Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 27, 2015 | Jul. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CHARLES RIVER LABORATORIES INTERNATIONAL INC | |
Entity Central Index Key | 1,100,682 | |
Current Fiscal Year End Date | --12-26 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 27, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 46,779,186 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Service revenue | $ 214,380 | $ 211,003 | $ 411,160 | $ 383,348 |
Product revenue | 125,193 | 130,176 | 248,827 | 257,199 |
Total revenue | 339,573 | 341,179 | 659,987 | 640,547 |
Costs and expenses: | ||||
Cost of services provided | 144,143 | 147,954 | 280,449 | 271,923 |
Cost of products sold | 62,647 | 67,591 | 127,095 | 134,177 |
Selling, general and administrative | 71,331 | 67,756 | 142,728 | 132,523 |
Amortization of intangible assets | 5,717 | 6,853 | 10,975 | 11,193 |
Operating income | 55,735 | 51,025 | 98,740 | 90,731 |
Other income (expense): | ||||
Interest income | 297 | 222 | 581 | 427 |
Interest expense | (4,376) | (3,373) | (7,400) | (6,174) |
Other income (expense), net | 8,672 | 2,667 | 359 | 8,543 |
Income from continuing operations, before income taxes | 60,328 | 50,541 | 92,280 | 93,527 |
Provision for income taxes | 11,076 | 14,081 | 11,407 | 24,439 |
Income from continuing operations, net of income taxes | 49,252 | 36,460 | 80,873 | 69,088 |
Loss from discontinued operations, net of income taxes | (7) | (644) | (14) | (914) |
Net income | 49,245 | 35,816 | 80,859 | 68,174 |
Less: Net income attributable to noncontrolling interests | (736) | (552) | (809) | (678) |
Net income attributable to common shareholders | $ 48,509 | $ 35,264 | $ 80,050 | $ 67,496 |
Basic: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | $ 1.04 | $ 0.76 | $ 1.71 | $ 1.46 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to common shareholders (in dollars per share) | 1.04 | 0.75 | 1.71 | 1.44 |
Diluted: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | 1.02 | 0.75 | 1.68 | 1.43 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | (0.02) |
Net income attributable to common shareholders (in dollars per share) | $ 1.02 | $ 0.74 | $ 1.68 | $ 1.41 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 49,245 | $ 35,816 | $ 80,859 | $ 68,174 |
Foreign currency translation adjustment and other | 17,953 | 12,902 | (14,716) | 7,884 |
Cumulative translation adjustment related to intercompany loan forgiveness | 0 | 0 | (2,341) | 0 |
Pension and other post-retirement benefit plans: | ||||
Amortization of net loss and prior service benefit included in net periodic pension cost | 761 | 291 | 1,490 | 580 |
Comprehensive income, before income taxes | 67,959 | 49,009 | 65,292 | 76,638 |
Income tax expense related to items of other comprehensive income (Note 10) | 263 | 129 | 480 | 148 |
Comprehensive income, net of income taxes | 67,696 | 48,880 | 64,812 | 76,490 |
Less: Comprehensive income related to noncontrolling interests | 805 | 489 | 878 | 140 |
Comprehensive income attributable to common shareholders | $ 66,891 | $ 48,391 | $ 63,934 | $ 76,350 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 150,807 | $ 160,023 |
Trade receivables, net | 277,398 | 257,991 |
Inventories | 90,037 | 89,043 |
Prepaid assets | 36,952 | 26,900 |
Other current assets | 74,453 | 72,941 |
Total current assets | 629,647 | 606,898 |
Property, plant and equipment, net | 680,565 | 676,797 |
Goodwill | 317,414 | 321,077 |
Other intangible assets, net | 172,376 | 178,875 |
Deferred tax asset | 22,699 | 23,193 |
Other assets | 63,216 | 72,951 |
Total assets | 1,885,917 | 1,879,791 |
Current liabilities: | ||
Current portion of long-term debt and capital leases | 17,993 | 31,904 |
Accounts payable | 32,967 | 33,815 |
Accrued compensation | 57,400 | 71,569 |
Deferred revenue | 77,382 | 78,124 |
Accrued liabilities | 76,030 | 67,380 |
Other current liabilities | 12,564 | 11,079 |
Current liabilities of discontinued operations | 2,196 | 2,299 |
Total current liabilities | 276,532 | 296,170 |
Long-term debt, net and capital leases | 754,777 | 740,557 |
Other long-term liabilities | 111,256 | 130,361 |
Long-term liabilities of discontinued operations | 7,547 | 8,357 |
Total liabilities | $ 1,150,112 | $ 1,175,445 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | $ 29,976 | $ 28,419 |
Equity: | ||
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 120,000 shares authorized; 85,373 shares issued and 46,850 shares outstanding at June 27, 2015 and 84,503 shares issued and 47,327 shares outstanding at December 27, 2014 | 853 | 845 |
Additional paid-in capital | 2,372,685 | 2,307,640 |
Accumulated deficit | (58,725) | (138,775) |
Treasury stock, at cost, 38,523 shares and 37,176 shares at June 27, 2015 and December 27, 2014, respectively | (1,522,747) | (1,423,260) |
Accumulated other comprehensive loss | (90,363) | (74,247) |
Total equity attributable to common shareholders | 701,703 | 672,203 |
Noncontrolling interests | 4,126 | 3,724 |
Total equity and redeemable noncontrolling interest | 735,805 | 704,346 |
Total liabilities, equity and redeemable noncontrolling interest | $ 1,885,917 | $ 1,879,791 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 27, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 85,373,000 | 84,503,000 |
Common stock, shares outstanding (in shares) | 46,850,000 | 47,327,000 |
Treasury stock (in shares) | 38,523,000 | 37,176,000 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Cash flows relating to operating activities | ||
Net income | $ 80,859 | $ 68,174 |
Less: Loss from discontinued operations | (14) | (914) |
Income from continuing operations | 80,873 | 69,088 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 45,516 | 44,352 |
Amortization of debt issuance costs | 1,572 | 868 |
Stock-based compensation | 19,873 | 14,881 |
Deferred income taxes | 934 | 6,643 |
Gain on investments in limited partnerships | (364) | (8,180) |
Gain on bargain purchase | (9,878) | 0 |
Other, net | (198) | 517 |
Changes in assets and liabilities: | ||
Trade receivables, net | (24,574) | (31,161) |
Inventories | (1,662) | (2,502) |
Other assets | 5,871 | (14,928) |
Accounts payable | 1,752 | 4,404 |
Accrued compensation | (12,757) | (1,229) |
Deferred revenue | 422 | 1,942 |
Accrued liabilities | 8,795 | 10,012 |
Taxes payable and prepaid taxes | (6,696) | (6,802) |
Other liabilities | (11,873) | (2,467) |
Net cash provided by operating activities | 97,606 | 85,438 |
Cash flows relating to investing activities | ||
Acquisition of businesses and assets, net of cash acquired | (10,680) | (183,151) |
Capital expenditures | (24,556) | (20,505) |
Purchases of investments | (15,174) | (9,734) |
Proceeds from sale of investments and distributions from investments in limited partnerships | 11,356 | 12,818 |
Other, net | 2,566 | (1,926) |
Net cash used in investing activities | (36,488) | (202,498) |
Cash flows relating to financing activities | ||
Proceeds from long-term debt and revolving credit agreement | 294,213 | 237,920 |
Proceeds from exercises of stock options | 35,641 | 36,534 |
Payments on long-term debt, capital lease obligations and revolving credit agreement | (301,283) | (98,404) |
Purchase of treasury stock | (99,486) | (101,609) |
Other, net | 7,188 | 3,771 |
Net cash provided by (used in) financing activities | (63,727) | 78,212 |
Discontinued operations | ||
Net cash used in operating activities from discontinued operations | (927) | (689) |
Effect of exchange rate changes on cash and cash equivalents | (5,680) | 622 |
Net change in cash and cash equivalents | (9,216) | (38,915) |
Cash and cash equivalents, beginning of period | 160,023 | 155,927 |
Cash and cash equivalents, end of period | $ 150,807 | $ 117,012 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to Rule 10-01 of Regulation S-X. The year-end condensed consolidated balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 27, 2014 . The condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of our financial position and results of operations. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company’s fiscal year is the twelve-month period ending the last Saturday in December. Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Consolidation The Company’s consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies,” in the 2014 Annual Report on Form 10-K. Newly Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of debt discounts or premiums. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. During the three months ended June 27, 2015, the Company elected early adoption of this standard and applied the changes retrospectively to all prior periods presented in its consolidated financial statements. The Company historically presented deferred debt issuance costs, or fees related to directly issuing debt, as assets on the consolidated balance sheets. As of June 27, 2015 and December 27, 2014 , the adoption of this standard has resulted in the reclassification of $7.7 million and $5.4 million , respectively, from other assets to long-term debt, net and capital leases. These costs will continue to be amortized as interest expense over the term of the corresponding debt issuance. Newly Issued Accounting Pronouncements In April 2015, FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” to provide a practical expedient related to the measurement date of the defined benefit plan assets and obligations. The practical expedient allows employers with fiscal year-end dates that do not coincide with a calendar month end to measure pension and post-retirement benefit plan assets and obligations as of the calendar month-end date closest to the fiscal year end. The standard requires entities that elect the practical expedient to adjust the measurement of benefit plan assets and obligations for contributions or significant events between the month-end measurement date and the entity fiscal year end. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating the impact the election of the practical expedient would have on its consolidated financial statements and related disclosures. In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amends existing consolidation requirements. The guidance affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the guidance amends (i) the identification of variable interests (fees paid to a decision maker or service provider), (ii) the variable interest entity characteristics for a limited partnership or similar entity and (iii) the primary beneficiary determination. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a significant impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The ASU was originally effective for annual and interim periods beginning after December 15, 2016; however, on July 9, 2015, the FASB decided to defer by one year the effective date of the ASU. As a result, the standard will be effective for annual and interim periods beginning after December 15, 2017. The Company has not yet selected a transition method and is evaluating the impact the adoption will have on its consolidated financial statements and related disclosures. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 27, 2015 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS Sunrise On May 5, 2015, the Company acquired Sunrise Farms, Inc. (Sunrise), a producer of specific pathogen free fertile chicken eggs and chickens for the manufacture of live viruses. The purpose of this business acquisition was to expand the capabilities of the Company’s existing Avian Vaccine Services business. The preliminary purchase price of the acquisition was $9.6 million and included payments for estimated working capital, which is subject to final adjustment based on the actual working capital of the acquired business as of the closing date. The acquisition was funded by cash on hand and borrowings on the Company's revolving credit facility. The business is reported in the Company's Manufacturing Support (Manufacturing) reportable segment. The Company recorded a bargain purchase gain of $9.9 million , which represents the excess of the estimated fair value of the net assets acquired over the preliminary purchase price. The bargain purchase gain was recorded in other income (expense), net in the Company’s consolidated statement of income and was not recognized for tax purposes. The Company believes there were several factors that contributed to this transaction resulting in a bargain purchase gain, including the highly specialized nature of Sunrise’s business falling outside of the seller’s core activities and a limited pool of potential buyers. Before recognizing the gain from the bargain purchase, the Company reassessed its initial identification and valuation of assets acquired and liabilities assumed to validate that all assets and liabilities that the Company is able to identify at the acquisition date are properly recognized. The preliminary purchase price allocation of $9.6 million , net of less than $0.1 million of cash acquired, is as follows: May 5, 2015 (in thousands) Accounts receivable, net $ 981 Inventory 1,518 Other current assets (excluding cash) 318 Property, plant and equipment 13,866 Definite-lived intangible assets 3,400 Current liabilities (397 ) Long-term liabilities (250 ) Fair value of net assets acquired 19,436 Bargain purchase gain (9,878 ) Total purchase price allocation $ 9,558 The purchase price allocations were prepared on a preliminary basis and are subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. The identifiable definite-lived intangible assets acquired represent the client relationships intangible, which is being amortized over the estimated useful life of approximately 15 years . The Company incurred transaction and integration costs in connection with the acquisition of $0.3 million and $0.6 million during the three and six months ended June 27, 2015 , respectively, which were included in selling, general and administrative expenses. ChanTest In October 2014, the Company acquired ChanTest Corporation (ChanTest), a leading provider of ion channel testing services to the pharmaceutical and biotech industry. The acquisition augments the Company’s early discovery capabilities and enhances the Company’s ability to support clients’ target discovery and lead optimization efforts. The preliminary purchase price of the acquisition was $59.3 million , including $0.3 million in contingent consideration. The aggregate, undiscounted amount of contingent consideration that could become payable is a maximum of $2.0 million . The Company estimated the fair value of this contingent consideration based on a probability-weighted set of outcomes. The purchase price is subject to an adjustment based on the final determined net working capital as of the closing date. The business is reported in the Company’s Discovery and Safety Assessment (DSA) reportable segment. The preliminary purchase price allocation of $52.1 million , net of $7.2 million in cash acquired, is as follows: October 29, 2014 (in thousands) Current assets (excluding cash) $ 4,648 Property, plant and equipment 1,579 Definite-lived intangible assets 23,920 Goodwill 34,927 Current liabilities (3,515 ) Long-term liabilities (9,486 ) Total purchase price allocation $ 52,073 The purchase price allocations were prepared on a preliminary basis and are subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed. During the six months ended June 27, 2015 , the Company recorded measurement period adjustments related to the ChanTest acquisition that resulted in an immaterial change to the purchase price allocation. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. The breakout of definite-lived intangible assets acquired is as follows: October 29, 2014 Weighted average amortization life (in thousands) (in years) Client relationships $ 19,000 13 Other intangible assets 4,920 9 Total definite-lived intangible assets $ 23,920 The definite-lived intangibles are largely attributed to the expected cash flows related to client relationships existing at the acquisition closing date. The goodwill resulting from the transaction is primarily attributed to the potential growth of the business and is not deductible for tax purposes. VivoPath In June 2014, the Company acquired substantially all of the assets of VivoPath LLC (VivoPath), a discovery services company specializing in the rapid, in vivo compound evaluation of molecules in the therapeutic areas of metabolism, inflammation and oncology. The purchase price was $2.3 million , including $1.6 million in contingent consideration, and was allocated primarily to the intangible assets acquired. The aggregate, undiscounted amount of contingent consideration that could become payable is a maximum of $2.4 million , payable over three years based on the achievement of revenue growth targets. During the three months ended June 27, 2015, the first-year tranche of the contingent consideration of $0.6 million was earned. The Company estimated the fair value of this contingent consideration based on a probability-weighted set of outcomes. The business is reported in the Company’s DSA reportable segment. Argenta and BioFocus On April 1, 2014 , the Company acquired (1) 100% of the shares of the United Kingdom (U.K.) based entities Argenta and BioFocus, and (2) certain Dutch assets. These businesses have formed the core of the Company’s Early Discovery business. With this acquisition, the Company has enhanced its position as a full service, early-stage contract research organization, with integrated in vitro and in vivo capabilities from target discovery through preclinical development. The purchase price of the acquisition was $191.8 million , including $0.9 million in contingent consideration. The acquisition was funded by cash on hand and borrowings on the Company’s revolving credit facility. The purchase price included payment for estimated working capital, which was subject to final adjustment based on the actual working capital of the acquired business. The businesses are reported in the Company’s DSA reportable segment. The contingent consideration earn-out period ended on April 1, 2015. As a result, the related contingent consideration liability, as adjusted for subsequent changes in fair value, was reversed and a gain of $0.8 million was recorded in selling, general, and administrative expenses during the three months ended March 28, 2015, as no payments are expected to be made. The contingent consideration was a one-time payment that could have become payable in the second quarter of 2015 based on the achievement of a certain revenue target for the twelve-month period following the acquisition. The aggregate, undiscounted amount of contingent consideration that the Company could have paid was €5.0 million ( $5.6 million as of June 27, 2015 ). The Company estimated the fair value of this contingent consideration based on a probability-weighted set of outcomes. The purchase price allocation of $183.6 million , net of $8.2 million of cash acquired, was as follows (in thousands): Current assets (excluding cash) $ 31,682 Property, plant and equipment 21,008 Other long term assets 11,140 Definite-lived intangible assets 104,470 Goodwill 65,235 Current liabilities (13,139 ) Long term liabilities (36,802 ) Total purchase price allocation $ 183,594 The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 94,000 18 Backlog 5,900 1 Trademark and trade names 1,170 3 Leasehold interests 1,000 13 Other intangible assets 2,400 19 Total definite-lived intangible assets $ 104,470 The goodwill resulting from the transaction is primarily attributed to the potential growth of the Company’s DSA businesses from clients introduced through Argenta and BioFocus, the assembled workforce of the acquired businesses and expected cost synergies. The goodwill attributable to Argenta and BioFocus is not deductible for tax purposes. The Company incurred transaction and integration costs in connection with the acquisition of less than $0.1 million during the three and six months ended June 27, 2015 and of $1.6 million and $4.9 million during the three and six months ended June 28, 2014 , respectively, which were included in selling, general and administrative expenses. Argenta and BioFocus revenue and operating loss for the three months ended June 27, 2015 are $20.1 million and $1.7 million , respectively. Argenta and BioFocus revenue and operating loss for the six months ended June 27, 2015 are $40.7 million and $1.4 million , respectively. Argenta and BioFocus revenue and operating income for both three and six months ended June 28, 2014 are $23.5 million and less than $0.1 million , respectively, since Argenta and BioFocus were acquired on April 1, 2014. The following selected pro forma consolidated results of operations are presented as if the Argenta and BioFocus acquisition had occurred as of the beginning of the period immediately preceding the period of acquisition after giving effect to certain adjustments, including amortization of intangible assets and depreciation of fixed assets of $3.7 million and other one-time costs. These pro forma consolidated results of operations are for informational purposes only and do not necessarily reflect the results of operations had the companies operated as one entity during the periods reported. No effect has been given for synergies, if any, that may have been realized through the acquisition. Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Revenue $ 339,573 $ 341,179 $ 659,987 $ 665,656 Net income attributable to common shareholders 48,509 35,264 80,050 65,688 Earnings per common share Basic $ 1.04 $ 0.75 $ 1.71 $ 1.40 Diluted $ 1.02 $ 0.74 $ 1.68 $ 1.38 These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the date indicated or that may result in the future. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING The Company periodically implements staffing reductions to improve operating efficiency at various sites. The following table rolls forward the Company’s severance and retention cost liability: December 27, 2014 Expense Payments and Adjustments June 27, 2015 (in thousands) Severance and retention cost liability $ 2,666 $ 1,835 $ (2,765 ) $ 1,736 Total $ 2,666 $ 1,835 $ (2,765 ) $ 1,736 As of June 27, 2015 and December 27, 2014 , $1.4 million and $2.2 million of severance and retention costs liabilities, respectively, were included in accrued compensation and $0.3 million and $0.5 million , respectively, were included in other long-term liabilities on the Company’s consolidated balance sheets. The following table presents severance and retention costs by classification on the income statement: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Severance charges included in cost of revenue $ 137 $ 1,072 $ 667 $ 2,754 Severance charges included in selling, general and administrative 568 1,817 1,168 2,035 Total expense $ 705 $ 2,889 $ 1,835 $ 4,789 The following table presents severance and retention cost by reportable segment: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research models and services $ 80 $ 2,011 $ 999 $ 3,595 Discovery and safety assessment 456 854 475 1,049 Manufacturing support 118 24 295 24 Corporate 51 — 66 121 Total expense $ 705 $ 2,889 $ 1,835 $ 4,789 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 27, 2015 | |
Supplemental Balance Sheet Information [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION The composition of trade receivables, net is as follows: June 27, 2015 December 27, 2014 (in thousands) Client receivables $ 233,569 $ 219,118 Unbilled revenue 49,016 43,780 Total 282,585 262,898 Less: Allowance for doubtful accounts (5,187 ) (4,907 ) Trade receivables, net $ 277,398 $ 257,991 The composition of inventories is as follows: June 27, 2015 December 27, 2014 (in thousands) Raw materials and supplies $ 13,885 $ 15,416 Work in process 12,023 11,802 Finished products 64,129 61,825 Inventories $ 90,037 $ 89,043 The composition of other current assets is as follows: June 27, 2015 December 27, 2014 (in thousands) Deferred tax asset 23,058 27,644 Investments 18,074 16,167 Prepaid income tax 31,537 26,287 Restricted cash 100 2,552 Other 1,684 291 Other current assets $ 74,453 $ 72,941 The composition of property, plant and equipment, net is as follows: June 27, 2015 December 27, 2014 (in thousands) Land $ 42,796 $ 40,314 Buildings (1) 711,943 682,495 Machinery and equipment 380,871 384,713 Leasehold improvements 36,955 37,270 Furniture and fixtures 21,237 22,577 Vehicles 4,101 3,967 Computer hardware and software 122,050 119,474 Construction in progress 21,844 40,970 Total 1,341,797 1,331,780 Less: Accumulated depreciation (661,232 ) (654,983 ) Property, plant and equipment, net $ 680,565 $ 676,797 (1) The balance as of June 27, 2015 includes capital lease assets. See Note 8, “Long Term Debt and Capital Lease Obligations.” Depreciation expense for both three months ended June 27, 2015 and June 28, 2014 was $17.4 million . Depreciation expense for the six months ended June 27, 2015 and June 28, 2014 was $34.5 million and $33.2 million , respectively. The composition of other assets is as follows: June 27, 2015 December 27, 2014 (in thousands) Life insurance policies 28,237 27,603 Investments in limited partnerships 29,141 27,047 Other 5,838 18,301 Other assets $ 63,216 $ 72,951 The composition of other current liabilities is as follows: June 27, 2015 December 27, 2014 (in thousands) Accrued income taxes $ 10,906 $ 9,362 Current deferred tax liability 1,302 1,484 Accrued interest and other 356 233 Other current liabilities $ 12,564 $ 11,079 The composition of other long-term liabilities is as follows: June 27, 2015 December 27, 2014 (in thousands) Deferred tax liability $ 25,550 $ 30,816 Long-term pension liability 40,531 45,135 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 33,424 33,007 Other long-term liabilities 11,751 21,403 Other long-term liabilities $ 111,256 $ 130,361 |
Investments in Limited Partners
Investments in Limited Partnerships and Marketable Securities | 6 Months Ended |
Jun. 27, 2015 | |
Marketable Securities and Equity-Method Affiliates [Abstract] | |
INVESTMENTS IN LIMITED PARTNERSHIPS AND MARKETABLE SECURITIES | INVESTMENTS IN LIMITED PARTNERSHIPS AND MARKETABLE SECURITIES Investments in Limited Partnerships The Company invests in several venture capital limited partnerships that invest in start-up companies primarily in the life sciences industry. The Company’s ownership interest in these limited partnerships ranges from 3.8% to 12.0% . The Company accounts for such investments under the equity method of accounting. The Company’s total commitment to these entities as of June 27, 2015 is $65.0 million , of which the Company has funded $23.5 million through June 27, 2015 . During the three and six months ended June 27, 2015 the Company received dividends totaling $2.1 million . During the three and six months ended June 28, 2014 , the Company received dividends totaling $0.9 million and $7.4 million , respectively. The Company recognized a loss of $0.9 million and a gain of $2.1 million related to these investments for the three months ended June 27, 2015 and June 28, 2014 , respectively. Marketable Securities The following is a summary of the Company's marketable securities, all of which are classified as available-for-sale: June 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Mutual fund $ 4,650 $ — $ (89 ) $ 4,561 Total $ 4,650 $ — $ (89 ) $ 4,561 There were no sales of available-for-sale securities during the six months ended June 27, 2015 . |
Fair Value
Fair Value | 6 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company has certain financial assets and liabilities recorded at fair value which have been classified as Level 1, 2, or 3 within the fair value hierarchy: • Level 1 - Fair values are determined utilizing quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access; • Level 2 - Fair values are determined by utilizing quoted prices for identical or similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves, and foreign currency spot rates; • Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The fair value hierarchy level is determined by asset and liability class based on the lowest level of significant input. The observability of inputs may change for certain assets or liabilities. This condition could cause an asset or liability to be reclassified between levels. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the six months ended June 27, 2015 and June 28, 2014 , there were no transfers between levels. Valuation methodologies used for assets and liabilities measured or disclosed at fair value are as follows: • Cash equivalents - Valued at quoted market prices determined through third-party pricing services. • Mutual funds - Valued at the unadjusted quoted net asset value of shares held by the Company. • 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 the Company’s projected financial data discounted by a weighted average cost of capital. • Contingent consideration- Valued based on a probability weighting of the future cash flows associated with the potential outcomes. Assets and liabilities measured at fair value on a recurring basis are summarized below: June 27, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 129 $ — $ 129 Marketable securities 4,561 — — 4,561 Life insurance policies — 21,152 — 21,152 Total assets measured at fair value $ 4,561 $ 21,281 $ — $ 25,842 Redeemable noncontrolling interest $ — $ — $ 29,976 $ 29,976 Contingent consideration — — 2,831 2,831 Total liabilities measured at fair value $ — $ — $ 32,807 $ 32,807 December 27, 2014 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 1,934 $ — $ 1,934 Life insurance policies — 20,520 — 20,520 Total assets measured at fair value $ — $ 22,454 $ — $ 22,454 Redeemable noncontrolling interest $ — $ — $ 28,419 $ 28,419 Contingent consideration — — 2,828 2,828 Total liabilities measured at fair value $ — $ — $ 31,247 $ 31,247 Redeemable Noncontrolling Interest The Company’s redeemable noncontrolling interest resulted from the acquisition of a 75% ownership interest in Vital River. Concurrent with the acquisition, the Company entered into a joint venture agreement with the noncontrolling interest holders that provides the Company 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 the Company 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 purchase the remaining 25% interest, the noncontrolling interest is classified in the mezzanine section of the consolidated balance sheet, which is above the equity section and below liabilities. The following table provides a rollforward of the fair value of the Company’s redeemable noncontrolling interest: Six Months Ended June 27, 2015 June 28, 2014 (in thousands) Beginning balance $ 28,419 $ 20,581 Additions — — Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 364 372 Foreign currency translation 112 (462 ) Change in fair value, included in additional paid-in capital 1,081 2,992 Ending balance $ 29,976 $ 23,483 The significant unobservable inputs used in the fair value measurement of the Company’s redeemable noncontrolling interest are the estimated future cash flows based on projected financial data and a discount rate of 19.0% . Significant changes in the timing or amounts of the estimated future cash flows would result in a significantly higher or lower fair value measurement. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively. Contingent Consideration The following table provides a rollforward of the contingent consideration related to the acquisitions of Argenta, BioFocus, VivoPath and ChanTest. See Note 2, “Business Acquisitions.” Six Months Ended June 27, 2015 June 28, 2014 (in thousands) Beginning balance $ 2,828 $ — Additions 675 2,428 Total gains or losses (realized/unrealized): Reversal of previously recorded contingent liability and change in fair value (672 ) (8 ) Ending balance $ 2,831 $ 2,420 The significant unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the probabilities of successful achievement of certain financial targets and a discount rate. Significant increases or decreases in any of the probabilities of success would result in a significantly higher or lower fair value measurement, respectively. Significant increases or decreases in the discount rate would result in a significantly lower or higher fair value measurement, respectively. Debt Instruments The book value of the Company’s term and revolving loans, which are variable rate loans carried at amortized cost, approximates their fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 27, 2014 Acquisitions Foreign Exchange June 27, 2015 (in thousands) Research Models and Services $ 59,196 $ — $ (253 ) $ 58,943 Discovery and Safety Assessment 229,302 (624 ) (1,533 ) 227,145 Manufacturing Support 32,579 187 (1,440 ) 31,326 Total $ 321,077 $ (437 ) $ (3,226 ) $ 317,414 Other Intangible Assets, net The following table displays other intangible assets, net by major class: June 27, 2015 December 27, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 8,903 $ (8,538 ) $ 365 $ 8,728 $ (6,636 ) $ 2,092 Client relationships 375,465 (219,111 ) 156,354 379,339 (217,938 ) 161,401 Trademarks and trade names 6,599 (5,584 ) 1,015 6,603 (5,314 ) 1,289 Standard operating procedures 2,303 (1,844 ) 459 2,309 (1,642 ) 667 Other identifiable intangible assets 16,408 (5,663 ) 10,745 16,334 (6,346 ) 9,988 Total definite-lived intangible assets 409,678 (240,740 ) 168,938 413,313 (237,876 ) 175,437 Indefinite-lived intangibles assets 3,438 3,438 Total other intangibles assets, net $ 172,376 $ 178,875 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 6 Months Ended |
Jun. 27, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS Long-Term Debt Long-term debt, net consists of the following: June 27, 2015 December 27, 2014 (in thousands) Term loans $ 400,000 $ 378,000 Revolving credit facility 342,888 375,536 Other long-term debt 196 214 Total debt 743,084 753,750 Less: current portion of long-term debt (15,196 ) (31,714 ) Long-term debt 727,888 722,036 Debt discount and debt issuance costs (1) (7,670 ) (5,401 ) Long-term debt, net $ 720,218 $ 716,635 (1) During the three months ended June 27, 2015 , the Company adopted ASU 2015-03 and reclassified unamortized debt issuance costs from other assets to long-term debt, net and capital leases. See Note 1, “Basis of Presentation” for further discussion. In April 2015, the Company amended and restated the $970M Credit Facility creating a $1.3 billion facility ( $1.3B Credit Facility) that provides for a $400.0 million term loan facility and $900.0 million multi-currency revolving facility. The term loan facility matures in 20 quarterly installments with the last installment due April 22, 2020. The revolving facility matures on April 22, 2020 and requires no scheduled payment before that date. The interest rates applicable to term loans and revolving loans under our credit agreement are, at our option, equal to either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.5% or (3) the one-month adjusted LIBOR rate) or the adjusted LIBOR rate plus an interest rate margin based upon the our leverage ratio. As of June 27, 2015 and December 27, 2014 , the weighted average interest rate on the Company’s debt was 1.31% and 1.42% , respectively. The $1.3B Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to the Company’s business, and negative and affirmative covenants. As of June 27, 2015 , the Company was compliant with all covenants. At June 27, 2015 and December 27, 2014 , the Company had $4.9 million and $5.0 million in outstanding letters of credit, respectively. Capital Lease Obligations The Company acquired a built-to-suit lease as part of its acquisition of Argenta and BioFocus. In accordance with accounting guidance applicable to entities involved with the construction of an asset that will be leased when the construction is completed, the Company was considered the owner, for accounting purposes, of this property during the construction period. Accordingly, the Company recorded an asset and a corresponding financing obligation on its consolidated balance sheet for the amount of total project costs incurred related to the construction in progress for this property through completion of the construction period. Upon completion of the construction, the Company determined that it is no longer considered the owner of the property because it did not have continuing involvement. Consequently, the Company recorded a successful sale leaseback and derecognized the property and the associated financing obligation from the Company’s consolidated balance sheet and recorded a capital lease asset and a corresponding liability of $35.8 million . The Company’s capital lease obligations amounted to $37.4 million and $1.0 million at June 27, 2015 and December 27, 2014 , respectively. |
Equity
Equity | 6 Months Ended |
Jun. 27, 2015 | |
Equity [Abstract] | |
EQUITY | EQUITY The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Numerator: Net income from continuing operations attributable to common shareholders $ 48,516 $ 35,908 $ 80,064 $ 68,410 Loss from discontinued operations, net of income taxes (7 ) (644 ) (14 ) (914 ) Net income attributable to common shareholders $ 48,509 $ 35,264 $ 80,050 $ 67,496 Denominator: Weighted-average shares outstanding—Basic 46,675 46,942 46,712 47,016 Effect of dilutive securities: Stock options, restricted stock units, performance stock units and contingently issuable restricted stock 875 742 1,006 893 Weighted-average shares outstanding—Diluted 47,550 47,684 47,718 47,909 Earnings Per Share Options to purchase approximately 0.5 million and 0.9 million shares were outstanding at both June 27, 2015 and June 28, 2014 , 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 both the three and six months ended June 27, 2015 and June 28, 2014 excluded the weighted average impact of approximately 1.1 million and 1.2 million shares, respectively, of non-vested restricted stock and restricted stock units. Treasury Shares In July 2010, the Company’s Board of Directors authorized a $500.0 million stock repurchase program, and subsequently approved increases to the stock repurchase program of $250.0 million in 2010, $250.0 million in 2013 and $150.0 million in 2014 for an aggregate authorization of $1,150.0 million . The Company repurchased approximately 1.2 million shares for $90.8 million and approximately 1.7 million shares for $90.3 million in the six months ended June 27, 2015 and June 28, 2014 , respectively. As of June 27, 2015 , the Company had $87.6 million remaining on the authorized stock repurchase program. The Company’s 2007 Incentive Plan permits the netting of common stock upon vesting of restricted stock and restricted stock units in order to satisfy individual minimum statutory tax withholding requirements. During the six months ended June 27, 2015 and June 28, 2014 , the Company acquired approximately 0.1 million shares for $8.7 million and approximately 0.1 million shares for $6.7 million , respectively. Accumulated Other Comprehensive Income (Loss) Changes to each component of accumulated other comprehensive income (loss), net of income tax, are as follows: Foreign Currency Translation and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 27, 2014 $ (19,891 ) $ (54,356 ) $ (74,247 ) Other comprehensive loss before reclassifications (14,785 ) — (14,785 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,341 ) 1,490 (851 ) Net current period other comprehensive income (loss) (17,126 ) 1,490 (15,636 ) Income tax expense — 480 480 June 27, 2015 $ (37,017 ) $ (53,346 ) $ (90,363 ) Foreign currency translation and other includes an insignificant amount of unrealized gains (losses) on available-for-sale marketable securities. Nonredeemable Noncontrolling Interests The Company has investments in several entities, whose financial results are consolidated in the Company’s financial statements, as it has the ability to exercise control over these entities. The interests of the respective noncontrolling parties in these entities have been recorded as noncontrolling interests. The activity within the nonredeemable noncontrolling interests was insignificant during the three and six months ended June 27, 2015 and June 28, 2014 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s overall effective tax rate for the three months ended June 27, 2015 and June 28, 2014 was 18.4% and 27.9% , respectively. The Company’s overall effective tax rate was 12.4% and 26.1% for each of the six months ended June 27, 2015 and June 28, 2014 , respectively. For the three months ended June 27, 2015 the decrease was primarily attributable to a $1.8 million release of an uncertain tax position resulting from an ability to offset tax on a capital gain from an investment in a limited partnership, the non-taxable bargain purchase gain of $9.9 million associated with the acquisition of Sunrise, and a prior year discrete tax cost of $1.4 million related to nondeductible transaction costs. For the six months ended June 27, 2015 , the decrease reflects the items above as well as a reduction in unrecognized tax benefits and related interest of $10.4 million due to the expiration of the statute of limitations associated with pre-acquisition tax positions on forgiveness of debt. During the three months ended June 27, 2015 , the Company’s unrecognized tax benefits decreased by $0.1 million to $23.0 million primarily due to the $1.8 million release resulting from an ability to offset tax on a capital gain from an investment in a limited partnership, offset by the current year reserve associated with Canadian research credits and unfavorable foreign exchange movement. The amount of unrecognized income tax benefits that would impact the effective tax rate decreased by $0.4 million , to $20.1 million . The amount of accrued interest on unrecognized tax benefits was $1.0 million at June 27, 2015 . The Company believes that it is reasonably possible that the unrecognized tax benefits will decrease by up to $0.2 million over the next twelve-month period, as a result of the settlement of audits. The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits in jurisdictions including the U.S., U.K., Japan, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2011. The Company and certain of its subsidiaries are currently under audit by various tax authorities in the U.S., Canada, and France. The Company does not believe that resolution of these controversies will have a material impact on its financial position or results of operations. On December 2, 2014, the Quebec government released Information Bulletin 2014-11, which elaborated on a proposed law change to its SR&ED credit that, if passed, would provide a one-time retroactive benefit to operating income in the year of enactment and would provide a corresponding increase to the Company’s effective income tax rate. If passed as proposed, the tax law change would also provide an ongoing reduction in benefit to operating income and an additional corresponding increase to the Company’s effective income tax rate in the year of enactment and beyond. In accordance with the Company’s policy, the remaining undistributed earnings of its non-U.S. subsidiaries remain indefinitely reinvested as of the end of the three months ended June 27, 2015 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 Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Income tax benefit related to foreign currency translation adjustment $ — $ — $ — $ (105 ) Income tax expense related to change in unrecognized pension gains, losses and prior service costs 263 129 480 253 Income tax expense related to items of other comprehensive income $ 263 $ 129 $ 480 $ 148 |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 6 Months Ended |
Jun. 27, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS The following table provides the components of net periodic cost (benefit) for the Company’s pension and other post-retirement benefit plans for the three months ended June 27, 2015 and June 28, 2014 : Pension Plans Other Post-Retirement Benefit Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Service cost $ 936 $ 843 $ 214 $ 190 Interest cost 3,070 3,211 266 253 Expected return on plan assets (4,382 ) (4,277 ) — — Amortization of prior service cost (credit) (150 ) (159 ) — 165 Amortization of net loss 841 223 70 62 Net periodic cost (benefit) $ 315 $ (159 ) $ 550 $ 670 The following table provides the components of net periodic cost (benefit) for the Company’s pension and other post-retirement benefit plans for the six months ended June 27, 2015 and June 28, 2014 : Pension Plans Other Post-Retirement Benefit Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Service cost $ 1,871 $ 1,685 428 $ 379 Interest cost 6,140 6,422 531 505 Expected return on plan assets (8,764 ) (8,555 ) — — Amortization of prior service cost (credit) (301 ) (318 ) — 330 Amortization of net loss 1,653 446 138 125 Net periodic cost (benefit) $ 599 $ (320 ) $ 1,097 $ 1,339 |
Stock Plans and Stock-Based Com
Stock Plans and Stock-Based Compensation | 6 Months Ended |
Jun. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock, restricted stock units and performance share units (PSUs). The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Cost of revenue $ 1,788 $ 1,318 $ 3,289 $ 2,671 Selling, general and administrative 8,411 6,904 16,584 12,210 Stock-based compensation, before income taxes 10,199 8,222 19,873 14,881 Provision for income taxes (3,619 ) (2,964 ) (7,004 ) (5,328 ) Stock-based compensation, net of income tax $ 6,580 $ 5,258 $ 12,869 $ 9,553 During the six months ended June 27, 2015 , the Company issued approximately 0.2 million restricted stock units with a per share weighted average grant date fair value of $76.67 , less than 0.1 million shares of restricted stock with a per share weighted average grant date fair value of $70.29 , approximately 0.5 million stock options with a per share weighted average grant date fair value of $17.27 , and approximately 0.2 million PSUs with a per share weighted average grant date fair value of $87.50 . The maximum number of common shares to be issued upon vesting of PSUs granted during the six months ended June 27, 2015 is approximately 0.3 million . During the three months ended March 28, 2015, the Company modified certain stock-based awards granted in previous years as part of executive retirement transitions. For the stock-based awards granted to employees during the six months ended June 27, 2015 the Company introduced a new retirement provision, which allows for continued vesting of such awards after the employee’s retirement if certain eligibility conditions are met. The introduction of the new retirement provision and stock-based award modifications increased the Company’s stock-based compensation expense for the six months ended June 27, 2015 by $2.6 million . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Various lawsuits, claims, and proceedings of a nature considered normal to its business are pending against the Company. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on the Company’s business or financial condition. In May 2013, the Company commenced an investigation into inaccurate billing with respect to certain government contracts. The Company promptly reported these matters to the relevant government contracting officers, the Department of Health and Human Services’ Office of the Inspector General, and the Department of Justice, and the Company is cooperating with these agencies to ensure the proper repayment and resolution of this matter. The Company identified approximately $1.5 million of excess amounts billed on these contracts since January 1, 2007 and reserved such amount. Because of the ongoing 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 $1.5 million . Lease Commitments During the six months ended June 27, 2015 , the Company entered into new lease agreements or exercised options to extend the lease terms for certain existing leases. As a result, the Company’s lease obligations through May 2020 increased by $10.1 million . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports its financial performance in three segments: Research Models and Services, Discovery and Safety Assessment and Manufacturing Support. The following table presents revenue and other financial information by reportable segment: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research Models and Services Revenue $ 120,044 $ 133,120 $ 240,055 $ 265,615 Gross margin 49,707 52,450 95,511 104,097 Operating income 33,461 34,234 62,306 69,678 Depreciation and amortization 5,348 6,559 11,393 13,000 Capital expenditures 6,356 3,319 9,089 7,418 Discovery and Safety Assessment Revenue $ 153,375 $ 142,614 $ 293,387 $ 247,752 Gross margin 49,256 39,457 92,939 65,116 Operating income 28,149 17,798 51,665 29,511 Depreciation and amortization 12,412 12,385 23,551 20,527 Capital expenditures 4,101 3,858 9,479 7,894 Manufacturing Support Revenue $ 66,154 $ 65,445 $ 126,545 $ 127,180 Gross margin 33,820 33,727 63,993 65,234 Operating income 20,431 20,455 37,229 38,871 Depreciation and amortization 3,609 3,484 6,895 7,112 Capital expenditures 1,770 1,717 3,336 3,981 For the three months ended June 27, 2015 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Total reportable segments $ 82,041 $ 72,487 $ 21,369 $ 22,428 $ 12,227 $ 8,894 Unallocated corporate (26,306 ) (21,462 ) 1,779 1,874 1,681 421 Total consolidated $ 55,735 $ 51,025 $ 23,148 $ 24,302 $ 13,908 $ 9,315 For the six months ended June 27, 2015 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Total reportable segments $ 151,200 $ 138,060 $ 41,839 $ 40,639 $ 21,904 $ 19,293 Unallocated corporate (52,460 ) (47,329 ) 3,677 3,713 2,652 1,212 Total consolidated $ 98,740 $ 90,731 $ 45,516 $ 44,352 $ 24,556 $ 20,505 Revenue for each significant product or service area is as follows: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research models and services $ 120,044 $ 133,120 $ 240,055 $ 265,615 Discovery and safety assessment 153,375 142,614 293,387 247,752 Endotoxin and Microbial Detection 33,653 33,579 66,479 66,045 Other manufacturing support 32,501 31,866 60,066 61,135 Manufacturing support 66,154 65,445 126,545 127,180 Total revenue $ 339,573 $ 341,179 $ 659,987 $ 640,547 A summary of unallocated corporate overhead consists of the following : Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Stock-based compensation expense $ 6,419 $ 4,905 $ 12,699 $ 8,607 Salary, bonus and fringe 7,234 7,438 17,930 17,705 Consulting, audit and professional services 3,130 2,437 6,771 5,668 IT related expenses 1,685 1,323 3,549 2,900 Depreciation expense 1,779 1,874 3,677 3,713 Acquisition related adjustments 3,956 1,371 3,594 4,676 Other general unallocated corporate expenses 2,103 2,114 4,240 4,060 Total unallocated corporate overhead costs $ 26,306 $ 21,462 $ 52,460 $ 47,329 Other general unallocated corporate expenses consist of various departmental costs including those associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 27, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 24, 2015, the Company acquired Celsis International Ltd. (Celsis), a leading provider of rapid testing systems for non-sterile bacterial contamination for the biopharmaceutical and consumer products industries. The purpose of this acquisition was to expand the portfolio of the Company’s Endotoxin and Microbial Detection (EMD) business. The preliminary purchase price for Celsis was $212.0 million in cash, which is subject to a final net working capital adjustment as of the closing date. The business will be reported in the Company’s Manufacturing reportable segment. Due to the limited time between the acquisition date and the filing of this Quarterly Report on Form 10-Q, it is not practicable for the Company to disclose the preliminary allocation of purchase price to assets acquired and liabilities assumed. |
Basis of Presentation - Signifi
Basis of Presentation - Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. |
Consolidation | The Company’s consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. |
Newly Adopted and Issued Accounting Pronouncements | In April 2015, FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” to provide a practical expedient related to the measurement date of the defined benefit plan assets and obligations. The practical expedient allows employers with fiscal year-end dates that do not coincide with a calendar month end to measure pension and post-retirement benefit plan assets and obligations as of the calendar month-end date closest to the fiscal year end. The standard requires entities that elect the practical expedient to adjust the measurement of benefit plan assets and obligations for contributions or significant events between the month-end measurement date and the entity fiscal year end. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating the impact the election of the practical expedient would have on its consolidated financial statements and related disclosures. In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which amends existing consolidation requirements. The guidance affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the guidance amends (i) the identification of variable interests (fees paid to a decision maker or service provider), (ii) the variable interest entity characteristics for a limited partnership or similar entity and (iii) the primary beneficiary determination. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a significant impact on the Company’s financial position or results of operations. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The ASU was originally effective for annual and interim periods beginning after December 15, 2016; however, on July 9, 2015, the FASB decided to defer by one year the effective date of the ASU. As a result, the standard will be effective for annual and interim periods beginning after December 15, 2017. The Company has not yet selected a transition method and is evaluating the impact the adoption will have on its consolidated financial statements and related disclosures. In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of debt discounts or premiums. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. During the three months ended June 27, 2015, the Company elected early adoption of this standard and applied the changes retrospectively to all prior periods presented in its consolidated financial statements. The Company historically presented deferred debt issuance costs, or fees related to directly issuing debt, as assets on the consolidated balance sheets. As of June 27, 2015 and December 27, 2014 , the adoption of this standard has resulted in the reclassification of $7.7 million and $5.4 million , respectively, from other assets to long-term debt, net and capital leases. These costs will continue to be amortized as interest expense over the term of the corresponding debt issuance. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The preliminary purchase price allocation of $52.1 million , net of $7.2 million in cash acquired, is as follows: October 29, 2014 (in thousands) Current assets (excluding cash) $ 4,648 Property, plant and equipment 1,579 Definite-lived intangible assets 23,920 Goodwill 34,927 Current liabilities (3,515 ) Long-term liabilities (9,486 ) Total purchase price allocation $ 52,073 The preliminary purchase price allocation of $9.6 million , net of less than $0.1 million of cash acquired, is as follows: May 5, 2015 (in thousands) Accounts receivable, net $ 981 Inventory 1,518 Other current assets (excluding cash) 318 Property, plant and equipment 13,866 Definite-lived intangible assets 3,400 Current liabilities (397 ) Long-term liabilities (250 ) Fair value of net assets acquired 19,436 Bargain purchase gain (9,878 ) Total purchase price allocation $ 9,558 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The breakout of definite-lived intangible assets acquired is as follows: October 29, 2014 Weighted average amortization life (in thousands) (in years) Client relationships $ 19,000 13 Other intangible assets 4,920 9 Total definite-lived intangible assets $ 23,920 |
Schedule of Assets and Liabilities Acquired | The purchase price allocation of $183.6 million , net of $8.2 million of cash acquired, was as follows (in thousands): Current assets (excluding cash) $ 31,682 Property, plant and equipment 21,008 Other long term assets 11,140 Definite-lived intangible assets 104,470 Goodwill 65,235 Current liabilities (13,139 ) Long term liabilities (36,802 ) Total purchase price allocation $ 183,594 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 94,000 18 Backlog 5,900 1 Trademark and trade names 1,170 3 Leasehold interests 1,000 13 Other intangible assets 2,400 19 Total definite-lived intangible assets $ 104,470 |
Business Acquisition, Pro Forma Information | The following selected pro forma consolidated results of operations are presented as if the Argenta and BioFocus acquisition had occurred as of the beginning of the period immediately preceding the period of acquisition after giving effect to certain adjustments, including amortization of intangible assets and depreciation of fixed assets of $3.7 million and other one-time costs. These pro forma consolidated results of operations are for informational purposes only and do not necessarily reflect the results of operations had the companies operated as one entity during the periods reported. No effect has been given for synergies, if any, that may have been realized through the acquisition. Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Revenue $ 339,573 $ 341,179 $ 659,987 $ 665,656 Net income attributable to common shareholders 48,509 35,264 80,050 65,688 Earnings per common share Basic $ 1.04 $ 0.75 $ 1.71 $ 1.40 Diluted $ 1.02 $ 0.74 $ 1.68 $ 1.38 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
Severance Costs, Liability | The following table rolls forward the Company’s severance and retention cost liability: December 27, 2014 Expense Payments and Adjustments June 27, 2015 (in thousands) Severance and retention cost liability $ 2,666 $ 1,835 $ (2,765 ) $ 1,736 Total $ 2,666 $ 1,835 $ (2,765 ) $ 1,736 |
Severance Costs, By Classification | The following table presents severance and retention costs by classification on the income statement: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Severance charges included in cost of revenue $ 137 $ 1,072 $ 667 $ 2,754 Severance charges included in selling, general and administrative 568 1,817 1,168 2,035 Total expense $ 705 $ 2,889 $ 1,835 $ 4,789 |
Severance Costs, By Segment | The following table presents severance and retention cost by reportable segment: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research models and services $ 80 $ 2,011 $ 999 $ 3,595 Discovery and safety assessment 456 854 475 1,049 Manufacturing support 118 24 295 24 Corporate 51 — 66 121 Total expense $ 705 $ 2,889 $ 1,835 $ 4,789 |
Supplemental Balance Sheet In25
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Supplemental Balance Sheet Information [Abstract] | |
Composition of Net Trade Receivables | The composition of trade receivables, net is as follows: June 27, 2015 December 27, 2014 (in thousands) Client receivables $ 233,569 $ 219,118 Unbilled revenue 49,016 43,780 Total 282,585 262,898 Less: Allowance for doubtful accounts (5,187 ) (4,907 ) Trade receivables, net $ 277,398 $ 257,991 |
Composition of Inventories | The composition of inventories is as follows: June 27, 2015 December 27, 2014 (in thousands) Raw materials and supplies $ 13,885 $ 15,416 Work in process 12,023 11,802 Finished products 64,129 61,825 Inventories $ 90,037 $ 89,043 |
Composition of Other Current Assets | The composition of other current assets is as follows: June 27, 2015 December 27, 2014 (in thousands) Deferred tax asset 23,058 27,644 Investments 18,074 16,167 Prepaid income tax 31,537 26,287 Restricted cash 100 2,552 Other 1,684 291 Other current assets $ 74,453 $ 72,941 |
Composition of Net Property, Plant and Equipment | The composition of property, plant and equipment, net is as follows: June 27, 2015 December 27, 2014 (in thousands) Land $ 42,796 $ 40,314 Buildings (1) 711,943 682,495 Machinery and equipment 380,871 384,713 Leasehold improvements 36,955 37,270 Furniture and fixtures 21,237 22,577 Vehicles 4,101 3,967 Computer hardware and software 122,050 119,474 Construction in progress 21,844 40,970 Total 1,341,797 1,331,780 Less: Accumulated depreciation (661,232 ) (654,983 ) Property, plant and equipment, net $ 680,565 $ 676,797 (1) The balance as of June 27, 2015 includes capital lease assets. See Note 8, “Long Term Debt and Capital Lease Obligations.” |
Composition of Other Assets | The composition of other assets is as follows: June 27, 2015 December 27, 2014 (in thousands) Life insurance policies 28,237 27,603 Investments in limited partnerships 29,141 27,047 Other 5,838 18,301 Other assets $ 63,216 $ 72,951 |
Composition of Current Liabilities | The composition of other current liabilities is as follows: June 27, 2015 December 27, 2014 (in thousands) Accrued income taxes $ 10,906 $ 9,362 Current deferred tax liability 1,302 1,484 Accrued interest and other 356 233 Other current liabilities $ 12,564 $ 11,079 |
Composition of Other Long-Term Liabilities | The composition of other long-term liabilities is as follows: June 27, 2015 December 27, 2014 (in thousands) Deferred tax liability $ 25,550 $ 30,816 Long-term pension liability 40,531 45,135 Accrued executive supplemental life insurance retirement plan and deferred compensation plan 33,424 33,007 Other long-term liabilities 11,751 21,403 Other long-term liabilities $ 111,256 $ 130,361 |
Investments in Limited Partne26
Investments in Limited Partnerships and Marketable Securities (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Marketable Securities and Equity-Method Affiliates [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following is a summary of the Company's marketable securities, all of which are classified as available-for-sale: June 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Mutual fund $ 4,650 $ — $ (89 ) $ 4,561 Total $ 4,650 $ — $ (89 ) $ 4,561 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: June 27, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 129 $ — $ 129 Marketable securities 4,561 — — 4,561 Life insurance policies — 21,152 — 21,152 Total assets measured at fair value $ 4,561 $ 21,281 $ — $ 25,842 Redeemable noncontrolling interest $ — $ — $ 29,976 $ 29,976 Contingent consideration — — 2,831 2,831 Total liabilities measured at fair value $ — $ — $ 32,807 $ 32,807 December 27, 2014 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 1,934 $ — $ 1,934 Life insurance policies — 20,520 — 20,520 Total assets measured at fair value $ — $ 22,454 $ — $ 22,454 Redeemable noncontrolling interest $ — $ — $ 28,419 $ 28,419 Contingent consideration — — 2,828 2,828 Total liabilities measured at fair value $ — $ — $ 31,247 $ 31,247 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a rollforward of the fair value of the Company’s redeemable noncontrolling interest: Six Months Ended June 27, 2015 June 28, 2014 (in thousands) Beginning balance $ 28,419 $ 20,581 Additions — — Total gains or losses (realized/unrealized): Net income attributable to noncontrolling interest 364 372 Foreign currency translation 112 (462 ) Change in fair value, included in additional paid-in capital 1,081 2,992 Ending balance $ 29,976 $ 23,483 |
Fair Value, Contingent Consideration | The following table provides a rollforward of the contingent consideration related to the acquisitions of Argenta, BioFocus, VivoPath and ChanTest. See Note 2, “Business Acquisitions.” Six Months Ended June 27, 2015 June 28, 2014 (in thousands) Beginning balance $ 2,828 $ — Additions 675 2,428 Total gains or losses (realized/unrealized): Reversal of previously recorded contingent liability and change in fair value (672 ) (8 ) Ending balance $ 2,831 $ 2,420 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Gross Carrying Amount and Accumulated Amortization of Goodwill | The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 27, 2014 Acquisitions Foreign Exchange June 27, 2015 (in thousands) Research Models and Services $ 59,196 $ — $ (253 ) $ 58,943 Discovery and Safety Assessment 229,302 (624 ) (1,533 ) 227,145 Manufacturing Support 32,579 187 (1,440 ) 31,326 Total $ 321,077 $ (437 ) $ (3,226 ) $ 317,414 |
Schedule of Finite-Lived Intangible Assets | The following table displays other intangible assets, net by major class: June 27, 2015 December 27, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 8,903 $ (8,538 ) $ 365 $ 8,728 $ (6,636 ) $ 2,092 Client relationships 375,465 (219,111 ) 156,354 379,339 (217,938 ) 161,401 Trademarks and trade names 6,599 (5,584 ) 1,015 6,603 (5,314 ) 1,289 Standard operating procedures 2,303 (1,844 ) 459 2,309 (1,642 ) 667 Other identifiable intangible assets 16,408 (5,663 ) 10,745 16,334 (6,346 ) 9,988 Total definite-lived intangible assets 409,678 (240,740 ) 168,938 413,313 (237,876 ) 175,437 Indefinite-lived intangibles assets 3,438 3,438 Total other intangibles assets, net $ 172,376 $ 178,875 |
Long-Term Debt and Capital Le29
Long-Term Debt and Capital Lease Obligations (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt, net consists of the following: June 27, 2015 December 27, 2014 (in thousands) Term loans $ 400,000 $ 378,000 Revolving credit facility 342,888 375,536 Other long-term debt 196 214 Total debt 743,084 753,750 Less: current portion of long-term debt (15,196 ) (31,714 ) Long-term debt 727,888 722,036 Debt discount and debt issuance costs (1) (7,670 ) (5,401 ) Long-term debt, net $ 720,218 $ 716,635 (1) During the three months ended June 27, 2015 , the Company adopted ASU 2015-03 and reclassified unamortized debt issuance costs from other assets to long-term debt, net and capital leases. See Note 1, “Basis of Presentation” for further discussion. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Equity [Abstract] | |
Reconciliation of the Numerator and Denominator in the Computations of the Basic and Diluted Earnings Per Share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Numerator: Net income from continuing operations attributable to common shareholders $ 48,516 $ 35,908 $ 80,064 $ 68,410 Loss from discontinued operations, net of income taxes (7 ) (644 ) (14 ) (914 ) Net income attributable to common shareholders $ 48,509 $ 35,264 $ 80,050 $ 67,496 Denominator: Weighted-average shares outstanding—Basic 46,675 46,942 46,712 47,016 Effect of dilutive securities: Stock options, restricted stock units, performance stock units and contingently issuable restricted stock 875 742 1,006 893 Weighted-average shares outstanding—Diluted 47,550 47,684 47,718 47,909 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to each component of accumulated other comprehensive income (loss), net of income tax, are as follows: Foreign Currency Translation and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 27, 2014 $ (19,891 ) $ (54,356 ) $ (74,247 ) Other comprehensive loss before reclassifications (14,785 ) — (14,785 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,341 ) 1,490 (851 ) Net current period other comprehensive income (loss) (17,126 ) 1,490 (15,636 ) Income tax expense — 480 480 June 27, 2015 $ (37,017 ) $ (53,346 ) $ (90,363 ) The income tax expense (benefit) related to items of other comprehensive income are as follows: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Income tax benefit related to foreign currency translation adjustment $ — $ — $ — $ (105 ) Income tax expense related to change in unrecognized pension gains, losses and prior service costs 263 129 480 253 Income tax expense related to items of other comprehensive income $ 263 $ 129 $ 480 $ 148 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to each component of accumulated other comprehensive income (loss), net of income tax, are as follows: Foreign Currency Translation and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 27, 2014 $ (19,891 ) $ (54,356 ) $ (74,247 ) Other comprehensive loss before reclassifications (14,785 ) — (14,785 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,341 ) 1,490 (851 ) Net current period other comprehensive income (loss) (17,126 ) 1,490 (15,636 ) Income tax expense — 480 480 June 27, 2015 $ (37,017 ) $ (53,346 ) $ (90,363 ) The income tax expense (benefit) related to items of other comprehensive income are as follows: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Income tax benefit related to foreign currency translation adjustment $ — $ — $ — $ (105 ) Income tax expense related to change in unrecognized pension gains, losses and prior service costs 263 129 480 253 Income tax expense related to items of other comprehensive income $ 263 $ 129 $ 480 $ 148 |
Pension and Other Post-Retire32
Pension and Other Post-Retirement Benefit Plans Employee Benefits (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The following table provides the components of net periodic cost (benefit) for the Company’s pension and other post-retirement benefit plans for the three months ended June 27, 2015 and June 28, 2014 : Pension Plans Other Post-Retirement Benefit Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Service cost $ 936 $ 843 $ 214 $ 190 Interest cost 3,070 3,211 266 253 Expected return on plan assets (4,382 ) (4,277 ) — — Amortization of prior service cost (credit) (150 ) (159 ) — 165 Amortization of net loss 841 223 70 62 Net periodic cost (benefit) $ 315 $ (159 ) $ 550 $ 670 The following table provides the components of net periodic cost (benefit) for the Company’s pension and other post-retirement benefit plans for the six months ended June 27, 2015 and June 28, 2014 : Pension Plans Other Post-Retirement Benefit Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Service cost $ 1,871 $ 1,685 428 $ 379 Interest cost 6,140 6,422 531 505 Expected return on plan assets (8,764 ) (8,555 ) — — Amortization of prior service cost (credit) (301 ) (318 ) — 330 Amortization of net loss 1,653 446 138 125 Net periodic cost (benefit) $ 599 $ (320 ) $ 1,097 $ 1,339 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Cost of revenue $ 1,788 $ 1,318 $ 3,289 $ 2,671 Selling, general and administrative 8,411 6,904 16,584 12,210 Stock-based compensation, before income taxes 10,199 8,222 19,873 14,881 Provision for income taxes (3,619 ) (2,964 ) (7,004 ) (5,328 ) Stock-based compensation, net of income tax $ 6,580 $ 5,258 $ 12,869 $ 9,553 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Sales and Other Financial Information by Business Segment | The following table presents revenue and other financial information by reportable segment: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research Models and Services Revenue $ 120,044 $ 133,120 $ 240,055 $ 265,615 Gross margin 49,707 52,450 95,511 104,097 Operating income 33,461 34,234 62,306 69,678 Depreciation and amortization 5,348 6,559 11,393 13,000 Capital expenditures 6,356 3,319 9,089 7,418 Discovery and Safety Assessment Revenue $ 153,375 $ 142,614 $ 293,387 $ 247,752 Gross margin 49,256 39,457 92,939 65,116 Operating income 28,149 17,798 51,665 29,511 Depreciation and amortization 12,412 12,385 23,551 20,527 Capital expenditures 4,101 3,858 9,479 7,894 Manufacturing Support Revenue $ 66,154 $ 65,445 $ 126,545 $ 127,180 Gross margin 33,820 33,727 63,993 65,234 Operating income 20,431 20,455 37,229 38,871 Depreciation and amortization 3,609 3,484 6,895 7,112 Capital expenditures 1,770 1,717 3,336 3,981 |
Reconciliation of Segment Operating Income to Consolidated Operating Income | For the three months ended June 27, 2015 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Total reportable segments $ 82,041 $ 72,487 $ 21,369 $ 22,428 $ 12,227 $ 8,894 Unallocated corporate (26,306 ) (21,462 ) 1,779 1,874 1,681 421 Total consolidated $ 55,735 $ 51,025 $ 23,148 $ 24,302 $ 13,908 $ 9,315 For the six months ended June 27, 2015 , reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Total reportable segments $ 151,200 $ 138,060 $ 41,839 $ 40,639 $ 21,904 $ 19,293 Unallocated corporate (52,460 ) (47,329 ) 3,677 3,713 2,652 1,212 Total consolidated $ 98,740 $ 90,731 $ 45,516 $ 44,352 $ 24,556 $ 20,505 |
Schedule of Net Sales for Each Significant Service Area | Revenue for each significant product or service area is as follows: Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Research models and services $ 120,044 $ 133,120 $ 240,055 $ 265,615 Discovery and safety assessment 153,375 142,614 293,387 247,752 Endotoxin and Microbial Detection 33,653 33,579 66,479 66,045 Other manufacturing support 32,501 31,866 60,066 61,135 Manufacturing support 66,154 65,445 126,545 127,180 Total revenue $ 339,573 $ 341,179 $ 659,987 $ 640,547 |
Summary of Unallocated Corporate Overhead | A summary of unallocated corporate overhead consists of the following : Three Months Ended Six Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (in thousands) Stock-based compensation expense $ 6,419 $ 4,905 $ 12,699 $ 8,607 Salary, bonus and fringe 7,234 7,438 17,930 17,705 Consulting, audit and professional services 3,130 2,437 6,771 5,668 IT related expenses 1,685 1,323 3,549 2,900 Depreciation expense 1,779 1,874 3,677 3,713 Acquisition related adjustments 3,956 1,371 3,594 4,676 Other general unallocated corporate expenses 2,103 2,114 4,240 4,060 Total unallocated corporate overhead costs $ 26,306 $ 21,462 $ 52,460 $ 47,329 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Long-term debt | $ (727,888) | $ (722,036) |
Early Adoption | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Long-term debt | (7,700) | (5,400) |
Other assets | $ 7,700 | $ 5,400 |
Business Acquisitions - Sunrise
Business Acquisitions - Sunrise, Additional Information (Details) - USD ($) $ in Thousands | May. 05, 2015 | Jun. 27, 2015 | Jun. 27, 2015 | Jun. 28, 2014 |
Business Acquisition [Line Items] | ||||
Gain on bargain purchase | $ (9,878) | $ 0 | ||
Sunrise | ||||
Business Acquisition [Line Items] | ||||
Preliminary purchase price | $ 9,558 | |||
Gain on bargain purchase | (9,878) | |||
Cash acquired | $ 100 | |||
Price allocation adjustment period, maximum | 1 year | |||
Transaction and integration costs | $ 300 | $ 600 | ||
Client relationships | Sunrise | ||||
Business Acquisition [Line Items] | ||||
Useful life of intangible assets acquired | 15 years |
Business Acquisitions Business
Business Acquisitions Business Acquisitions - Sunrise Purchase Price Allocation (Details) - USD ($) $ in Thousands | May. 05, 2015 | Jun. 27, 2015 | Jun. 28, 2014 |
Business Acquisition [Line Items] | |||
Bargain purchase gain | $ (9,878) | $ 0 | |
Sunrise | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | $ 981 | ||
Inventory | 1,518 | ||
Other current assets (excluding cash) | 318 | ||
Property, plant and equipment | 13,866 | ||
Definite-lived intangible assets | 3,400 | ||
Current liabilities | (397) | ||
Long-term liabilities | (250) | ||
Fair value of net assets acquired | 19,436 | ||
Bargain purchase gain | (9,878) | ||
Total purchase price allocation | $ 9,558 |
Business Acquisitions - ChanTes
Business Acquisitions - ChanTest, Additional Information (Details) - USD ($) | Oct. 29, 2014 | Jun. 27, 2015 | Jun. 28, 2014 |
Business Acquisition [Line Items] | |||
Total purchase price allocation | $ 10,680,000 | $ 183,151,000 | |
ChanTest | |||
Business Acquisition [Line Items] | |||
Preliminary purchase price | $ 59,300,000 | ||
Contingent consideration | 300,000 | ||
Maximum contingent consideration limit | 2,000,000 | ||
Total purchase price allocation | 52,073,000 | ||
Total purchase price allocation | $ 7,200,000 | ||
Price allocation adjustment period, maximum | 1 year |
Business Acquisitions - Chan Te
Business Acquisitions - Chan Test Preliminary Purchase Price (Details) - USD ($) $ in Thousands | Oct. 29, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 317,414 | $ 321,077 | ||
Total purchase price allocation | $ 10,680 | $ 183,151 | ||
ChanTest | ||||
Business Acquisition [Line Items] | ||||
Current assets (excluding cash) | $ 4,648 | |||
Property, plant and equipment | 1,579 | |||
Definite-lived intangible assets | 23,920 | |||
Goodwill | 34,927 | |||
Current liabilities | (3,515) | |||
Long-term liabilities | (9,486) | |||
Total purchase price allocation | $ 52,073 |
Business Acquisitions - ChanT40
Business Acquisitions - ChanTest Breakout of Definite-Lived Intangible Assets Acquired (Details) - Oct. 29, 2014 - ChanTest - USD ($) $ in Thousands | Total |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total definite-lived intangible assets | $ 23,920 |
Client relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 19,000 |
Weighted average amortization life | 13 years |
Other intangible assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 4,920 |
Weighted average amortization life | 9 years |
Business Acquisitions - VivoPat
Business Acquisitions - VivoPath (Details) - Jun. 30, 2014 - USD ($) | Total |
Business Acquisition [Line Items] | |
Contingent consideration | $ 600,000 |
VivoPath | |
Business Acquisition [Line Items] | |
Acquisition purchase price | 2,300,000 |
Contingent consideration | 1,600,000 |
Aggregate undiscounted amount of contingent consideration | $ 2,400,000 |
Earn-out period | 3 years |
Business Acquisitions - Early D
Business Acquisitions - Early Discovery, Additional Information (Details) € in Millions | Apr. 01, 2014USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 27, 2015EUR (€) | Jun. 27, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||
Gain from contingent liability earn-out period | $ 800,000 | |||||||
Revenue | $ 20,100,000 | $ 23,500,000 | $ 40,700,000 | |||||
Operating loss | 1,700,000 | 1,400,000 | $ 100,000 | |||||
Pro forma adjustments, acquisitions | $ 3,700,000 | |||||||
Early Discovery UK | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interests acquired | 100.00% | |||||||
Acquisition purchase price | $ 191,800,000 | |||||||
Contingent consideration | 900,000 | |||||||
Aggregate undiscounted amount of contingent consideration | € 5 | $ 5,600,000 | ||||||
Purchase price allocation, net of cash | 183,594,000 | |||||||
Purchase price allocation, cash | $ 8,200,000 | |||||||
Acquisition related adjustments (less than $0.1 million in 2015) | $ 87,000 | $ 1,600,000 | $ 87,000 | $ 4,900,000 |
Business Acquisitions - Early43
Business Acquisitions - Early Discovery Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 | Apr. 01, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 317,414 | $ 321,077 | |
Early Discovery UK | |||
Business Acquisition [Line Items] | |||
Current assets (excluding cash) | $ 31,682 | ||
Property, plant and equipment | 21,008 | ||
Other long term assets | 11,140 | ||
Definite-lived intangible assets | 104,470 | ||
Goodwill | 65,235 | ||
Current liabilities | (13,139) | ||
Long term liabilities | (36,802) | ||
Total purchase price allocation | $ 183,594 |
Business Acquisitions - Early44
Business Acquisitions - Early Discovery Breakout of Definite-Lived Intangible Assets Acquired (Details) - Early Discovery UK - USD ($) $ in Thousands | Apr. 01, 2015 | Apr. 01, 2014 |
Definite-Lived Intangible Assets | ||
Client relationships | $ 94,000 | |
Backlog | 5,900 | |
Trademark and trade names | 1,170 | |
Leasehold interests | 1,000 | |
Other intangible assets | 2,400 | |
Total definite-lived intangible assets | $ 104,470 | |
Client relationships | ||
Definite-Lived Intangible Assets | ||
Weighted average amortization life | 18 years | |
Backlog | ||
Definite-Lived Intangible Assets | ||
Weighted average amortization life | 1 year | |
Trademark and trade names | ||
Definite-Lived Intangible Assets | ||
Weighted average amortization life | 3 years | |
Leasehold interests | ||
Definite-Lived Intangible Assets | ||
Weighted average amortization life | 13 years | |
Other intangible assets | ||
Definite-Lived Intangible Assets | ||
Weighted average amortization life | 19 years |
Business Acquisitions Busines45
Business Acquisitions Business Acquisitions - Early Discovery Pro Forma Information (Details) - Early Discovery UK - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Business Acquisition [Line Items] | ||||
Revenue | $ 339,573 | $ 341,179 | $ 659,987 | $ 665,656 |
Net income attributable to common shareholders | $ 48,509 | $ 35,264 | $ 80,050 | $ 65,688 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 1.04 | $ 0.75 | $ 1.71 | $ 1.40 |
Diluted (in dollars per share) | $ 1.02 | $ 0.74 | $ 1.68 | $ 1.38 |
Restructuring - Severance and R
Restructuring - Severance and Retention Cost Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | |
Restructuring Reserve [Roll Forward] | |||||
Balance, beginning of period | $ 2,666 | ||||
Total expense | $ 705 | $ 2,889 | 1,835 | $ 4,789 | |
Expense | 1,835 | ||||
Payments and Adjustments | (2,765) | ||||
Balance, end of period | 1,736 | 1,736 | |||
Accrued Compensation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and retention costs, current | 1,400 | 1,400 | $ 2,200 | ||
Other Long-Term Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance and retention costs, noncurrent | $ 300 | $ 300 | $ 500 |
Restructuring - Severance and47
Restructuring - Severance and Retention Costs by Classification on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total expense | $ 705 | $ 2,889 | $ 1,835 | $ 4,789 |
Severance charges included in cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total expense | 137 | 1,072 | 667 | 2,754 |
Severance charges included in selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total expense | $ 568 | $ 1,817 | $ 1,168 | $ 2,035 |
Restructuring - Severance and48
Restructuring - Severance and Retention Cost by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | $ 705 | $ 2,889 | $ 1,835 | $ 4,789 |
Research Models and Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | 80 | 2,011 | 999 | 3,595 |
Discovery and Safety Assessment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | 456 | 854 | 475 | 1,049 |
Manufacturing Support | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | 118 | 24 | 295 | 24 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance charges | $ 51 | $ 0 | $ 66 | $ 121 |
Supplemental Balance Sheet In49
Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | |
Composition of trade receivables | |||||
Client receivables | $ 233,569 | $ 233,569 | $ 219,118 | ||
Unbilled revenue | 49,016 | 49,016 | 43,780 | ||
Total | 282,585 | 282,585 | 262,898 | ||
Less: Allowance for doubtful accounts | (5,187) | (5,187) | (4,907) | ||
Trade receivables, net | 277,398 | 277,398 | 257,991 | ||
Composition of inventories | |||||
Raw materials and supplies | 13,885 | 13,885 | 15,416 | ||
Work in process | 12,023 | 12,023 | 11,802 | ||
Finished products | 64,129 | 64,129 | 61,825 | ||
Inventories | 90,037 | 90,037 | 89,043 | ||
Composition of other current assets | |||||
Deferred tax asset | 23,058 | 23,058 | 27,644 | ||
Investments | 18,074 | 18,074 | 16,167 | ||
Prepaid income tax | 31,537 | 31,537 | 26,287 | ||
Restricted cash | 100 | 100 | 2,552 | ||
Other | 1,684 | 1,684 | 291 | ||
Other current assets | 74,453 | 74,453 | 72,941 | ||
Property, Plant and Equipment [Line Items] | |||||
Total | 1,341,797 | 1,341,797 | 1,331,780 | ||
Less: Accumulated depreciation | (661,232) | (661,232) | (654,983) | ||
Property, plant and equipment, net | 680,565 | 680,565 | 676,797 | ||
Depreciation expense | 17,400 | $ 17,400 | 34,500 | $ 33,200 | |
Composition of other assets | |||||
Life insurance policies | 28,237 | 28,237 | 27,603 | ||
Investments in limited partnerships | 29,141 | 29,141 | 27,047 | ||
Other | 5,838 | 5,838 | 18,301 | ||
Other assets | 63,216 | 63,216 | 72,951 | ||
Composition of other current liabilities | |||||
Accrued income taxes | 10,906 | 10,906 | 9,362 | ||
Current deferred tax liability | 1,302 | 1,302 | 1,484 | ||
Accrued interest and other | 356 | 356 | 233 | ||
Other current liabilities | 12,564 | 12,564 | 11,079 | ||
Composition of other long-term liabilities | |||||
Deferred tax liability | 25,550 | 25,550 | 30,816 | ||
Long-term pension liability | 40,531 | 40,531 | 45,135 | ||
Accrued executive supplemental life insurance retirement plan and deferred compensation plan | 33,424 | 33,424 | 33,007 | ||
Other long-term liabilities | 11,751 | 11,751 | 21,403 | ||
Other long-term liabilities | 111,256 | 111,256 | 130,361 | ||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 42,796 | 42,796 | 40,314 | ||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 711,943 | 711,943 | 682,495 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 380,871 | 380,871 | 384,713 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 36,955 | 36,955 | 37,270 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 21,237 | 21,237 | 22,577 | ||
Vehicles | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 4,101 | 4,101 | 3,967 | ||
Computer hardware and software | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | 122,050 | 122,050 | 119,474 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Total | $ 21,844 | $ 21,844 | $ 40,970 |
Investments in Limited Partne50
Investments in Limited Partnerships and Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Committed contribution | $ 65,000 | $ 65,000 | ||
Committed contributions funded | 23,500 | 23,500 | ||
Dividends in cash and securities received | 2,100 | $ 900 | 2,100 | $ 7,400 |
Income (loss) from investments in limited partnerships | $ (907) | $ 2,076 | $ 364 | $ 8,180 |
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 3.80% | 3.80% | ||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 12.00% | 12.00% |
Investments in Limited Partne51
Investments in Limited Partnerships and Marketable Securities - Summary of Marketable Securities (Details) $ in Thousands | Jun. 27, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | $ 4,650 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (89) |
Fair Value | 4,561 |
Mutual fund | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost | 4,650 |
Gross Unrealized Gains | 0 |
Gross Unrealized Losses | (89) |
Fair Value | $ 4,561 |
Fair Value - Fair Value of Asse
Fair Value - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 129 | $ 1,934 |
Marketable securities | 4,561 | |
Life insurance policies | 21,152 | 20,520 |
Total assets measured at fair value | 25,842 | 22,454 |
Redeemable noncontrolling interest | 29,976 | 28,419 |
Contingent consideration | 2,831 | 2,828 |
Total liabilities measured at fair value | 32,807 | 31,247 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 4,561 | |
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 4,561 | 0 |
Redeemable noncontrolling interest | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 129 | 1,934 |
Marketable securities | 0 | |
Life insurance policies | 21,152 | 20,520 |
Total assets measured at fair value | 21,281 | 22,454 |
Redeemable noncontrolling interest | 0 | 0 |
Contingent consideration | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | |
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Redeemable noncontrolling interest | 29,976 | 28,419 |
Contingent consideration | 2,831 | 2,828 |
Total liabilities measured at fair value | $ 32,807 | $ 31,247 |
Fair Value - Redeemable Noncont
Fair Value - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Fair Value Disclosures [Abstract] | ||
Percentage of voting interests acquired | 75.00% | |
Remaining ownership percentage available | 25.00% | |
Total gains or losses (realized/unrealized): | ||
Discount rate | 19.00% | |
Level 3 | Redeemable Noncontrolling Interest | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 28,419 | $ 20,581 |
Additions | 0 | 0 |
Total gains or losses (realized/unrealized): | ||
Net income attributable to noncontrolling interest | 364 | 372 |
Foreign currency translation | 112 | (462) |
Change in fair value, included in additional paid-in capital | 1,081 | 2,992 |
Ending balance | $ 29,976 | $ 23,483 |
Fair Value - Contingent Conside
Fair Value - Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 2,828 | $ 0 |
Additions | 675 | 2,428 |
Total gains or losses (realized/unrealized): | ||
Reversal of previously recorded contingent liability and change in fair value | (672) | (8) |
Ending balance | $ 2,831 | $ 2,420 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2015USD ($) | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | $ 321,077 |
Adjustments to Goodwill, Acquisitions | (437) |
Adjustments to Goodwill, Foreign Exchange | (3,226) |
Gross carrying amount, balance at the end of the period | 317,414 |
Research Models and Services | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 59,196 |
Adjustments to Goodwill, Acquisitions | 0 |
Adjustments to Goodwill, Foreign Exchange | (253) |
Gross carrying amount, balance at the end of the period | 58,943 |
Discovery and Safety Assessment | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 229,302 |
Adjustments to Goodwill, Acquisitions | (624) |
Adjustments to Goodwill, Foreign Exchange | (1,533) |
Gross carrying amount, balance at the end of the period | 227,145 |
Manufacturing Support | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
Gross carrying amount, balance at the beginning of the period | 32,579 |
Adjustments to Goodwill, Acquisitions | 187 |
Adjustments to Goodwill, Foreign Exchange | (1,440) |
Gross carrying amount, balance at the end of the period | $ 31,326 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Other intangible assets | ||
Gross | $ 409,678 | $ 413,313 |
Accumulated Amortization | (240,740) | (237,876) |
Net | 168,938 | 175,437 |
Indefinite-lived intangibles assets | 3,438 | 3,438 |
Total other intangibles assets, net | 172,376 | 178,875 |
Backlog | ||
Other intangible assets | ||
Gross | 8,903 | 8,728 |
Accumulated Amortization | (8,538) | (6,636) |
Net | 365 | 2,092 |
Client relationships | ||
Other intangible assets | ||
Gross | 375,465 | 379,339 |
Accumulated Amortization | (219,111) | (217,938) |
Net | 156,354 | 161,401 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross | 6,599 | 6,603 |
Accumulated Amortization | (5,584) | (5,314) |
Net | 1,015 | 1,289 |
Standard operating procedures | ||
Other intangible assets | ||
Gross | 2,303 | 2,309 |
Accumulated Amortization | (1,844) | (1,642) |
Net | 459 | 667 |
Other identifiable intangible assets | ||
Other intangible assets | ||
Gross | 16,408 | 16,334 |
Accumulated Amortization | (5,663) | (6,346) |
Net | $ 10,745 | $ 9,988 |
Long-Term Debt and Capital Le57
Long-Term Debt and Capital Lease Obligations - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Dec. 27, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 743,084 | $ 753,750 |
Less: current portion of long-term debt | (15,196) | (31,714) |
Long-term debt | 727,888 | 722,036 |
Debt discount and debt issuance costs | (7,670) | (5,401) |
Long-term debt, net | 720,218 | 716,635 |
Term loan facilities | ||
Debt Instrument [Line Items] | ||
Total debt | 400,000 | 378,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 342,888 | 375,536 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Total debt | $ 196 | $ 214 |
Long-Term Debt and Capital Le58
Long-Term Debt and Capital Lease Obligations - Additional Information (Details) | 6 Months Ended | ||||
Jun. 27, 2015USD ($) | May. 01, 2015USD ($) | Apr. 30, 2015USD ($)payment | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity, Term Loan and Line of Credit | $ 1,300,000,000 | $ 1,300,000,000 | $ 970,000,000 | ||
Term loan facility | 400,000,000 | ||||
Multi-currency revolving credit facility | $ 900,000,000 | ||||
Number of quarterly installment payments | payment | 20 | ||||
Interest rate | 0.50% | ||||
Weighted average interest rate | 1.31% | 1.42% | |||
Letters of credit outstanding | $ 4,900,000 | $ 5,000,000 | |||
Financing Obligation | Early Discovery UK | |||||
Debt Instrument [Line Items] | |||||
Other capital lease obligations | 35,800,000 | ||||
Other Capital Lease Obligations | |||||
Debt Instrument [Line Items] | |||||
Other capital lease obligations | $ 37,400,000 | $ 1,000,000 |
Equity - Earnings Per Share (De
Equity - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Numerator: | ||||
Net income from continuing operations attributable to common shareholders | $ 48,516 | $ 35,908 | $ 80,064 | $ 68,410 |
Loss from discontinued operations, net of income taxes | (7) | (644) | (14) | (914) |
Net income attributable to common shareholders | $ 48,509 | $ 35,264 | $ 80,050 | $ 67,496 |
Denominator: | ||||
Weighted-average shares outstanding—Basic (in shares) | 46,675 | 46,942 | 46,712 | 47,016 |
Effect of dilutive securities: | ||||
Stock options, restricted stock units, performance stock units and contingently issuable restricted stock (in shares) | 875 | 742 | 1,006 | 893 |
Weighted-average shares outstanding—Diluted (in shares) | 47,550 | 47,684 | 47,718 | 47,909 |
Equity - Earnings Per Share, Ad
Equity - Earnings Per Share, Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0.5 | 0.9 | ||
Restricted Stock and Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1.1 | 1.2 | 1.1 | 1.2 |
Equity - Treasury Shares (Detai
Equity - Treasury Shares (Details) - USD ($) shares in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 27, 2015 | Jun. 28, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 25, 2010 | Jul. 31, 2010 | |
Treasury Shares | ||||||
Purchase of treasury stock | $ 99,486,000 | $ 101,609,000 | ||||
2010 Share Repurchase Program | ||||||
Treasury Shares | ||||||
Authorized stock repurchase amount | $ 1,150,000,000 | $ 500,000,000 | ||||
Stock repurchased during period (in shares) | 1.2 | 1.7 | ||||
Purchase of treasury stock | $ 90,800,000 | $ 90,300,000 | ||||
Authorized increase, stock repurchase | $ 150,000,000 | $ 250,000,000 | $ 250,000,000 | |||
Remaining authorized repurchase amount | $ 87,600,000 | |||||
2007 Incentive Plan | ||||||
Treasury Shares | ||||||
Number of shares of common stock repurchased (in shares) | 0.1 | 0.1 | ||||
Open market repurchases | ||||||
Treasury Shares | ||||||
Purchase of treasury stock | $ 8,700,000 | $ 6,700,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 27, 2014 | $ (74,247) | |||
Other comprehensive loss before reclassifications | (14,785) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (851) | |||
Net current period other comprehensive income (loss) | (15,636) | |||
Income tax expense | $ 263 | $ 129 | 480 | $ 148 |
June 27, 2015 | (90,363) | (90,363) | ||
Foreign Currency Translation and Other | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 27, 2014 | (19,891) | |||
Other comprehensive loss before reclassifications | (14,785) | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (2,341) | |||
Net current period other comprehensive income (loss) | (17,126) | |||
Income tax expense | 0 | |||
June 27, 2015 | (37,017) | (37,017) | ||
Pension and Other Post-Retirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
December 27, 2014 | (54,356) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,490 | |||
Net current period other comprehensive income (loss) | 1,490 | |||
Income tax expense | 480 | |||
June 27, 2015 | $ (53,346) | $ (53,346) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | May. 05, 2015 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Dec. 28, 2013 |
Income Tax Disclosure [Abstract] | ||||||
Effective tax rate (as a percentage) | 18.40% | 27.90% | 12.40% | 26.10% | ||
Reduction in unrecognized tax benefits and related interest | $ 1,800 | |||||
Business Acquisition [Line Items] | ||||||
Gain on bargain purchase | $ (9,878) | $ 0 | ||||
Income Tax Uncertainties [Abstract] | ||||||
Decrease in unrecognized tax benefits | (100) | $ (1,400) | ||||
Unrecognized tax benefits | 23,000 | 23,000 | ||||
Unrecognized tax benefits that would impact effective tax rate favorably, if recognized | 20,100 | 20,100 | ||||
Decrease resulting from acquisition | 10,400 | |||||
Decrease resulting from foreign currency translation | 1,800 | |||||
Unrecognized income tax benefits that would impact rate | 400 | |||||
Accrued interest on unrecognized tax benefits | 1,000 | 1,000 | ||||
Possible decrease of unrecognized tax benefits | $ 200 | $ 200 | ||||
Sunrise | ||||||
Business Acquisition [Line Items] | ||||||
Gain on bargain purchase | $ (9,878) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) Related to Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit related to foreign currency translation adjustment | $ 0 | $ 0 | $ 0 | $ (105) |
Income tax expense related to change in unrecognized pension gains, losses and prior service costs | 263 | 129 | 480 | 253 |
Income tax expense related to items of other comprehensive income | $ 263 | $ 129 | $ 480 | $ 148 |
Pension and Other Post-Retire65
Pension and Other Post-Retirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Pension Plans | ||||
Employee benefits | ||||
Service cost | $ 936 | $ 843 | $ 1,871 | $ 1,685 |
Interest cost | 3,070 | 3,211 | 6,140 | 6,422 |
Expected return on plan assets | (4,382) | (4,277) | (8,764) | (8,555) |
Amortization of prior service cost (credit) | (150) | (159) | (301) | (318) |
Amortization of net loss | 841 | 223 | 1,653 | 446 |
Net periodic cost (benefit) | 315 | (159) | 599 | (320) |
Other Post-Retirement Benefit Plans | ||||
Employee benefits | ||||
Service cost | 214 | 190 | 428 | 379 |
Interest cost | 266 | 253 | 531 | 505 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 165 | 0 | 330 |
Amortization of net loss | 70 | 62 | 138 | 125 |
Net periodic cost (benefit) | $ 550 | $ 670 | $ 1,097 | $ 1,339 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 10,199 | $ 8,222 | $ 19,873 | $ 14,881 |
Provision for income taxes | (3,619) | (2,964) | (7,004) | (5,328) |
Stock-based compensation, net of income tax | 6,580 | 5,258 | 12,869 | 9,553 |
Cost of revenue | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | 1,788 | 1,318 | 3,289 | 2,671 |
Selling, general and administrative | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 8,411 | $ 6,904 | $ 16,584 | $ 12,210 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Grants (Details) - Jun. 27, 2015 - USD ($) $ / shares in Units, $ in Millions | Total |
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |
Increase in stock-based compensation expense | $ 2.6 |
Stock Options | |
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |
Stock options granted (in shares) | 500,000 |
Stock options weighted average grant date fair value (in dollars per share) | $ 17.27 |
Restricted Stock | |
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |
Shares granted (in shares) | 100,000 |
Weighted-average grant date fair value (in dollars per share) | $ 70.29 |
Restricted Stock Units | |
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |
Shares granted (in shares) | 200,000 |
Weighted-average grant date fair value (in dollars per share) | $ 76.67 |
Performance Stock Units | |
Stock Issued or Granted During Period, Share-based Compensation [Abstract] | |
Shares granted (in shares) | 200,000 |
Weighted-average grant date fair value (in dollars per share) | $ 87.50 |
Maximum shares to be awarded under plan | 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Jun. 27, 2015 - USD ($) $ in Millions | Total |
Loss Contingencies [Line Items] | |
Increase in lease obligations | $ 10.1 |
Government billing | |
Loss Contingencies [Line Items] | |
Reserve for estimated possible loss | $ 1.5 |
Segment Information - Revenue a
Segment Information - Revenue and Other Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 339,573 | $ 341,179 | $ 659,987 | $ 640,547 |
Operating income | 55,735 | 51,025 | 98,740 | 90,731 |
Depreciation and amortization | 23,148 | 24,302 | 45,516 | 44,352 |
Capital expenditures | 13,908 | 9,315 | 24,556 | 20,505 |
Research Models and Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 120,044 | 133,120 | 240,055 | 265,615 |
Gross margin | 49,707 | 52,450 | 95,511 | 104,097 |
Operating income | 33,461 | 34,234 | 62,306 | 69,678 |
Depreciation and amortization | 5,348 | 6,559 | 11,393 | 13,000 |
Capital expenditures | 6,356 | 3,319 | 9,089 | 7,418 |
Discovery and Safety Assessment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 153,375 | 142,614 | 293,387 | 247,752 |
Gross margin | 49,256 | 39,457 | 92,939 | 65,116 |
Operating income | 28,149 | 17,798 | 51,665 | 29,511 |
Depreciation and amortization | 12,412 | 12,385 | 23,551 | 20,527 |
Capital expenditures | 4,101 | 3,858 | 9,479 | 7,894 |
Manufacturing Support | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,154 | 65,445 | 126,545 | 127,180 |
Gross margin | 33,820 | 33,727 | 63,993 | 65,234 |
Operating income | 20,431 | 20,455 | 37,229 | 38,871 |
Depreciation and amortization | 3,609 | 3,484 | 6,895 | 7,112 |
Capital expenditures | $ 1,770 | $ 1,717 | $ 3,336 | $ 3,981 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Operating Income, Depreciation and Amortization, and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 55,735 | $ 51,025 | $ 98,740 | $ 90,731 |
Depreciation and amortization | 23,148 | 24,302 | 45,516 | 44,352 |
Capital expenditures | 13,908 | 9,315 | 24,556 | 20,505 |
Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 82,041 | 72,487 | 151,200 | 138,060 |
Depreciation and amortization | 21,369 | 22,428 | 41,839 | 40,639 |
Capital expenditures | 12,227 | 8,894 | 21,904 | 19,293 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (26,306) | (21,462) | (52,460) | (47,329) |
Depreciation and amortization | 1,779 | 1,874 | 3,677 | 3,713 |
Capital expenditures | $ 1,681 | $ 421 | $ 2,652 | $ 1,212 |
Segment Information - Revenue P
Segment Information - Revenue Per Significant Product or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 339,573 | $ 341,179 | $ 659,987 | $ 640,547 |
Research Models and Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 120,044 | 133,120 | 240,055 | 265,615 |
Discovery and Safety Assessment | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 153,375 | 142,614 | 293,387 | 247,752 |
Endotoxin and Microbial Detection | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 33,653 | 33,579 | 66,479 | 66,045 |
Other manufacturing support | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 32,501 | 31,866 | 60,066 | 61,135 |
Manufacturing Support | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 66,154 | $ 65,445 | $ 126,545 | $ 127,180 |
Segment Information - Summary o
Segment Information - Summary of Unallocated Corporate Overhead (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | $ 10,199 | $ 8,222 | $ 19,873 | $ 14,881 |
Depreciation expense | 17,400 | 17,400 | 34,500 | 33,200 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | 6,419 | 4,905 | 12,699 | 8,607 |
Salary, bonus and fringe | 7,234 | 7,438 | 17,930 | 17,705 |
Consulting, audit and professional services | 3,130 | 2,437 | 6,771 | 5,668 |
IT related expenses | 1,685 | 1,323 | 3,549 | 2,900 |
Depreciation expense | 1,779 | 1,874 | 3,677 | 3,713 |
Acquisition related adjustments | 3,956 | 1,371 | 3,594 | 4,676 |
Other general unallocated corporate expenses | 2,103 | 2,114 | 4,240 | 4,060 |
Total unallocated corporate overhead costs | $ 26,306 | $ 21,462 | $ 52,460 | $ 47,329 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 24, 2015USD ($) |
Celsis International Ltd. | Subsequent Event | |
Subsequent Event [Line Items] | |
Preliminary purchase price | $ 212 |