Document_and_Entity_Informatio
Document and Entity Information (USD $) | 3 Months Ended | ||
Mar. 29, 2014 | Apr. 18, 2014 | Dec. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Common Stock, Shares, Outstanding | 48,360,000 | 48,367,013 | 47,553,841 |
Entity Registrant Name | 'CHARLES RIVER LABORATORIES INTERNATIONAL INC | ' | ' |
Entity Central Index Key | '0001100682 | ' | ' |
Current Fiscal Year End Date | '--12-27 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 29-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 48,367,013 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | $2,761,272,772.17 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Product revenue | $127,023 | $126,287 |
Service revenue | 172,345 | 164,951 |
Revenue | 299,368 | 291,238 |
Costs and expenses | ' | ' |
Cost of products sold | 66,586 | 66,033 |
Cost of services provided | 123,969 | 120,994 |
Selling, general and administrative | 64,767 | 57,199 |
Amortization of other intangibles | 4,340 | 4,249 |
Operating income | 39,706 | 42,763 |
Other income (expense) | ' | ' |
Interest income | 205 | 97 |
Interest expense | -2,801 | -8,280 |
Other income (expense), net | 5,876 | 1,068 |
Income from continuing operations, before income taxes | 42,986 | 35,648 |
Provision (benefit) for income taxes | 10,358 | 9,722 |
Income from continuing operations, net of income taxes | 32,628 | 25,926 |
Income (loss) from discontinued operations, net of taxes | -270 | -155 |
Net income | 32,358 | 25,771 |
Less: Net income attributable to noncontrolling interests | -126 | -193 |
Net income attributable to common shareowners | $32,232 | $25,578 |
Basic: | ' | ' |
Continuing operations attributable to common shareowners (in dollars per share) | $0.69 | $0.54 |
Discontinued operations (in dollars per share) | ($0.01) | $0 |
Net income attributable to common shareowners (in dollars per share) | $0.68 | $0.54 |
Diluted: | ' | ' |
Continuing operations attributable to common shareowners (in dollars per share) | $0.67 | $0.53 |
Discontinued operations (in dollars per share) | ($0.01) | $0 |
Net income attributable to common shareowners (in dollars per share) | $0.67 | $0.53 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net income | $32,358 | $25,771 |
Foreign currency translation adjustment | -4,543 | -19,933 |
Defined benefit plan gains (losses) and prior service costs not yet recognized as components of net periodic pension cost: | ' | ' |
Amortization of prior service costs and net gains and losses | -289 | -737 |
Comprehensive income, before tax | 28,104 | 6,575 |
Income tax expense (benefit) related to items of other comprehensive income | 19 | 904 |
Comprehensive income, net of tax | 28,085 | 5,671 |
Less: comprehensive income related to noncontrolling interests | -126 | -229 |
Comprehensive income attributable to common shareholders | $27,959 | $5,442 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $169,850 | $155,927 |
Trade receivables, net | 239,998 | 220,630 |
Inventories | 91,674 | 89,396 |
Other current assets | 88,459 | 85,847 |
Current assets of discontinued businesses | 677 | 750 |
Total current assets | 590,658 | 552,550 |
Property, plant and equipment, net | 665,609 | 676,182 |
Goodwill | 230,321 | 230,701 |
Other intangibles, net | 79,451 | 84,537 |
Deferred tax asset | 18,711 | 23,671 |
Other assets | 64,043 | 61,964 |
Long-term assets of discontinued businesses | 2,970 | 3,151 |
Total assets | 1,651,763 | 1,632,756 |
Current liabilities | ' | ' |
Current portion of long-term debt and capital leases | 26,683 | 21,437 |
Accounts payable | 35,253 | 31,770 |
Accrued compensation | 52,434 | 58,461 |
Deferred revenue | 54,422 | 54,177 |
Accrued liabilities | 58,925 | 56,712 |
Other current liabilities | 9,855 | 22,546 |
Current liabilities of discontinued businesses | 1,747 | 1,931 |
Total current liabilities | 239,319 | 247,034 |
Long-term debt and capital leases | 614,129 | 642,352 |
Other long-term liabilities | 70,440 | 70,632 |
Long-term liabilities | 7,615 | 8,080 |
Total liabilities | 931,503 | 968,098 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interest | 21,579 | 20,581 |
Shareholders' equity | ' | ' |
Preferred stock, $0.01 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 120,000,000 shares authorized; 80,763,440 issued and 49,106,698 shares outstanding at March 30, 2013 and 79,607,981 issued and 48,220,037 shares outstanding at December 29, 2012 | 836 | 825 |
Capital in excess of par value | 2,249,137 | 2,206,155 |
Accumulated deficit | -233,241 | -265,473 |
Treasury stock, at cost, 31,656,742 shares and 31,387,944 shares at March 30, 2013 and December 29, 2012, respectively | -1,322,354 | -1,305,880 |
Accumulated other comprehensive income | 1,084 | 5,357 |
Total shareholders' equity | 695,462 | 640,984 |
Noncontrolling interests | 3,219 | 3,093 |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | 720,260 | 664,658 |
Total liabilities and equity | $1,651,763 | $1,632,756 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 83,624,714 | 82,522,905 |
Common Stock, Shares, Outstanding | 48,360,000 | 47,553,841 |
Treasury stock, shares | 35,265,000 | 34,969,000 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Cash flows relating to operating activities | ' | ' |
Net income | $32,358 | $25,771 |
Less: Income (loss) from discontinued operations | -270 | -155 |
Income from continuing operations | 32,628 | 25,926 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 20,050 | 20,010 |
Amortization of debt issuance costs and discounts | 435 | 4,557 |
Stock-based compensation | 6,659 | 5,904 |
Deferred income taxes | 13,064 | 6,734 |
Income (loss) from investments in limited partnerships | -6,104 | 90 |
Other, net | 1,380 | 682 |
Changes in assets and liabilities: | ' | ' |
Trade receivables | -20,224 | -14,234 |
Inventories | -2,294 | 2,922 |
Other assets | -5,991 | -4,775 |
Accounts payable | 6,310 | -5,038 |
Accrued compensation | -5,839 | -2,651 |
Deferred revenue | 615 | -3,888 |
Accrued liabilities | 6,933 | 1,827 |
Taxes payable and prepaid taxes | -16,497 | -6,938 |
Other liabilities | -2,662 | -1,151 |
Net cash provided by operating activities | 28,463 | 29,977 |
Cash flows relating to investing activities | ' | ' |
Acquisition of businesses, net of cash acquired | 0 | -24,141 |
Capital expenditures | -11,190 | -6,429 |
Purchases of investments | -6,705 | -3,847 |
Proceeds from sale of investments and distributions from investments in limited partnerships | 11,066 | 5,589 |
Other, net | 318 | 46 |
Net cash used in investing activities | -6,511 | -28,782 |
Cash flows relating to financing activities | ' | ' |
Proceeds from long-term debt and revolving credit agreement | 49,352 | 32,803 |
Proceeds from exercises of stock options | 34,841 | 25,148 |
Payments on long-term debt, capital lease obligation and revolving credit agreement | -72,589 | -54,902 |
Purchase of treasury stock | -20,812 | -11,229 |
Other, net | 3,064 | 1,670 |
Net cash used in financing activities | -6,144 | -6,510 |
Discontinued operations | ' | ' |
Net cash used in operating activities | -664 | -3 |
Net cash provided by discontinued operations | -664 | -3 |
Effect of exchange rate changes on cash and cash equivalents | -1,221 | -3,945 |
Net change in cash and cash equivalents | 13,923 | -9,263 |
Cash and cash equivalents, beginning of period | 155,927 | 109,685 |
Cash and cash equivalents, end of period | 169,850 | 100,422 |
Supplemental cash flow information | ' | ' |
Capitalized interest | $53 | $64 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 |
Components of comprehensive income, net of tax: | ' | ' |
Net income | $32,358 | ' |
Other comprehensive loss | -4,273 | ' |
Comprehensive income, net of tax | 28,085 | ' |
Noncontrolling Interest, Increase from Business Combination | -475 | ' |
Noncontrolling Interest, Change in Redemption Value | 0 | ' |
Tax detriment associated with stock issued under employee compensation plans | 2,943 | ' |
Issuance of stock under employee compensation plans | 34,864 | ' |
Acquisition of treasury shares | -16,474 | ' |
Stock-based compensation | 6,659 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | 720,260 | 664,658 |
Accumulated (Deficit) Earnings | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Net income | 32,232 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | -233,241 | -265,473 |
Accumulated Other Comprehensive Income | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Other comprehensive loss | -4,273 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | 1,084 | 5,357 |
Common Stock | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Issuance of stock under employee compensation plans | 11 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | 836 | 825 |
Capital in Excess of Par | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Noncontrolling Interest, Change in Redemption Value | -1,473 | ' |
Issuance of stock under employee compensation plans | 34,853 | ' |
Acquisition of treasury shares | 0 | ' |
Stock-based compensation | 6,659 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | 2,249,137 | 2,206,155 |
Treasury Stock | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Acquisition of treasury shares | -16,474 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | -1,322,354 | -1,305,880 |
Non-controlling Interest | ' | ' |
Components of comprehensive income, net of tax: | ' | ' |
Net income | 126 | ' |
Other comprehensive loss | ' | ' |
Comprehensive income, net of tax | 126 | ' |
Noncontrolling Interest, Increase from Business Combination | -475 | ' |
Noncontrolling Interest, Change in Redemption Value | 1,473 | ' |
Stockholder's Equity, Including Noncontrolling Interest and Redeemable Noncontrolling Interest | $24,798 | $23,674 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 29, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
The condensed consolidated interim financial statements of Charles River Laboratories International, Inc. are unaudited, and certain information and footnote disclosures related thereto normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in accordance with Rule 10-01 of Regulation S-X. In the opinion of management, the accompanying unaudited condensed consolidated financial statements were prepared following the same policies and procedures used in the preparation of the audited financial statements and reflect all adjustments (consisting of normal recurring adjustments) considered necessary to state fairly our financial position and results of operations. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 28, 2013. Certain reclassifications have been made to prior year financial statements to conform with the current year presentation. These reclassifications have no impact on prior period reported net income or cash flows. |
Restructuring_and_Asset_Impair
Restructuring and Asset Impairments | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Restructuring and Contract Termination Costs | ' | |||||||
RESTRUCTURING AND ASSET IMPAIRMENTS | ||||||||
Facilities | ||||||||
North American Research Models | ||||||||
In the first quarter of 2014, we committed to a plan to close our research model production facility located in Michigan by the end of the 2014 and to reassign the sourcing of research models to other facilities in the U.S. As a result of these actions, we reviewed the long-lived assets of this asset group, consisting of land improvements, building and equipment, for potential impairment based on the undiscounted cash flows of the group and considered the potential redeployment and future utilization of the facility's machinery and equipment. Based on the results of this analysis, we recorded an asset impairment and other charges of $690. In addition, we recorded accelerated depreciation of $290 in the first quarter of 2014 reflecting the adjusted remaining useful life and estimated residual value of building and improvements. We anticipate that additional accelerated depreciation for 2014 will amount to approximately $840. | ||||||||
RMS Europe | ||||||||
In 2012, we commenced a consolidation of certain research model operations in Europe. As a result, we adjusted the carrying value of certain facilities impacted by the consolidation plan to fair value through an asset impairment charge in 2012. During the first quarter of 2014, we entered into a purchase and sale agreement to sell a facility impacted by the consolidation plan. The sale closed subsequent to our fiscal quarter end and will be reflected as a gain of approximately $800 in our second quarter financial statements. | ||||||||
Staffing Reductions | ||||||||
We have periodically implemented staffing reductions to improve operating efficiency and profitability at various sites. As a result of these actions, for the three months ended March 29, 2014 and March 30, 2013, we recorded severance and retention charges as shown below. As of March 29, 2014, $2,217 was included in accrued compensation and $1,330 in other long-term liabilities on our consolidated balance sheet. | ||||||||
The following table rolls forward our severance and retention cost liability: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Balance, beginning of period | $ | 2,782 | $ | 3,636 | ||||
Expense | 1,900 | 297 | ||||||
Payments/utilization | (1,135 | ) | (498 | ) | ||||
Balance, end of period | $ | 3,547 | $ | 3,435 | ||||
The following table presents severance and retention costs by classification on the income statement: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Severance charges included in cost of sales | $ | 1,682 | $ | 227 | ||||
Severance charges included in selling, general and administrative expense | 218 | 70 | ||||||
Total expense | $ | 1,900 | $ | 297 | ||||
The following table presents severance and retention cost by segment: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research models and services | $ | 1,716 | $ | 86 | ||||
Preclinical services | 63 | 211 | ||||||
Corporate | 121 | — | ||||||
Total expense | $ | 1,900 | $ | 297 | ||||
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Supplemental Balance Sheet Information [Abstract] | ' | |||||||
Supplemental Balance Sheet Information | ' | |||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ||||||||
The composition of net trade receivables is as follows: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
Client receivables | $ | 203,107 | $ | 190,423 | ||||
Unbilled revenue | 41,442 | 35,184 | ||||||
Total | 244,549 | 225,607 | ||||||
Less allowance for doubtful accounts | (4,551 | ) | (4,977 | ) | ||||
Net trade receivables | $ | 239,998 | $ | 220,630 | ||||
The composition of inventories is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Raw materials and supplies | $ | 15,012 | $ | 15,028 | ||||
Work in process | 11,977 | 11,715 | ||||||
Finished products | 64,685 | 62,653 | ||||||
Inventories | $ | 91,674 | $ | 89,396 | ||||
The composition of other current assets is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Prepaid assets | $ | 24,316 | $ | 20,058 | ||||
Deferred tax asset | 22,333 | 29,139 | ||||||
Marketable securities | 11,446 | 11,158 | ||||||
Prepaid income tax | 30,348 | 25,247 | ||||||
Restricted cash | 16 | 245 | ||||||
Other current assets | $ | 88,459 | $ | 85,847 | ||||
The composition of net property, plant and equipment is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Land | $ | 40,070 | $ | 40,157 | ||||
Buildings | 695,278 | 694,074 | ||||||
Machinery and equipment | 374,180 | 367,244 | ||||||
Leasehold improvements | 38,404 | 37,959 | ||||||
Furniture and fixtures | 24,448 | 24,013 | ||||||
Vehicles | 3,882 | 3,859 | ||||||
Computer hardware and software | 112,661 | 112,328 | ||||||
Construction in progress | 36,191 | 42,075 | ||||||
Total | 1,325,114 | 1,321,709 | ||||||
Less accumulated depreciation | (659,505 | ) | (645,527 | ) | ||||
Net property, plant and equipment | $ | 665,609 | $ | 676,182 | ||||
Depreciation is calculated for financial reporting purposes using the straight-line method based on the estimated useful lives of the assets. Depreciation expense for the three months ended March 29, 2014 and March 30, 2013 was $15,710 and $15,761, respectively. | ||||||||
The composition of other assets is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Deferred financing costs | $ | 6,692 | $ | 7,126 | ||||
Cash surrender value of life insurance policies | 26,780 | 26,507 | ||||||
Investments in limited partnerships | 18,973 | 17,911 | ||||||
Other assets | 11,598 | 10,420 | ||||||
Other assets | $ | 64,043 | $ | 61,964 | ||||
The composition of other current liabilities is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Accrued income taxes | $ | 6,662 | $ | 18,773 | ||||
Current deferred tax liability | 1,620 | 1,960 | ||||||
Accrued interest and other | 1,573 | 1,813 | ||||||
Other current liabilities | $ | 9,855 | $ | 22,546 | ||||
The composition of other long-term liabilities is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Deferred tax liability | $ | 14,840 | $ | 14,988 | ||||
Long-term pension liability | 15,864 | 16,219 | ||||||
Accrued Executive Supplemental Life Insurance Retirement Plan and Deferred Compensation Plan | 29,971 | 28,708 | ||||||
Other long-term liabilities | 9,765 | 10,717 | ||||||
Other long-term liabilities | $ | 70,440 | $ | 70,632 | ||||
Marketable_Securities_and_Inve
Marketable Securities and Investments in Limited Partnerships | 3 Months Ended |
Mar. 29, 2014 | |
Marketable Securities and Equity-Method Affiliates [Abstract] | ' |
Marketable Securities and Equity-Method Affiliates | ' |
MARKETABLE SECURITIES AND INVESTMENTS IN LIMITED PARTNERSHIPS | |
Marketable Securities | |
Our investments in marketable securities are reported at fair value and consist of time deposits with original maturities ranging from three months to one year. The carrying value for these time deposits approximates fair value and, accordingly, there are no unrealized gains or losses reflected on the consolidated balance sheet. As of March 29, 2014, and December 28, 2013, we held $11,446 and $11,158 of marketable securities, respectively. | |
Investments in Venture Capital Limited Partnerships | |
We have invested in several venture capital limited partnerships that invest in start-up companies in the life sciences industry. Our total commitment to these entities as of March 29, 2014 is $35,000 of which we have funded $13,829 to date. During the quarter ended March 29, 2014, we received dividends in cash and in securities totaling $6,498. Our ownership interest in these limited partnerships ranges from 3.8% to 12.1%. These limited partnerships prepare quarterly financial statements following investment company accounting guidelines, whereby investments are adjusted to fair value with resulting gains and losses recorded in earnings. These entities estimate the fair value of non-publicly traded investments based on all available information, including value implied by the pricing of subsequent preferred share offerings and the net present value of future cash flows. | |
We account for these investments under the equity-method, whereby we record our portion of the investment gains and losses as reported in the fund's financial statements on a quarterly lag each reporting period. In addition, we adjust the carrying value of these investments to reflect our estimate of changes to fair value since the fund's financial statements based information from the fund's management team, market prices of known public holdings of the fund and other information. | |
Our investments in these limited partnerships are subject to a high degree of volatility and are generally higher risk relative to other investments we may make. We report gains and losses from our limited partnership investments in other income (expense), net. We recognized gains (losses) of $6,104 and $(90) for the three months ended March 29, 2014 and March 30, 2013, respectively, related to these investments. As of March 29, 2014, these investments had a carrying value of $18,973, which is reported in other assets on the consolidated balance sheets. |
Fair_Value
Fair Value | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value | ' | |||||||||||||||
FAIR VALUE | ||||||||||||||||
Valuation methodologies used for assets and liabilities measured or disclosed at fair value are as follows: | ||||||||||||||||
• | Time deposits—Valued at their carrying amount, which approximates fair value, as reported by the financial institutions that hold our securities. | |||||||||||||||
• | Investments in life insurance policies—Valued at cash surrender value based on fair value of underlying investments. | |||||||||||||||
• | Redeemable noncontrolling interest—Valued primarily using the income approach based on estimated future cash flows of the underlying business based on our projected financial data discounted by a weighted average cost of capital. Significant assumptions include a discount rate of 18% and a long-term pretax operating margin of 32%. | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | ||||||||||||||||
Fair Value Measurements at March 29, 2014 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Assets and Liabilities at Fair Value | |||||||||||||
Time deposits | $ | — | $ | 11,446 | $ | — | $ | 11,446 | ||||||||
Life policies | — | 19,747 | — | 19,747 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 31,193 | $ | — | $ | 31,193 | ||||||||
Redeemable noncontrolling interest | — | — | 21,579 | 21,579 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 21,579 | $ | 21,579 | ||||||||
Fair Value Measurements at December 28, 2013 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Assets and Liabilities at Fair Value | |||||||||||||
Time deposits | $ | — | $ | 11,158 | $ | — | $ | 11,158 | ||||||||
Life policies | — | 19,534 | — | 19,534 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 30,692 | $ | — | $ | 30,692 | ||||||||
Redeemable noncontrolling interest | — | — | 20,581 | 20,581 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 20,581 | $ | 20,581 | ||||||||
The book value of our term and revolving loans, which are variable rate loans carried at amortized cost, approximates fair value based current market pricing of similar debt. | ||||||||||||||||
Concurrent with the acquisition of Vital River in 2013, we entered into a joint venture agreement with the noncontrolling interest holders that provide us with the right to purchase the remaining 25% of the entity for cash at its then appraised value beginning in January 2016. Additionally, the noncontrolling interest holders were granted the right to require us to purchase the remaining 25% of the entity at its then appraised value beginning in January 2016 for cash. These rights are accelerated in certain events. As the noncontrolling interest holders can require the Company to purchase for cash the remaining 25% interest, we classify the carrying amount of the noncontrolling interest above the equity section and below liabilities on the consolidated balance sheet and we adjust the carrying amount to fair value each quarter end. Adjustments to fair value, which is deemed to be Level 3 as the fair value is based on unobservable inputs, are recorded through additional paid-in capital. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Using Significant | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Redeemable Noncontrolling Interest (Liability) | March 29, 2014 | March 30, 2013 | ||||||||||||||
Beginning balance | $ | 20,581 | $ | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Purchases, issuances and settlements | 8,963 | |||||||||||||||
Included in other income (expense) | 1 | 38 | ||||||||||||||
Change in balance due to foreign currency translation | (476 | ) | 37 | |||||||||||||
Included in additional paid-in capital | 1,473 | — | ||||||||||||||
Ending balance | $ | 21,579 | $ | 9,038 | ||||||||||||
We enter into derivative instruments to hedge foreign currency exchange risk to reduce the impact of changes to foreign currency rates on our financial statements. During the three months ended March 29, 2014, we recognized $575 of net hedge losses associated with forward currency contracts open during the period. As of March 29, 2014, there were no open forward currency contracts. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||
The following table displays the gross carrying amount and accumulated amortization of definite-lived intangible assets by major class: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization & Impairment Loss | Gross Carrying Amount | Accumulated Amortization & Impairment Loss | ||||||||||||||
Backlog | $ | 2,916 | $ | (2,533 | ) | $ | 2,916 | $ | (2,507 | ) | |||||||
Client relationships | 307,383 | (238,138 | ) | 311,507 | (238,002 | ) | |||||||||||
Trademarks and trade names | 5,398 | (5,012 | ) | 5,399 | (4,997 | ) | |||||||||||
Standard operating procedures | 2,754 | (1,645 | ) | 2,754 | (1,498 | ) | |||||||||||
Other identifiable intangible assets | 10,481 | (5,591 | ) | 10,432 | (4,905 | ) | |||||||||||
Total other intangible assets | $ | 328,932 | $ | (252,919 | ) | $ | 333,008 | $ | (251,909 | ) | |||||||
Additionally, as of both March 29, 2014 and December 28, 2013, other intangible assets, net, included $3,438 of indefinite-lived intangible assets. | |||||||||||||||||
The changes in the gross carrying amount and accumulated impairment loss of goodwill are as follows: | |||||||||||||||||
Adjustments to Goodwill | |||||||||||||||||
28-Dec-13 | Acquisitions | Foreign Exchange | 29-Mar-14 | ||||||||||||||
Research Models and Services | |||||||||||||||||
Gross carrying amount | $ | 83,551 | $ | — | $ | (361 | ) | $ | 83,190 | ||||||||
Preclinical Services | |||||||||||||||||
Gross carrying amount | 1,152,150 | — | (19 | ) | 1,152,131 | ||||||||||||
Accumulated impairment loss | (1,005,000 | ) | (1,005,000 | ) | |||||||||||||
Total | |||||||||||||||||
Gross carrying amount | $ | 1,235,701 | $ | — | $ | (380 | ) | $ | 1,235,321 | ||||||||
Accumulated impairment loss | (1,005,000 | ) | (1,005,000 | ) | |||||||||||||
Goodwill, net | $ | 230,701 | $ | 230,321 | |||||||||||||
LongTerm_Debt_and_Capital_Leas
Long-Term Debt and Capital Lease Obligations | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt and Capital Lease Obligations | ' | |||||||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | ||||||||
Long-Term Debt | ||||||||
Long-term debt consists of the following: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Term loans | $ | 404,250 | $ | 409,500 | ||||
Revolving credit facility | 235,603 | 253,308 | ||||||
Other long-term debt | 241 | 241 | ||||||
Total debt | 640,094 | 663,049 | ||||||
Less: current portion of long-term debt | (26,491 | ) | (21,241 | ) | ||||
Long-term debt | $ | 613,603 | $ | 641,808 | ||||
On May 29, 2013, we amended and restated our credit agreement dated September 23, 2011 to repay loans outstanding under the previous agreement, to retire our 2.25% Senior Convertible Debentures (2013 Notes), and to extend the maturity date of our credit agreement under a new $970,000 agreement (the $970M Credit Facility). The $970M Credit Facility provides for a $420,000 U.S. term loan facility and a $550,000 multi-currency revolving credit facility. The revolving credit facility may be drawn in U.S. Dollars, Euros, Pound Sterling, or Japanese Yen, subject to sub-limits by currency. Under specified circumstances, we have the ability to expand the term loan and/or revolving credit facility by up to $350,000 in the aggregate. Certain financing costs associated with the $970M Credit Facility were capitalized as deferred financing costs and will be amortized over the life of the agreement using the effective interest method. | ||||||||
The $420,000 U.S. term loan matures in quarterly installments through maturity on May 29, 2018. The revolving credit facility also matures on May 29, 2018 and requires no scheduled payment before this date. The interest rates applicable to the $970M Credit Facility are variable and are based on an applicable rate plus a spread determined by our leverage ratio. As of March 29, 2014, the interest rate spread for the adjusted LIBOR was 1.25%. | ||||||||
The $970M Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to our business and negative and affirmative covenants. As of March 29, 2014, we were compliant with all financial covenants specified in the credit agreement. | ||||||||
We had $5,109 outstanding under letters of credit as of March 29, 2014. | ||||||||
Principal maturities of existing debt for the periods set forth in the table below, are as follows: | ||||||||
Twelve Months Ending | ||||||||
Mar-15 | $ | 26,491 | ||||||
Mar-16 | 42,000 | |||||||
Mar-17 | 52,500 | |||||||
Mar-18 | 73,500 | |||||||
Mar-19 | 445,603 | |||||||
Total | $ | 640,094 | ||||||
We have capital leases for equipment. These leases are capitalized using interest rates considered appropriate at the inception of the lease. Capital lease obligations amounted to $717 and $740 at March 29, 2014 and December 28, 2013, respectively. |
Equity
Equity | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Equity | ' | |||||||
EQUITY | ||||||||
Earnings Per Share | ||||||||
Basic earnings per share for the three months ended March 29, 2014 and March 30, 2013 was computed by dividing earnings available to common shareholders for these periods by the weighted average number of common shares outstanding in the respective periods adjusted for contingently issuable shares, such as unvested restricted stock. The weighted average number of common shares outstanding for the three months ended March 29, 2014 and March 30, 2013 has been adjusted to include common stock equivalents for the purpose of calculating diluted earnings per share for these periods. | ||||||||
Options to purchase 609,923 shares and 2,684,236 shares were outstanding in each of the three months ended March 29, 2014 and March 30, 2013, respectively, but were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Basic weighted average shares outstanding for the three months ended March 29, 2014 and March 30, 2013 excluded the weighted average impact of 1,188,699 and 1,149,622 shares, respectively, of non-vested restricted stock awards. | ||||||||
The following table reconciles of the numerator and denominator in the computations of the basic and diluted earnings per share. | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Numerator: | ||||||||
Income from continuing operations for purposes of calculating earnings per share | $ | 32,502 | $ | 25,733 | ||||
Loss from discontinued businesses | (270 | ) | $ | (155 | ) | |||
Denominator: | ||||||||
Weighted-average shares outstanding—Basic | 47,090,830 | 47,658,995 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and contingently issuable restricted stock | 1,060,554 | 777,054 | ||||||
Weighted-average shares outstanding—Diluted | 48,151,384 | 48,436,049 | ||||||
Basic earnings per share from continuing operations attributable to common shareholders | $ | 0.69 | $ | 0.54 | ||||
Basic earnings (loss) per share from discontinued operations attributable to common shareholders | $ | (0.01 | ) | $ | — | |||
Diluted earnings per share from continuing operations attributable to common shareholders | $ | 0.67 | $ | 0.53 | ||||
Diluted earnings (loss) per share from discontinued operations attributable to common shareholders | $ | (0.01 | ) | $ | — | |||
Treasury Shares | ||||||||
For the three months ended March 29, 2014 and March 30, 2013, we repurchased 183,300 shares of common stock for $9,820 and 157,283 shares of common stock for $6,458, respectively, through open market purchases made in reliance on Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934, as amended. Additionally, our 2007 Incentive Plan permits the netting of common stock upon vesting of restricted stock awards in order to satisfy individual tax withholding requirements. During the three months ended March 29, 2014 and March 30, 2013, we acquired 112,747 shares for $6,654 and 111,515 shares for $4,471, respectively, as a result of such withholdings. | ||||||||
Share repurchases for the three months ended March 29, 2014 and March 30, 2013 were as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Number of shares of common stock repurchased | 296,047 | 268,798 | ||||||
Total cost of repurchase | $ | 16,474 | $ | 10,929 | ||||
Income_Taxes
Income Taxes (USD $) | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | |||||||
Income Tax Disclosures [Line Items] | ' | |||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $2,563 | |||||||
Income Taxes | ' | |||||||
INCOME TAXES | ||||||||
The following table provides a reconciliation of the provision for income taxes on the condensed consolidated statements of income: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income from continuing operations before income taxes | $ | 42,986 | $ | 35,648 | ||||
Effective tax rate | 24.1 | % | 27.3 | % | ||||
Provision for income taxes | $ | 10,358 | $ | 9,722 | ||||
Our overall effective tax rate was 24.1% in the first quarter of 2014 and 27.3% in the first quarter of 2013. The decrease was primarily attributable to a $1,837 release of an uncertain tax position resulting from the ability to offset a capital gain from an investment in a limited partnership. The effective tax rate for the first quarter of 2014 reflects a discrete benefit of $238 resulting from the settlement of a Canadian tax controversy related to headquarter service charges for the tax years 2006 through 2009. In addition, in the first quarter of 2014, we reorganized our UK RMS operations. The purpose of this reorganization was to streamline the legal entity structure in order to improve the operating efficiency, facilitate acquisitions, and provide tax benefits. The reorganization, which did not involve reductions of personnel or facility closures, resulted in a one-time tax cost in the first quarter of 2014 of $1,220 due primarily to the write-off of deferred tax assets. | ||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU requires an entity to present an unrecognized tax benefit as a reduction of the deferred tax asset for a net operating loss, or similar loss or tax credit carryforward, as opposed to a liability, unless certain circumstances exist. The ASU does not require new disclosures and may be adopted either prospectively or retrospectively. The ASU become effective during our first fiscal quarter and we adopted the provisions of ASU 2013-11 retrospectively. The adoption of the ASU decreased net non-current deferred tax assets and decreased the associated long-term tax liabilities related to unrecognized tax benefits by $9,271 and $11,865 as of March 29, 2014 and December 28, 2013, respectively. | ||||||||
During the first quarter of 2014, our unrecognized tax benefits recorded decreased by $2,563 to $15,912 due primarily to the settlement of a Canadian tax controversy related to headquarter service charges for tax years 2006 through 2009 and the release of a portion of the uncertain tax position associated with an acquisition agreement termination fee to offset a capital gain. | ||||||||
The amount of unrecognized income tax benefits that would impact the effective tax rate favorably decreased by $2,719 to $14,293. The decrease was due primarily to the settlement of a Canadian tax controversy related to headquarter service charges for tax years 2006 through 2009 and the release of a portion of the uncertain tax position associated with an acquisition agreement termination fee to offset a capital gain. The amount of accrued interest on unrecognized tax benefits decreased by | ||||||||
by $24 to $667 in the first quarter of 2014 primarily due to the settlement of the Canadian tax controversy. | ||||||||
We conduct business in a number of tax jurisdictions. As a result, we are subject to tax audits in jurisdictions including, but not limited to, the United States, the United Kingdom, Japan, France, Germany, and Canada. With few exceptions, we are no longer subject to U.S. and international income tax examinations for years before 2010 although carryforward attributes that were generated prior to 2010 may still be adjusted upon examination by taxing authorities if they either have been, or will be, used in a future period. As of March 29, 2014, we anticipate the statue of limitations to expire within the next twelve months for a year which includes an uncertain tax position associated with an acquisition agreement termination fee. However, we do not expect the liability associated with this uncertain tax position to decrease until the statute expires on the year in which a carryforward attribute is utilized. | ||||||||
We and certain of our subsidiaries are currently under audit by various tax authorities in the U.S., Germany, and France. We do not believe that resolution of these controversies will have a material impact on our financial position or results of operations. | ||||||||
On December 30, 2013, the French government enacted anti-hybrid provisions in an attempt to further restrict the ability of companies to deduct interest in France for 2013 and beyond. We believe this new tax law should not apply to further restrict the deduction of interest by our French affiliates. However, future changes in or clarifications to the French anti-hybrid provisions could result in the disallowance of interest deducted by our French affiliates resulting in an increase to our effective tax rate in 2014 and beyond | ||||||||
On February 25, 2013, the German government enacted a tax law change that restricts the deductibility of losses in Germany. As of March 29, 2014, we believe that this new tax law should not apply to restrict the deduction of losses by our German affiliates. However, future changes in or clarifications to the German tax law may result in disallowing losses currently being deducted by our German affiliates and a corresponding increase to our effective tax rate in 2014 and beyond. | ||||||||
In accordance with our policy, the remaining undistributed earnings of our non-U.S. subsidiaries remain indefinitely reinvested as of the end of the first quarter of 2014 as they are required to fund needs outside the U.S. and cannot be repatriated in a manner that is substantially tax free. | ||||||||
The income tax expense (benefit) related to items of other comprehensive income are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income tax benefit related to foreign currency translation adjustment | $ | (105 | ) | $ | 662 | |||
Income tax expense related to change in unrecognized pension gains, losses and prior service costs | 124 | 242 | ||||||
Income tax expense related to items of other comprehensive income | $ | 19 | $ | 904 | ||||
UNITED STATES | ' | |||||||
Income Tax Disclosures [Line Items] | ' | |||||||
Unrecognized Tax Benefits, Period Increase (Decrease) | ($1,837) |
Employee_Benefits
Employee Benefits | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefits | ' | |||||||||||||||
EMPLOYEE BENEFITS | ||||||||||||||||
The following table provides the components of net periodic benefit cost for our defined benefit plans for the three month period ended: | ||||||||||||||||
Pension Benefits | Supplemental | |||||||||||||||
Retirement Benefits | ||||||||||||||||
March 29, 2014 | March 30, 2013 | March 29, 2014 | March 30, 2013 | |||||||||||||
Service cost | $ | 842 | $ | 847 | $ | 189 | $ | 161 | ||||||||
Interest cost | 3,211 | 2,810 | 252 | 177 | ||||||||||||
Expected return on plan assets | (4,278 | ) | (3,656 | ) | — | — | ||||||||||
Amortization of prior service cost (credit) | (159 | ) | (150 | ) | 165 | 165 | ||||||||||
Amortization of net loss (gain) | 223 | 690 | 63 | 63 | ||||||||||||
Net periodic (benefit) cost | $ | (161 | ) | $ | 541 | $ | 669 | $ | 566 | |||||||
The above table excludes amortization of net deferred gains of $3 and $31 for the three month periods ended March 29, 2014, and March 30, 2013, respectively, related to our post-retirement health and life insurance plans. During 2014, we expect to contribute $6,477 to our pension plans. |
Stock_Plans_and_StockBased_Com
Stock Plans and Stock-Based Compensation | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock Plans and Stock Based Compensation | ' | |||||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||||||
We have stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock and performance share units. For a complete description of these plans please refer to our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 28, 2013. | ||||||||
The following table provides the financial statement line items in which stock-based compensation is reflected: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Stock-based compensation expense included in: | ||||||||
Cost of sales | $ | 1,353 | $ | 1,369 | ||||
Selling, general and administration | 5,306 | 4,535 | ||||||
Stock-based compensation, before income taxes | 6,659 | 5,904 | ||||||
Provision for income taxes | (2,364 | ) | (2,043 | ) | ||||
Stock-based compensation, net of tax | $ | 4,295 | $ | 3,861 | ||||
Performance Based Stock Award Program | ||||||||
In the first quarters of 2014 and 2013, we issued performance-based stock awards (performance share units, or PSUs) to certain employees. Each performance share unit is settled in one share of our common stock three years from the grant date if the participant satisfies the service requirement. In addition, the number of common stock issued for each PSU at the end of the three-year vesting period is adjusted based on a performance condition linked to the Company's financial performance, which is generally earnings per share with certain defined adjustments, and is further adjusted based on a market condition, which is calculated based on the Company's stock price performance relative to a peer group over the three year vesting period. The fair value of the market condition is reflected in the fair value of the award at grant date. Each reporting period, we record a ratable amount of stock-based compensation for the estimated number of common shares expected to be issued upon the vestings of the PSUs based on our estimated outcome for the performance condition. | ||||||||
During the first quarter of 2014, we issued 214,823 performance share units using a fair value per share of $67.82. The maximum amount of common shares to be issued upon vesting is 429,646. During the first quarter of 2013, we issued 163,847 | ||||||||
performance share units using a fair value per share of $44.47. The maximum amount of common shares to be issued upon vesting of these PSUs is 327,694. For the period ended March 29, 2014, we recognized $1,034 of stock-based compensation related to performance share units granted in 2014 and 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Various lawsuits, claims and proceedings of a nature considered normal to our business are pending against us. In the opinion of management, the outcome of such proceedings and litigation currently pending will not materially affect our consolidated financial statements. | |
In early May 2013, the Company commenced an investigation into inaccurate billing with respect to certain government contracts. The Company promptly reported these matters to the relevant government contracting officers, the Department of Health and Human Services' Office of the Inspector General, and the Department of Justice, and we are cooperating with these agencies to ensure the proper repayment and resolution of this matter. The Company identified approximately $1,500 in excess amounts billed on these contracts since January 1, 2007 and reserved such amount. Because of the preliminary stage of discussions with the government and complex nature of this matter, the Company believes that it is reasonably possible that additional losses may be incurred. However, the Company cannot at this time estimate the potential range of loss beyond the current reserve of $1,500. | |
On July 27, 2012, a Mauritius supplier of large animal models submitted an Application for Arbitration with The Permanent Secretariat, The Permanent Court of Arbitration, The Mauritius Chamber of Commerce and Industry in Port Louis, Mauritius. The supplier asserted that the Company failed to pay certain invoices and the supplier was therefore permitted to terminate the supply agreement. The Company filed a counterclaim asserting that the supplier had failed to meet its contractual obligations under the supply agreement. The arbitration hearing relating to this contract dispute took place in Mauritius from August 13-15, 2013 and final arguments were presented in March 2014. While no prediction may be made as to the outcome of arbitration, the Company intends to defend against this proceeding vigorously and therefore an estimate of the possible loss or range of loss cannot be made. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Business Segment Information | ' | |||||||
BUSINESS SEGMENT INFORMATION | ||||||||
We report two business segments, Research Models and Services (RMS) and Preclinical Services (PCS). Our RMS segment includes sales of Research Models, Genetically Engineered Models and Services (GEMS), Insourcing Solutions (IS), Research Animal Diagnostic Services (RADS), Discovery Services (DS), Endotoxin and Microbial Detection (EMD) products and services, and Avian Vaccine products and services. Our PCS segment includes services required to take a drug through the development process, which includes DS, safety assessment and Biologics Testing Services. | ||||||||
The following table presents sales and other financial information by business segment. | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research Models and Services | ||||||||
Revenue | $ | 185,615 | $ | 182,489 | ||||
Gross margin | 80,979 | 80,435 | ||||||
Operating income | 53,540 | 55,303 | ||||||
Depreciation and amortization | 10,690 | 9,873 | ||||||
Capital expenditures | 6,868 | 4,010 | ||||||
Preclinical Services | ||||||||
Revenue | $ | 113,753 | $ | 108,749 | ||||
Gross margin | 27,834 | 23,776 | ||||||
Operating income | 12,033 | 8,060 | ||||||
Depreciation and amortization | 9,361 | 10,137 | ||||||
Capital expenditures | 4,322 | 2,418 | ||||||
A reconciliation of segment operating income to consolidated operating income is as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Total segment operating income | $ | 65,573 | $ | 63,363 | ||||
Unallocated corporate overhead | (25,867 | ) | (20,600 | ) | ||||
Consolidated operating income | $ | 39,706 | $ | 42,763 | ||||
Revenue for each significant product or service area are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research models | $ | 99,355 | $ | 103,123 | ||||
Research model services | 53,795 | 52,154 | ||||||
EMD | 32,465 | 27,212 | ||||||
Total research models and services | 185,615 | 182,489 | ||||||
Total preclinical services | 113,753 | 108,749 | ||||||
Total revenue | $ | 299,368 | $ | 291,238 | ||||
A summary of unallocated corporate overhead consists of the following: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Stock-based compensation expense | $ | 3,702 | $ | 3,197 | ||||
U.S. retirement plans | 644 | 1,300 | ||||||
Audit, tax and related expense | 1,906 | 1,235 | ||||||
Salary and bonus | 6,139 | 4,755 | ||||||
Global IT | 2,869 | 2,586 | ||||||
Employee health, long-term disability and fringe benefit expense | 2,319 | 2,228 | ||||||
Consulting and professional services | 1,182 | 688 | ||||||
Depreciation expense | 1,600 | 1,570 | ||||||
Other general unallocated corporate expenses | 5,506 | 3,041 | ||||||
Total unallocated corporate overhead costs | $ | 25,867 | $ | 20,600 | ||||
Other general unallocated corporate expenses consist of various departmental costs including those associated with senior executives, corporate accounting, legal, tax, human resources and treasury. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
DISCONTINUED OPERATIONS | ||||||||
On March 28, 2011, we disposed of our Phase I clinical business. As part of the disposition we remained the guarantor of a Phase I facility lease. The facility lease runs through January 2021 with remaining lease payments totaling $11,070 as of March 29, 2014. On April 4, 2013, the buyer of our Phase I clinical business filed for Chapter 11 bankruptcy and effective July 1, 2013, we assumed control of the leased property and assumed obligations under the lease consistent with the guarantee. The total carrying amount of the liability for our obligation under the lease as of March 29, 2014 is $9,345 and is reflected on the consolidated balance sheet as a liability of discontinued operations. | ||||||||
The consolidated financial statements classify, as discontinued operations, the assets and liabilities, operating results and cash flows, of businesses that are discontinued for all periods presented. Operating results from discontinued operations are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income (loss) from operations of discontinued businesses, before income taxes | (25 | ) | (220 | ) | ||||
Provision (benefit) for income taxes | 245 | (65 | ) | |||||
Income (loss) from operations of discontinued businesses, net of taxes | $ | (270 | ) | $ | (155 | ) | ||
Assets and liabilities of discontinued operations at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
Current assets | $ | 677 | $ | 750 | ||||
Long-term assets | 2,970 | 3,151 | ||||||
Total assets | $ | 3,647 | $ | 3,901 | ||||
Current liabilities | $ | 1,747 | $ | 1,931 | ||||
Long-term liabilities | 7,615 | 8,080 | ||||||
Total liabilities | $ | 9,362 | $ | 10,011 | ||||
Current and long-term assets include deferred tax assets. Current and long-term liabilities consist primarily of estimated lease payments, less sublease income, for the Phase I facility. |
Business_Acquisitions_Notes
Business Acquisitions (Notes) | 3 Months Ended |
Mar. 29, 2014 | |
Business Combinations [Abstract] | ' |
Business Combination Disclosure [Text Block] | ' |
BUSINESS ACQUISITIONS | |
Early Discovery UK | |
On April 1, 2014, we acquired the CRO services division of Galapagos N.V., which includes both the Argenta and BioFocus businesses, and which consist of UK entities and certain Dutch assets including a facility lease and equipment, and the transfer of employees (collectively Early Discovery UK). We expect that the acquisition will enhance our position as a full service, early-stage CRO, with integrated in vitro and in vivo capabilities from target discovery through preclinical development. The preliminary purchase price of the acquisition is $190,727 in cash and up to an additional $6,887 in contingent consideration. The purchase price includes payment for estimated working capital, which is subject to final adjustment based on the actual working capital of the acquired business. We are currently in the process of determining the allocation of the purchase price to the fair value of assets and liabilities acquired. |
Fair_Value_Policies
Fair Value (Policies) | 3 Months Ended |
Mar. 29, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Derivative Instruments | ' |
We enter into derivative instruments to hedge foreign currency exchange risk to reduce the impact of changes to foreign currency rates on our financial statements. |
Restructuring_and_Asset_Impair1
Restructuring and Asset Impairments (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||
Schedule of Severance and Retention Costs | ' | |||||||
The following table rolls forward our severance and retention cost liability: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Balance, beginning of period | $ | 2,782 | $ | 3,636 | ||||
Expense | 1,900 | 297 | ||||||
Payments/utilization | (1,135 | ) | (498 | ) | ||||
Balance, end of period | $ | 3,547 | $ | 3,435 | ||||
The following table presents severance and retention costs by classification on the income statement: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Severance charges included in cost of sales | $ | 1,682 | $ | 227 | ||||
Severance charges included in selling, general and administrative expense | 218 | 70 | ||||||
Total expense | $ | 1,900 | $ | 297 | ||||
The following table presents severance and retention cost by segment: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research models and services | $ | 1,716 | $ | 86 | ||||
Preclinical services | 63 | 211 | ||||||
Corporate | 121 | — | ||||||
Total expense | $ | 1,900 | $ | 297 | ||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Supplemental Balance Sheet Information [Abstract] | ' | |||||||
Composition of Net Trade Receivables | ' | |||||||
The composition of net trade receivables is as follows: | ||||||||
29-Mar-14 | 28-Dec-13 | |||||||
Client receivables | $ | 203,107 | $ | 190,423 | ||||
Unbilled revenue | 41,442 | 35,184 | ||||||
Total | 244,549 | 225,607 | ||||||
Less allowance for doubtful accounts | (4,551 | ) | (4,977 | ) | ||||
Net trade receivables | $ | 239,998 | $ | 220,630 | ||||
Composition of Inventories | ' | |||||||
The composition of inventories is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Raw materials and supplies | $ | 15,012 | $ | 15,028 | ||||
Work in process | 11,977 | 11,715 | ||||||
Finished products | 64,685 | 62,653 | ||||||
Inventories | $ | 91,674 | $ | 89,396 | ||||
Composition of Other Current Assets | ' | |||||||
The composition of other current assets is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Prepaid assets | $ | 24,316 | $ | 20,058 | ||||
Deferred tax asset | 22,333 | 29,139 | ||||||
Marketable securities | 11,446 | 11,158 | ||||||
Prepaid income tax | 30,348 | 25,247 | ||||||
Restricted cash | 16 | 245 | ||||||
Other current assets | $ | 88,459 | $ | 85,847 | ||||
Composition of Net Property, Plant and Equipment | ' | |||||||
The composition of net property, plant and equipment is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Land | $ | 40,070 | $ | 40,157 | ||||
Buildings | 695,278 | 694,074 | ||||||
Machinery and equipment | 374,180 | 367,244 | ||||||
Leasehold improvements | 38,404 | 37,959 | ||||||
Furniture and fixtures | 24,448 | 24,013 | ||||||
Vehicles | 3,882 | 3,859 | ||||||
Computer hardware and software | 112,661 | 112,328 | ||||||
Construction in progress | 36,191 | 42,075 | ||||||
Total | 1,325,114 | 1,321,709 | ||||||
Less accumulated depreciation | (659,505 | ) | (645,527 | ) | ||||
Net property, plant and equipment | $ | 665,609 | $ | 676,182 | ||||
Composition of Other Assets | ' | |||||||
The composition of other assets is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Deferred financing costs | $ | 6,692 | $ | 7,126 | ||||
Cash surrender value of life insurance policies | 26,780 | 26,507 | ||||||
Investments in limited partnerships | 18,973 | 17,911 | ||||||
Other assets | 11,598 | 10,420 | ||||||
Other assets | $ | 64,043 | $ | 61,964 | ||||
Composition of Current Liabilities | ' | |||||||
The composition of other current liabilities is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Accrued income taxes | $ | 6,662 | $ | 18,773 | ||||
Current deferred tax liability | 1,620 | 1,960 | ||||||
Accrued interest and other | 1,573 | 1,813 | ||||||
Other current liabilities | $ | 9,855 | $ | 22,546 | ||||
Composition of Other Long-Term Liabilities | ' | |||||||
The composition of other long-term liabilities is as follows: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Deferred tax liability | $ | 14,840 | $ | 14,988 | ||||
Long-term pension liability | 15,864 | 16,219 | ||||||
Accrued Executive Supplemental Life Insurance Retirement Plan and Deferred Compensation Plan | 29,971 | 28,708 | ||||||
Other long-term liabilities | 9,765 | 10,717 | ||||||
Other long-term liabilities | $ | 70,440 | $ | 70,632 | ||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Using Significant | ||||||||||||||||
Unobservable Inputs | ||||||||||||||||
(Level 3) | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Redeemable Noncontrolling Interest (Liability) | March 29, 2014 | March 30, 2013 | ||||||||||||||
Beginning balance | $ | 20,581 | $ | — | ||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||
Total gains or losses (realized/unrealized): | ||||||||||||||||
Purchases, issuances and settlements | 8,963 | |||||||||||||||
Included in other income (expense) | 1 | 38 | ||||||||||||||
Change in balance due to foreign currency translation | (476 | ) | 37 | |||||||||||||
Included in additional paid-in capital | 1,473 | — | ||||||||||||||
Ending balance | $ | 21,579 | $ | 9,038 | ||||||||||||
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: | ||||||||||||||||
Fair Value Measurements at March 29, 2014 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Assets and Liabilities at Fair Value | |||||||||||||
Time deposits | $ | — | $ | 11,446 | $ | — | $ | 11,446 | ||||||||
Life policies | — | 19,747 | — | 19,747 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 31,193 | $ | — | $ | 31,193 | ||||||||
Redeemable noncontrolling interest | — | — | 21,579 | 21,579 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 21,579 | $ | 21,579 | ||||||||
Fair Value Measurements at December 28, 2013 | ||||||||||||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Assets and Liabilities at Fair Value | |||||||||||||
Time deposits | $ | — | $ | 11,158 | $ | — | $ | 11,158 | ||||||||
Life policies | — | 19,534 | — | 19,534 | ||||||||||||
Total assets measured at fair value | $ | — | $ | 30,692 | $ | — | $ | 30,692 | ||||||||
Redeemable noncontrolling interest | — | — | 20,581 | 20,581 | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | 20,581 | $ | 20,581 | ||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 29, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Goodwill and Other Intangible Assets not Subject to Amortization and Other Intangible Assets that Continue to be Subject to Amortization | ' | ||||||||||||||||
The following table displays the gross carrying amount and accumulated amortization of definite-lived intangible assets by major class: | |||||||||||||||||
March 29, 2014 | December 28, 2013 | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization & Impairment Loss | Gross Carrying Amount | Accumulated Amortization & Impairment Loss | ||||||||||||||
Backlog | $ | 2,916 | $ | (2,533 | ) | $ | 2,916 | $ | (2,507 | ) | |||||||
Client relationships | 307,383 | (238,138 | ) | 311,507 | (238,002 | ) | |||||||||||
Trademarks and trade names | 5,398 | (5,012 | ) | 5,399 | (4,997 | ) | |||||||||||
Standard operating procedures | 2,754 | (1,645 | ) | 2,754 | (1,498 | ) | |||||||||||
Other identifiable intangible assets | 10,481 | (5,591 | ) | 10,432 | (4,905 | ) | |||||||||||
Total other intangible assets | $ | 328,932 | $ | (252,919 | ) | $ | 333,008 | $ | (251,909 | ) | |||||||
Schedule of Changes in the Gross Carrying Amount and Accumulated Amortization of Goodwill | ' | ||||||||||||||||
The changes in the gross carrying amount and accumulated impairment loss of goodwill are as follows: | |||||||||||||||||
Adjustments to Goodwill | |||||||||||||||||
28-Dec-13 | Acquisitions | Foreign Exchange | 29-Mar-14 | ||||||||||||||
Research Models and Services | |||||||||||||||||
Gross carrying amount | $ | 83,551 | $ | — | $ | (361 | ) | $ | 83,190 | ||||||||
Preclinical Services | |||||||||||||||||
Gross carrying amount | 1,152,150 | — | (19 | ) | 1,152,131 | ||||||||||||
Accumulated impairment loss | (1,005,000 | ) | (1,005,000 | ) | |||||||||||||
Total | |||||||||||||||||
Gross carrying amount | $ | 1,235,701 | $ | — | $ | (380 | ) | $ | 1,235,321 | ||||||||
Accumulated impairment loss | (1,005,000 | ) | (1,005,000 | ) | |||||||||||||
Goodwill, net | $ | 230,701 | $ | 230,321 | |||||||||||||
LongTerm_Debt_and_Capital_Leas1
Long-Term Debt and Capital Lease Obligations (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Components of Long-Term Debt | ' | |||||||
Long-term debt consists of the following: | ||||||||
March 29, 2014 | December 28, 2013 | |||||||
Term loans | $ | 404,250 | $ | 409,500 | ||||
Revolving credit facility | 235,603 | 253,308 | ||||||
Other long-term debt | 241 | 241 | ||||||
Total debt | 640,094 | 663,049 | ||||||
Less: current portion of long-term debt | (26,491 | ) | (21,241 | ) | ||||
Long-term debt | $ | 613,603 | $ | 641,808 | ||||
Schedule of Principal Maturities of Existing Debt Excluding Unamortized Debt Discount | ' | |||||||
Principal maturities of existing debt for the periods set forth in the table below, are as follows: | ||||||||
Twelve Months Ending | ||||||||
Mar-15 | $ | 26,491 | ||||||
Mar-16 | 42,000 | |||||||
Mar-17 | 52,500 | |||||||
Mar-18 | 73,500 | |||||||
Mar-19 | 445,603 | |||||||
Total | $ | 640,094 | ||||||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||
Reconciliation of the Numerator and Denominator in the Computations of the Basic and Diluted Earnings Per Share | ' | |||||||
The following table reconciles of the numerator and denominator in the computations of the basic and diluted earnings per share. | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Numerator: | ||||||||
Income from continuing operations for purposes of calculating earnings per share | $ | 32,502 | $ | 25,733 | ||||
Loss from discontinued businesses | (270 | ) | $ | (155 | ) | |||
Denominator: | ||||||||
Weighted-average shares outstanding—Basic | 47,090,830 | 47,658,995 | ||||||
Effect of dilutive securities: | ||||||||
Stock options and contingently issuable restricted stock | 1,060,554 | 777,054 | ||||||
Weighted-average shares outstanding—Diluted | 48,151,384 | 48,436,049 | ||||||
Basic earnings per share from continuing operations attributable to common shareholders | $ | 0.69 | $ | 0.54 | ||||
Basic earnings (loss) per share from discontinued operations attributable to common shareholders | $ | (0.01 | ) | $ | — | |||
Diluted earnings per share from continuing operations attributable to common shareholders | $ | 0.67 | $ | 0.53 | ||||
Diluted earnings (loss) per share from discontinued operations attributable to common shareholders | $ | (0.01 | ) | $ | — | |||
Schedule of Number of Shares Repurchased and the Total Cost of Repurchase | ' | |||||||
Share repurchases for the three months ended March 29, 2014 and March 30, 2013 were as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Number of shares of common stock repurchased | 296,047 | 268,798 | ||||||
Total cost of repurchase | $ | 16,474 | $ | 10,929 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||
The income tax expense (benefit) related to items of other comprehensive income are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income tax benefit related to foreign currency translation adjustment | $ | (105 | ) | $ | 662 | |||
Income tax expense related to change in unrecognized pension gains, losses and prior service costs | 124 | 242 | ||||||
Income tax expense related to items of other comprehensive income | $ | 19 | $ | 904 | ||||
Reconciliation of Provision for Income Taxes on Condensed Consolidated Statements of Operations | ' | |||||||
The following table provides a reconciliation of the provision for income taxes on the condensed consolidated statements of income: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income from continuing operations before income taxes | $ | 42,986 | $ | 35,648 | ||||
Effective tax rate | 24.1 | % | 27.3 | % | ||||
Provision for income taxes | $ | 10,358 | $ | 9,722 | ||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of Net Periodic Benefit Cost for Defined Benefit Plans | ' | |||||||||||||||
The following table provides the components of net periodic benefit cost for our defined benefit plans for the three month period ended: | ||||||||||||||||
Pension Benefits | Supplemental | |||||||||||||||
Retirement Benefits | ||||||||||||||||
March 29, 2014 | March 30, 2013 | March 29, 2014 | March 30, 2013 | |||||||||||||
Service cost | $ | 842 | $ | 847 | $ | 189 | $ | 161 | ||||||||
Interest cost | 3,211 | 2,810 | 252 | 177 | ||||||||||||
Expected return on plan assets | (4,278 | ) | (3,656 | ) | — | — | ||||||||||
Amortization of prior service cost (credit) | (159 | ) | (150 | ) | 165 | 165 | ||||||||||
Amortization of net loss (gain) | 223 | 690 | 63 | 63 | ||||||||||||
Net periodic (benefit) cost | $ | (161 | ) | $ | 541 | $ | 669 | $ | 566 | |||||||
Stock_Plans_and_StockBased_Com1
Stock Plans and Stock-Based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Stock-Based Compensation Expense | ' | |||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Stock-based compensation expense included in: | ||||||||
Cost of sales | $ | 1,353 | $ | 1,369 | ||||
Selling, general and administration | 5,306 | 4,535 | ||||||
Stock-based compensation, before income taxes | 6,659 | 5,904 | ||||||
Provision for income taxes | (2,364 | ) | (2,043 | ) | ||||
Stock-based compensation, net of tax | $ | 4,295 | $ | 3,861 | ||||
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Sales and Other Financial Information by Business Segment | ' | |||||||
The following table presents sales and other financial information by business segment. | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research Models and Services | ||||||||
Revenue | $ | 185,615 | $ | 182,489 | ||||
Gross margin | 80,979 | 80,435 | ||||||
Operating income | 53,540 | 55,303 | ||||||
Depreciation and amortization | 10,690 | 9,873 | ||||||
Capital expenditures | 6,868 | 4,010 | ||||||
Preclinical Services | ||||||||
Revenue | $ | 113,753 | $ | 108,749 | ||||
Gross margin | 27,834 | 23,776 | ||||||
Operating income | 12,033 | 8,060 | ||||||
Depreciation and amortization | 9,361 | 10,137 | ||||||
Capital expenditures | 4,322 | 2,418 | ||||||
Reconciliation of Segment Operating Income to Consolidated Operating Income | ' | |||||||
A reconciliation of segment operating income to consolidated operating income is as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Total segment operating income | $ | 65,573 | $ | 63,363 | ||||
Unallocated corporate overhead | (25,867 | ) | (20,600 | ) | ||||
Consolidated operating income | $ | 39,706 | $ | 42,763 | ||||
Schedule of Net Sales for Each Significant Service Area | ' | |||||||
for each significant product or service area are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Research models | $ | 99,355 | $ | 103,123 | ||||
Research model services | 53,795 | 52,154 | ||||||
EMD | 32,465 | 27,212 | ||||||
Total research models and services | 185,615 | 182,489 | ||||||
Total preclinical services | 113,753 | 108,749 | ||||||
Total revenue | $ | 299,368 | $ | 291,238 | ||||
Summary of Unallocated Corporate Overhead | ' | |||||||
A summary of unallocated corporate overhead consists of the following: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Stock-based compensation expense | $ | 3,702 | $ | 3,197 | ||||
U.S. retirement plans | 644 | 1,300 | ||||||
Audit, tax and related expense | 1,906 | 1,235 | ||||||
Salary and bonus | 6,139 | 4,755 | ||||||
Global IT | 2,869 | 2,586 | ||||||
Employee health, long-term disability and fringe benefit expense | 2,319 | 2,228 | ||||||
Consulting and professional services | 1,182 | 688 | ||||||
Depreciation expense | 1,600 | 1,570 | ||||||
Other general unallocated corporate expenses | 5,506 | 3,041 | ||||||
Total unallocated corporate overhead costs | $ | 25,867 | $ | 20,600 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 29, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule of Operating Results from Discontinued Operations | ' | |||||||
Operating results from discontinued operations are as follows: | ||||||||
Three Months Ended | ||||||||
March 29, 2014 | March 30, 2013 | |||||||
Income (loss) from operations of discontinued businesses, before income taxes | (25 | ) | (220 | ) | ||||
Provision (benefit) for income taxes | 245 | (65 | ) | |||||
Income (loss) from operations of discontinued businesses, net of taxes | $ | (270 | ) | $ | (155 | ) | ||
Schedule of Assets and Liabilities of Discontinued Operations | ' | |||||||
Assets and liabilities of discontinued operations at March 29, 2014 and December 28, 2013 consisted of the following: | ||||||||
March 29, | December 28, | |||||||
2014 | 2013 | |||||||
Current assets | $ | 677 | $ | 750 | ||||
Long-term assets | 2,970 | 3,151 | ||||||
Total assets | $ | 3,647 | $ | 3,901 | ||||
Current liabilities | $ | 1,747 | $ | 1,931 | ||||
Long-term liabilities | 7,615 | 8,080 | ||||||
Total liabilities | $ | 9,362 | $ | 10,011 | ||||
Restructuring_and_Asset_Impair2
Restructuring and Asset Impairments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 27, 2014 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 | Jun. 28, 2014 |
Research Models and Services [Member] | Research Models and Services [Member] | Preclinical Services [Member] | Preclinical Services [Member] | Corporate [Member] | Corporate [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Cost of Sales [Member] | Cost of Sales [Member] | Portage, MI [Member] | RMS Europe [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $690 | ' |
Gain (Loss) on Disposition of Property Plant Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800 |
Accelerated depreciation estimate | ' | ' | 840 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 290 | ' |
Severance and Retention Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of period | 2,782 | 3,636 | 3,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense | 1,900 | 297 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Restructuring | -1,135 | -498 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, end of period | 3,547 | 3,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance and retention costs, current | 2,217 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance and retention costs, noncurrent | 1,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance and retention costs | $1,900 | $297 | ' | $1,716 | $86 | $63 | $211 | $121 | $0 | $218 | $70 | $1,682 | $227 | ' | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Composition of trade receivables | ' | ' |
Client receivables | $203,107 | $190,423 |
Unbilled revenue | 41,442 | 35,184 |
Total | 244,549 | 225,607 |
Less allowance for doubtful accounts | -4,551 | -4,977 |
Net trade receivables | 239,998 | 220,630 |
Composition of inventories | ' | ' |
Raw materials and supplies | 15,012 | 15,028 |
Work in process | 11,977 | 11,715 |
Finished products | 64,685 | 62,653 |
Inventories | 91,674 | 89,396 |
Composition of other current assets | ' | ' |
Prepaid assets | 24,316 | 20,058 |
Deferred tax asset | 22,333 | 29,139 |
Marketable securities | 11,446 | 11,158 |
Prepaid income tax | 30,348 | 25,247 |
Restricted cash | 16 | 245 |
Other current assets | 88,459 | 85,847 |
Composition of other assets | ' | ' |
Deferred financing costs | 6,692 | 7,126 |
Cash surrender value of life insurance policies | 26,780 | 26,507 |
Equity Method Investments | 18,973 | 17,911 |
Other assets | 11,598 | 10,420 |
Other assets | 64,043 | 61,964 |
Composition of other current liabilities | ' | ' |
Accrued income taxes | 6,662 | 18,773 |
Current deferred tax liability | 1,620 | 1,960 |
Accrued intereset and other | 1,573 | 1,813 |
Other current liabilities | 9,855 | 22,546 |
Composition of other long-term liabilities | ' | ' |
Deferred tax liability | 14,840 | 14,988 |
Long-term pension liability | 15,864 | 16,219 |
Accrued Executive Supplemental Life Insurance Retirement Plan and Deferred Compensation Plan | 29,971 | 28,708 |
Other long-term liabilities | 9,765 | 10,717 |
Other long-term liabilities | $70,440 | $70,632 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Long-lived Assets) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | $1,325,114 | ' | $1,321,709 |
Less accumulated depreciation | -659,505 | ' | -645,527 |
Net property, plant and equipment | 665,609 | ' | 676,182 |
Depreciation expense | 15,710 | 15,761 | ' |
Land [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 40,070 | ' | 40,157 |
Buildings [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 695,278 | ' | 694,074 |
Machinery and Equipment [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 374,180 | ' | 367,244 |
Leashold Improvements [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 38,404 | ' | 37,959 |
Furniture and Fixtures [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 24,448 | ' | 24,013 |
Vehicles [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 3,882 | ' | 3,859 |
Computer Hardware and Software [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | 112,661 | ' | 112,328 |
Construction in Progress [Member] | ' | ' | ' |
Net property, plant and equipment | ' | ' | ' |
Gross property, plant and equipment | $36,191 | ' | $42,075 |
Marketable_Securities_and_Inve1
Marketable Securities and Investments in Limited Partnerships (Marketable Securities) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Marketable Securities | $11,446 | $11,158 |
Marketable_Securities_and_Inve2
Marketable Securities and Investments in Limited Partnerships (Investments in Limited Partnerships) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Limited partnership, committed contribution | $35,000 | ' | ' |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 13,829 | ' | ' |
Proceeds from Equity Method Investment, Dividends or Distributions | 6,498 | ' | ' |
Income (loss) from investments in limited partnerships | 6,104 | -90 | ' |
Equity method affiliates, carrying value | $18,973 | ' | $17,911 |
Ownership percentage low range [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Limited partnership, ownership (as a percentage) | 3.80% | ' | ' |
Ownership percentage high range [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Limited partnership, ownership (as a percentage) | 12.10% | ' | ' |
Fair_Value_Summary_of_Assets_a
Fair Value (Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 | Jan. 04, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | 25.00% |
Fair Value Inputs, Discount Rate | 18.00% | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $11,446 | $11,158 | ' |
Fair value of life policies | 19,747 | 19,534 | ' |
Total assets measured at fair value | 31,193 | 30,692 | ' |
Redeemable Noncontrolling Interest, Equity, Fair Value | 21,579 | 20,581 | ' |
Total liabilities measured at fair value | 21,579 | 20,581 | ' |
Fair Value Inputs, Long-term Pre-tax Operating Margin, Percent | 32.00% | ' | ' |
Forward Contracts [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Hedge gains recorded | 575 | ' | ' |
Outstanding forward contract, fair value | 0 | ' | ' |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ' |
Fair value of life policies | 0 | 0 | ' |
Total assets measured at fair value | 0 | 0 | ' |
Redeemable Noncontrolling Interest, Equity, Fair Value | 0 | 0 | ' |
Total liabilities measured at fair value | 0 | 0 | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 11,446 | 11,158 | ' |
Fair value of life policies | 19,747 | 19,534 | ' |
Total assets measured at fair value | 31,193 | 30,692 | ' |
Redeemable Noncontrolling Interest, Equity, Fair Value | 0 | 0 | ' |
Total liabilities measured at fair value | 0 | 0 | ' |
Significant Unobservable Inputs Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 | ' |
Fair value of life policies | 0 | 0 | ' |
Total assets measured at fair value | 0 | 0 | ' |
Redeemable Noncontrolling Interest, Equity, Fair Value | 21,579 | 20,581 | ' |
Total liabilities measured at fair value | $21,579 | $20,581 | ' |
Fair_Value_Level_3_Reconciliat
Fair Value Level 3 Reconciliation Liabilities (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $21,579 | ' | $9,038 | $0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | 0 | 0 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 1 | 38 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | -476 | 37 | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 1,473 | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | ' | $8,963 | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Schedule of Goodwill and Other Intangible Assets) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill, Gross Carrying Amount | $1,235,321 | $1,235,701 |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 328,932 | 333,008 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -252,919 | -251,909 |
Backlog [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 2,916 | 2,916 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -2,533 | -2,507 |
Client Relationships [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 307,383 | 311,507 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -238,138 | -238,002 |
Trademarks and Trade Names [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 5,398 | 5,399 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -5,012 | -4,997 |
Standard Operating Procedures [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 2,754 | 2,754 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -1,645 | -1,498 |
Other Identifiable Intangible Assets [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets subject to amortization, Gross Carrying Amount | 10,481 | 10,432 |
Other intangible assets subject to amortization, Accumulated Amortization & Impairment Loss | -5,591 | -4,905 |
Research Models [Member] | ' | ' |
Other intangible assets | ' | ' |
Other intangible assets not subject to amortization, Gross Carrying Amount | $3,438 | $3,438 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Gross Carrying Amount and Accumulated Amortization of Goodwill) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 29, 2014 | Dec. 28, 2013 |
Changes in gross carrying amount and accumulated amortization of goodwill | ' | ' | ' |
Gross carrying amount, balance at the beginning of the period | $1,235,701 | $1,235,321 | ' |
Gross carrying amount, acquired during the period | 0 | ' | ' |
Gross carrying amount, foreign exchange/impairment | -380 | ' | ' |
Accumulated impairment loss, balance at the beginning of the period | -1,005,000 | -1,005,000 | ' |
Goodwill | 230,321 | ' | 230,701 |
Research Models and Services [Member] | ' | ' | ' |
Changes in gross carrying amount and accumulated amortization of goodwill | ' | ' | ' |
Gross carrying amount, balance at the beginning of the period | 83,551 | 83,190 | ' |
Gross carrying amount, acquired during the period | 0 | ' | ' |
Gross carrying amount, foreign exchange/impairment | -361 | ' | ' |
Preclinical Services [Member] | ' | ' | ' |
Changes in gross carrying amount and accumulated amortization of goodwill | ' | ' | ' |
Gross carrying amount, balance at the beginning of the period | 1,152,150 | 1,152,131 | ' |
Gross carrying amount, acquired during the period | 0 | ' | ' |
Gross carrying amount, foreign exchange/impairment | -19 | ' | ' |
Accumulated impairment loss, balance at the beginning of the period | ($1,005,000) | ($1,005,000) | ' |
LongTerm_Debt_and_Capital_Leas2
Long-Term Debt and Capital Lease Obligations (Long-Term Debt) (Details) (USD $) | Mar. 29, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Principal | $640,094 | ' |
Total debt | 640,094 | 663,049 |
Less: current portion of long-term debt | -26,491 | -21,241 |
Long-term debt | 613,603 | 641,808 |
Term loan facilities | ' | ' |
Debt Instrument | ' | ' |
Total debt | 404,250 | 409,500 |
Revolving credit facility | ' | ' |
Debt Instrument | ' | ' |
Total debt | 235,603 | 253,308 |
Other long-term debt | ' | ' |
Debt Instrument | ' | ' |
Total debt | $241 | $241 |
LongTerm_Debt_and_Capital_Leas3
Long-Term Debt and Capital Lease Obligations (Additional Disclosures) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Dec. 28, 2013 |
Debt Instrument [Line Items] | ' | ' |
Maximum borrowing capacity, Term Loan and Line of Credit | $970,000 | ' |
US Term Loan | 420,000 | ' |
Maximum borrowing capacity, Line of Credit | 550,000 | ' |
Credit Facility Borrowing Capacity Available Increase | 350,000 | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ' |
Outstanding under letters of credit | 5,109 | ' |
Long-term Debt, Excluding Current Maturities | 613,603 | 641,808 |
Capital lease obligations | 717 | 740 |
Principal maturities of existing debt excluding unamortized debt discount | ' | ' |
Mar-15 | 26,491 | ' |
Mar-16 | 42,000 | ' |
Mar-17 | 52,500 | ' |
Mar-18 | 73,500 | ' |
Mar-19 | 445,603 | ' |
Total | $640,094 | ' |
Equity_Earnings_Per_Share_Deta
Equity (Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Numerator: | ' | ' |
Income from continuing operations for purposes of calculating earnings per share | $32,502 | $25,733 |
Income (loss) from discontinued operations | ($270) | ($155) |
Denominator: | ' | ' |
Weighted average shares outstanding-Basic (in shares) | 47,090,830 | 47,658,995 |
Effect of dilutive securities: | ' | ' |
Stock options and contingently issued restricted stock (in shares) | 1,060,554 | 777,054 |
Weighted Average Number of Shares Outstanding, Diluted | 48,151,384 | 48,436,049 |
Basic earnings per share from continuing operations attributable to common shareowners (in dollars per share) | $0.69 | $0.54 |
Basic earnings (loss) per share from discontinued operations attributable to common shareowners (in dollars per share) | ($0.01) | $0 |
Diluted earnings per share from continuing operations attributable to common shareowners (in dollars per share) | $0.67 | $0.53 |
Diluted earnings (loss) per share from discontinued operations attributable to common shareowners (in dollars per share) | ($0.01) | $0 |
2.25% Senior convertible debentures | ' | ' |
Effect of dilutive securities: | ' | ' |
Interest rate on debt (as a percent) | 2.25% | ' |
Stock options [Member] | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 609,923 | 2,684,236 |
Restricted Stock [Member] | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,188,699 | 1,149,622 |
Equity_Treasury_Stock_Details
Equity (Treasury Stock) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Treasury Shares | ' | ' |
Number of shares of common stock repurchased (in shares) | 296,047 | 268,798 |
Total cost of repurchase of treasury shares | $16,474 | $10,929 |
Open market repurchases | ' | ' |
Treasury Shares | ' | ' |
Number of shares of common stock repurchased (in shares) | 183,300 | 157,283 |
Total cost of repurchase of treasury shares | 9,820 | 6,458 |
2007 Incentive Plan | ' | ' |
Treasury Shares | ' | ' |
Number of shares of common stock repurchased (in shares) | 112,747 | 111,515 |
Total cost of repurchase of treasury shares | $6,654 | $4,471 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Income (loss) from continuing operations before income taxes | ' | ' |
Income from continuing operations, before income taxes | $42,986 | $35,648 |
Effective tax rate (as a percentage) | 24.10% | 27.30% |
Provision (benefit) for income taxes | 10,358 | 9,722 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' |
Income tax expense (beneffit) related to foreign currency translation adjustments | -105 | 662 |
Income tax expense related to the change in unrecognized pension gains, losses and prior service costs | 124 | 242 |
Income tax expense (benefit) related to items of other comprehensive income | 19 | 904 |
Income Tax Uncertainties [Abstract] | ' | ' |
Unrecognized Tax Benefits, Period Increase (Decrease) | -2,563 | ' |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 24 | ' |
Interest related to unrecognized income tax benefits | 667 | ' |
Unrecognized tax benefits | 15,912 | ' |
Decrease in unrecognized tax benefits, that if recognized would impact the effective tax rate | 2,719 | ' |
Unrecognized tax benefits that would impact effective tax rate favorably, if recognized | 14,293 | ' |
UNITED STATES | ' | ' |
Income Tax Uncertainties [Abstract] | ' | ' |
Unrecognized Tax Benefits, Period Increase (Decrease) | 1,837 | ' |
CANADA | ' | ' |
Income Tax Disclosures [Line Items] | ' | ' |
Tax Adjustments, Settlements, and Unusual Provisions | $238 | ' |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
OPEB [Member] | ' | ' |
Employee benefits | ' | ' |
Amortization of net loss (gain) | ($3) | ($31) |
Pension Benefits [Member] | ' | ' |
Employee benefits | ' | ' |
Service cost | 842 | 847 |
Interest cost | 3,211 | 2,810 |
Expected return on plan assets | -4,278 | -3,656 |
Amortization of prior service cost (credit) | -159 | -150 |
Amortization of net loss (gain) | 223 | 690 |
Net periodic benefit cost | -161 | 541 |
Expected contributions during the current fiscal year | 6,477 | ' |
Supplemental Employee Retirement Plan, Defined Benefit [Member] | ' | ' |
Employee benefits | ' | ' |
Service cost | 189 | 161 |
Interest cost | 252 | 177 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 165 | 165 |
Amortization of net loss (gain) | 63 | 63 |
Net periodic benefit cost | $669 | $566 |
Stock_Plans_and_StockBased_Com2
Stock Plans and Stock-Based Compensation Stock Based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Stock-based compensation expense | ' | ' |
Stock-based compensation expense | $6,659 | $5,904 |
Provision for income taxes | -2,364 | -2,043 |
Net income attributable to common shareowners | 4,295 | 3,861 |
Cost of Sales [Member] | ' | ' |
Stock-based compensation expense | ' | ' |
Stock-based compensation expense | 1,353 | 1,369 |
General and Administrative Expense [Member] | ' | ' |
Stock-based compensation expense | ' | ' |
Stock-based compensation expense | 5,306 | 4,535 |
Performance Based Stock Award Program [Member] | ' | ' |
Stock-based compensation expense | ' | ' |
Stock-based compensation expense | $1,034 | ' |
Stock_Plans_and_StockBased_Com3
Stock Plans and Stock-Based Compensation Performance Based Stock Award Program (Details) (USD $) | 3 Months Ended | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2012 | Mar. 29, 2014 | Mar. 29, 2014 |
2013 PSU [Member] | 2013 PSU [Member] | 2014 PSU [Member] | |
Restricted Stock and Performance Units, Additional Disclosure | ' | ' | ' |
Max PSU Shares | ' | 328 | 429,646 |
Granted (in dollars per share) | $40 | ' | $67,820 |
Granted (in shares) | 163,847 | ' | 214,823 |
Commitments_and_Contingencies_
Commitments and Contingencies Details (Details) (USD $) | Mar. 29, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Loss Contingency, Estimate of Possible Loss | $1,500 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
segments | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 2 | ' |
Business segment information | ' | ' |
Revenue | $299,368 | $291,238 |
Operating income | 39,706 | 42,763 |
Depreciation and amortization | 20,050 | 20,010 |
Capital expenditures | 11,190 | 6,429 |
Unallocated corporate overhead | ' | ' |
Stock-based compensation expense | 6,659 | 5,904 |
Depreciation expense | 15,710 | 15,761 |
Research Models [Member] | ' | ' |
Business segment information | ' | ' |
Revenue | 99,355 | 103,123 |
Research Model Services [Member] | ' | ' |
Business segment information | ' | ' |
Revenue | 53,795 | 52,154 |
Other Products [Member] | ' | ' |
Business segment information | ' | ' |
Revenue | 32,465 | 27,212 |
Total Segments [Member] | ' | ' |
Business segment information | ' | ' |
Operating income | 65,573 | 63,363 |
Research Models and Services [Member] | ' | ' |
Business segment information | ' | ' |
Revenue | 185,615 | 182,489 |
Gross margin | 80,979 | 80,435 |
Operating income | 53,540 | 55,303 |
Depreciation and amortization | 10,690 | 9,873 |
Capital expenditures | 6,868 | 4,010 |
Preclinical Services [Member] | ' | ' |
Business segment information | ' | ' |
Revenue | 113,753 | 108,749 |
Gross margin | 27,834 | 23,776 |
Operating income | 12,033 | 8,060 |
Depreciation and amortization | 9,361 | 10,137 |
Capital expenditures | 4,322 | 2,418 |
Unallocated Corporate Overhead [Member] | ' | ' |
Business segment information | ' | ' |
Operating income | -25,867 | -20,600 |
Unallocated corporate overhead | ' | ' |
Stock-based compensation expense | 3,702 | 3,197 |
U.S. retirement plans | 644 | 1,300 |
Audit, tax and related expenses | 1,906 | 1,235 |
Salary and bonus | 6,139 | 4,755 |
Global IT | 2,869 | 2,586 |
Employee health, long-term disability and fringe benefit expense | 2,319 | 2,228 |
Consulting and professional services | 1,182 | 688 |
Depreciation expense | 1,600 | 1,570 |
Other general unallocated corporate expenses | 5,506 | 3,041 |
Total unallocated corporate overhead costs | $25,867 | $20,600 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | Dec. 28, 2013 |
Operating results from discontinued operations | ' | ' | ' |
Income (loss) from operations of discontinued businesses, net of taxes | ($270) | ($155) | ' |
Assets and liabilities of discontinued operations | ' | ' | ' |
Current assets | 677 | ' | 750 |
Long-term assets | 2,970 | ' | 3,151 |
Current liabilities | 1,747 | ' | 1,931 |
Long-term liabilities | 7,615 | ' | 8,080 |
Phase I Clinical [Member] | ' | ' | ' |
Operating results from discontinued operations | ' | ' | ' |
Facility lease payments | 11,070 | ' | ' |
Income (loss) from operatoins of discontinued businesses, before income taxes | -25 | -220 | ' |
Provision (benefit) for income taxes | 245 | -65 | ' |
Income (loss) from operations of discontinued businesses, net of taxes | -270 | -155 | ' |
Assets and liabilities of discontinued operations | ' | ' | ' |
Current assets | 677 | ' | 750 |
Long-term assets | 2,970 | ' | 3,151 |
Total assets | 3,647 | ' | 3,901 |
Current liabilities | 1,747 | ' | 1,931 |
Long-term liabilities | 7,615 | ' | 8,080 |
Total liabilities | 9,362 | ' | 10,011 |
Guarantor Obligations, Current Carrying Value | $9,345 | ' | ' |
Business_Acquisitions_Business
Business Acquisitions Business Acquisition Details (Details) (Early Discovery UK [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2014 |
Early Discovery UK [Member] | ' |
Business Acquisition [Line Items] | ' |
Business Acquisition, Cost of Acquired Entity, Purchase Price | $190,727 |
Business Acquisition, Effective Date of Acquisition | 1-Apr-14 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $6,887 |