Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 27, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-15943 | |
Entity Registrant Name | CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1397316 | |
Entity Address, Address Line One | 251 Ballardvale Street | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01887 | |
City Area Code | 781 | |
Local Phone Number | 222-6000 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | CRL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,511,687 | |
Entity Central Index Key | 0001100682 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Total revenue | $ 1,011,560 | $ 1,029,373 |
Costs and expenses: | ||
Cost of revenue (excluding amortization of intangible assets) | 666,717 | 651,719 |
Selling, general and administrative | 186,291 | 174,846 |
Amortization of intangible assets | 32,575 | 34,916 |
Operating income | 125,977 | 167,892 |
Other income (expense): | ||
Interest income | 2,202 | 806 |
Interest expense | (35,001) | (34,380) |
Other income (expense), net | 5,833 | (3,277) |
Income before income taxes | 99,011 | 131,041 |
Provision for income taxes | 24,529 | 27,087 |
Net income | 74,482 | 103,954 |
Less: Net income attributable to noncontrolling interests | 1,522 | 823 |
Net income available to Charles River Laboratories International, Inc. | 72,960 | 103,131 |
Preferred Stock Dividends and Other Adjustments [Abstract] | ||
Net income available to Charles River Laboratories International, Inc. | 72,960 | 103,131 |
Less: Adjustment of redeemable noncontrolling interest | 401 | 0 |
Less: Incremental dividends attributable to noncontrolling interest holders | 5,230 | 0 |
Net income available to Charles River Laboratories International, Inc. common shareholders | $ 67,329 | $ 103,131 |
Net income attributable to common shareholders: | ||
Basic (in dollars per share) | $ 1.31 | $ 2.02 |
Diluted (in dollars per share) | $ 1.30 | $ 2.01 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 51,437 | 51,097 |
Diluted (in shares) | 51,842 | 51,428 |
Cost of services provided (excluding amortization of intangible assets) | ||
Total revenue | $ 816,862 | $ 857,366 |
Costs and expenses: | ||
Cost of revenue (excluding amortization of intangible assets) | 578,164 | 565,477 |
Cost of products sold (excluding amortization of intangible assets) | ||
Total revenue | 194,698 | 172,007 |
Costs and expenses: | ||
Cost of revenue (excluding amortization of intangible assets) | $ 88,553 | $ 86,242 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 74,482 | $ 103,954 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (62,840) | 23,313 |
Amortization of net loss, settlement losses, and prior service benefit included in total cost for pension and other post-retirement benefit plans | 344 | 170 |
Unrealized gains (losses) on hedging instruments | 768 | (1,402) |
Other comprehensive income (loss), before income taxes | (61,728) | 22,081 |
Less: Income tax benefit related to items of other comprehensive income | (5,473) | (1,038) |
Comprehensive income, net of income taxes | 18,227 | 127,073 |
Less: Comprehensive income (loss) related to noncontrolling interests, net of income taxes | (1,241) | 1,009 |
Comprehensive income attributable to Charles River Laboratories International, Inc., net of income taxes | $ 19,468 | $ 126,064 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 327,039 | $ 276,771 |
Trade receivables and contract assets, net of allowances for credit losses of $25,407 and $25,722, respectively | 786,980 | 780,375 |
Inventories | 361,281 | 380,259 |
Prepaid assets | 93,834 | 87,879 |
Other current assets | 99,054 | 83,378 |
Total current assets | 1,668,188 | 1,608,662 |
Property, plant and equipment, net | 1,618,708 | 1,639,741 |
Venture capital and strategic equity investments | 243,543 | 243,811 |
Operating lease right-of-use assets, net | 384,394 | 394,029 |
Goodwill | 3,070,241 | 3,095,045 |
Intangible assets, net | 827,638 | 864,051 |
Deferred tax assets | 36,924 | 40,279 |
Other assets | 303,147 | 309,383 |
Total assets | 8,152,783 | 8,195,001 |
Current liabilities: | ||
Accounts payable | 129,682 | 168,937 |
Accrued compensation | 189,606 | 213,290 |
Deferred revenue | 256,383 | 241,820 |
Accrued liabilities | 190,892 | 227,825 |
Other current liabilities | 188,247 | 203,210 |
Total current liabilities | 954,810 | 1,055,082 |
Long-term debt, net and finance leases | 2,660,459 | 2,647,147 |
Operating lease right-of-use liabilities | 418,054 | 419,234 |
Deferred tax liabilities | 180,094 | 191,349 |
Other long-term liabilities | 235,441 | 223,191 |
Total liabilities | 4,448,858 | 4,536,003 |
Commitments and contingencies (Notes 2, 11, 13, and 15) | ||
Redeemable noncontrolling interest | 57,775 | 56,722 |
Equity: | ||
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 120,000 shares authorized; 51,552 shares issued and 51,510 shares outstanding as of March 30, 2024, and 51,338 shares issued and outstanding as of December 30, 2023 | 515 | 513 |
Additional paid-in capital | 1,939,413 | 1,905,578 |
Retained earnings | 1,959,777 | 1,887,218 |
Treasury stock, at cost, 42 and zero shares, as of March 30, 2024 and December 30, 2023, respectively | (9,351) | 0 |
Accumulated other comprehensive loss | (249,919) | (196,427) |
Total Charles River Laboratories International, Inc. equity | 3,640,435 | 3,596,882 |
Nonredeemable noncontrolling interests | 5,715 | 5,394 |
Total equity | 3,646,150 | 3,602,276 |
Total liabilities, noncontrolling interests and equity | $ 8,152,783 | $ 8,195,001 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Less: Allowance for credit losses | $ 25,407 | $ 25,722 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 51,552,000 | 51,338,000 |
Common stock, shares outstanding (in shares) | 51,510,000 | 51,338,000 |
Treasury stock, shares (in shares) | 42,000 | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Cash flows relating to operating activities | ||
Net income | $ 74,482 | $ 103,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 85,357 | 77,069 |
Stock-based compensation | 16,738 | 13,460 |
Deferred income taxes | (987) | (11,584) |
Long-lived asset impairment charges | 5,432 | 10,460 |
(Gain) loss on venture capital and strategic equity investments, net | (5,880) | 3,282 |
Provision for credit losses | 839 | 3,238 |
Other, net | 1,999 | 1,448 |
Changes in assets and liabilities: | ||
Trade receivables and contract assets, net | (17,281) | (33,831) |
Inventories | 5,600 | (8,587) |
Accounts payable | (8,541) | (41,313) |
Accrued compensation | (20,945) | (21,469) |
Deferred revenue | 19,957 | (481) |
Customer contract deposits | 6,140 | 1,509 |
Other assets and liabilities, net | (33,022) | 12,228 |
Net cash provided by operating activities | 129,888 | 109,383 |
Cash flows relating to investing activities | ||
Acquisition of businesses and assets, net of cash acquired | 0 | (50,166) |
Capital expenditures | (79,144) | (106,875) |
Purchases of investments and contributions to venture capital investments | (13,867) | (12,570) |
Proceeds from sale of investments | 7,502 | 1,953 |
Other, net | (283) | (960) |
Net cash used in investing activities | (85,792) | (168,618) |
Cash flows relating to financing activities | ||
Proceeds from long-term debt and revolving credit facility | 300,882 | 192,500 |
Proceeds from exercises of stock options | 21,505 | 11,792 |
Payments on long-term debt, revolving credit facility, and finance lease obligations | (292,482) | (157,328) |
Purchase of treasury stock | (9,351) | (19,012) |
Payments of contingent consideration | 0 | (2,711) |
Other, net | (2,208) | 0 |
Net cash provided by financing activities | 18,346 | 25,241 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (8,387) | 1,671 |
Net change in cash, cash equivalents, and restricted cash | 54,055 | (32,323) |
Cash, cash equivalents, and restricted cash, beginning of period | 284,480 | 241,214 |
Cash, cash equivalents, and restricted cash, end of period | $ 338,535 | $ 208,891 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Total Charles River Laboratories, Inc. Equity | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest |
Beginning balance at Dec. 31, 2022 | $ 42,427 | |||||||
Increase (Decrease) in Temporary Equity | ||||||||
Net income | 322 | |||||||
Other comprehensive (loss), net of tax | 186 | |||||||
Ending balance at Apr. 01, 2023 | 42,935 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 50,944 | |||||||
Beginning balance at Dec. 31, 2022 | 2,981,078 | $ 2,976,293 | $ 509 | $ 1,804,940 | $ 1,432,901 | $ (262,057) | $ 0 | $ 4,785 |
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 103,632 | 103,131 | 103,131 | 501 | ||||
Other comprehensive (loss), net of tax | 22,933 | 22,933 | 22,933 | |||||
Adjustment of redeemable noncontrolling interests to redemption value | 0 | |||||||
Issuance of stock under employee compensation plans (in shares) | 316 | |||||||
Issuance of stock under employee compensation plans | 11,792 | 11,792 | $ 3 | 11,789 | ||||
Purchase of treasury shares (in shares) | 78 | |||||||
Purchase of treasury shares | (19,012) | (19,012) | $ (19,012) | |||||
Stock-based compensation | 13,460 | 13,460 | 13,460 | |||||
Ending balance (in shares) at Apr. 01, 2023 | 51,260 | |||||||
Ending balance at Apr. 01, 2023 | 3,113,883 | 3,108,597 | $ 512 | 1,830,189 | 1,536,032 | (239,124) | $ (19,012) | 5,286 |
Ending balance (in shares) at Apr. 01, 2023 | 78 | |||||||
Beginning balance at Dec. 30, 2023 | 56,722 | |||||||
Increase (Decrease) in Temporary Equity | ||||||||
Net income | 1,201 | |||||||
Other comprehensive (loss), net of tax | (2,763) | |||||||
Adjustment of redeemable noncontrolling interests to redemption value | 4,807 | |||||||
Dividends to noncontrolling interests | (2,192) | |||||||
Ending balance at Mar. 30, 2024 | $ 57,775 | |||||||
Beginning balance (in shares) at Dec. 30, 2023 | 51,338 | 51,338 | ||||||
Beginning balance at Dec. 30, 2023 | $ 3,602,276 | 3,596,882 | $ 513 | 1,905,578 | 1,887,218 | (196,427) | $ 0 | 5,394 |
Beginning balance (in shares) at Dec. 30, 2023 | 0 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | $ 73,281 | 72,960 | 72,960 | 321 | ||||
Other comprehensive (loss), net of tax | (53,492) | (53,492) | (53,492) | |||||
Adjustment of redeemable noncontrolling interests to redemption value | (4,807) | (4,807) | (4,406) | (401) | ||||
Dividends to noncontrolling interests | 0 | |||||||
Issuance of stock under employee compensation plans (in shares) | 214 | |||||||
Issuance of stock under employee compensation plans | 21,505 | 21,505 | $ 2 | 21,503 | ||||
Purchase of treasury shares (in shares) | 42 | |||||||
Purchase of treasury shares | (9,351) | (9,351) | $ (9,351) | |||||
Stock-based compensation | $ 16,738 | 16,738 | 16,738 | |||||
Ending balance (in shares) at Mar. 30, 2024 | 51,510 | 51,552 | ||||||
Ending balance at Mar. 30, 2024 | $ 3,646,150 | $ 3,640,435 | $ 515 | $ 1,939,413 | $ 1,959,777 | $ (249,919) | $ (9,351) | $ 5,715 |
Ending balance (in shares) at Mar. 30, 2024 | 42 | 42 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The year-end condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal year 2023. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Newly Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures (Topic 280)”. ASU 2023-07 modifies reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses categorized as significant or regularly provided to the Chief Operating Decision Maker (CODM). In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures in the annual consolidated financial statements, but does not believe there will be a material impact. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate. This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures on the consolidated financial statements. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for fiscal year 2023. Consolidation The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its unaudited condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Redeemable noncontrolling interests, where the noncontrolling interest holders have the ability to require the Company to purchase the remaining interests, are classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. Intercompany balances and transactions are eliminated in consolidation. The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end. Segment Reporting The Company reports its results in three reportable segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The Company’s RMS reportable segment includes the Research Models, Research Model Services, and Cell Solutions businesses. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of clients’ research operations (including recruitment, training, staffing, and management services) within the clients’ facilities and utilizing the Charles River Accelerator and Development Lab (CRADL™) offering, which provides vivarium space to clients, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models, and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models; and Cell Solutions, which supplies controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow. The Company’s DSA reportable segment includes two businesses: Discovery Services and Safety Assessment. The Company provides regulated and non-regulated DSA services to support the research, development, and regulatory-required safety testing of potential new drugs, including therapeutic discovery and optimization plus in vitro and in vivo studies, laboratory support services, and strategic non-clinical consulting and program management to support product development. The Company’s Manufacturing reportable segment includes Microbial Solutions, which provides in vitro |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Fiscal 2023 Acquisition Noveprim Group On November 30, 2023, the Company completed the acquisition of an additional 41% equity interest of Noveprim Group (Noveprim), a leading supplier of non-human primates (NHPs) located in Mauritius, resulting in a 90% controlling interest. The Company had previously acquired a 49% equity interest in 2022 for $90.0 million plus additional contingent payments up to $5.0 million based on future performance. The total consideration allocable to the Noveprim acquisition is $374.8 million, which includes $144.6 million additional cash paid for the 41% equity interest, elimination of historical activity and intercompany balances of $198.8 million which includes a remeasurement gain on the 49% equity investment of $103.2 million, contingent consideration of $33.3 million, deferred purchase price of $12.0 million payable from 2024 through 2027, offset by estimated post-closing adjustments for working capital of $13.8 million. The contingent consideration fair value is estimated using a Monte Carlo Simulation model and the maximum contingent contractual payments are up to $55.0 million based on future performance and milestone achievements in fiscal years 2023 through 2025. The Company has the call option right to purchase the remaining 10% equity interest up until one month after the sixth anniversary of closing the 41% equity interest. On the first anniversary of the expiration of the call option, a 12-month put option will be triggered giving the seller the right to require the Company to acquire the remaining shares of the seller. The redemption price for the call/put is fixed and ranges from $47.0 million to $54.0 million depending on when exercised. The noncontrolling interest is classified as a redeemable noncontrolling interest in the mezzanine section of the unaudited condensed consolidated balance sheet. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment for NHPs vertically integrated into the DSA supply chain and the RMS reportable segment for those NHPs sold to third party customers. The Company incurred transaction and integration costs in connection with the acquisition of $0.2 million and $0.8 million for the three months ended March 30, 2024 and April 1, 2023, respectively, which was primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. SAMDI Tech, Inc. On January 27, 2023, the Company acquired SAMDI Tech, Inc., (SAMDI), a leading provider of high-quality, label-free high-throughput screening (HTS) solutions for drug discovery research. The acquisition of SAMDI will provide clients with seamless access to the premier, label-free HTS MS platform and create a comprehensive, library of drug discovery solutions. The purchase price of SAMDI was $62.8 million, net of $0.4 million in cash, inclusive of a 20% strategic equity interest previously owned by the Company of $12.6 million. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment. The Company did not incur material transaction and integration costs in connection with the acquisition for the three months ended March 30, 2024 and April 1, 2023. Purchase price information The purchase price allocation was as follows: Noveprim Group (1) SAMDI Tech, Inc. November 30, 2023 January 27, 2023 (in thousands) Trade receivables $ 1,308 $ 513 Inventories 66,500 — Other current assets (excluding cash) 3,467 75 Property, plant and equipment 35,831 593 Operating lease right-of-use asset, net 104 — Goodwill (2) 172,846 37,129 Definite-lived intangible assets 9,500 33,070 Other long-term assets (3) 167,907 6 Deferred revenue — (43) Other current liabilities (16,378) (351) Operating lease right-of-use liabilities (Long-term) (97) — Deferred tax liabilities (12,984) (8,191) Other long-term liabilities (7,796) — Redeemable noncontrolling interest (4) (45,374) — Total purchase price allocation $ 374,834 $ 62,801 (1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts, obligations, and finalization of any working capital adjustments. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. (2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses or synergies to be realized from acquiring an internal supplier servicing the DSA business and the assembled workforce of the acquirees, thus is not deductible for tax purposes. (3) Other long-term assets acquired from the Noveprim acquisition include $167.8 million of biological assets, which will be amortized over an estimated eight (4) Refer to Note 12. Equity and Noncontrolling Interests for further a description of the 10% noncontrolling interest fair value. The definite-lived intangible assets acquired were as follows: Noveprim Group SAMDI Tech, Inc. Definite-Lived Intangible Assets (in thousands) Client relationships $ — $ 23,400 Other intangible assets 9,500 9,670 Total definite-lived intangible assets $ 9,500 $ 33,070 Weighted Average Amortization Life (in years) Client relationships — 15 Other intangible assets 7 7 Total definite-lived intangible assets 7 12 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table disaggregates the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 97,049 $ 93,639 Services and products transferred at a point in time 123,858 106,127 Total RMS revenue 220,907 199,766 DSA Services and products transferred over time 604,125 661,836 Services and products transferred at a point in time 1,327 517 Total DSA revenue 605,452 662,353 Manufacturing Services and products transferred over time 100,058 86,086 Services and products transferred at a point in time 85,143 81,168 Total Manufacturing revenue 185,201 167,254 Total revenue $ 1,011,560 $ 1,029,373 Contract Balances from Contracts with Customers The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: March 30, 2024 December 30, 2023 (in thousands) Assets from contracts with customers Client receivables $ 590,594 $ 578,077 Unbilled revenue 221,793 228,020 Total 812,387 806,097 Less: Allowance for credit losses (25,407) (25,722) Trade receivables and contract assets, net $ 786,980 $ 780,375 Liabilities from contracts with customers Current deferred revenue $ 256,383 $ 241,820 Long-term deferred revenue (included in Other long-term liabilities) 32,448 30,919 Customer contract deposits (included in Other current liabilities) 90,589 85,554 Approximately 70% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the three months ended March 30, 2024. Approximately 70% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the three months ended April 1, 2023. Approximately 60% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the three months ended March 30, 2024. Approximately 65% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the three months ended April 1, 2023. When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $52 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of March 30, 2024 and December 30, 2023, respectively. Allowance for Credit Losses The following is a summary of the activity of the Company’s allowance for credit losses: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 25,722 $ 11,278 Additions 934 5,731 Deductions (1,249) (315) Ending balance $ 25,407 $ 16,694 Net provisions were $0.8 million and $3.2 million during the three months ended March 30, 2024 and April 1, 2023, respectively and include recoveries of balances previously written off, which are excluded from the table above. Transaction Price Allocated to Future Performance Obligations The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 30, 2024. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases”. The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of March 30, 2024 was $920.5 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term. Other Performance Obligation s As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year. Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Affected Line Item in the Unaudited Condensed Consolidated Statements of Income Lease revenue $ 20,974 $ 24,090 Service revenue |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company operates in three reportable segments, RMS, DSA and Manufacturing. Asset information on a reportable segment basis is not disclosed as this information is not separately identified and internally reported to the Company’s Chief Operating Decision Maker (CODM). The following table presents the results of operations by reportable segment: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) RMS Revenue $ 220,907 $ 199,766 Cost of revenue (excluding amortization of intangible assets) 140,925 126,804 Selling, general and administrative 30,893 27,058 Amortization of intangible assets 5,940 5,495 Operating income $ 43,149 $ 40,409 DSA Revenue $ 605,452 $ 662,353 Cost of revenue (excluding amortization of intangible assets) 417,912 411,523 Selling, general and administrative 56,859 61,998 Amortization of intangible assets 15,842 17,401 Operating income $ 114,839 $ 171,431 Manufacturing Revenue $ 185,201 $ 167,254 Cost of revenue (excluding amortization of intangible assets) 107,880 113,392 Selling, general and administrative 32,847 39,736 Amortization of intangible assets 10,793 12,020 Operating income $ 33,681 $ 2,106 Unallocated Corporate Selling, general and administrative $ (65,692) $ (46,054) Operating income (1) $ (65,692) $ (46,054) Consolidated Revenue $ 1,011,560 $ 1,029,373 Cost of revenue (excluding amortization of intangible assets) 666,717 651,719 Selling, general and administrative 186,291 174,846 Amortization of intangible assets 32,575 34,916 Operating income $ 125,977 $ 167,892 (1) Operating income for unallocated corporate consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. Capital expenditures and depreciation and amortization (related to both intangible assets and certain assets acquired in business combinations) by reportable segment are as follows: RMS DSA Manufacturing Unallocated Corporate Consolidated (in thousands) Capital Expenditures Three Months Ended: March 30, 2024 $ 20,044 $ 48,959 $ 8,862 $ 1,279 $ 79,144 April 1, 2023 19,084 65,184 21,738 869 106,875 Depreciation and amortization Three Months Ended: March 30, 2024 $ 18,123 $ 45,789 $ 19,805 $ 1,640 $ 85,357 April 1, 2023 13,489 42,450 20,084 1,046 77,069 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: March 30, 2024 $ 562,317 $ 276,319 $ 110,401 $ 45,772 $ 16,751 $ 1,011,560 April 1, 2023 605,441 267,703 110,606 42,813 2,810 1,029,373 Included in the Other category above are operations located in Brazil, Israel, and Mauritius. Revenue represents sales originating in entities physically located in the identified geographic area. Long-lived assets by geographic area are as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Long-lived assets March 30, 2024 $ 954,225 $ 404,657 $ 153,443 $ 71,076 $ 35,307 $ 1,618,708 December 30, 2023 964,176 407,375 157,483 74,605 36,102 1,639,741 Long-lived assets consist of property, plant, and equipment, net. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 30, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Cash paid for income taxes $ 18,728 $ 13,618 Cash paid for interest 38,258 36,807 Non-cash investing activities: Purchases of Property, plant and equipment included in Accounts payable and Accrued liabilities $ 23,911 $ 43,116 Assets acquired under finance leases 3,159 — Cash, cash equivalents and restricted cash is included in the accompanying unaudited balance sheet as follows: March 30, 2024 December 30, 2023 (in thousands) Supplemental cash flow information: Cash and cash equivalents $ 327,039 $ 276,771 Restricted cash included in Other current assets 10,327 5,803 Restricted cash included in Other assets 1,169 1,906 Cash, cash equivalents, and restricted cash, end of period $ 338,535 $ 284,480 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventories The composition of inventories is as follows: March 30, 2024 December 30, 2023 (in thousands) Raw materials and supplies $ 44,603 $ 42,296 Work in process 43,252 59,727 Finished products 273,426 278,236 Inventories $ 361,281 $ 380,259 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | PROPERTY, PLANT AND EQUIPMENT, NET The composition of property, plant and equipment, net is as follows: March 30, 2024 December 30, 2023 (in thousands) Land $ 78,852 $ 79,546 Buildings (1) 1,033,150 1,053,915 Machinery and equipment (1) 985,006 984,867 Leasehold improvements 348,558 366,556 Furniture and fixtures 30,712 31,284 Computer hardware and software (1) 254,018 254,413 Vehicles (1) 6,974 6,746 Construction in progress 245,826 197,723 Total 2,983,096 2,975,050 Less: Accumulated depreciation (1,364,388) (1,335,309) Property, plant and equipment, net $ 1,618,708 $ 1,639,741 (1) These balances include assets under finance leases. Depreciation expense in the three months ended March 30, 2024 and April 1, 2023 was $45.7 million and $42.2 million, respectively. |
VENTURE CAPITAL AND STRATEGIC E
VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS | VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS Venture capital investments are summarized below: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 121,158 $ 129,012 Capital contributions 3,829 3,214 Distributions (9,353) (7,217) Gains (losses) 8,174 (6,848) Foreign currency translation (100) 260 Ending balance $ 123,708 $ 118,421 The Company also invests, with minority positions, directly in equity of predominantly privately held companies. Strategic investments are summarized below: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 122,653 $ 182,590 Purchase of investments — 9,266 Distributions — (4,146) Gain (loss) (2,294) 3,566 Reduction for acquisition of entity (1) — (12,635) Foreign currency translation (524) (3,275) Ending balance $ 119,835 $ 175,366 (1) Refer to Note 2. Acquisitions for further discussion on the SAMDI acquisition. |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Assets and liabilities measured at fair value on a recurring basis are summarized below: March 30, 2024 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Cash equivalents $ — $ 29 $ — $ 29 Term deposit — 10,068 — 10,068 Other assets: Life insurance policies — 44,617 — 44,617 Interest rate swap — 1,734 — 1,734 Total assets measured at fair value $ — $ 56,448 $ — $ 56,448 Other long-term liabilities measured at fair value: Contingent consideration $ — $ — $ 33,265 $ 33,265 Total liabilities measured at fair value $ — $ — $ 33,265 $ 33,265 The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the three months ended March 30, 2024, there were no transfers between levels. December 30, 2023 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Cash equivalents $ — $ 29 $ — $ 29 Other assets: Life insurance policies — 40,912 — 40,912 Interest rate swap — 966 — 966 Total assets measured at fair value $ — $ 41,907 $ — $ 41,907 Other long-term liabilities measured at fair value Contingent consideration $ — $ — $ 33,265 $ 33,265 Total liabilities measured at fair value $ — $ — $ 33,265 $ 33,265 During the year ended December 30, 2023, there were no transfers between levels. Contingent Consideration The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions. Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 33,265 $ 13,431 Payments — (2,711) Total gains or losses (realized/unrealized): Foreign currency translation — (177) Ending balance $ 33,265 $ 10,543 The Company estimates the fair value of contingent consideration obligations through valuation models, such as probability-weighted and option pricing models, which incorporate probability adjusted assumptions and simulations related to the achievement of the milestones and the likelihood of making related payments. The unobservable inputs used in the fair value measurements include the probabilities of successful achievement of certain financial targets, forecasted results or targets, volatility, and discount rates. The remaining maximum potential payments are approximately $55 million, of which the value accrued as of March 30, 2024 is $33 million as the probability of achieving the maximum target is estimated to be 60%. The volatility and weighted average cost of capital is approximately 7% and 9%, respectively. Increases or decreases in these assumptions may result in a higher or lower fair value measurement, respectively. Cash Flow Hedge The Company is exposed to market fluctuations in interest rates as well as variability in foreign exchange rates. The Company has an interest rate swap with a notional amount of $500 million maturing November 2, 2024 to manage interest rate fluctuation related to floating rate borrowings under the Credit Facility, at a fixed rate of 4.65%. Debt Instruments The book value of the Company’s revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2 within the fair value hierarchy. The book value of the Company’s Senior Notes are fixed rate obligations carried at amortized cost. Fair value is based on quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other observable outputs, it is deemed to be Level 2 within the fair value hierarchy. The book value and fair value of the Company’s Senior Notes is summarized below: March 30, 2024 December 30, 2023 Book Value Fair Value Book Value Fair Value (in thousands) 4.25% Senior Notes due 2028 $ 500,000 $ 468,750 $ 500,000 $ 478,100 3.75% Senior Notes due 2029 500,000 453,750 500,000 458,100 4.00% Senior Notes due 2031 500,000 445,000 500,000 449,350 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the Company’s goodwill: RMS DSA (1) Manufacturing Total (in thousands) December 30, 2023 $ 497,474 $ 1,662,434 $ 935,137 $ 3,095,045 Acquisitions — 497 — 497 Foreign exchange (407) (21,340) (3,554) (25,301) March 30, 2024 $ 497,067 $ 1,641,591 $ 931,583 $ 3,070,241 (1) DSA includes accumulated impairment losses of $1 billion, which were recognized in fiscal years 2008 and 2010. The decrease in goodwill during the three months ended March 30, 2024 related to foreign exchange in the DSA and Manufacturing reportable segments. Intangible Assets, Net The following table displays intangible assets, net by major class: March 30, 2024 December 30, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Client relationships $ 1,515,021 $ (739,260) $ 775,761 $ 1,528,780 $ (721,322) $ 807,458 Technology 140,982 (112,842) 28,140 142,190 (111,764) 30,426 Trademarks and trade names 11,842 (4,822) 7,020 11,878 (4,568) 7,310 Backlog 3,100 (2,485) 615 3,100 (2,177) 923 Other 43,008 (26,906) 16,102 43,611 (25,677) 17,934 Intangible assets $ 1,713,953 $ (886,315) $ 827,638 $ 1,729,559 $ (865,508) $ 864,051 The decrease in intangible assets, net during the three months ended March 30, 2024 related to normal amortization over the useful lives. Amortization expense of definite-lived intangible assets for three months ended March 30, 2024 and April 1, 2023 was $32.6 million and $34.9 million, respectively. |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER FINANCING ARRANGEMENTS | DEBT AND OTHER FINANCING ARRANGEMENTS Long-term debt, net and finance leases consists of the following: March 30, 2024 December 30, 2023 (in thousands) Revolving facility $ 1,133,000 $ 1,129,243 4.25% Senior Notes due 2028 500,000 500,000 3.75% Senior Notes due 2029 500,000 500,000 4.00% Senior Notes due 2031 500,000 500,000 Other debt 13,516 9,575 Finance leases 30,230 28,550 Total debt and finance leases 2,676,746 2,667,368 Less: Current portion of long-term debt 459 3,172 Current portion of finance leases 2,169 2,398 Current portion of long-term debt and finance leases 2,628 5,570 Long-term debt and finance leases 2,674,118 2,661,798 Debt discount and debt issuance costs (13,659) (14,651) Long-term debt, net and finance leases $ 2,660,459 $ 2,647,147 As of March 30, 2024 and December 30, 2023, the weighted average interest rate on the Company’s debt was 4.97% and 4.93%, respectively. Letters of Credit |
EQUITY AND NONCONTROLLING INTER
EQUITY AND NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
EQUITY AND NONCONTROLLING INTERESTS | EQUITY AND NONCONTROLLING INTERESTS Earnings Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Numerator: Net income $ 74,482 $ 103,954 Less: Net income attributable to noncontrolling interests 1,522 823 Net income available to Charles River Laboratories International, Inc. 72,960 103,131 Less: Adjustment of redeemable noncontrolling interest (1) 401 — Less: Incremental dividends attributable to noncontrolling interest holders (2) 5,230 — Net income available to Charles River Laboratories International, Inc. common shareholders $ 67,329 $ 103,131 Denominator: Weighted-average shares outstanding - Basic 51,437 51,097 Effect of dilutive securities: Stock options, restricted stock units and performance share units 405 331 Weighted-average shares outstanding - Diluted 51,842 51,428 Anti-dilutive common stock equivalents (3) 448 405 (1) Represents adjustments of redeemable noncontrolling interest that impact retained earnings. (2) Represents incremental undeclared dividends attributable to Noveprim noncontrolling interest holders who are entitled to preferential dividends for fiscal year 2024. (3) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. Treasury Shares The Company’s Board of Directors has authorized a $1.3 billion stock repurchase program. As of March 30, 2024, the Company had $129.1 million remaining on the authorized stock repurchase program. The Company’s stock-based compensation plans permit the netting of common stock upon vesting of RSUs and PSUs in order to satisfy individual statutory tax withholding requirements. The Company acquired shares of approximately 0.1 million in the three months ended March 30, 2024 and three months ended April 1, 2023, for $9.4 million and $19.0 million, respectively, from such netting. Accumulated Other Comprehensive Income (Loss) Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment Pension and Other Post-Retirement Benefit Plans Net Unrealized (Loss) Gain on Cash Flow Hedge Total (in thousands) December 30, 2023 $ (149,999) $ (47,167) $ 739 $ (196,427) Other comprehensive income (loss) before reclassifications (60,077) 344 768 (58,965) Net current period other comprehensive income (loss) (60,077) 344 768 (58,965) Income tax expense (benefit) (5,737) 80 184 (5,473) March 30, 2024 $ (204,339) $ (46,903) $ 1,323 $ (249,919) Redeemable Noncontrolling Interests Through March 30, 2024, the Company holds several redeemable noncontrolling interests. Since the Company has the right to purchase, and the noncontrolling interest holders have the right to require the Company to purchase the remaining interest, which represents a derivative embedded within the equity instrument, the noncontrolling interest is classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. The redeemable noncontrolling interests are measured at the greater of (i) the redemption amount or (ii) the historical value resulting from the original acquisition date fair value, increased or decreased for the noncontrolling interest’s share of net income (loss), equity capital contributions and distributions. The fair value of the redeemable noncontrolling interest is determined using the income approach, with key assumptions being projected cash flows and discount rates based on market participant’s weighted average cost of capital. To the extent redemption value exceeds carrying value, adjustments are recorded to additional paid-in capital, with any cumulative excess of redemption value over fair value recorded in retained earnings, which impacts net income available to common shareholders used in the calculation of earnings per common share. Noveprim The Company holds a 90% ownership interest in Noveprim. The Company has the right to purchase, and the noncontrolling interest holders have the right to sell, the remaining 10% equity interest at a fixed redemption value that ranges from $47.0 million to $54.0 million depending on when exercised. The Company has the call option right to purchase the remaining 10% equity up until one month after the sixth anniversary of closing the 41% equity stake (December 2029). On the first anniversary of the expiration of the call option (December 2030), a 12-month put option will be triggered giving the seller the right to require the Company to acquire the remaining shares of the seller for $54.0 million. Additionally, the 10% noncontrolling interest holders may receive a dividend disproportionate to their equity ownership, of which the fair value of $8 million as of the acquisition date was recorded within the redeemable noncontrolling interest. Through March 30, 2024, incremental dividends based on Noveprim statutory net income attributed to the redeemable noncontrolling interest holders of $5.2 million reduced net income available to common shareholders used in the calculation of earnings per common share. The redemption value is accreted to the put purchase price of $54.0 million using the interest method through December 2030. As of March 30, 2024, the redemption value of $45.8 million exceeded both the carrying value and fair value, resulting in both an adjustment to additional paid in capital of $1.7 million and an adjustment to retained earnings of $0.4 million, respectively. Other redeemable noncontrolling interest In 2019, the Company acquired an 80% equity interest in a subsidiary, which included a 20% redeemable noncontrolling interest. In June 2022, the Company purchased an additional 10% interest in the subsidiary for $15.0 million, resulting in a remaining noncontrolling interest of 10%. Beginning in 2024, the Company has the right to purchase, and the noncontrolling interest holders have the right to sell, the remaining 10% equity interest at its appraised value. The redemption value is measured at the greater of the appraised value or a predetermined floor. The amount that the Company could be required to pay to purchase the remaining 10% equity interest is not limited. As of March 30, 2024, the redemption value of $12.0 million exceeded the carrying value, resulting in an adjustment to additional paid in capital of $2.8 million. During the second quarter of fiscal 2024, the Company acquired the remaining 10% for $12.0 million. Vital River The Company held a 92% ownership interest in Vital River, a commercial provider of research models and related services in China as of December 31, 2022 . The Company had the right to purchase, and the noncontrolling interest holders had the right to sell, the remaining 8% equity interest at a contractually defined redemption value, subject to a redemption floor. The amount that the Company could be required to pay to purchase the remaining 8% equity interest was not limited. During the fourth quarter of fiscal 2023, the Company acquired the remaining 8% and paid $4.8 million of the total $24.4 million due. The remaining purchase price payable was included in Accrued liabilities within the Company’s unaudited condensed consolidated balance sheet as of March 30, 2024 and December 30, 2023 and is expected to be paid during fiscal year 2024. Nonredeemable Noncontrolling Interest |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rates for the three months ended March 30, 2024 and April 1, 2023 were 24.8% and 20.7%, respectively. The increase in the effective tax rate from the corresponding prior year period was primarily attributable to unfavorable tax effects from stock-based compensation deductions in the three months ended March 30, 2024. For the three months ended March 30, 2024, the Company’s unrecognized tax benefits increased by $0.7 million to $23.4 million, primarily due to increases in research and development tax credit reserves. For the three months ended March 30, 2024, the amount of unrecognized income tax benefits that would impact the effective tax rate increased by $0.4 million to $20.7 million for the same reasons discussed above. The accrued interest on unrecognized tax benefits was $1.4 million as of March 30, 2024. The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by approximately $5 million over the next twelve-month period, primarily due to audit settlements and expiring statutes of limitations. The Company’s prepaid and accrued tax positions are as follows: March 30, 2024 December 30, 2023 Affected Line Item in the Unaudited Condensed Consolidated Balance Sheets (in thousands) Prepaid income tax $ 60,311 $ 59,715 Other current assets Accrued income taxes 34,102 38,819 Other current liabilities The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits on a regular basis including, but not limited to, such major jurisdictions as the U.S., the U.K., China, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2020. The Company and certain of its subsidiaries have ongoing tax controversies in the U.S., Canada, and India. The Company does not anticipate resolution of these audits will have a material impact on its unaudited condensed consolidated financial statements. |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING AND ASSET IMPAIRMENTS The Company has undertaken restructuring actions impacting the reportable segments at various locations across North America, Europe and Asia. This includes workforce right-sizing actions resulting in severance and transition costs; and costs related to the consolidation of facilities resulting in asset impairment and accelerated depreciation charges. The following table presents restructuring costs by reportable segment: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) RMS $ 7,387 $ — DSA 6,491 (2) Manufacturing 1,631 3,488 Unallocated corporate 1,490 — Total $ 16,999 $ 3,486 The following table presents restructuring costs as included within the Company’s unaudited condensed consolidated statements of income: March 30, 2024 April 1, 2023 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Three Months Ended Cost of services provided (excluding amortization of intangible assets) $ 4,810 $ 1,108 $ 5,918 $ 567 $ — $ 567 Cost of products sold (excluding amortization of intangible assets) 678 1,330 2,008 18 2,564 2,582 Selling, general and administrative 3,549 5,524 9,073 329 8 337 Total restructuring costs $ 9,037 $ 7,962 $ 16,999 $ 914 $ 2,572 $ 3,486 Rollforward of Restructuring Activities The following table provides a rollforward for all of the Company’s severance and transition costs related to all restructuring activities: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 5,050 $ 1,300 Expense (excluding non-cash charges) 9,037 914 Payments / utilization (3,235) (331) Foreign currency adjustments (40) 6 Ending balance $ 10,812 $ 1,889 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation On February 16, 2023, the Company was informed by the U.S. Department of Justice (DOJ) that in conjunction with the U.S. Fish and Wildlife Service (USFWS), it had commenced an investigation into the Company’s conduct regarding several shipments of non-human primates from Cambodia. On February 17, 2023 the Company received a grand jury subpoena requesting certain documents related to such investigation. The Company is aware of a parallel civil investigation being undertaken by the DOJ and USFWS. The Company is cooperating with the DOJ and the USFWS and believes that the concerns raised with respect to the Company’s conduct are without merit. The Company maintains a global supplier onboarding and oversight program incorporating risk-based due diligence, auditing, and monitoring practices to help ensure the quality of our supplier relationships and compliance with applicable U.S. and international laws and regulations, and has operated under the belief that all shipments of non-human primates it received satisfied the material requirements, documentation and related processes and procedures of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) documentation and related processes and procedures, which guides the release of each import by USFWS. Notwithstanding our efforts and good-faith belief, in connection with the civil investigation, the Company has voluntarily suspended future shipments of non-human primates from Cambodia to the United States until such time that the Company and USFWS can agree upon and implement additional procedures to reasonably ensure that non-human primates imported from Cambodia are purpose-bred. The Company continues to care for the Cambodia-sourced non-human primates from certain shipments in the United States. The carrying value of the inventory related to these shipments was approximately $27 million as of March 30, 2024, which reflects the value of the shipments in accordance with the Company’s inventory accounting policy. On May 16, 2023, the Company received an inquiry from the Enforcement Division of the U.S. Securities and Exchange Commission (SEC) requesting it to voluntarily provide information, subsequently augmented with a document subpoena, primarily related to the sourcing of non-human primates, and the Company is cooperating with the request. The Company is not able to predict what action, if any, might be taken in the future by the DOJ, USFWS, SEC or other governmental authorities as a result of the investigations. None of the DOJ, USFWS or SEC has provided the Company with any specific timeline or indication as to when these investigations or, specific to the DOJ and USFWS, discussions regarding future processes and procedures, will be concluded or resolved. The Company cannot predict the timing, outcome or possible impact of the investigations, including without limitation any potential fines, penalties or liabilities. A putative securities class action (Securities Class Action) was filed on May 19, 2023 against the Company and a number of its current/former officers in the United States District Court for the District of Massachusetts. On August 31, 2023, the court appointed the State Teachers Retirement System of Ohio as lead plaintiff. An amended complaint was filed on November 14, 2023 that, among other things, included only James Foster, the Chief Executive Officer and David R. Smith, the former Chief Financial Officer as defendants along with the Company. The amended complaint asserts claims under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") on behalf of a putative class of purchasers of Company securities from May 5, 2020 through February 21, 2023, alleging that certain of the Company’s disclosures about its practices with respect to the importation of non-human primates made during the putative class period were materially false or misleading. The Company filed a motion to dismiss. While the Company cannot predict the outcome of this matter, it believes the class action to be without merit and plans to vigorously defend against it. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with this matter. On November 8, 2023, a stockholder filed a derivative lawsuit in the U.S. District Court of the District of Delaware asserting claims on the Company’s behalf against the members of the Company’s Board of Directors and certain of the Company’s current/former officers (James Foster, the Chief Executive Officer; David R. Smith, the former Chief Financial Officer; and Flavia Pease, the current Chief Financial Officer). The complaint alleges that the defendants breached their fiduciary duties to the Company and its stockholders because certain of the Company’s disclosures about its practices with respect to the importation of non-human primates were materially false or misleading. The complaint also alleges that the defendants breached their fiduciary duties by causing the Company to fail to maintain adequate internal controls over securities disclosure and compliance with applicable law and by failing to comply with the company’s Code of Business Conduct and Ethics. In March 2024, the plaintiff agreed to stay the action until the United States District Court for the District of Massachusetts rules on the pending motion to dismiss in the Securities Class Action. The Company intends to file a motion to dismiss at that time. While the Company cannot predict the outcome of this matter, it believes the derivative lawsuit to be without merit and plans to vigorously defend against it. The Company cannot reasonably estimate the maximum potential exposure or the range of possible loss in association with this matter. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net income available to Charles River Laboratories International, Inc. | $ 72,960 | $ 103,131 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
James Foster [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 26, 2024, James Foster, our Chair, President, and Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement for the sale of up to 129,721 shares of common stock. The arrangement’s expiration date is June 30, 2026. |
Name | James Foster |
Title | Chair, President, and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 26, 2024 |
Aggregate Available | 129,721 |
Shannon Parisotto [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 4, 2024, Shannon Parisotto, our Corporate Executive Vice President, Global Discovery & Safety Assessment entered into a Rule 10b5-1 trading arrangement for the sale of up to 10,170 shares of common stock, subject to certain conditions. The arrangement’s expiration date is February 28, 2025. |
Name | Shannon Parisotto |
Title | Corporate Executive Vice President |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 4, 2024 |
Aggregate Available | 10,170 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The year-end condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal year 2023. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. |
Newly Issued Accounting Pronouncements | Newly Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures (Topic 280)”. ASU 2023-07 modifies reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses categorized as significant or regularly provided to the Chief Operating Decision Maker (CODM). In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures in the annual consolidated financial statements, but does not believe there will be a material impact. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate. This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures on the consolidated financial statements. |
Consolidation | Consolidation The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its unaudited condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Redeemable noncontrolling interests, where the noncontrolling interest holders have the ability to require the Company to purchase the remaining interests, are classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. Intercompany balances and transactions are eliminated in consolidation. The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end. |
Segment Reporting | Segment Reporting The Company reports its results in three reportable segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The Company’s RMS reportable segment includes the Research Models, Research Model Services, and Cell Solutions businesses. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of clients’ research operations (including recruitment, training, staffing, and management services) within the clients’ facilities and utilizing the Charles River Accelerator and Development Lab (CRADL™) offering, which provides vivarium space to clients, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models, and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models; and Cell Solutions, which supplies controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow. The Company’s DSA reportable segment includes two businesses: Discovery Services and Safety Assessment. The Company provides regulated and non-regulated DSA services to support the research, development, and regulatory-required safety testing of potential new drugs, including therapeutic discovery and optimization plus in vitro and in vivo studies, laboratory support services, and strategic non-clinical consulting and program management to support product development. The Company’s Manufacturing reportable segment includes Microbial Solutions, which provides in vitro |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation and Transaction and Integration Costs | The purchase price allocation was as follows: Noveprim Group (1) SAMDI Tech, Inc. November 30, 2023 January 27, 2023 (in thousands) Trade receivables $ 1,308 $ 513 Inventories 66,500 — Other current assets (excluding cash) 3,467 75 Property, plant and equipment 35,831 593 Operating lease right-of-use asset, net 104 — Goodwill (2) 172,846 37,129 Definite-lived intangible assets 9,500 33,070 Other long-term assets (3) 167,907 6 Deferred revenue — (43) Other current liabilities (16,378) (351) Operating lease right-of-use liabilities (Long-term) (97) — Deferred tax liabilities (12,984) (8,191) Other long-term liabilities (7,796) — Redeemable noncontrolling interest (4) (45,374) — Total purchase price allocation $ 374,834 $ 62,801 (1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts, obligations, and finalization of any working capital adjustments. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. (2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses or synergies to be realized from acquiring an internal supplier servicing the DSA business and the assembled workforce of the acquirees, thus is not deductible for tax purposes. (3) Other long-term assets acquired from the Noveprim acquisition include $167.8 million of biological assets, which will be amortized over an estimated eight (4) Refer to Note 12. Equity and Noncontrolling Interests for further a description of the 10% noncontrolling interest fair value. |
Schedule of Definite-Lived Intangible Assets Acquired as Part of Business Combination | The definite-lived intangible assets acquired were as follows: Noveprim Group SAMDI Tech, Inc. Definite-Lived Intangible Assets (in thousands) Client relationships $ — $ 23,400 Other intangible assets 9,500 9,670 Total definite-lived intangible assets $ 9,500 $ 33,070 Weighted Average Amortization Life (in years) Client relationships — 15 Other intangible assets 7 7 Total definite-lived intangible assets 7 12 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 97,049 $ 93,639 Services and products transferred at a point in time 123,858 106,127 Total RMS revenue 220,907 199,766 DSA Services and products transferred over time 604,125 661,836 Services and products transferred at a point in time 1,327 517 Total DSA revenue 605,452 662,353 Manufacturing Services and products transferred over time 100,058 86,086 Services and products transferred at a point in time 85,143 81,168 Total Manufacturing revenue 185,201 167,254 Total revenue $ 1,011,560 $ 1,029,373 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: March 30, 2024 $ 562,317 $ 276,319 $ 110,401 $ 45,772 $ 16,751 $ 1,011,560 April 1, 2023 605,441 267,703 110,606 42,813 2,810 1,029,373 |
Schedule of Client Receivables, Contract Assets and Contract Liabilities | The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: March 30, 2024 December 30, 2023 (in thousands) Assets from contracts with customers Client receivables $ 590,594 $ 578,077 Unbilled revenue 221,793 228,020 Total 812,387 806,097 Less: Allowance for credit losses (25,407) (25,722) Trade receivables and contract assets, net $ 786,980 $ 780,375 Liabilities from contracts with customers Current deferred revenue $ 256,383 $ 241,820 Long-term deferred revenue (included in Other long-term liabilities) 32,448 30,919 Customer contract deposits (included in Other current liabilities) 90,589 85,554 Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Affected Line Item in the Unaudited Condensed Consolidated Statements of Income Lease revenue $ 20,974 $ 24,090 Service revenue |
Schedule of Allowance for Credit Losses | The following is a summary of the activity of the Company’s allowance for credit losses: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 25,722 $ 11,278 Additions 934 5,731 Deductions (1,249) (315) Ending balance $ 25,407 $ 16,694 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Other Financial Information by Business Segment | The following table presents the results of operations by reportable segment: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) RMS Revenue $ 220,907 $ 199,766 Cost of revenue (excluding amortization of intangible assets) 140,925 126,804 Selling, general and administrative 30,893 27,058 Amortization of intangible assets 5,940 5,495 Operating income $ 43,149 $ 40,409 DSA Revenue $ 605,452 $ 662,353 Cost of revenue (excluding amortization of intangible assets) 417,912 411,523 Selling, general and administrative 56,859 61,998 Amortization of intangible assets 15,842 17,401 Operating income $ 114,839 $ 171,431 Manufacturing Revenue $ 185,201 $ 167,254 Cost of revenue (excluding amortization of intangible assets) 107,880 113,392 Selling, general and administrative 32,847 39,736 Amortization of intangible assets 10,793 12,020 Operating income $ 33,681 $ 2,106 Unallocated Corporate Selling, general and administrative $ (65,692) $ (46,054) Operating income (1) $ (65,692) $ (46,054) Consolidated Revenue $ 1,011,560 $ 1,029,373 Cost of revenue (excluding amortization of intangible assets) 666,717 651,719 Selling, general and administrative 186,291 174,846 Amortization of intangible assets 32,575 34,916 Operating income $ 125,977 $ 167,892 (1) Operating income for unallocated corporate consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. Capital expenditures and depreciation and amortization (related to both intangible assets and certain assets acquired in business combinations) by reportable segment are as follows: RMS DSA Manufacturing Unallocated Corporate Consolidated (in thousands) Capital Expenditures Three Months Ended: March 30, 2024 $ 20,044 $ 48,959 $ 8,862 $ 1,279 $ 79,144 April 1, 2023 19,084 65,184 21,738 869 106,875 Depreciation and amortization Three Months Ended: March 30, 2024 $ 18,123 $ 45,789 $ 19,805 $ 1,640 $ 85,357 April 1, 2023 13,489 42,450 20,084 1,046 77,069 |
Revenue by Geographic Area | The following table disaggregates the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 97,049 $ 93,639 Services and products transferred at a point in time 123,858 106,127 Total RMS revenue 220,907 199,766 DSA Services and products transferred over time 604,125 661,836 Services and products transferred at a point in time 1,327 517 Total DSA revenue 605,452 662,353 Manufacturing Services and products transferred over time 100,058 86,086 Services and products transferred at a point in time 85,143 81,168 Total Manufacturing revenue 185,201 167,254 Total revenue $ 1,011,560 $ 1,029,373 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: March 30, 2024 $ 562,317 $ 276,319 $ 110,401 $ 45,772 $ 16,751 $ 1,011,560 April 1, 2023 605,441 267,703 110,606 42,813 2,810 1,029,373 |
Long-Lived Assets by Geographic Area | Long-lived assets by geographic area are as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Long-lived assets March 30, 2024 $ 954,225 $ 404,657 $ 153,443 $ 71,076 $ 35,307 $ 1,618,708 December 30, 2023 964,176 407,375 157,483 74,605 36,102 1,639,741 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Cash paid for income taxes $ 18,728 $ 13,618 Cash paid for interest 38,258 36,807 Non-cash investing activities: Purchases of Property, plant and equipment included in Accounts payable and Accrued liabilities $ 23,911 $ 43,116 Assets acquired under finance leases 3,159 — Cash, cash equivalents and restricted cash is included in the accompanying unaudited balance sheet as follows: March 30, 2024 December 30, 2023 (in thousands) Supplemental cash flow information: Cash and cash equivalents $ 327,039 $ 276,771 Restricted cash included in Other current assets 10,327 5,803 Restricted cash included in Other assets 1,169 1,906 Cash, cash equivalents, and restricted cash, end of period $ 338,535 $ 284,480 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Composition of Inventories | The composition of inventories is as follows: March 30, 2024 December 30, 2023 (in thousands) Raw materials and supplies $ 44,603 $ 42,296 Work in process 43,252 59,727 Finished products 273,426 278,236 Inventories $ 361,281 $ 380,259 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Composition of Property, Plant and Equipment, Net | The composition of property, plant and equipment, net is as follows: March 30, 2024 December 30, 2023 (in thousands) Land $ 78,852 $ 79,546 Buildings (1) 1,033,150 1,053,915 Machinery and equipment (1) 985,006 984,867 Leasehold improvements 348,558 366,556 Furniture and fixtures 30,712 31,284 Computer hardware and software (1) 254,018 254,413 Vehicles (1) 6,974 6,746 Construction in progress 245,826 197,723 Total 2,983,096 2,975,050 Less: Accumulated depreciation (1,364,388) (1,335,309) Property, plant and equipment, net $ 1,618,708 $ 1,639,741 (1) These balances include assets under finance leases. |
VENTURE CAPITAL AND STRATEGIC_2
VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS - (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Venture capital investments are summarized below: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 121,158 $ 129,012 Capital contributions 3,829 3,214 Distributions (9,353) (7,217) Gains (losses) 8,174 (6,848) Foreign currency translation (100) 260 Ending balance $ 123,708 $ 118,421 The Company also invests, with minority positions, directly in equity of predominantly privately held companies. Strategic investments are summarized below: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 122,653 $ 182,590 Purchase of investments — 9,266 Distributions — (4,146) Gain (loss) (2,294) 3,566 Reduction for acquisition of entity (1) — (12,635) Foreign currency translation (524) (3,275) Ending balance $ 119,835 $ 175,366 (1) Refer to Note 2. Acquisitions for further discussion on the SAMDI acquisition. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: March 30, 2024 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Cash equivalents $ — $ 29 $ — $ 29 Term deposit — 10,068 — 10,068 Other assets: Life insurance policies — 44,617 — 44,617 Interest rate swap — 1,734 — 1,734 Total assets measured at fair value $ — $ 56,448 $ — $ 56,448 Other long-term liabilities measured at fair value: Contingent consideration $ — $ — $ 33,265 $ 33,265 Total liabilities measured at fair value $ — $ — $ 33,265 $ 33,265 December 30, 2023 Level 1 Level 2 Level 3 Total Current assets measured at fair value: (in thousands) Cash equivalents $ — $ 29 $ — $ 29 Other assets: Life insurance policies — 40,912 — 40,912 Interest rate swap — 966 — 966 Total assets measured at fair value $ — $ 41,907 $ — $ 41,907 Other long-term liabilities measured at fair value Contingent consideration $ — $ — $ 33,265 $ 33,265 Total liabilities measured at fair value $ — $ — $ 33,265 $ 33,265 During the year ended December 30, 2023, there were no transfers between levels. March 30, 2024 December 30, 2023 Book Value Fair Value Book Value Fair Value (in thousands) 4.25% Senior Notes due 2028 $ 500,000 $ 468,750 $ 500,000 $ 478,100 3.75% Senior Notes due 2029 500,000 453,750 500,000 458,100 4.00% Senior Notes due 2031 500,000 445,000 500,000 449,350 |
Rollforward of Contingent Consideration Related to Previous Acquisitions | The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions. Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 33,265 $ 13,431 Payments — (2,711) Total gains or losses (realized/unrealized): Foreign currency translation — (177) Ending balance $ 33,265 $ 10,543 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table provides a rollforward of the Company’s goodwill: RMS DSA (1) Manufacturing Total (in thousands) December 30, 2023 $ 497,474 $ 1,662,434 $ 935,137 $ 3,095,045 Acquisitions — 497 — 497 Foreign exchange (407) (21,340) (3,554) (25,301) March 30, 2024 $ 497,067 $ 1,641,591 $ 931,583 $ 3,070,241 (1) DSA includes accumulated impairment losses of $1 billion, which were recognized in fiscal years 2008 and 2010. |
Schedule of Intangible Assets | The following table displays intangible assets, net by major class: March 30, 2024 December 30, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Client relationships $ 1,515,021 $ (739,260) $ 775,761 $ 1,528,780 $ (721,322) $ 807,458 Technology 140,982 (112,842) 28,140 142,190 (111,764) 30,426 Trademarks and trade names 11,842 (4,822) 7,020 11,878 (4,568) 7,310 Backlog 3,100 (2,485) 615 3,100 (2,177) 923 Other 43,008 (26,906) 16,102 43,611 (25,677) 17,934 Intangible assets $ 1,713,953 $ (886,315) $ 827,638 $ 1,729,559 $ (865,508) $ 864,051 |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Finance Lease Obligations | Long-term debt, net and finance leases consists of the following: March 30, 2024 December 30, 2023 (in thousands) Revolving facility $ 1,133,000 $ 1,129,243 4.25% Senior Notes due 2028 500,000 500,000 3.75% Senior Notes due 2029 500,000 500,000 4.00% Senior Notes due 2031 500,000 500,000 Other debt 13,516 9,575 Finance leases 30,230 28,550 Total debt and finance leases 2,676,746 2,667,368 Less: Current portion of long-term debt 459 3,172 Current portion of finance leases 2,169 2,398 Current portion of long-term debt and finance leases 2,628 5,570 Long-term debt and finance leases 2,674,118 2,661,798 Debt discount and debt issuance costs (13,659) (14,651) Long-term debt, net and finance leases $ 2,660,459 $ 2,647,147 |
EQUITY AND NONCONTROLLING INT_2
EQUITY AND NONCONTROLLING INTERESTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Equity [Abstract] | |
Reconciliation of the Numerator and Denominator in the Computations of the Basic and Diluted Earnings Per Share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Numerator: Net income $ 74,482 $ 103,954 Less: Net income attributable to noncontrolling interests 1,522 823 Net income available to Charles River Laboratories International, Inc. 72,960 103,131 Less: Adjustment of redeemable noncontrolling interest (1) 401 — Less: Incremental dividends attributable to noncontrolling interest holders (2) 5,230 — Net income available to Charles River Laboratories International, Inc. common shareholders $ 67,329 $ 103,131 Denominator: Weighted-average shares outstanding - Basic 51,437 51,097 Effect of dilutive securities: Stock options, restricted stock units and performance share units 405 331 Weighted-average shares outstanding - Diluted 51,842 51,428 Anti-dilutive common stock equivalents (3) 448 405 (1) Represents adjustments of redeemable noncontrolling interest that impact retained earnings. (2) Represents incremental undeclared dividends attributable to Noveprim noncontrolling interest holders who are entitled to preferential dividends for fiscal year 2024. (3) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment Pension and Other Post-Retirement Benefit Plans Net Unrealized (Loss) Gain on Cash Flow Hedge Total (in thousands) December 30, 2023 $ (149,999) $ (47,167) $ 739 $ (196,427) Other comprehensive income (loss) before reclassifications (60,077) 344 768 (58,965) Net current period other comprehensive income (loss) (60,077) 344 768 (58,965) Income tax expense (benefit) (5,737) 80 184 (5,473) March 30, 2024 $ (204,339) $ (46,903) $ 1,323 $ (249,919) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Prepaid and Accrued Tax Positions | The Company’s prepaid and accrued tax positions are as follows: March 30, 2024 December 30, 2023 Affected Line Item in the Unaudited Condensed Consolidated Balance Sheets (in thousands) Prepaid income tax $ 60,311 $ 59,715 Other current assets Accrued income taxes 34,102 38,819 Other current liabilities |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table presents restructuring costs by reportable segment: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) RMS $ 7,387 $ — DSA 6,491 (2) Manufacturing 1,631 3,488 Unallocated corporate 1,490 — Total $ 16,999 $ 3,486 The following table presents restructuring costs as included within the Company’s unaudited condensed consolidated statements of income: March 30, 2024 April 1, 2023 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Three Months Ended Cost of services provided (excluding amortization of intangible assets) $ 4,810 $ 1,108 $ 5,918 $ 567 $ — $ 567 Cost of products sold (excluding amortization of intangible assets) 678 1,330 2,008 18 2,564 2,582 Selling, general and administrative 3,549 5,524 9,073 329 8 337 Total restructuring costs $ 9,037 $ 7,962 $ 16,999 $ 914 $ 2,572 $ 3,486 |
Schedule of Rollforward of Company's Severance and Retention Costs Liability | The following table provides a rollforward for all of the Company’s severance and transition costs related to all restructuring activities: Three Months Ended March 30, 2024 April 1, 2023 (in thousands) Beginning balance $ 5,050 $ 1,300 Expense (excluding non-cash charges) 9,037 914 Payments / utilization (3,235) (331) Foreign currency adjustments (40) 6 Ending balance $ 10,812 $ 1,889 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 3 Months Ended |
Mar. 30, 2024 segment subsegment | |
Number of reportable segments | segment | 3 |
Discover And Safety Assessment Segment | |
Number of businesses in reportable segment | subsegment | 2 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 23 Months Ended | ||
Jan. 27, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Dec. 31, 2022 | Nov. 30, 2023 | |
Business Acquisition [Line Items] | |||||
Transaction and integration costs | $ 200 | $ 800 | |||
Cash portion of consideration transferred | $ 0 | $ 50,166 | |||
Noveprim Group | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 41% | ||||
Equity interest acquired | 90% | ||||
Business combination, equity stake percentage | 49% | ||||
Purchases of additional equity interests, net | $ 90,000 | ||||
Contingent liability | $ 5,000 | ||||
Purchase price | $ 374,800 | ||||
Additional cash paid | 144,600 | ||||
Business combination, consideration transferred, other | 198,800 | ||||
Gain in equity equal to the excess fair value of additional equity interest purchased | 103,200 | ||||
Contingent consideration | 33,300 | ||||
Business combination deferred purchase price | 12,000 | ||||
Adjustments for working capital/debt | 13,800 | ||||
Consideration contingent upon future performance | $ 55,000 | ||||
Business combination, remaining equity to purchase | 10% | ||||
Call option term, period after sixth anniversary | 1 month | ||||
Put option term, period after first anniversary | 12 months | ||||
Noveprim Group | Minimum | |||||
Business Acquisition [Line Items] | |||||
Business combination, redemption price | $ 47,000 | ||||
Noveprim Group | Maximum | |||||
Business Acquisition [Line Items] | |||||
Business combination, redemption price | $ 54,000 | ||||
SAMDI Tech, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business combination, equity stake percentage | 20% | ||||
Cash portion of consideration transferred | $ 62,800 | ||||
Cash acquired | 400 | ||||
Value of previously owned interest in acquiree | $ 12,600 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Nov. 30, 2023 | Jan. 27, 2023 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,070,241 | $ 3,095,045 | ||
Noveprim Group | ||||
Business Acquisition [Line Items] | ||||
Trade receivables | $ 1,308 | |||
Inventories | 66,500 | |||
Other current assets (excluding cash) | 3,467 | |||
Property, plant and equipment | 35,831 | |||
Operating lease right-of-use asset, net | 104 | |||
Goodwill | 172,846 | |||
Definite-lived intangible assets | 9,500 | |||
Other long-term assets | 167,907 | |||
Deferred revenue | 0 | |||
Other current liabilities | (16,378) | |||
Operating lease right-of-use liabilities (Long-term) | (97) | |||
Deferred tax liabilities | (12,984) | |||
Other long-term liabilities | (7,796) | |||
Redeemable noncontrolling interest | (45,374) | |||
Total purchase price allocation | 374,834 | |||
Biological assets | $ 167,800 | |||
Biological assets, useful life | 8 years | |||
Business combination, remaining equity to purchase | 10% | |||
SAMDI Tech, Inc. | ||||
Business Acquisition [Line Items] | ||||
Trade receivables | $ 513 | |||
Inventories | 0 | |||
Other current assets (excluding cash) | 75 | |||
Property, plant and equipment | 593 | |||
Operating lease right-of-use asset, net | 0 | |||
Goodwill | 37,129 | |||
Definite-lived intangible assets | 33,070 | |||
Other long-term assets | 6 | |||
Deferred revenue | (43) | |||
Other current liabilities | (351) | |||
Operating lease right-of-use liabilities (Long-term) | 0 | |||
Deferred tax liabilities | (8,191) | |||
Other long-term liabilities | 0 | |||
Redeemable noncontrolling interest | 0 | |||
Total purchase price allocation | $ 62,801 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2023 | Jan. 27, 2023 |
Noveprim Group | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 9,500 | |
Weighted Average Amortization Life | 7 years | |
SAMDI Tech, Inc. | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 33,070 | |
Weighted Average Amortization Life | 12 years | |
Client relationships | Noveprim Group | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 0 | |
Weighted Average Amortization Life | 0 years | |
Client relationships | SAMDI Tech, Inc. | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 23,400 | |
Weighted Average Amortization Life | 15 years | |
Other intangible assets | Noveprim Group | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 9,500 | |
Weighted Average Amortization Life | 7 years | |
Other intangible assets | SAMDI Tech, Inc. | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 9,670 | |
Weighted Average Amortization Life | 7 years |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Percentage of unbilled revenue billed during period | 70% | 70% | ||
Unbilled revenue | $ 221,793 | $ 228,020 | $ 204,000 | |
Percentage of contract liabilities recognized as revenue during period | 60% | 65% | ||
Contract liabilities | 273,000 | $ 290,000 | ||
Unpaid advanced client billings | $ 52,000 | $ 41,000 | ||
Provision for credit losses | 839 | $ 3,238 | ||
Performance obligations expected to be satisfied | $ 920,500 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31 | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, remaining performance obligation, percentage | 50% | |||
Performance obligations expected to be satisfied, expected timing | 12 months |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues by Major Business Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,011,560 | $ 1,029,373 |
RMS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 220,907 | 199,766 |
RMS | Services and products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 97,049 | 93,639 |
RMS | Services and products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 123,858 | 106,127 |
DSA | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 605,452 | 662,353 |
DSA | Services and products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 604,125 | 661,836 |
DSA | Services and products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,327 | 517 |
Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 185,201 | 167,254 |
Manufacturing | Services and products transferred over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 100,058 | 86,086 |
Manufacturing | Services and products transferred at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 85,143 | $ 81,168 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Client Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | |||
Client receivables | $ 590,594 | $ 578,077 | |
Unbilled revenue | 221,793 | 228,020 | $ 204,000 |
Total | 812,387 | 806,097 | |
Less: Allowance for credit losses | (25,407) | (25,722) | |
Trade receivables and contract assets, net | 786,980 | 780,375 | |
Current deferred revenue | 256,383 | 241,820 | |
Long-term deferred revenue (included in Other long-term liabilities) | 32,448 | 30,919 | |
Customer contract deposits (included in Other current liabilities) | $ 90,589 | $ 85,554 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Lease Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Lease revenue | $ 20,974 | $ 24,090 |
REVENUE FROM CONTRACTS WITH C_7
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 25,722 | $ 11,278 |
Additions | 934 | 5,731 |
Deductions | (1,249) | (315) |
Ending balance | $ 25,407 | $ 16,694 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Revenue and Other Financial Information by Reportable Segment (Details) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 USD ($) segment | Apr. 01, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,011,560 | $ 1,029,373 |
Cost of revenue (excluding amortization of intangible assets) | 666,717 | 651,719 |
Selling, general and administrative | 186,291 | 174,846 |
Amortization of intangible assets | 32,575 | 34,916 |
Operating income | 125,977 | 167,892 |
Capital Expenditures | 79,144 | 106,875 |
Depreciation and amortization | 85,357 | 77,069 |
Unallocated corporate | ||
Segment Reporting Information [Line Items] | ||
Selling, general and administrative | 65,692 | 46,054 |
Operating income | (65,692) | (46,054) |
Capital Expenditures | 1,279 | 869 |
Depreciation and amortization | 1,640 | 1,046 |
RMS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 220,907 | 199,766 |
RMS | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 220,907 | 199,766 |
Cost of revenue (excluding amortization of intangible assets) | 140,925 | 126,804 |
Selling, general and administrative | 30,893 | 27,058 |
Amortization of intangible assets | 5,940 | 5,495 |
Operating income | 43,149 | 40,409 |
Capital Expenditures | 20,044 | 19,084 |
Depreciation and amortization | 18,123 | 13,489 |
DSA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 605,452 | 662,353 |
DSA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 605,452 | 662,353 |
Cost of revenue (excluding amortization of intangible assets) | 417,912 | 411,523 |
Selling, general and administrative | 56,859 | 61,998 |
Amortization of intangible assets | 15,842 | 17,401 |
Operating income | 114,839 | 171,431 |
Capital Expenditures | 48,959 | 65,184 |
Depreciation and amortization | 45,789 | 42,450 |
Manufacturing | ||
Segment Reporting Information [Line Items] | ||
Revenue | 185,201 | 167,254 |
Manufacturing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 185,201 | 167,254 |
Cost of revenue (excluding amortization of intangible assets) | 107,880 | 113,392 |
Selling, general and administrative | 32,847 | 39,736 |
Amortization of intangible assets | 10,793 | 12,020 |
Operating income | 33,681 | 2,106 |
Capital Expenditures | 8,862 | 21,738 |
Depreciation and amortization | $ 19,805 | $ 20,084 |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Revenue and Long-Lived Assets by Geographic Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,011,560 | $ 1,029,373 | |
Long-lived assets | 1,618,708 | $ 1,639,741 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenue | 562,317 | 605,441 | |
Long-lived assets | 954,225 | 964,176 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenue | 276,319 | 267,703 | |
Long-lived assets | 404,657 | 407,375 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Revenue | 110,401 | 110,606 | |
Long-lived assets | 153,443 | 157,483 | |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenue | 45,772 | 42,813 | |
Long-lived assets | 71,076 | 74,605 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenue | 16,751 | $ 2,810 | |
Long-lived assets | $ 35,307 | $ 36,102 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Summary of Non-Cash Investing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes | $ 18,728 | $ 13,618 |
Cash paid for interest | 38,258 | 36,807 |
Purchases of Property, plant and equipment included in Accounts payable and Accrued liabilities | 23,911 | 43,116 |
Assets acquired under finance leases | $ 3,159 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 327,039 | $ 276,771 | ||
Restricted cash included in Other current assets | 10,327 | 5,803 | ||
Restricted cash included in Other assets | 1,169 | 1,906 | ||
Cash, cash equivalents, and restricted cash, end of period | $ 338,535 | $ 284,480 | $ 208,891 | $ 241,214 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 44,603 | $ 42,296 |
Work in process | 43,252 | 59,727 |
Finished products | 273,426 | 278,236 |
Inventories | $ 361,281 | $ 380,259 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,983,096 | $ 2,975,050 | |
Less: Accumulated depreciation | (1,364,388) | (1,335,309) | |
Property, plant and equipment, net | 1,618,708 | 1,639,741 | |
Depreciation | 45,700 | $ 42,200 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 78,852 | 79,546 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,033,150 | 1,053,915 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 985,006 | 984,867 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | 348,558 | 366,556 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total | 30,712 | 31,284 | |
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total | 254,018 | 254,413 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total | 6,974 | 6,746 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 245,826 | $ 197,723 |
VENTURE CAPITAL AND STRATEGIC_3
VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS - Venture Capital Investments and Strategic Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Schedule of Equity Method Investments [Roll Forward] | ||
Beginning balance | $ 243,811 | |
Ending balance | 243,543 | |
Venture Capital Funds | ||
Schedule of Equity Method Investments [Roll Forward] | ||
Beginning balance | 121,158 | $ 129,012 |
Capital contributions | 3,829 | 3,214 |
Distributions | (9,353) | (7,217) |
Gain (loss) | 8,174 | (6,848) |
Foreign currency translation | (100) | 260 |
Ending balance | 123,708 | 118,421 |
Strategic Investments | ||
Schedule of Equity Method Investments [Roll Forward] | ||
Beginning balance | 122,653 | 182,590 |
Purchases of additional equity interests, net | 0 | 9,266 |
Distributions | 0 | (4,146) |
Gain (loss) | (2,294) | 3,566 |
Reduction for acquisition of entity | 0 | (12,635) |
Foreign currency translation | (524) | (3,275) |
Ending balance | $ 119,835 | $ 175,366 |
FAIR VALUE - Fair Value of Asse
FAIR VALUE - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Other assets: | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other income (expense), net | Other income (expense), net |
Fair Value, Recurring | ||
Current assets measured at fair value: | ||
Cash equivalents | $ 29 | $ 29 |
Term deposit | 10,068 | |
Other assets: | ||
Life insurance policies | 44,617 | 40,912 |
Interest rate swap | 1,734 | 966 |
Total assets measured at fair value | 56,448 | 41,907 |
Other long-term liabilities measured at fair value: | ||
Contingent consideration | 33,265 | 33,265 |
Total liabilities measured at fair value | 33,265 | 33,265 |
Level 1 | Fair Value, Recurring | ||
Current assets measured at fair value: | ||
Cash equivalents | 0 | 0 |
Term deposit | 0 | |
Other assets: | ||
Life insurance policies | 0 | 0 |
Interest rate swap | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other long-term liabilities measured at fair value: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Current assets measured at fair value: | ||
Cash equivalents | 29 | 29 |
Term deposit | 10,068 | |
Other assets: | ||
Life insurance policies | 44,617 | 40,912 |
Interest rate swap | 1,734 | 966 |
Total assets measured at fair value | 56,448 | 41,907 |
Other long-term liabilities measured at fair value: | ||
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Current assets measured at fair value: | ||
Cash equivalents | 0 | 0 |
Term deposit | 0 | |
Other assets: | ||
Life insurance policies | 0 | 0 |
Interest rate swap | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other long-term liabilities measured at fair value: | ||
Contingent consideration | 33,265 | 33,265 |
Total liabilities measured at fair value | $ 33,265 | $ 33,265 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Designated as Hedging Instrument | Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional amount | $ 500,000 | $ 500,000 | ||
Derivative, fixed interest rate | 4.65% | 4.65% | ||
Level 3 | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of contingent consideration | $ 33,265 | $ 33,265 | $ 10,543 | $ 13,431 |
Weighted average probability percentage of achieving maximum target | 60% | |||
Level 3 | Average Volatility | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 0.07 | |||
Level 3 | Weighted Average Cost of Capital | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration, measurement input | 0.09 | |||
Level 3 | Maximum | Contingent Consideration | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of contingent consideration | $ 55,000 |
FAIR VALUE - Contingent Conside
FAIR VALUE - Contingent Consideration (Details) - Contingent Consideration - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 33,265 | $ 13,431 |
Payments | 0 | (2,711) |
Foreign currency translation | 0 | (177) |
Ending balance | $ 33,265 | $ 10,543 |
FAIR VALUE - Schedule of Fair V
FAIR VALUE - Schedule of Fair Value of Debt (Details) - Senior Notes - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
4.25% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.25% | 4.25% |
4.25% Senior Notes due 2028 | Book Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 500,000 | $ 500,000 |
4.25% Senior Notes due 2028 | Fair Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 468,750 | $ 478,100 |
3.75% Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.75% | 3.75% |
3.75% Senior Notes due 2029 | Book Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 500,000 | $ 500,000 |
3.75% Senior Notes due 2029 | Fair Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 453,750 | $ 458,100 |
4.00% Senior Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4% | 4% |
4.00% Senior Notes due 2031 | Book Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 500,000 | $ 500,000 |
4.00% Senior Notes due 2031 | Fair Value | ||
Debt Instrument [Line Items] | ||
Debt instrument value | $ 445,000 | $ 449,350 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Rollforward of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 3,095,045 |
Acquisitions | 497 |
Foreign exchange | (25,301) |
Ending balance | 3,070,241 |
RMS | |
Goodwill [Roll Forward] | |
Beginning balance | 497,474 |
Acquisitions | 0 |
Foreign exchange | (407) |
Ending balance | 497,067 |
DSA | |
Goodwill [Roll Forward] | |
Beginning balance | 1,662,434 |
Acquisitions | 497 |
Foreign exchange | (21,340) |
Ending balance | 1,641,591 |
Goodwill, impaired, accumulated impairment loss | 1,000,000 |
Manufacturing | |
Goodwill [Roll Forward] | |
Beginning balance | 935,137 |
Acquisitions | 0 |
Foreign exchange | (3,554) |
Ending balance | $ 931,583 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Other intangible assets | ||
Gross | $ 1,713,953 | $ 1,729,559 |
Accumulated Amortization | (886,315) | (865,508) |
Net | 827,638 | 864,051 |
Client relationships | ||
Other intangible assets | ||
Gross | 1,515,021 | 1,528,780 |
Accumulated Amortization | (739,260) | (721,322) |
Net | 775,761 | 807,458 |
Technology | ||
Other intangible assets | ||
Gross | 140,982 | 142,190 |
Accumulated Amortization | (112,842) | (111,764) |
Net | 28,140 | 30,426 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross | 11,842 | 11,878 |
Accumulated Amortization | (4,822) | (4,568) |
Net | 7,020 | 7,310 |
Backlog | ||
Other intangible assets | ||
Gross | 3,100 | 3,100 |
Accumulated Amortization | (2,485) | (2,177) |
Net | 615 | 923 |
Other | ||
Other intangible assets | ||
Gross | 43,008 | 43,611 |
Accumulated Amortization | (26,906) | (25,677) |
Net | $ 16,102 | $ 17,934 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 32,575 | $ 34,916 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 |
Debt Instrument [Line Items] | ||
Finance leases | $ 30,230 | $ 28,550 |
Total debt and finance leases | 2,676,746 | 2,667,368 |
Current portion of long-term debt | 459 | 3,172 |
Current portion of finance leases | 2,169 | 2,398 |
Current portion of long-term debt and finance leases | 2,628 | 5,570 |
Long-term debt and finance leases | 2,674,118 | 2,661,798 |
Debt discount and debt issuance costs | (13,659) | (14,651) |
Long-term debt, net and finance leases | 2,660,459 | 2,647,147 |
Revolving Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,133,000 | $ 1,129,243 |
Senior Notes | 4.25% Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.25% | 4.25% |
Long-term debt, gross | $ 500,000 | $ 500,000 |
Senior Notes | 3.75% Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.75% | 3.75% |
Long-term debt, gross | $ 500,000 | $ 500,000 |
Senior Notes | 4.00% Senior Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4% | 4% |
Long-term debt, gross | $ 500,000 | $ 500,000 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 13,516 | $ 9,575 |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.97% | 4.93% |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | $ 21.2 | $ 21.6 |
EQUITY AND NONCONTROLLING INT_3
EQUITY AND NONCONTROLLING INTERESTS - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator: | ||
Net income | $ 74,482 | $ 103,954 |
Less: Net income attributable to noncontrolling interests | 1,522 | 823 |
Net income available to Charles River Laboratories International, Inc. | 72,960 | 103,131 |
Less: Adjustment of redeemable noncontrolling interest | 401 | 0 |
Less: Incremental dividends attributable to noncontrolling interest holders | 5,230 | 0 |
Net income available to Charles River Laboratories International, Inc. common shareholders | $ 67,329 | $ 103,131 |
Denominator: | ||
Weighted-average shares outstanding—Basic (in shares) | 51,437 | 51,097 |
Effect of dilutive securities: | ||
Stock options, restricted stock units and performance share units (in shares) | 405 | 331 |
Weighted-average shares outstanding—Diluted (in shares) | 51,842 | 51,428 |
Anti-dilutive common stock equivalents (in shares) | 448 | 405 |
EQUITY AND NONCONTROLLING INT_4
EQUITY AND NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Treasury Shares and Accelerated Stock Repurchase Program (ASR) [Line Items] | ||
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments (in shares) | 0.1 | 0.1 |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments | $ 9,400,000 | $ 19,000,000 |
Authorized Share Repurchase Program | ||
Treasury Shares and Accelerated Stock Repurchase Program (ASR) [Line Items] | ||
Aggregate authorization of share repurchase program | 1,300,000,000 | |
Remaining authorized repurchase amount | $ 129,100,000 |
EQUITY AND NONCONTROLLING INT_5
EQUITY AND NONCONTROLLING INTERESTS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||
Beginning balance | $ 3,602,276 | $ 2,981,078 |
Income tax expense (benefit) | (5,473) | (1,038) |
Ending balance | 3,646,150 | 3,113,883 |
Foreign Currency Translation Adjustment and Other | ||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||
Beginning balance | (149,999) | |
Other comprehensive income (loss) before reclassifications | (60,077) | |
Net current period other comprehensive income (loss) | (60,077) | |
Income tax expense (benefit) | (5,737) | |
Ending balance | (204,339) | |
Pension and Other Post-Retirement Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||
Beginning balance | (47,167) | |
Other comprehensive income (loss) before reclassifications | 344 | |
Net current period other comprehensive income (loss) | 344 | |
Income tax expense (benefit) | 80 | |
Ending balance | (46,903) | |
Net Unrealized (Loss) Gain on Cash Flow Hedge | ||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||
Beginning balance | 739 | |
Other comprehensive income (loss) before reclassifications | 768 | |
Net current period other comprehensive income (loss) | 768 | |
Income tax expense (benefit) | 184 | |
Ending balance | 1,323 | |
Total | ||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||
Beginning balance | (196,427) | (262,057) |
Other comprehensive income (loss) before reclassifications | (58,965) | |
Net current period other comprehensive income (loss) | (58,965) | |
Income tax expense (benefit) | (5,473) | |
Ending balance | $ (249,919) | $ (239,124) |
EQUITY AND NONCONTROLLING INT_6
EQUITY AND NONCONTROLLING INTERESTS - Nonredeemable and Redeemable Noncontrolling Interest - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
May 09, 2024 | Jun. 30, 2022 | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Nov. 30, 2023 | Dec. 31, 2022 | Dec. 28, 2019 | |
Schedule of Investments [Line Items] | ||||||||
Incremental dividends attributed to noncontrolling interest holders | $ 5,230 | $ 0 | ||||||
Adjustment of redeemable noncontrolling interests to redemption value | 4,807 | $ 0 | ||||||
Additional Paid-In Capital | ||||||||
Schedule of Investments [Line Items] | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 4,406 | |||||||
Retained Earnings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | $ 401 | |||||||
Noveprim Group | ||||||||
Schedule of Investments [Line Items] | ||||||||
Percentage of voting interests acquired | 41% | |||||||
Noveprim Group | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity interest | 90% | |||||||
Noncontrolling interest ownership percentage | 10% | |||||||
Contractually defined redemption value | $ 45,800 | |||||||
Dividend fair value | 8,000 | |||||||
Incremental dividends attributed to noncontrolling interest holders | 5,200 | |||||||
Noveprim Group | Additional Paid-In Capital | ||||||||
Schedule of Investments [Line Items] | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 1,700 | |||||||
Noveprim Group | Retained Earnings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | 400 | |||||||
Noveprim Group | Minimum | ||||||||
Schedule of Investments [Line Items] | ||||||||
Contractually defined redemption value | 47,000 | |||||||
Noveprim Group | Maximum | ||||||||
Schedule of Investments [Line Items] | ||||||||
Contractually defined redemption value | 54,000 | |||||||
Supplier | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity interest | 80% | |||||||
Noncontrolling interest ownership percentage | 10% | 20% | ||||||
Contractually defined redemption value | 12,000 | |||||||
Additional ownership percentage acquired by parent | 10% | |||||||
Purchase of additional equity interest | $ 15,000 | |||||||
Supplier | Subsequent Event | ||||||||
Schedule of Investments [Line Items] | ||||||||
Purchase of additional equity interest | $ 12,000 | |||||||
Supplier | Additional Paid-In Capital | ||||||||
Schedule of Investments [Line Items] | ||||||||
Adjustment of redeemable noncontrolling interests to redemption value | $ 2,800 | |||||||
Vital River | ||||||||
Schedule of Investments [Line Items] | ||||||||
Equity interest | 92% | |||||||
Noncontrolling interest ownership percentage | 8% | |||||||
Payments for repurchase of redeemable noncontrolling interest | $ 4,800 | |||||||
Redeemable noncontrolling interest, purchase price payable | $ 24,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 24.80% | 20.70% | |
Increase in unrecognized tax benefits | $ 700 | ||
Unrecognized tax benefits | 23,400 | ||
Increase in unrecognized tax benefits that would impact effective tax rate | 400 | ||
Unrecognized tax benefits that would impact effective tax rate | 20,700 | ||
Accrued interest on unrecognized tax benefits | 1,400 | ||
Decrease in unrecognized tax benefits that are reasonably possibly over the next twelve-month period | 5,000 | ||
Prepaid income tax | 60,311 | $ 59,715 | |
Accrued income taxes | $ 34,102 | $ 38,819 |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Total | $ 16,999 | $ 3,486 |
Operating Segments | RMS | ||
Segment Reporting Information [Line Items] | ||
Total | 7,387 | 0 |
Operating Segments | DSA | ||
Segment Reporting Information [Line Items] | ||
Total | 6,491 | (2) |
Operating Segments | Manufacturing | ||
Segment Reporting Information [Line Items] | ||
Total | 1,631 | 3,488 |
Unallocated corporate | ||
Segment Reporting Information [Line Items] | ||
Total | $ 1,490 | $ 0 |
RESTRUCTURING AND ASSET IMPAI_4
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs for Productivity Improvement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 16,999 | $ 3,486 |
Severance and Transition Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 9,037 | 914 |
Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 7,962 | 2,572 |
Selling, general and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 9,073 | 337 |
Selling, general and administrative | Severance and Transition Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 3,549 | 329 |
Selling, general and administrative | Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 5,524 | 8 |
Cost of services provided (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 5,918 | 567 |
Cost of services provided (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | Severance and Transition Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 4,810 | 567 |
Cost of services provided (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 1,108 | 0 |
Cost of products sold (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 2,008 | 2,582 |
Cost of products sold (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | Severance and Transition Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | 678 | 18 |
Cost of products sold (excluding amortization of intangible assets) | Cost of services provided and products sold (excluding amortization of intangible assets) | Asset Impairments and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total | $ 1,330 | $ 2,564 |
RESTRUCTURING AND ASSET IMPAI_5
RESTRUCTURING AND ASSET IMPAIRMENTS - Narrative (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||||
Severance and other personnel personnel related costs liabilities and facilities related costs liabilities | $ 10,812 | $ 5,050 | $ 1,889 | $ 1,300 |
Accrued Compensation | Severance and Transition Costs | ||||
Segment Reporting Information [Line Items] | ||||
Severance and other personnel personnel related costs liabilities and facilities related costs liabilities | $ 10,800 | $ 5,100 |
RESTRUCTURING AND ASSET IMPAI_6
RESTRUCTURING AND ASSET IMPAIRMENTS - Rollforward of Severance and Transition and Lease Obligation Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 5,050 | $ 1,300 |
Expense (excluding non-cash charges) | 9,037 | 914 |
Payments / utilization | (3,235) | (331) |
Foreign currency adjustments | (40) | 6 |
Ending balance | $ 10,812 | $ 1,889 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Mar. 30, 2024 USD ($) |
US Fish and Wildlife Service | Pending Litigation | |
Loss Contingencies [Line Items] | |
Inventory, non-human primates | $ 27 |