare the fair value of our reporting units to their carrying values. If the carrying values of the net assets assigned to the reporting units exceed the fair values of the reporting units, then the second step of the impairment test is performed in order to determine the implied fair value of our goodwill. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then we would record an impairment loss equal to the difference.

In ~~the~~ fiscal years ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, we performed the first step of the two-step goodwill impairment test for our reporting units. Fair value was determined by using a weighted combination of a market-based approach and an income approach, as this combination was deemed to be the most indicative of our fair value in an orderly transaction between market participants. Under the market-based approach, we utilized information about our Company as well as publicly available industry information to determine earnings multiples and sales multiples that are used to value our reporting units. Under the income approach, we determined fair value based on the estimated future cash flows of each reporting unit, discounted by an estimated

weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit and the rate of return an outside investor would expect to earn.

Our ~~2014, 2013~~2017, 2016 and ~~2012~~2015 impairment ~~test~~tests indicated that goodwill ~~and other intangible assets were~~was not impaired.

In ~~2014,~~the second quarter of 2016, we revised the composition of our reportable segments to align with ~~our new~~the view of the business following ~~the Argenta and BioFocus acquisition.~~our acquisition of WIL Research. As a result, ~~of this reorganization,~~ goodwill was allocated from our ~~prior~~RMS reportable ~~segments~~segment to our ~~new~~Manufacturing reportable ~~segments~~segment based on the fair value of each business group within its original reporting unit relative to the fair value of that reporting unit. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to the reallocation and determined that no impairment existed.

Valuation and Impairment of Long-Lived Assets

Long-lived assets to be held and used, including property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. Factors we consider important which could trigger an impairment review include, but are not limited to, the following:

significant underperformance relative to expected historical or projected future operating results;

significant negative industry or economic trends; or

significant changes or developments in strategy or operations that negatively affect the utilization of our long-lived assets.

Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset, net of any sublease income, if applicable, and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written-down to their fair values. We measure any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in our current business model. Significant judgments are required to estimate future cash flows, including the selection of appropriate discount rates and other assumptions. We may also estimate fair value based on market prices for similar assets, as appropriate. Changes in these estimates and assumptions could materially affect the determination of fair value for these assets. ~~During~~

In fiscal 2017, we recognized $17.7 million of asset impairment and accelerated depreciation charges on the ~~fiscal year 2014, we did not record any significant impairment charges to long-lived assets.~~

RMS facility in Frederick, Maryland in connection with our global RMS restructuring initiatives.

Pension and Other ~~Retiree~~Post-Retirement Benefit Plans

Several of our U.S. and non-U.S. subsidiaries sponsor defined benefit pension and other ~~retiree~~post-retirement benefit plans. We recognize the funded status of our defined benefit pension and other postretirement benefit plans as an asset or liability. This amount is defined as the difference between the fair value of plan assets and the benefit obligation. We measure plan assets and benefit obligations as of the date of our fiscal year end.

The cost and obligations of these arrangements are calculated using many assumptions to estimate the benefits that the employee earns while working, the amount of which cannot be completely determined until the benefit payments cease. Major assumptions used in the accounting for these employee benefit plans include the expected return on plan assets, withdrawal and mortality rates, discount rate, and rate of increase in employee compensation levels. Assumptions are determined based on our data and appropriate market indicators, and are evaluated each year as of the plans’ measurement date. Should any of these assumptions change, they would have an effect on net periodic pension costs and the unfunded benefit obligation.

The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the projected benefit obligations. In determining the expected long-term rate of return on plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance.

The discount rate reflects the rate we would have to pay to purchase high-quality investments that would provide cash sufficient to settle our current pension obligations. In the fiscal year 2014, as part of our annual review of assumptions for our U.S. pension and retiree benefit plans, we selected the discount rate based on a cash-flow matching analysis using Towers Watson’s proprietary Bond:Link tool. Prior to the fiscal year 2014, we employed a cash-flow matching methodology, which

used the spot yield curve underlying the Citigroup Index. The refined estimation technique permits us to more closely match cash flows to the expected payments to participants than would be possible with the previously used yield curve model. We believe such a refinement results in an estimate of the discount rate that more accurately reflects the settlement value for plan obligations than the yield curve methodology used in prior years, as it provides the ability to review the quality and diversification of the portfolio to select the bond issues that would settle the obligation in an optimal manner. This refinement reduced our benefit obligations as of December 27, 2014 by $5.5 million.

The rate of compensation increase reflects the expected annual salary increases for the plan participants based on historical experience and the current employee compensation strategy.

In ~~the~~ fiscal year ~~2014, for our U.S. plans, we adopted new mortality tables (RP-2014) and a~~2017, new mortality improvement ~~scale (MP-2014),~~scales were issued in the U.S. and United Kingdom (U.K) reflecting a decline in longevity projection from the 2016 releases that we adopted, which ~~increased~~decreased our benefit obligations by ~~$6.0~~$5.2 million as of

December 30, 2017. In fiscal year 2016, new mortality improvement scales were issued in the U.S. reflecting a decline in longevity projection from the 2015 releases that we adopted, which decreased our benefit obligations by $1.3 million as of December 27, 2014. We previously used the RP-2000 mortality tables with mortality improvements projected using Scale AA to 2021 for annuitants and to 2029 for non-annuitants. In addition, for our U.K. plans, the mortality table was updated to S2 Series (SAPS) using the CMI 2013 core projection with a 1.25% per annum long-term mortality improvement. This update increased our benefit obligations by $1.9 million as of December 27, 2014. Prior to the fiscal year 2014, we used the S1 Series (SAPS) mortality table and the CMI 2009 core projection with a 1.25% per annum long-term improvement. The new mortality information reflects improved life expectancies and an expectation that the trend will continue.31, 2016.

~~Stock-based~~Stock-Based Compensation

We grant stock options, restricted stock, restricted stock units (RSUs), and performance share units (PSUs) to employees, and stock options, ~~and~~ restricted stock, and RSUs to non-employee directors under stock-based compensation plans. We make certain assumptions in order to value and record expense associated with awards made under our stock-based compensation arrangements. Changes in these assumptions may lead to variability with respect to the timing and amount of expense we recognize in connection with share-based payments.

Determining the appropriate valuation model and related assumptions requires judgment. The fair value of stock options granted is calculated using the Black-Scholes model and the fair value of PSUs is calculated using a lattice model with a Monte Carlo simulation, both of which require the use of subjective assumptions including volatility and expected term, among others.

Determining the appropriate amount to expense based on the anticipated achievement of PSU’s performance targets requires judgment, including forecasting the achievement of future financial targets. The estimate of expense is revised periodically based on the probability of achieving the required performance targets. The cumulative impact of any changes to our estimates is reflected in the period of change.

~~We also estimate~~Due to our adoption in fiscal 2017 of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, we elected to change our accounting policy to account for forfeitures ~~over the requisite service period~~ when ~~recognizing share-based compensation expense based~~they occur on ~~historical rates~~a modified retrospective basis, which resulted in an immaterial impact on our consolidated financial statements and ~~forward looking factors; these estimates are adjusted to the extent that actual forfeitures differ, or are expected to materially differ, from our estimates.~~related disclosures.

New Accounting Pronouncements

For a discussion of new accounting pronouncements, refer to Note 1, “Description of Business and Summary of Significant Accounting Policies” to our consolidated financial statements ~~included~~contained in Item 8, “Financial Statements and Supplementary Data,” in this Annual Report on Form 10-K.

Results of Operations

Fiscal Year ~~2014~~2017 Compared to Fiscal Year ~~2013~~2016

Revenue

The following tables present consolidated revenue by reportable segment and by type:

Fiscal Year Ended
December 27, 2014 December 28, 2013 $ Change % Change Impact of FX
(in millions, except percentages)
Research models and services $ 507.4
$ 511.3
$ (3.9 ) (0.8 )% (0.7 )%
Discovery and safety assessment 538.2
432.4
105.8
24.5 % 0.3 %
Manufacturing support 252.1
221.8
30.3
13.7 % 0.2 %
Total revenue $ 1,297.7
$ 1,165.5
$ 132.2
11.3 % (0.1 )%



	Fiscal Year
	2017		2016		$ change			% change		Impact of FX
	(in millions, except percentages)
RMS	$	493.6	$	494.0	$	(0.4	)	(0.1	)%	(0.2	)%
DSA	980.0		836.6		143.4			17.1	%	(0.2	)%
Manufacturing	384.0		350.8		33.2			9.5	%	0.7	%
Total revenue	$	1,857.6	$	1,681.4	$	176.2		10.5	%	0.0	%

Revenue for the fiscal year 2014 increased $132.2 million, or 11.3%, compared with the fiscal year 2013. Reported revenue decreased due to foreign currency translation by $1.7 million, or 0.1%, when compared to the prior period.



	Fiscal Year
	2017		2016		$ change		% change
	(in millions, except percentages)
Service revenue	$	1,298.3	$	1,130.7	$	167.6	14.8	%
Product revenue	559.3		550.7		8.6		1.6	%
Total revenue	$	1,857.6	$	1,681.4	$	176.2	10.5	%

RMS revenue decreased ~~$3.9~~$0.4 million due to lower research ~~models~~model revenue outside of China, lower service revenue in the RADS business, and the negative effect of changes in foreign currency exchange rates; partially offset by higher research model product revenue in China, and higher research model services revenue attributable to the IS and research models revenue, primarily in Japan and Europe. Additionally, the fiscal year 2013 includes a $1.5 million revenue adjustment related to inaccurate billings with respect to certain government contracts. See Note 12, "Commitments and Contingencies."GEMS businesses.

DSA revenue increased ~~$105.8~~$143.4 million due primarily to ~~an increase in~~increased demand from mid-tier biotechnology clients and global biopharmaceuticals clients. The Safety Assessment business had higher service revenue as a result of the ~~Discovery Services business,~~WIL Research acquisition, which ~~includes the Argenta and BioFocus acquisition that~~ contributed ~~$71.4~~$62.5 million to service revenue growth, as well as growth of the legacy business, including favorable volume, mix of services, and pricing; and the Discovery Services business had higher service revenue, primarily as a result of the acquisitions of Agilux and Brains On-Line that contributed $28.6 million and $4.9 million to service revenue growth, respectively; partially offset by the negative effect of changes in ~~the Safety Assessment business.~~foreign currency exchange rates.

Manufacturing revenue increased ~~$30.3~~$33.2 million ~~driven~~due primarily to higher demand for endotoxin products in the Microbial Solutions business; increased demand in the Biologics business, which included the acquisition of Blue Stream that contributed $3.5 million to service revenue growth; and positive effect of changes in foreign current exchange rates; partially offset by ~~broad-based growth across all three businesses, particularly~~ the ~~EMD~~absence of $10.9 million of service revenue related to the CDMO business; and lower product revenue in the Avian business.

Cost of Services Provided and Products Sold (Excluding Amortization of Intangible Assets)

The following tables present consolidated costs of services provided and ~~Services Provided~~products sold (excluding amortization of intangible assets) (Costs) by reportable segment and by type:

Fiscal Year Ended
December 27, 2014 December 28, 2013 $ Change % Change
(in millions, except percentages)
Research models and services $ 317.2
$ 331.8
$ (14.6 ) (4.4 )%
Discovery and safety assessment 387.3
325.6
61.7
18.9 %
Manufacturing support 120.5
113.2
7.3
6.4 %
Total cost of products sold and services provided $ 825.0
$ 770.6
$ 54.4
7.1 %



	Fiscal Year
	2017		2016		$ change		% change
	(in millions, except percentages)
RMS	$	317.0	$	292.8	$	24.2	8.3	%
DSA	660.6		572.4		88.2		15.4	%
Manufacturing	177.7		169.5		8.2		4.8	%
Total cost of services provided and products sold (excluding amortization of intangible assets)	$	1,155.3	$	1,034.7	$	120.6	11.6	%

~~Cost of products sold and services provided (costs)~~



	Fiscal Year
	2017		2016		$ change		% change
	(in millions, except percentages)
Cost of services provided	$	865.6	$	757.7	$	107.9	14.2	%
Cost of products sold	289.7		277.0		12.7		4.6	%
Total cost of services provided and products sold (excluding amortization of intangible assets)	$	1,155.3	$	1,034.7	$	120.6	11.6	%

Costs for ~~the~~ fiscal year ~~2014~~2017 increased ~~$54.4~~$120.6 million, or ~~7.1%~~11.6%, compared ~~with the~~to fiscal year ~~2013.~~2016. Costs as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 were ~~63.6%~~62.2%, ~~a decrease~~an increase of ~~2.5%~~0.7%, from ~~66.1%~~61.5% for ~~the~~ fiscal year ~~2013. The costs above include asset impairments, which were previously presented separately in our consolidated statement of income.~~2016.

RMS ~~costs decreased $14.6~~Costs increased $24.2 million due primarily ~~the result of lower accelerated depreciation expense~~to higher restructuring costs associated with ~~global efficiency initiatives~~the planned closure of our production facility in ~~our research models business.~~Maryland; increased employee compensation costs and increased facility investments in China; partially offset by the favorable effect of changes in foreign currency exchange rates. RMS ~~costs~~Costs as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 were ~~62.5%~~64.2%, ~~a decrease~~an increase of ~~2.4%~~4.9%, from ~~64.9%~~59.3% for ~~the~~ fiscal year ~~2013, the result of global efficiency initiatives in our~~2016, due primarily to lower research ~~models business.~~model volume, higher restructuring charges, higher compensation costs, and facility investments.

DSA ~~costs~~Costs increased ~~$61.7~~$88.2 million due primarily to ~~a $49.1 million~~an increase in ~~Discovery Services costs,~~Safety Assessment Costs, which ~~includes~~included a higher service cost base due to the ~~Argenta and BioFocus~~WIL Research acquisition and ~~a $12.6 million~~the growth of the legacy services business, and higher compensation; an increase in ~~Safety Assessment~~Discovery Services Costs, which included a higher service cost base due to the acquisitions of Agilux and Brains On-Line, and higher compensation costs; partially offset by higher restructuring costs ~~as a result~~incurred during 2016 associated with site consolidations to help improve productivity; and the favorable effect of ~~increased revenues.~~changes in foreign currency exchange rates. DSA ~~costs~~Costs as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 were ~~72.0%~~67.4%, a decrease of ~~3.3%~~1.0%, from ~~75.3%~~68.4% for ~~the~~ fiscal year ~~2013 as a result of leverage of fixed costs~~2016, due primarily to higher volume, favorable pricing, and productivity improvements.

Manufacturing Costs increased $8.2 million due primarily to an increase in Microbial Solutions Costs resulting from higher ~~revenues.~~

demand of endotoxin products; an increase in Biologics Costs resulting from the growth of the business and the acquisition of Blue Stream; and the unfavorable effect of changes in foreign currency exchange rates; partially offset by a decrease in CDMO Costs related to the divestiture of the CDMO business. Manufacturing ~~costs increased $7.3 million, primarily as a result of higher revenue for each of our Manufacturing businesses. Manufacturing costs~~Costs as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 were ~~47.8%~~46.3%, a decrease of ~~3.2%~~2.0%, from ~~51.0%~~48.3% for ~~the~~ fiscal year ~~2013, as a result of leverage of fixed costs from~~2016, due primarily to higher ~~revenue.~~volume, favorable pricing, and productivity improvements.

Selling, General and Administrative Expenses

Fiscal Year Ended
December 27, 2014 December 28, 2013 $ Change % Change
(in millions, except percentages)
Research models and services $ 66.2
$ 60.0
$ 6.2
10.3 %
Discovery and safety assessment 63.1
49.7
13.4
27.0 %
Manufacturing support 47.6
42.0
5.6
13.3 %
Unallocated corporate 92.1
74.0
18.1
24.5 %
Total selling, general and administrative $ 269.0
$ 225.7
$ 43.3
19.2 %



	Fiscal Year
	2017		2016		$ change			% change
	(in millions, except percentages)
RMS	$	60.2	$	62.5	$	(2.3	)	(3.7	)%
DSA	105.5		98.3		7.2			7.3	%
Manufacturing	72.5		65.1		7.4			11.4	%
Unallocated corporate	135.2		141.6		(6.4		)	(4.6	)%
Total selling, general and administrative	$	373.4	$	367.5	$	5.9		1.6	%

Selling, general and administrative expenses (SG&A) for ~~the~~ fiscal year ~~2014~~2017 increased ~~$43.3~~$5.9 million, or ~~19.2%~~1.6%, compared with ~~the~~ fiscal year ~~2013.~~2016. SG&A as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 was ~~20.7%~~20.1%, ~~an increase~~a decrease of ~~1.3%~~1.8%, from ~~19.4%~~21.9% for ~~the~~ fiscal year ~~2013.~~2016, which was driven by the RMS and DSA segments, as well as a reduction in unallocated corporate spend, as discussed below.

The ~~increase~~decrease in RMS SG&A of ~~$6.2~~$2.3 million was primarily related to an increase of $2.5 million in compensation, benefits and other employee related expenses; the recording of $1.6 million in charges related to an arbitration award in favor of a large model supplier; an increase of $0.5 million in severance due to consolidation plans in the U.S. and Japan; and an increase of $2.6 million in other expenses; partially offset by a decrease ~~of $1.0 million due to a gain on the sale of~~in operating expenses, including information technology infrastructure and facility ~~impacted by a consolidation plan.~~expenses. RMS SG&A as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2017 was ~~13.0%~~12.2%, ~~an increase~~a decrease of ~~1.3%~~0.4%, from ~~11.7%~~12.6% for ~~the~~ fiscal year ~~2013.~~2016.

The increase in DSA SG&A of ~~$13.4~~$7.2 million was primarily related to an increase in compensation, benefits, and other employee-related expenses to support the growth of the business. DSA SG&A as a percentage of revenue for fiscal year 2017 was 10.8%, a decrease of 1.0%, from 11.8% for fiscal year 2016.

The increase in Manufacturing SG&A of $7.4 million was primarily related to an increase in compensation, benefits, and other employee-related expenses to support the growth of the business. Manufacturing SG&A as a percentage of revenue for fiscal year 2017 was 18.9%, an increase of 0.3%, from 18.6% for fiscal year 2016.

The decrease in unallocated corporate SG&A of $6.4 million was primarily related to a decrease in costs associated with the evaluation and integration of acquisitions, and decrease in information technology infrastructure related expenses; partially offset by an increase in compensation, benefits, and other employee-related expenses.

Amortization of Intangible Assets Amortization of intangible assets for fiscal year 2017 was $41.4 million, a decrease of $0.3 million, or 0.8%, from $41.7 million for fiscal year 2016, due primarily to certain intangible assets becoming fully amortized and the disposal of certain amortizable intangible assets in connection with the CDMO business divestiture; partially offset by the amortization of certain intangible assets acquired in connection with our recent acquisitions.

Interest Income Interest income, which represents earnings on cash, cash equivalents, and time deposits was $0.7 million for fiscal year 2017, a decrease of $0.6 million, or 47.5%, compared to $1.3 million for fiscal year 2016.

Interest Expense Interest expense for fiscal year 2017 was $29.8 million, an increase of $2.1 million, or 7.5%, compared to $27.7 million for fiscal year 2016. The increase was due primarily to higher average balances outstanding and higher average interest rates under our $1.65B Credit Facility; partially offset by the increase in fiscal year 2016 attributed to the write-off of a portion of debt issuance costs in connection with the modification of our prior $1.3B Credit Facility.

Other Income, Net Other income, net, was $38.5 million for fiscal year 2017, an increase of $26.6 million, or 224.0%, compared to $11.9 million for fiscal year 2016. The increase in other income, net was driven by an increase of $12.6 million in gains recognized related to our venture capital investments, a $10.6 million gain recognized as a result of the divestiture of the CDMO business, and higher net gains on life insurance policy investments of $2.0 million.

Income Taxes Income tax expense was $171.4 million for fiscal year 2017, an increase of $104.6 million, compared to $66.8 million for fiscal year 2016. Our effective tax rate was 57.7% for fiscal year 2017, compared to 30.0% for fiscal year 2016. The increase was primarily driven by the one-time transition tax on unrepatriated foreign earnings mandated by U.S. Tax Reform, the change of our assertion of indefinite reinvestment of foreign earnings, and a gain on the divestiture of the CDMO business. These increases are net of decreases relating to the excess tax benefits from stock-based compensation due to the adoption of ASU 2016-09, as well as the revaluation of U.S. net deferred tax liabilities to 21% based on enacted U.S. Tax Reform.

Fiscal Year 2016 Compared to Fiscal Year 2015

Revenue

The following tables present consolidated revenue by reportable segment and by type:



	Fiscal Year
	2016		2015		$ change		% change		Impact of FX
	(in millions, except percentages)
RMS	$	494.0	$	470.4	$	23.6	5.0	%	(0.2	)%
DSA	836.6		612.2		224.4		36.7	%	(2.7	)%
Manufacturing	350.8		280.7		70.1		25.0	%	(0.8	)%
Total revenue	$	1,681.4	$	1,363.3	$	318.1	23.3	%	(1.5	)%



	Fiscal Year
	2016		2015		$ change		% change
	(in millions, except percentages)
Service revenue	$	1,130.7	$	858.2	$	272.5	31.7	%
Product revenue	550.7		505.1		45.6		9.0	%
Total revenue	$	1,681.4	$	1,363.3	$	318.1	23.3	%

Revenue for fiscal year 2016 increased $318.1 million, or 23.3%, compared with fiscal year 2015. The negative effect of changes in foreign currency exchange rates decreased revenue by $20.0 million, or 1.5%, when compared to the prior year.

RMS revenue increased $23.6 million due to higher research model services revenue in North America, Europe, and Japan and higher research model product revenue in North America, Europe, and Asia; partially offset by the negative effect of changes in foreign currency exchange rates.

DSA revenue increased $224.4 million due to higher service revenue in the Safety Assessment business, primarily as a result of the WIL Research acquisition that contributed $163.5 million to service revenue growth, and increased study volume, mix of services, and pricing in our legacy business; and higher service revenue in Discovery Services’ In Vivo business, which includes the acquisitions of Oncotest and Agilux that contributed $14.6 million to service revenue growth; partially offset by lower Early Discovery service revenue due primarily to softer demand from global clients; and the negative effect of changes in foreign currency exchange rates.

Manufacturing revenue increased $70.1 million due to higher revenue in the Microbial Solutions business, which includes the acquisition of the Celsis business that contributed $17.9 million to revenue product growth; higher service revenue in the Biologics business, which includes the Blue Stream acquisition that contributed $4.1 million to service revenue growth; higher product revenue in the Avian business, primarily due to the acquisition of the Sunrise business that contributed $4.9 million to product revenue growth; and Contract Manufacturing service revenue related to the CDMO services of WIL Research acquired in April 2016 that contributed $12.6 million to service revenue growth; partially offset by the negative effect of changes in foreign currency exchange rates.

Cost of Services Provided and Products Sold (Excluding Amortization of Intangible Assets)

The following tables presents consolidated cost of services provided and products sold (excluding amortization of intangible assets) by reportable segment:



	Fiscal Year
	2016		2015		$ change		% change
	(in millions, except percentages)
RMS	$	292.8	$	284.2	$	8.6	3.0	%
DSA	572.4		407.0		165.4		40.6	%
Manufacturing	169.5		141.0		28.5		20.3	%
Total cost of services provided and products sold (excluding amortization of intangible assets)	$	1,034.7	$	832.2	$	202.5	24.3	%



	Fiscal Year
	2016		2015		$ change		% change
	(in millions, except percentages)
Cost of services provided	$	757.7	$	568.2	$	189.5	33.4	%
Cost of products sold	277.0		264.0		13.0		4.9	%
Total cost of services provided and products sold (excluding amortization of intangible assets)	$	1,034.7	$	832.2	$	202.5	24.3	%

Costs for fiscal year 2016 increased $202.5 million, or 24.3%, compared with fiscal year 2015. Costs as a percentage of revenue for fiscal year 2016 were 61.5%, an increase of 0.5%, from 61.0% for fiscal year 2015.

RMS Costs increased $8.6 million due primarily to the growth of the business, partially offset by cost savings achieved as a result of our efficiency initiatives. RMS Costs as a percentage of revenue for fiscal year 2016 were 59.3%, a decrease of 1.1%, from 60.4% for fiscal year 2015.

DSA Costs increased $165.4 million due primarily to an increase in Safety Assessment Costs, which included a higher service cost base due to the acquisition of WIL Research, the growth of the legacy business; an increase in Discovery Services Costs, which included a higher service cost base due to the acquisitions of Oncotest and Agilux; a charge of $1.9 million related to an impairment of certain intangibles; and a restructuring charge of $9.4 million related to the consolidation of small DSA facilities in the U.S., Ireland, and the U.K.; partially offset by the favorable effect of changes in foreign currency exchange rates. DSA Costs as a percentage of revenue for fiscal year 2016 were 68.4%, an increase of 1.9%, from 66.5% for fiscal year 2015, primarily due to the acquisition of WIL Research.

Manufacturing Costs increased $28.5 million due primarily to an increase in Biologics Costs resulting from the growth of the business and the acquisition of Blue Stream; an increase in Contract Manufacturing Costs related to the CDMO services of WIL Research acquired in April 2016; an increase in Microbial Solutions Costs resulting from the acquisition of Celsis and the growth of the legacy business; and an increase in Avian Costs, primarily due to the acquisition of the Sunrise business; partially offset by $4.1 million due to lower amortization of inventory fair value adjustments related to the Celsis acquisition. Manufacturing Costs as a percentage of revenue for fiscal year 2016 were 48.3%, a decrease of 1.9%, from 50.2% for fiscal year 2015.

Selling, General and Administrative Expenses



	Fiscal Year
	2016		2015		$ change		% change
	(in millions, except percentages)
RMS	$	62.5	$	62.1	$	0.4	0.5	%
DSA	98.3		69.2		29.1		42.0	%
Manufacturing	65.1		57.9		7.2		12.5	%
Unallocated corporate	141.6		111.2		30.4		27.4	%
Total selling, general and administrative	$	367.5	$	300.4	$	67.1	22.3	%

SG&A for fiscal year 2016 increased $67.1 million, or 22.3%, compared with fiscal year 2015. SG&A as a percentage of revenue for fiscal year 2016 was 21.9%, a decrease of 0.1%, from 22.0% for fiscal year 2015.

The increase in RMS SG&A of $0.4 million was related to an increase of ~~$5.5~~$1.3 million in ~~compensation, benefits~~external consulting and other ~~employee related~~service expenses; an increase of ~~$1.9 million in severance; an increase of $1.2~~$0.5 million in operating expenses, including information technology infrastructure and facility expenses; an increase of ~~$0.8~~$0.3 million in compensation, benefits, and other employee-related expenses; and an increase of $0.2 million in stock-based compensation ~~primarily related to our new hire grants~~expense; partially offset by a decrease of $0.8 million in severance expense; a decrease of $0.3 million in costs associated with the evaluation and ~~our annual stock-based grants made~~integration of acquisitions; a decrease of $0.2 million in ~~February 2014;~~bad debt expense; and ~~an increase~~a decrease of ~~$4.0~~$0.6 million in other ~~expenses; all of which were primarily due to the Argenta and BioFocus acquisition. DSA~~expenses. RMS SG&A as a percentage of revenue for ~~the~~ fiscal year ~~2014~~2016 was ~~11.7%~~12.6%, ~~an increase~~a decrease of ~~0.2%~~0.6%, from ~~11.5%~~13.2% for ~~the~~ fiscal year ~~2013.~~2015.

The increase in ~~Manufacturing~~DSA SG&A of ~~$5.6~~$29.1 million was related to an increase of ~~$3.8~~$12.5 million in compensation, benefits, and other ~~employee related~~employee-related expenses; an increase of ~~$1.8~~$5.9 million in operating expenses, including information technology infrastructure and facility expenses; ~~and~~ an increase of ~~$0.5~~$5.7 million in stock-based compensation, primarily related to our new hire grants and our annual stock-based grants made in February 2014; partially offset by a decrease of $0.5 million in other expenses. Manufacturing SG&A as a percentage of revenue for the fiscal year 2014 was 18.9%, consistentcosts associated with the ~~fiscal year 2013.~~

~~The increase in unallocated corporate SG&A~~evaluation and integration of ~~$18.1 million was related to~~acquisitions; an increase of ~~$7.4~~$2.9 million in ~~compensation, benefits and other employee related expenses;~~severance expense; an increase of $5.1 million of stock-based compensation, primarily related to our new hire grants, our annual stock-based grants made in February 2014 and increased expense recognized for performance stock units whose payout is based upon our financial performance; an increase of $4.8$1.5 million in external consulting and other service expenses; an increase of ~~$4.5~~$1.3 million in depreciation expense; an increase of $1.2 million in stock-based compensation expense; and an increase of $0.3 million in other expenses; partially offset by a decrease of $2.2 million in bad debt expense. DSA SG&A as a percentage of revenue for fiscal year 2016 was 11.8%, an increase of 0.5%, from 11.3% for fiscal year 2015.

The increase in Manufacturing SG&A of $7.2 million was related to an increase of $6.7 million in compensation, benefits, and other employee-related expenses; an increase of $1.2 million in external consulting and other service expenses; an increase of $1.0 million in operating expenses, including information technology infrastructure and facility expenses; an increase of $0.7 million in stock-based compensation; and an increase of $0.6 million in other expenses; partially offset by a decrease of $1.8 million in severance expense; a decrease of $1.0 million in costs associated with the evaluation and integration of acquisitions; and a decrease of $0.2 million in depreciation expense. Manufacturing SG&A as a percentage of revenue for fiscal year 2016 was 18.6%, a decrease of 2.0%, from 20.6% for fiscal year 2015.

The increase in unallocated corporate SG&A of $30.4 million was related to an increase of ~~$1.4~~$8.0 million in external consulting and other service expenses; ~~partially offset by a reduction~~an increase of ~~$5.1~~$6.2 million in compensation, benefits, and other employee-related expenses; an increase of $4.8 million in information technology ~~related~~expenses; an increase of $4.0 million in costs associated with the evaluation and integration of acquisitions; an increase of $1.5 million in stock-based compensation; an increase of $1.0 million in depreciation expense; and an increase of $4.9 million in other expenses.

Amortization of Intangible AssetsAmortization of intangibles for ~~the~~ fiscal year ~~2014~~2016 was ~~$26.0~~$41.7 million, an increase of ~~$8.2~~$17.5 million, or ~~46.1%~~72.1%, from ~~$17.8~~$24.2 million for ~~the~~ fiscal year ~~2013,~~2015, due primarily ~~as a result of~~to certain intangibles acquired in connection with the ~~Argenta~~Agilux, Blue Stream, WIL Research, Oncotest, Celsis, and ~~BioFocus acquisition.~~Sunrise acquisitions.

Interest IncomeInterest income, which represents earnings on held cash, cash equivalents, and time deposits was ~~$1.2~~$1.3 million for ~~the~~ fiscal year ~~2014,~~2016, an increase of ~~$0.5~~$0.3 million, or ~~71.4%~~26.0%, compared to ~~$0.7~~$1.0 million for ~~the~~ fiscal year ~~2013.~~2015.

Interest ExpenseInterest expense for ~~the~~ fiscal year ~~2014~~2016 was ~~$12.0~~$27.7 million, ~~a decrease~~an increase of ~~$9.0~~$12.6 million, or ~~42.9%~~83.8%, compared to ~~$21.0~~$15.1 million for ~~the~~ fiscal year ~~2013.~~2015. The ~~decrease~~increase was primarily due to the write-off of a portion of debt issuance costs in connection with the modification of our $1.3B Credit Facility, a higher average debt balance outstanding as a result of ~~the retirement late in the second quarter~~business acquisitions, a higher average interest rate as a result of ~~the fiscal year 2013 of our senior convertible debentures, which lowered our effective~~a higher leverage ratio, and an increased interest ~~rate.~~expense related to capital leases.

Other Income, ~~(Expense),~~ NetOther income, ~~(expense),~~ net, was ~~$10.7~~$11.9 million for ~~the~~ fiscal year ~~2014,~~2016, an increase of ~~$3.5~~$8.9 million, or ~~48.6%~~295.5%, compared to ~~$7.2~~$3.0 million for ~~the~~ fiscal year ~~2013.~~2015. The increase in other income, ~~(expense),~~ net was driven by the absence of an expense of $10.4 million due to a reversal of the indemnification asset associated with a previous acquisition in the corresponding period in 2015; an increase of $6.5 million in gains on our venture capital investments ~~in limited partnerships~~ accounted for under the equity ~~method, which increased $3.4 million, and~~method; a ~~non-cash~~

higher net gain of $2.1 million ~~related to assets assumed at our Frederick, Maryland facility following the termination~~on life insurance policy investments; a $0.7 million gain on remeasurement of previously held equity interest in an entity acquired in a ~~customer contract,~~step acquisition; and an increase of $0.6 million in other activity; partially offset by the ~~impact~~absence of ~~foreign exchange~~a bargain purchase gain of $9.9 million associated with the acquisition of Sunrise in May 2015; and ~~other activity~~a $1.5 million charge recorded in connection with the modification of ~~$2.0 million.~~the option to purchase the remaining 13% equity interest in Vital River.

Income TaxesIncome tax expense ~~in the~~was $66.8 million for fiscal year ~~2014 increased $14.8~~2016, an increase of $23.4 million, compared ~~with the~~to $43.4 million for fiscal year ~~2013.~~2015. Our effective tax rate was ~~26.8%~~30.0% in the fiscal year ~~2014,~~2016, compared to ~~23.8%~~22.2% in the fiscal year ~~2013.~~2015. The increase was primarily ~~attributable to current-year tax law changes, including a statutory 25% decrease in the Canadian Scientific Research~~driven by non-deductible expenses associated with acquisitions and ~~Experimental Development (SR&ED) credit and an increase in the limitation of deductibility of interest expense in France.~~restructurings. In addition, ~~the effective~~we recognized a reduction in unrecognized tax ~~rate for the fiscal year 2014 reflected a discrete tax cost~~benefits and related interest of ~~$1.6~~$10.4 million ~~related~~due to the ~~nondeductible transaction costs incurred in~~expiration of the ~~fiscal year 2014 for~~statute of limitations associated with pre-acquisition tax positions on the forgiveness of debt and a non-taxable bargain purchase gain of $9.9 million associated with the acquisition of the Early Discovery businesses and a discrete tax cost of $1.2 million related to the write-off of deferred tax assets as a result of the reorganization of the Company's RMS U.K. entities. These increases were partially offset by a $2.1 million release of an uncertain tax position resulting from an ability to offset tax on a capital gain from an investment in a limited partnership. The fiscal year 2013 effective tax rate includes a discrete tax detriment of $2.0 million related to the ongoing transfer pricing controversy with the Canadian Revenue Authority (CRA).

~~Fiscal Year 2013 Compared to Fiscal Year 2012~~

~~Revenue~~

Fiscal Year Ended
December 28, 2013 December 29, 2012 $ Change % Change Impact of FX
(in millions, except percentages)
Research models and services $ 511.3
$ 521.6
$ (10.3 ) (2.0 )% (1.7 )%
Discovery and safety assessment 432.4
408.9
23.5
5.7 % (0.6 )%
Manufacturing support 221.8
199.0
22.8
11.5 % 1.1 %
Total revenue $ 1,165.5
$ 1,129.5
$ 36.0
3.2 % (0.8 )%

Revenue for the fiscal year 2013 increased $36.0 million, or 3.2%, compared with the fiscal year 2012. Reported revenue decreased due to foreign currency translation by $9.0 million, or 0.8%, when compared to the prior period.

RMS revenue decreased by $10.3 million due to lower research models revenue in the U.S., Europe and Japan due primarily to infrastructure reductions by our global biopharmaceutical clients, partially offset by the inclusion of Vital River, which was acquired in the fiscal year 2013. Additionally, the fiscal year 2013 included a $1.5 million revenue adjustment related to inaccurate billings with respect to certain government contracts. See Note 12, "Commitments and Contingencies."

~~DSA revenue increased $23.5 million due to higher demand from global pharmaceutical and mid-tier biotechnology clients as well as a more favorable mix of longer-term services.~~

~~Manufacturing revenue increased $22.8 million due to higher sales of legacy EMD products globally and the inclusion of a full year of Accugenix services (an EMD service provider acquired in 2012).~~

~~Cost of Products Sold and Services Provided~~

Fiscal Year Ended
December 28, 2013 December 29, 2012 $ Change % Change
(in millions, except percentages)
Research models and services $ 331.8
$ 323.3
$ 8.5
2.6 %
Discovery and safety assessment 325.6
311.0
14.6
4.7 %
Manufacturing support 113.2
103.1
10.1
9.8 %
Total cost of products sold and services provided $ 770.6
$ 737.4
$ 33.2
4.5 %

Costs for the fiscal year 2013 increased $33.2 million, or 4.5%, compared with the fiscal year 2012. Costs as a percentage of revenue for the fiscal year 2013 were 66.1%, an increase of 0.8%, from 65.3% for the fiscal year 2012. The costs above include assets impairments which were previously presented separately in our consolidated statement of income.

RMS costs increased $8.5 million, primarily the result of accelerated depreciation expense at our California facility, which contributed $13.5 million to the increase and the inclusion of Vital River, acquired in January 2013, which contributed $10.5

million to the increase, partially offset by declines in cost of products in our research models business due to lower volume. RMS costs as a percentage of revenue for the fiscal year 2013 were 64.9%, an increase of 2.9%, from 62.0% for the fiscal year 2012, the result of the lower revenue in our U.S., Europe and Japan research model business along with accelerated depreciation expense at our California facility.

DSA costs increased $14.6 million due to an increase in Safety Assessment costs as a result of increased revenues. DSA costs as a percentage of revenue for the fiscal year 2013 were 75.3%, a decrease of 0.8%, from 76.1% for the fiscal year 2012 due to higher volume of services provided and the benefit of efficiency initiatives.

Manufacturing costs increased $10.1 million, primarily as a result of higher EMD revenue. Manufacturing costs as a percentage of revenue for the fiscal year 2013 were 51.0%, a decrease of 0.8%, from 51.8% in the fiscal year 2012 as a result of leverage of fixed costs from higher revenue.

~~Selling, General and Administrative Expenses~~

Fiscal Year Ended
December 28, 2013 December 29, 2012 $ Change % Change
(in millions, except percentages)
Research models and services $ 60.0
$ 53.5
$ 6.5
12.1 %
Discovery and safety assessment 49.7
49.8
(0.1 ) (0.2 )%
Manufacturing support 42.0
33.7
8.3
24.6 %
Unallocated corporate 74.0
71.2
2.8
3.9 %
Total selling, general and administrative $ 225.7
$ 208.2
$ 17.5
8.4 %

SG&A for the fiscal year 2013 increased $17.5 million, or 8.4%, compared with the fiscal year 2012. SG&A as a percentage of revenue for the fiscal year 2013 was 19.4%, an increase of 1.0%, from 18.4% for the fiscal year 2012.

The increase in RMS SG&A of $6.5 million was related to an increase of $2.2 million in compensation, benefits and other employee related expenses; an increase of $1.8 million in bad debt expense; an increase of $0.8 million in stock-based compensation expense; an increase of $0.8 million in severance charges; and an increase of $1.4 million in other expenses; partially offset by a decrease of $0.5 million in operating costs, including information technology and facility costs. RMS SG&A as a percentage of revenue for the fiscal year 2013 was 11.7%, an increase of 1.4%, from 10.3% for the fiscal year 2012.

DSA SG&A remained substantially flat year over year due to a decrease of $2.0 million in compensation, benefits and other employee related expenses and a decrease of $1.1 million in operating costs, including information technology and facilities costs; offset by an increase of $3.0 million in other expenses. DSA SG&A as a percentage of revenue for the fiscal year 2013 was 11.5%, a decrease of 0.7%, from 12.2% for the fiscal year 2012.

The increase in Manufacturing SG&A of $8.3 million was primarily related to an increase of $5.1 million in compensation, benefits and other employee related expenses; an increase of $1.0 million in bad debt expense; an increase of $0.9 million in operating costs, including information technology and facility expenses; and an increase of $1.3 million in other expenses. Manufacturing SG&A as a percentage of revenue for the fiscal year 2013 was 18.9%, an increase of 2.0%, from 16.9% for the fiscal year 2012.

The increase in unallocated corporate SG&A of $2.8 million was related to an increase of $3.1 million in compensation, benefits and other employee related expenses; an increase of $1.7 million in stock-based compensation; and an increase of $1.2 million in external consulting and other service expense; partially offset by a decrease of $2.0 million of costs associated with the evaluation and integration of acquisitions; a decrease of $1.0 million decrease in information technology related expenses; and a decrease of $0.2 million in other expenses.

~~Amortization of Intangible Assets~~ ~~Amortization of intangibles for the fiscal year 2013 was $17.8 million, a decrease of $0.3 million, or 1.7%, from $18.1 million for the fiscal year 2012.~~

~~Interest Income~~ Interest income, which represents earnings on held cash, cash equivalents, and time deposits, was $0.7 million for the fiscal year 2013, an increase of $0.1 million, or 16.7%, compared to $0.6 million for the fiscal year 2012.

~~Interest Expense~~ Interest expense for the fiscal year 2013 was $21.0 million, a decrease of $12.3 million, or 36.9%, compared to $33.3 million for the fiscal year 2012. The decrease was due to lower interest rates on our debt as a result of our debt refinancing in May 2013 and the associated retirement of our senior convertible debenturesSunrise in fiscal year ~~2013.~~

~~Other Income (Expense), Net~~ Other income (expense), net was $7.2 million for the fiscal year 2013, an increase of $10.5 million, or 318.2%, compared to $(3.3) million for the fiscal year 2012. The increase in other income (expense), net was driven by our investments in limited partnerships accounted for under the equity method.

~~Income Taxes~~ Income tax expense for the fiscal year 2013 increased $5.3 million, compared with the fiscal year 2012. Our effective tax rate was 23.8% in the fiscal year 2013, compared to 21.3% in the fiscal year 2012. The increase of 2.5% in the effective tax rate for the fiscal year 2013 was primarily attributable to a discrete tax detriment of $2.0 million due to an adjustment related to the ongoing transfer pricing controversy with the CRA, a reduction in research and development tax benefits by $1.8 million arising from the adoption of a new refundable research and development credit provided for in a U.K. tax law change that was enacted in the fiscal year 2013, $1.4 million of costs from a new French tax law enacted in the fiscal year 2013 that applied retroactively to the fiscal year 2012 that limits the deductibility of interest by our French affiliates, and a discrete tax cost of $0.5 million related to nondeductible transaction costs incurred in 2012 for the acquisition of Vital River, which closed in the first quarter of the fiscal year 2013. These costs were partially offset by increased benefits from the domestic production deduction of $0.6 million and reduced unbenefitted tax losses of $0.6 million. The fiscal year 2012 effective tax rate reflects a benefit from the settlement of the tax litigation related to the 2003 and 2004 SR&ED credits claimed by our Safety Assessment services facility in Montreal.2015.

Liquidity and Capital Resources

We currently require cash to fund our working capital needs, ~~pension obligations,~~ capital expansion, ~~and~~ acquisitions, ~~and~~ pay our debt and pension obligations. Our principal sources of liquidity have been our cash flows from operations, supplemented by long-term borrowings. Based on our current business plan, we believe that our existing funds, when combined with cash generated from operations and our access to financing resources, are sufficient to fund our operations for the foreseeable future.

The following table presents our cash, ~~and~~ cash equivalents and ~~time deposits held in the U.S. and by foreign subsidiaries:~~investments:

December 27, 2014 December 28, 2013
(in millions)
Cash and cash equivalents
Held in the U.S. $ 10.0
$ 8.0
Held by non-U.S. subsidiaries 150.0
147.9
Total cash and cash equivalents 160.0
155.9
Time deposits held in the U.S. 2.8
—
Time deposits held by non-US subsidiaries 13.4
11.2
Total cash and cash equivalents and time deposits $ 176.2
$ 167.1



	December 30, 2017		December 31, 2016
	(in millions)
Cash and cash equivalents:
Held in U.S. entities	$	30.6	$	10.6
Held in non-U.S. entities	133.2		107.0
Total cash and cash equivalents	163.8		117.6
Investments:
Held in U.S. entities	—		—
Held in non-U.S. entities	28.5		3.8
Total cash, cash equivalents and investments	$	192.3	$	121.4

Borrowings

On ~~May 29, 2013,~~March 30, 2016, we amended and restated our ~~previous~~$1.3 billion credit ~~agreement and entered into a $970.0 million agreement (the $970M Credit Facility). The $970M~~facility, creating our $1.65B Credit Facility ~~has a~~which (1) extended the maturity date for the credit facility, and (2) made certain other amendments in connection with our acquisition of ~~May 2018 and~~WIL Research. The $1.65B Credit Facility provides for up to $1.65 billion in financing, including a ~~$420.0~~$650.0 million ~~U.S.~~ term loan facility and a ~~$550.0 million~~$1.0 billion multi-currency revolving credit facility. The term loan facility matures in 19 quarterly installments, with the last installment due March 30, 2021. The revolving credit facility ~~may be drawn in U.S. Dollars, Euros, Pound Sterling, or Japanese Yen, subject to sub-limits by currency.~~ matures on March 30, 2021, and requires no scheduled payment before that date.

Amounts outstanding under the $1.65B Credit Facility were as follows:



	December 30, 2017		December 31, 2016
	(in millions)
Term loans	$	601.3	$	633.8
Revolving credit facility	501.0		578.8
Total	$	1,102.3	$	1,212.6

Under specified circumstances, we have the ability to ~~expand~~increase the term loan facility and/or revolving credit facility by up to ~~$350.0 million. The U.S. term loan matures~~$500.0 million in ~~20 quarterly installments through May 2018. The revolving credit facility matures in May 2018 and requires no scheduled payment before this date.~~the aggregate. The interest rates onapplicable to the ~~$970M~~term loan and revolving loans under the $1.65B Credit Facility are, ~~variable and are based on an applicable published~~at our option, equal to either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus ~~a spread determined by~~0.50%, or (3) the one-month adjusted LIBOR rate plus 1%) or the adjusted LIBOR rate, plus an interest rate margin based upon our leverage ratio.

~~Amounts outstanding under~~In connection with our plan to acquire MPI Research, our intention is to increase our debt level by approximately $830 million as we obtained a commitment for a bridge loan facility. We are evaluating fixed-rate debt financing alternatives which could be used to finance the ~~$970M Credit Facility were as follows as of December 27, 2014~~acquisition and ~~December 28, 2013:~~

December 27, 2014 December 28, 2013
(in millions)
Term loans $ 378.0
$ 409.5
Revolving credit facility 375.5
253.3
Total $ 753.5
$ 662.8

for general corporate purposes.

Repurchases of Common Stock

~~In July 2010,~~On May 9, 2017, our Board of Directors ~~authorized a $500.0 million~~increased the stock repurchase ~~program, and subsequently approved increases for~~authorization by $150.0 million, to an aggregate ~~authorization~~amount of ~~$1,150.0 million.~~$1.3 billion. During ~~the~~ fiscal year ~~2014~~,2017, we repurchased ~~approximately 2,093,000~~1.0 million shares ~~at a cost~~for $90.6 million under our authorized stock repurchase program. As of ~~$110.6 million. At~~ December ~~27, 2014,~~30, 2017, we had ~~$178.5~~$129.1 million remaining on the authorized stock repurchase program. Our stock-based compensation plans permit the netting of common stock upon vesting of restricted stock, RSUs, and PSUs in order to satisfy individual statutory tax withholding requirements. During fiscal year 2017, we acquired 0.2 million shares for $16.3 million through such netting.

Cash Flows

The following table presents our net cash provided by operating activities:


	Fiscal Year Ended									Fiscal Year
	December 27, 2014			December 28, 2013			December 29, 2012			2017		2016			2015
	(in millions)									(in millions)
Income from continuing operations	$	129.9		$	105.4		$	102.1		$	125.6	$	156.1		$	152.0
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities	126.0			129.0			131.7			186.6		174.3			126.6
Changes in assets and liabilities	(3.8		)	(25.4		)	(25.8		)	5.9		(13.5		)	28.2
Net cash provided by operating activities	$	252.1		$	209.0		$	208.0		$	318.1	$	316.9		$	306.8

Net cash provided by cash flows from operating activities represents the cash receipts and disbursements related to all of our activities other than investing and financing activities. Operating cash flow is derived by adjusting our income from continuing operations for (1) non-cash operating items such as depreciation and amortization, stock-based compensation, deferred income taxes, gains on venture capital investments and divestiture, and impairment charges, as well as (2) changes in operating assets and liabilities, which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in our results of operations. Net cash provided by operating activities increased from fiscal year 2016 to 2017. The increase was primarily driven by positive changes in operating assets and liabilities due to the recognition of a tax payable in connection with the recent U.S. Tax Reform, and the timing of our accounts payable and accrued compensation payments. These increases were partially offset by a decrease in income from continuing operations. The increase in net cash provided by operating activities from ~~the~~ fiscal ~~years 2013~~year 2015 to ~~2014~~ ~~and from the fiscal years 2012 to 2013 were due to increases in our~~2016 was primarily driven by higher income from continuing operations ~~with the net effect of changes~~partially offset by a negative change in operating assets and ~~liabilities and adjustments to net income from continuing operations.~~liabilities. Our days sales outstanding, which includes deferred revenue as an offset to accounts receivable but is not adjusted for an allowance for doubtful accounts in the calculation, was 60 days as of December 30, 2017, compared to 52 days as of December ~~27, 2014, compared to 56 days as of December 28, 2013~~31, 2016, and 51 days as of December ~~29, 2012.~~

26, 2015. The increase was primarily driven by changes in the timing of certain working capital items related to integration of the information systems of WIL Research, which the Company acquired in 2016, and timing of deferred revenue.

The following table presents our net cash used in investing activities:


	Fiscal Year Ended									Fiscal Year
	December 27, 2014			December 28, 2013			December 29, 2012			2017			2016			2015
	(in millions)									(in millions)
Acquisition of businesses and assets, net of cash acquired	$	(234.3	)	$	(29.2	)	$	(16.9	)	$	(25.0	)	$	(648.5	)	$	(247.7	)
Capital expenditures	(56.9		)	(39.1		)	(47.5		)	(82.4		)	(55.3		)	(63.3		)
Investments, net	(5.6		)	(6.0		)	6.6			(37.2		)	7.4			(14.4		)
Proceeds from divestiture										72.5			—			—
Other, net	(1.2		)	0.3			2.8			(0.5		)	3.7			(2.2		)
Net cash used in investing activities	$	(298.0	)	$	(74.0	)	$	(55.0	)	$	(72.6	)	$	(692.7	)	$	(327.6	)

12. FOREIGN CURRENCY CONTRACTS

The Company enters into foreign exchange forward contracts to limit its foreign currency exposure related to intercompany loans that are not of a long-term investment nature. These contracts are recorded at fair value in the Company’s consolidated balance sheets and are not designated as hedging instruments. Any gains or losses on such contracts are immediately recognized in other income, net, and are largely offset by the remeasurement of the underlying intercompany loan balances.

The Company did not have any foreign currency contracts open as of December 30, 2017 and December 31, 2016.

The following table summarizes gains recognized on foreign exchange forward contracts related to intercompany loans denominated in Euros on the Company’s consolidated statements of income:



	Fiscal Year
Location of Gain	2017		2016		2015
	(in thousands)
Other income, net	$	—	$	3,373	$	(4,917	)

13. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company rents laboratory and office space, land, vehicles and certain equipment under ~~non-cancelable~~non-cancellable operating leases. These lease agreements contain various clauses for renewal at the ~~Company's~~Company’s option and, in certain cases, rent escalation

~~CHARLES RIVER LABORATORIES INTERNATIONAL, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

clauses. Rental expense under these leases amounted to ~~$14.2~~$26.3 million, ~~$16.7~~$21.8 million and ~~$18.2~~$23.4 million in ~~the~~ fiscal years ~~2014~~, ~~2013~~2017, 2016 and ~~2012~~,2015, respectively. In addition to rent, the leases may require the Company to pay additional amounts for taxes, insurance, maintenance and other operating expenses.

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of December ~~27, 2014,~~30, 2017, minimum rental commitments under ~~non-cancelable~~non-cancellable leases, net of income from subleases, for each of the next five years and total thereafter were as follows:


	Minimum lease payments		Minimum Lease Payments
	(in thousands)		(in thousands)
2015	$	12,102
2016	9,854
2017	7,331
2018	4,284		$	25,361
2019	3,577		23,177
2020			20,725
2021			16,480
2022			13,203
Thereafter	7,769		45,159
Total	$	44,917	$	144,105

Insurance

The Company maintains ~~various~~certain insurance policies that maintain large deductibles up to ~~$0.5~~approximately $5.0 million,, some with or without stop-loss limits, depending on market availability. Insurance policies at certain locations are based on a percentage of the insured assets, for which deductibles for certain property may exceed ~~$0.5~~$5.0 million in the event of a catastrophic event.

Litigation

Various lawsuits, claims and proceedings of a nature considered normal to its business are pending against the Company. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on the Company’s business or financial condition.

In May 2013, the Company commenced an investigation into inaccurate billing with respect to certain government contracts. The Company promptly reported these matters to the relevant government contracting officers, the Department of Health and Human Services' Office of the Inspector General, and the Department of Justice, and is cooperating with these agencies to ensure the proper repayment and resolution of this matter. The Company identified approximately $1.5 million in excess amounts billed on these contracts since January 1, 2007 and reserved such amount. Because of the early stage of discussions with the government and complex nature of this matter, the Company believes that it is reasonably possible that additional losses may be incurred. However, it cannot at this time estimate the potential range of loss beyond the current reserve of $1.5 million.

In July 2012, a Mauritius supplier of large animal models submitted an Application for Arbitration with The Permanent Secretariat, The Permanent Court of Arbitration, The Mauritius Chamber of Commerce and Industry in Port Louis, Mauritius. The supplier asserted that the Company failed to pay certain invoices and the supplier was therefore permitted to terminate the supply agreement. The Company filed a counterclaim asserting that the supplier had failed to meet its contractual obligations under the supply agreement. The arbitration hearing relating to this contract dispute took place in Mauritius from August 2013 and final arguments were presented in March 2014. In May 2014 and August 2014, the arbitrator issued the final rulings, ordering the Company to pay the supplier (1) the sum of $1.2 million and (2) all of the supplier's arbitration costs, in each case with interest. In September 2014, the Company paid the supplier $1.6 million in accordance with the arbitration ruling.

Guarantees

The Company enters into certain agreements with other parties in the ordinary course of business that contain indemnification provisions. These typically include agreements with directors and officers, business partners, contractors, landlords, and customers. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. However, to date the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification ~~provisions~~provisions. As a result, the estimated fair value of these obligations is minimal.

Purchase Obligations

The Company enters into unconditional purchase obligations, in the ordinary course of business, that include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancellable at any time without penalty. The aggregate amount of the Company’s unconditional purchase obligations totaled $90.3 million as of December 30, 2017.

14. RESTRUCTURING AND ASSET IMPAIRMENTS

Global RMS Restructuring Initiatives

In the fourth quarter of fiscal year 2017, the Company committed to a plan to further reduce costs and improve operating efficiencies in its RMS reportable segment. The Company plans to close its RMS production facility in Maryland before the end of 2018 and consolidate production in other ~~than guaranties~~facilities. Additionally, the Company will reduce its workforce at various other global RMS facilities during 2018.

The following table presents a summary of severance and transition costs, and asset impairments and accelerated depreciation (referred to as restructuring costs) related to this initiative by classification within the consolidated statements of income for the year ended December 30, 2017.

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

~~Phase I clinical business. See Note 14, “Discontinued Operations.” As~~



	Severance and Transition Costs		Asset Impairments and Accelerated Depreciation		Total
	(in thousands)
Cost of services provided and products sold (excluding amortization of intangible assets)	$	362	$	17,716	$	18,078
Selling, general and administrative	67		—		67
Total	$	429	$	17,716	$	18,145

Total restructuring costs related to this initiative in 2017 and 2018 are expected to be between $24.5 million and $26.0 million, of which $18.0 million to $18.5 million relate to estimated asset impairments and accelerated depreciation, and $6.5 million to $7.5 million relate to employee separation and facility exit costs, including accelerated lease obligations. All of the costs are recorded in the RMS reportable segment. The majority of the costs are non-cash and were incurred in the fourth quarter of 2017. The cash portion of the costs are not expected to exceed $8 million. The Company’s existing lease obligation continues through 2028.

Other Restructuring Initiatives

In recent fiscal years, the Company has undertaken productivity improvement initiatives at various locations across all reportable segments across the U.S., Europe, and Japan. This includes workforce reductions, resulting in severance and transition costs; and cost related to the consolidation of facilities, resulting in asset impairment and accelerated depreciation charges. The Company’s existing lease obligations for certain facilities continue through various dates, the latest being March 2028.

The following table presents a ~~result,~~summary of restructuring costs related to these initiatives by classification within the ~~estimated fair value~~consolidated statements of income for the years ended 2017, 2016, and 2015.



	2017
	Severance and Transition Costs		Asset Impairments and Accelerated Depreciation		Total
	(in thousands)
Cost of services provided and products sold (excluding amortization of intangible assets)	$	1,944	$	929	$	2,873
Selling, general and administrative	1,905		—		1,905
Total	$	3,849	$	929	$	4,778



	2016
	Severance and Transition Costs		Lease Obligations		Asset Impairments and Accelerated Depreciation		Total
	(in thousands)
Cost of services provided and products sold (excluding amortization of intangible assets)	$	4,717	$	4,616	$	4,809	$	14,142
Selling, general and administrative	3,737		—		—		3,737
Total	$	8,454	$	4,616	$	4,809	$	17,879



	2015
	Severance and Transition Costs		Asset Impairments and Accelerated Depreciation			Total
	(in thousands)
Cost of services provided and products sold (excluding amortization of intangible assets)	$	735	$	1,833		$	2,568
Selling, general and administrative	5,438		—			5,438
Total	$	6,173	$	1,833	��	$	8,006

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The following table presents restructuring costs by reportable segment for these ~~obligations, other than~~productivity improvement initiatives:



	Fiscal Year
	2017		2016		2015
	(in thousands)
RMS	$	291	$	759	$	3,171
DSA	1,604		17,114		1,068
Manufacturing	2,883		6		1,639
Unallocated corporate	—		—		2,128
Total	$	4,778	$	17,879	$	8,006

The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to restructuring activities:



	December 30, 2017			December 31, 2016			December 26, 2015
	(in thousands)
Beginning balance	$	8,102		$	2,969		$	2,666
Expense	4,278			13,070			6,173
Payments / utilization	(6,103		)	(7,667		)	(5,820		)
Foreign currency adjustments	579			(270		)	(50		)
Ending balance	$	6,856		$	8,102		$	2,969

As of December 30, 2017 and December 31, 2016, $3.0 million and $4.1 million of severance and other personnel related costs liabilities and lease obligation liabilities, respectively, were included in accrued compensation and accrued liabilities within the ~~Phase I clinical business, is minimal.~~Company’s consolidated balance sheets and $3.9 million and $4.0 million, respectively, were included in other long-term liabilities within the Company's consolidated balance sheets.

~~13. BUSINESS~~15. SEGMENT AND GEOGRAPHIC INFORMATION

The Company revised its reportable segments during ~~2014~~fiscal year 2016 to align with its view of the business following its acquisition of ~~Argenta and BioFocus. See~~WIL Research. For a description of the Company’s three reportable segments, see Note 1, ~~"Description~~“Description of Business and Summary of Significant Accounting Policies.~~" The Company~~” Asset information on a reportable segment basis is not disclosed as this information is not separately identified and internally reported ~~segment results on this basis retrospectively for all comparable prior periods.~~to the Company’s Chief Operating Decision Maker.

The following table presents revenue and other financial information by reportable ~~segment.~~segment:


	Fiscal Year Ended
	December 27, 2014		December 28, 2013		December 29, 2012		2017		2016		2015
	(in thousands)						(in thousands)
Research Models and Services
RMS
Revenue	$	507,327	$	511,350	$	521,633	$	493,615	$	494,037	$	470,411
Gross margin	190,092		179,493		198,291
Operating income	121,376		116,737		143,783		114,712		136,365		120,973
Total assets	375,415		460,594		411,874
Long-lived assets	138,021		161,027		172,641
Depreciation and amortization	27,512		41,837		26,725		19,627		20,853		22,526
Capital expenditures	18,749		16,717		27,077		20,879		11,642		17,398
Discovery and Safety Assessment
DSA
Revenue	$	538,218	$	432,378	$	408,908	$	980,022	$	836,593	$	612,173
Gross margin	150,970		106,766		97,908
Operating income	69,749		47,413		35,688		184,063		138,157		121,981
Total assets	1,088,171		766,243		760,370
Long-lived assets	408,280		394,741		414,584
Depreciation and amortization	47,138		37,720		41,001		79,355		71,816		46,812
Capital expenditures	19,759		12,561		10,051		36,616		27,493		30,333
Manufacturing Support
Manufacturing
Revenue	$	252,117	$	221,800	$	198,989	$	383,964	$	350,802	$	280,718
Gross margin	131,598		108,643		95,882
Operating income	78,620		61,227		57,519		123,903		104,543		74,675
Total assets	274,952		246,467		228,804
Long-lived assets	71,367		66,352		64,254
Depreciation and amortization	14,092		17,079		13,549		22,893		25,566		18,129
Capital expenditures	15,541		9,876		10,407		15,188		12,247		9,814



(Mark One)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER ~~27, 2014~~30, 2017
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO



Delaware		06-1397316
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
251 Ballardvale Street Wilmington, Massachusetts		01887
(Address of Principal Executive Offices)		~~01887~~ (Zip Code)



Title of each class		Name of each exchange on which registered
Common Stock, $0.01 par value		New York Stock Exchange


Item		Page		Page
	PART I		PART I
1	Business	1	Business	1
1A	Risk Factors	13	Risk Factors	15
1B	Unresolved Staff Comments	22	Unresolved Staff Comments	25
2	Properties	22	Properties	25
3	Legal Proceedings	23	Legal Proceedings	26
4	Mine Safety Disclosures	23	Mine Safety Disclosures	26
	Supplementary Item. Executive Officers of the Registrant (pursuant to Instruction 3 to Item 401(b) of Regulation S-K)	23
	PART II		PART II
5	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	24	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	26
6	Selected Consolidated Financial Data	27	Selected Consolidated Financial Data	29
7	Management's Discussion and Analysis of Financial Condition and Results of Operations	28	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
7A	Quantitative and Qualitative Disclosures about Market Risk	41	Quantitative and Qualitative Disclosures about Market Risk	47
8	Financial Statements and Supplementary Data	42	Financial Statements and Supplementary Data	49
9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	86	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	102
9A	Controls and Procedures	86	Controls and Procedures	102
9B	Other Information	86	Other Information	102
	PART III		PART III
10	Directors, Executive Officers and Corporate Governance	87	Directors, Executive Officers and Corporate Governance	103
11	Executive Compensation	87	Executive Compensation	103
12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	87	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	103
13	Certain Relationships and Related Transactions, and Director Independence	88	Certain Relationships and Related Transactions, and Director Independence	103
14	Principal Accountant Fees and Services	88	Principal Accountant Fees and Services	103
	PART IV		PART IV
15	Exhibits and Financial Statement Schedules	89	Exhibits and Financial Statement Schedules	104
16			Form 10-K Summary	104

Signatures	Signatures	90	Signatures	105
Exhibit Index	Exhibit Index	91	Exhibit Index	107


•	the occasional extra week (“53^rdweek”) that we recognize in a fiscal year (and fourth fiscal quarter thereof) due to our fiscal year ending on the last Saturday in December; and


Fiscal 2015	High		Low
First quarter (through January 30, 2015)	$	70.73	$	63.22
Fiscal 2014	High		Low
Fiscal 2018					High		Low
First quarter (through January 26, 2018)					$	112.47	$	104.00
Fiscal 2017					High		Low
First quarter	$	62.50	$	52.41	$	91.57	$	75.25
Second quarter	61.92		49.60		102.32		86.44
Third quarter	61.49		52.02		109.59		94.15
Fourth quarter	66.11		55.47		119.05		99.12
Fiscal 2013	High		Low
Fiscal 2016					High		Low
First quarter	$	46.90	$	36.50	$	81.61	$	65.70
Second quarter	45.90		40.28		87.95		73.42
Third quarter	48.73		41.05		89.18		75.54
Fourth quarter	53.81		44.12		84.53		67.20



	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
September 28, 2014 to October 25, 2014	286	$	59.74	—	$	178,455
October 26, 2014 to November 22, 2014	252	63.16		—	178,455
November 23, 2014 to December 27, 2014	—	—		—	178,455
Total:	538			—



	Fiscal Year
	2012		2013		2014		2015		2016		2017
Charles River Laboratories International, Inc.	$	100	$	145	$	174	$	217	$	207	$	297
S&P 500	100		132		151		153		171		208
S&P 500 Health Care	100		141		177		190		184		225



	December 26, 2009	December 25, 2010	December 31, 2011	December 29, 2012	December 28, 2013	December 27, 2014
Charles River Laboratories International, Inc.	100.00	108.31	82.92	111.89	161.80	195.05
S&P 500	100.00	115.06	117.49	136.30	180.44	205.14
NASDAQ Pharmaceutical	100.00	104.24	117.69	161.80	271.53	349.75



	Fiscal Year Ended
	12/27/2014			12/28/2013			12/29/2012			12/31/2011			12/25/2010
	(in thousands)
Statement of Income Data:
Total revenue	$	1,297,662		$	1,165,528		$	1,129,530		$	1,142,647		$	1,133,416
Goodwill impairment ⁽¹⁾	—			—			—			—			305,000
Asset impairment ⁽¹⁾	312			4,202			3,548			7,492			91,378
Termination fee ⁽²⁾	—			—			—			—			30,000
Income (loss) from continuing operations, net of income taxes	129,924			105,416			102,118			115,522			(334,105		)
Loss from discontinued operations, net of income taxes	(1,726		)	(1,265		)	(4,252		)	(5,545		)	(8,012		)
Common Share Data:
Earnings (loss) per common share from continuing operations:
Basic	$	2.76		$	2.18		$	2.12		$	2.26		$	(5.25	)
Diluted	$	2.70		$	2.15		$	2.10		$	2.24		$	(5.25	)
Other Data:
Depreciation and amortization	$	96,445		$	96,636		$	81,275		$	85,230		$	93,649
Capital expenditures	56,925			39,154			47,534			49,143			42,860
Balance Sheet Data (at end of period):
Cash and cash equivalents	$	160,023		$	155,927		$	109,685		$	68,905		$	179,160
Working capital	310,728			305,516			143,005			209,046			293,114
Goodwill	321,077			230,701			208,609			197,561			198,438
Total assets	1,885,192			1,632,756			1,586,344			1,558,320			1,733,373
Total debt and capital lease obligations	777,862			663,789			666,520			717,945			700,852
Total equity attributable to common shareholders	672,203			640,984			600,805			525,583			687,423


~~(1)~~	~~The 2010 impairment charges were primarily related to our then Preclinical Services business segment, which is now included in our DSA business segment.~~


~~(2)~~	~~The fee was the result of the termination of the proposed WuXi Pharmatech (Cayman) Inc. acquisition.~~



~~Research Models and Services~~	~~Discovery and Safety Assessment~~	~~Manufacturing Support~~
~~Research Models~~	~~Discovery Services~~ ⁽²⁾	~~Endotoxin and Microbial Detection~~
~~Research Model Services~~ ⁽¹⁾	~~Safety Assessment~~	~~Avian Vaccine Services~~
		~~Biologics Testing Solutions~~



~~Research Models and Services~~	~~Preclinical Services~~
~~Research Models~~ ⁽³⁾	~~Discovery Services~~
~~Research Model Services~~ ⁽⁴⁾	~~Safety Assessment~~
~~Endotoxin and Microbial Detection~~	~~Biologics Testing Solutions~~



	Payments Due by Period
	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years
	(in millions)
Notes payable ⁽¹⁾	$	753.8	$	31.7	$	115.5	$	606.6	$	—
Operating leases ⁽²⁾	44.9		12.1		17.2		7.8		7.8
Build-to-suit leases ⁽³⁾	68.6		2.0		5.4		5.4		55.8
Capital leases	1.0		0.2		0.8		—		—
Pension and supplemental retirement benefits ⁽⁴⁾	128.8		7.5		27.9		25.0		68.4
Redeemable noncontrolling interest ⁽⁵⁾	28.4		—		28.4		—		—
Commitment to limited partnership investments accounted for under the equity method ⁽⁶⁾	45.4		45.4		—		—		—
Contingent consideration ⁽⁷⁾	10.5		6.7		3.8		—		—
Total contractual cash obligations	$	1,081.4	$	105.6	$	199.0	$	644.8	$	132.0


⁽¹⁾	Notes payable includes the principal payments on our debt.


⁽²⁾	We lease properties and equipment for use in our operations. In addition to rent, the leases may require us to pay additional amounts for taxes, insurance, maintenance, and other operating expenses. Amounts reflected within the table detail future minimum rental commitments under non-cancellable operating leases, net of income from subleases, for each of the periods presented.


~~(4)~~	We maintain defined benefit pension plans and other postretirement benefit plans as discussed in Note 10, "Employee Benefit Plans" included in this report. In the above table we have included the discounted estimated benefit payments we


~~(5)~~	The estimated cash obligation for redeemable noncontrolling interest ~~which is exercisable by the non-controlling interest holders in 2016 at fair value,~~ is based on the ~~estimated fair value~~amount that would be paid if settlement occurred as of the ~~interest~~balance sheet date based on the contractually defined redemption value as of December ~~27, 2014.~~30, 2017.


~~(6)~~ ⁽⁴⁾	The timing of the remaining capital commitment payments to ~~limited partnership investments~~venture capital funds is subject to the procedures of the ~~general partner~~limited liability partnerships and ~~is therefore estimated by management.~~limited liability companies; the above table reflects the earliest possible date the payment can be required under the relevant agreements.





~~Consolidated Financial Statements:~~
	Report of Independent Registered Public Accounting Firm	4350
	Consolidated Statements of Income for ~~the~~ fiscal years ~~ended December 27, 2014, December 28, 2013~~2017, 2016 and ~~December 29, 2012~~ 2015	4452
	Consolidated Statements of Comprehensive Income for ~~the~~ fiscal years ~~ended December 27, 2014, December 28, 2013~~2017, 2016 and ~~December 29, 2012~~2015	4553
	Consolidated Balance Sheets as of December ~~27, 2014~~30, 2017 and December ~~28, 2013~~31, 2016	4654
	Consolidated Statements of Cash Flows for ~~the~~ fiscal years ~~ended December 27, 2014, December 28, 2013~~2017, 2016 and ~~December 29, 2012~~2015	4755
	Consolidated Statements of Changes in Equity for ~~the~~ fiscal years ~~ended December 27, 2014, December 28, 2013~~2017, 2016 and ~~December 29, 2012~~2015	4957
	Notes to Consolidated Financial Statements	5058


	Fiscal Year Ended									Fiscal Year
	December 27, 2014			December 28, 2013			December 29, 2012			2017			2016			2015
Service revenue	$	797,765		$	689,166		$	661,586		$	1,298,298		$	1,130,733		$	858,244
Product revenue	499,897			476,362			467,944			559,303			550,699			505,058
Total revenue	1,297,662			1,165,528			1,129,530			1,857,601			1,681,432			1,363,302
Costs and expenses:
Cost of services provided	558,578			497,876			479,742
Cost of products sold	266,424			272,750			257,707
Cost of services provided (excluding amortization of intangible assets)										865,618			757,732			568,227
Cost of products sold (excluding amortization of intangible assets)										289,669			277,034			263,983
Selling, general and administrative	269,033			225,695			208,248			373,446			367,548			300,414
Amortization of intangible assets	25,957			17,806			18,068			41,370			41,699			24,229
Operating income	177,670			151,401			165,765			287,498			237,419			206,449
Other income (expense):
Interest income	1,154			730			589			690			1,314			1,043
Interest expense	(11,950		)	(20,969		)	(33,342		)	(29,777		)	(27,709		)	(15,072		)
Other income (expense), net	10,721			7,165			(3,266		)
Other income, net										38,544			11,897			3,008
Income from continuing operations, before income taxes	177,595			138,327			129,746			296,955			222,921			195,428
Provision for income taxes	47,671			32,911			27,628			171,369			66,835			43,391
Income from continuing operations, net of income taxes	129,924			105,416			102,118			125,586			156,086			152,037
Loss from discontinued operations, net of income taxes	(1,726		)	(1,265		)	(4,252		)
Income (loss) from discontinued operations, net of income taxes										(137		)	280			(950		)
Net income	128,198			104,151			97,866			125,449			156,366			151,087
Less: Net income attributable to noncontrolling interests	(1,500		)	(1,323		)	(571		)	2,094			1,601			1,774
Net income attributable to common shareholders	$	126,698		$	102,828		$	97,295		$	123,355		$	154,765		$	149,313
Earnings (loss) per common share
Basic:
Continuing operations attributable to common shareholders	$	2.76		$	2.18		$	2.12		$	2.60		$	3.28		$	3.23
Discontinued operations	$	(0.04	)	$	(0.03	)	$	(0.09	)	$	—		$	0.01		$	(0.02	)
Net income attributable to common shareholders	$	2.72		$	2.15		$	2.03		$	2.60		$	3.29		$	3.21
Diluted:
Continuing operations attributable to common shareholders	$	2.70		$	2.15		$	2.10		$	2.54		$	3.22		$	3.15
Discontinued operations	$	(0.04	)	$	(0.03	)	$	(0.09	)	$	—		$	0.01		$	(0.02	)
Net income attributable to common shareholders	$	2.66		$	2.12		$	2.01		$	2.54		$	3.23		$	3.13














See Notes to Consolidated Financial Statements.										See Notes to Consolidated Financial Statements.


	Redeemable Noncontrolling Interest			Common Stock			Additional Paid-In Capital				Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)				Treasury Stock					Total Equity Attributable to Common Shareholders			Noncontrolling Interest				Total Equity			Common stock			Additional Paid-In Capital			Retained Earnings (Accumulated Deficit)				Accumulated Other Comprehensive Income (Loss)			Treasury Stock						Total Equity Attributable to Common Shareholders				Noncontrolling Interest			Total Equity
	Redeemable Noncontrolling Interest			Shares	Amount					Shares				Accumulated Other Comprehensive Income (Loss)			Amount					Shares	Total Equity Attributable to Common Shareholders			Noncontrolling Interest			Amount						Shares	Additional Paid-In Capital		Amount														Total Equity Attributable to Common Shareholders				Noncontrolling Interest			Total Equity
December 31, 2011	$	—		78,474	$	785	Additional Paid-In Capital			$	Accumulated Deficit	2,056,921		$	(465,596	)		$	4,593		29,598		$	(1,071,120	)	$	525,583			Total Equity		$	1,780	$	527,363
Components of comprehensive income, net of income taxes:
December 27, 2014																																	84,503	$	845	$	2,307,640		Retained Earnings (Accumulated Deficit)		$	(138,775	Accumulated Other Comprehensive Income (Loss)		)	$	(74,247	)		37,176		$	(1,423,260	)		$	672,203		$	3,724		$	675,927
Net income	—			—	—		—				97,295			—				—		—			97,295			571				97,866			—	—		—			149,313				—			—			—			149,313				936			150,249
Other comprehensive income	—			—	—		—				—			2,010				—		—			2,010			44				2,054
Total comprehensive income	—																						99,305			615				99,920
Tax benefit associated with stock issued under employee compensation plans	—			—	—		125				—			—				—		—			125			—				125
Issuance of stock under employee compensation plans	—			1,134	11		18,415				—			—				—		—			18,426			—				18,426
Acquisition of treasury shares	—			—	—		—				—			—				1,790		(64,489		)	(64,489		)	—				(64,489		)
Stock-based compensation	—			—	—		21,855				—			—				—		—			21,855			—				21,855
December 29, 2012	—			79,608	796		2,097,316				(368,301		)	6,603				31,388		(1,135,609		)	600,805			2,395				603,200
Components of comprehensive income, net of income taxes:
Net income	687			—	—		—				102,828			—				—		—			102,828			636				103,464
Other comprehensive income (loss)	367			—	—		—				—			(1,246		)		—		—			(1,246		)	62				(1,184		)
Total comprehensive income	1,054																						101,582			698				102,280
Redeemable noncontrolling interest acquired in business acquisition	8,963			—	—		—				—			—				—		—			—			—				—
Other comprehensive loss																																	—	—		—			—				(61,301		)	—			—			(61,301		)		(171		)	(61,472		)
Adjustment of redeemable noncontrolling interest to fair value	10,564			—	—		(10,564		)		—			—				—		—			(10,564		)	—				(10,564		)	—	—		183			—				—			—			—			183				—			183
Tax benefit associated with stock issued under employee compensation plans	—			—	—		1,069				—			—				—		—			1,069			—				1,069			—	—		10,608			—				—			—			—			10,608				—			10,608
Issuance of stock under employee compensation plans	—			2,915	29		93,792				—			—				—		—			93,821			—				93,821			961	10		39,407			—				—			—			—			39,417				—			39,417
Acquisition of treasury shares	—			—	—		—				—			—				3,581		(170,271		)	(170,271		)	—				(170,271		)	—	—		—			—				—			1,590			(117,478		)	(117,478		)		—			(117,478		)
Stock-based compensation	—			—	—		24,542				—			—				—		—			24,542			—				24,542			—	—		40,122			—				—			—			—			40,122				—			40,122
December 28, 2013	20,581			82,523	825		2,206,155				(265,473		)	5,357				34,969		(1,305,880		)	640,984			3,093				644,077
Components of comprehensive income, net of income taxes:
December 26, 2015																																	85,464	855		2,397,960			10,538				(135,548		)	38,766			(1,540,738		)	733,067				4,489			737,556
Net income	855			—	—		—				126,698			—				—		—			126,698			645				127,343			—	—		—			154,765				—			—			—			154,765				924			155,689
Other comprehensive loss	(442		)	—	—		—				—			(79,604		)		—		—			(79,604		)	(14		)		(79,618		)	—	—		—			—				(118,216		)	—			—			(118,216		)		(154		)	(118,370		)
Total comprehensive income	413																						47,094			631				47,725
Dividends declared to noncontrolling interest																																	—	—		—			—				—			—			—			—				(2,902		)	(2,902		)
Adjustment of redeemable noncontrolling interest to fair value	7,425			—	—		(7,425		)		—			—				—		—			(7,425		)	—				(7,425		)	—	—		1,690			—				—			—			—			1,690				—			1,690
Purchase of additional equity in redeemable noncontrolling interest																																	—	—		1,593			—				—			—			—			1,593				—			1,593
Tax benefit associated with stock issued under employee compensation plans	—			—	—		4,301				—			—				—		—			4,301			—				4,301			—	—		9,274			—				—			—			—			9,274				—			9,274
Issuance of stock under employee compensation plans	—			1,980	20		73,574				—			—				—		—			73,594			—				73,594			837	8		23,212			—				—			—			—			23,220				—			23,220
Acquisition of treasury shares	—			—	—		—				—			—				2,207		(117,380		)	(117,380		)	—				(117,380		)	—	—		—			—				—			172			(12,267		)	(12,267		)		—			(12,267		)
Stock-based compensation	—			—	—		31,035				—			—				—		—			31,035			—				31,035			—	—		43,642			—				—			—			—			43,642				—			43,642
December 27, 2014	$	28,419		84,503	$	845	$	2,307,640			$	(138,775	)	$	(74,247	)		37,176		$	(1,423,260	)	$	672,203		$	3,724			$	675,927
December 31, 2016																																	86,301	863		2,477,371			165,303				(253,764		)	38,938			(1,553,005		)	836,768				2,357			839,125
Net income																																	—	—		—			123,355				—			—			—			123,355				1,179			124,534
Other comprehensive income																																	—	—		—			—				109,033			—			—			109,033				—			109,033
Dividends declared to noncontrolling interest																																	—	—		—			—				—			—			—			—				(1,209		)	(1,209		)
Issuance of stock under employee compensation plans																																	1,194	12		38,818			—				—			—			—			38,830			��	—			38,830
Acquisition of treasury shares																																	—	—		—			—				—			1,155			(106,909		)	(106,909		)		—			(106,909		)
Stock-based compensation																																	—	—		44,003			—				—			—			—			44,003				—			44,003
December 30, 2017																																	87,495	$	875	$	2,560,192		$	288,658			$	(144,731	)	40,093			$	(1,659,914	)	$	1,045,080			$	2,327		$	1,047,407




See Notes to Consolidated Financial Statements.																																	See Notes to Consolidated Financial Statements.



Research Models and ~~Services~~	~~Discovery and Safety Assessment~~	~~Manufacturing Support~~
~~Research Models~~	~~Discovery Services~~ ⁽²⁾	~~Endotoxin and Microbial Detection (EMD)~~
~~Research Model Services~~ ⁽¹⁾	~~Safety Assessment~~	~~Avian Vaccine Services~~
		~~Biologics Testing Solutions~~



	Estimated ~~useful lives~~Useful Lives
	(in years)
Land	Indefinite
Buildings	20 - 40
Machinery and equipment	3 - 20
Furniture and fixtures	5 - 10
Computer hardware and software	3 - 8
Vehicles	3 - 5
~~Leasehold improvements~~	~~Lesser of useful life or lease term~~



	October 29, 2014
	(in thousands)
Current assets (excluding cash)	4,648
Property, plant and equipment	1,579
Definite-lived intangible assets	23,920
Goodwill	34,927
Current liabilities	(3,515		)
Long-term liabilities	(9,486		)
Total purchase price allocation	$	52,073



	October 29, 2014		Weighted average amortization life
	(in thousands)		(in years)
Client relationships	$	19,000	13
Other intangible assets	4,920		9
Total definite-lived intangible assets	$	23,920


	April 1, 2014			August 4, 2017
	(in thousands)			(in thousands)
Current assets (excluding cash)	$	31,257
Trade receivables (contractual amount of $1,146)				$	1,146
Other current assets (excluding cash)				640
Property, plant and equipment	21,008			664
Other long-term assets	11,549			29
Definite-lived intangible assets	104,270			9,300
Goodwill	66,330			11,762
Current liabilities	(14,299		)	(863		)
Deferred revenue				(405		)
Long-term liabilities	(36,973		)	(2,151		)
Total purchase price allocation	$	183,142		$	20,122


	April 1, 2014		Weighted average amortization life	Definite-Lived Intangible Assets		Weighted Average Amortization Life
	(in thousands)		(in years)	(in thousands)		(in years)
Client relationships	$	94,000	18	$	7,000	13
Backlog	5,700		1
Trademark and trade names	1,170		3
Leasehold interests	1,000		13
Other intangible assets	2,400		19	2,300		10
Total definite-lived intangible assets	$	104,270		$	9,300	12



	September 28, 2016
	(in thousands)
Trade receivables (contractual amount of $4,799)	$	4,799
Other current assets (excluding cash)	794
Property, plant and equipment	3,907
Other long-term assets	11
Definite-lived intangible assets	21,900
Goodwill	44,517
Current liabilities	(3,812		)
Long-term liabilities	(10,091		)
Total purchase price allocation	$	62,025



	June 27, 2016
	(in thousands)
Trade receivables (contractual amount of $1,104)	$	1,104
Other current assets (excluding cash)	15
Property, plant and equipment	912
Other long-term assets	187
Definite-lived intangible assets	1,230
Goodwill	10,334
Current liabilities	(1,132		)
Long-term liabilities	(901		)
Total purchase price allocation	$	11,749



	April 4, 2016
	(in thousands)
Trade receivables (contractual amount of $48,625)	$	48,157
Inventories	2,296
Other current assets (excluding cash)	3,814
Property, plant and equipment	129,066
Other long-term assets	1,060
Definite-lived intangible assets	164,800
Goodwill	330,175
Deferred revenue	(39,103		)
Other current liabilities	(27,386		)
Long-term liabilities	(35,488		)
Total purchase price allocation	$	577,391



Assets
Current assets	$	5,505
Property, plant and equipment, net	11,174
Goodwill	35,857
Long-term assets	17,154
Total assets	$	69,690
Liabilities
Deferred revenue	$	4,878
Other current liabilities	1,158
Total liabilities	$	6,036


	October 4, 2013			November 18, 2015
	(in thousands)			(in thousands)
Current assets (excluding cash)	$	300
Trade receivables (contractual amount of $3,546)				$	3,520
Inventories				129
Other current assets (excluding cash)				706
Property, plant and equipment	154			2,528
Definite-lived intangible assets	1,885			13,330
Goodwill	2,659			22,894
Other long-term assets				250
Current liabilities	(64		)	(3,456		)
Long-term liabilities				(4,470		)
Total purchase price allocation	$	4,934		$	35,431

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