10-Q 1 crl-20240928.htm 10-Q crl-20240928
000110068212/282024Q3falseP8Y0272xbrli:sharesiso4217:USDiso4217:USDxbrli:sharescrl:segmentxbrli:pure00011006822023-12-312024-09-2800011006822024-10-260001100682us-gaap:ServiceMember2024-06-302024-09-280001100682us-gaap:ServiceMember2023-07-022023-09-300001100682us-gaap:ServiceMember2023-12-312024-09-280001100682us-gaap:ServiceMember2023-01-012023-09-300001100682us-gaap:ProductMember2024-06-302024-09-280001100682us-gaap:ProductMember2023-07-022023-09-300001100682us-gaap:ProductMember2023-12-312024-09-280001100682us-gaap:ProductMember2023-01-012023-09-3000011006822024-06-302024-09-2800011006822023-07-022023-09-3000011006822023-01-012023-09-3000011006822024-09-2800011006822023-12-3000011006822022-12-3100011006822023-09-300001100682us-gaap:CommonStockMember2023-12-300001100682us-gaap:AdditionalPaidInCapitalMember2023-12-300001100682us-gaap:RetainedEarningsMember2023-12-300001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-300001100682us-gaap:TreasuryStockCommonMember2023-12-300001100682us-gaap:ParentMember2023-12-300001100682us-gaap:NoncontrollingInterestMember2023-12-3000011006822023-12-312024-03-300001100682us-gaap:RetainedEarningsMember2023-12-312024-03-300001100682us-gaap:ParentMember2023-12-312024-03-300001100682us-gaap:NoncontrollingInterestMember2023-12-312024-03-300001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-312024-03-300001100682us-gaap:AdditionalPaidInCapitalMember2023-12-312024-03-300001100682us-gaap:CommonStockMember2023-12-312024-03-300001100682us-gaap:TreasuryStockCommonMember2023-12-312024-03-3000011006822024-03-300001100682us-gaap:CommonStockMember2024-03-300001100682us-gaap:AdditionalPaidInCapitalMember2024-03-300001100682us-gaap:RetainedEarningsMember2024-03-300001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-300001100682us-gaap:TreasuryStockCommonMember2024-03-300001100682us-gaap:ParentMember2024-03-300001100682us-gaap:NoncontrollingInterestMember2024-03-3000011006822024-03-312024-06-290001100682us-gaap:RetainedEarningsMember2024-03-312024-06-290001100682us-gaap:ParentMember2024-03-312024-06-290001100682us-gaap:NoncontrollingInterestMember2024-03-312024-06-290001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-312024-06-290001100682us-gaap:AdditionalPaidInCapitalMember2024-03-312024-06-290001100682us-gaap:CommonStockMember2024-03-312024-06-290001100682us-gaap:TreasuryStockCommonMember2024-03-312024-06-2900011006822024-06-290001100682us-gaap:CommonStockMember2024-06-290001100682us-gaap:AdditionalPaidInCapitalMember2024-06-290001100682us-gaap:RetainedEarningsMember2024-06-290001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-290001100682us-gaap:TreasuryStockCommonMember2024-06-290001100682us-gaap:ParentMember2024-06-290001100682us-gaap:NoncontrollingInterestMember2024-06-290001100682us-gaap:RetainedEarningsMember2024-06-302024-09-280001100682us-gaap:ParentMember2024-06-302024-09-280001100682us-gaap:NoncontrollingInterestMember2024-06-302024-09-280001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-302024-09-280001100682us-gaap:AdditionalPaidInCapitalMember2024-06-302024-09-280001100682us-gaap:CommonStockMember2024-06-302024-09-280001100682us-gaap:TreasuryStockCommonMember2024-06-302024-09-280001100682us-gaap:CommonStockMember2024-09-280001100682us-gaap:AdditionalPaidInCapitalMember2024-09-280001100682us-gaap:RetainedEarningsMember2024-09-280001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-280001100682us-gaap:TreasuryStockCommonMember2024-09-280001100682us-gaap:ParentMember2024-09-280001100682us-gaap:NoncontrollingInterestMember2024-09-280001100682us-gaap:CommonStockMember2022-12-310001100682us-gaap:AdditionalPaidInCapitalMember2022-12-310001100682us-gaap:RetainedEarningsMember2022-12-310001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001100682us-gaap:TreasuryStockCommonMember2022-12-310001100682us-gaap:ParentMember2022-12-310001100682us-gaap:NoncontrollingInterestMember2022-12-3100011006822023-01-012023-04-010001100682us-gaap:RetainedEarningsMember2023-01-012023-04-010001100682us-gaap:ParentMember2023-01-012023-04-010001100682us-gaap:NoncontrollingInterestMember2023-01-012023-04-010001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-04-010001100682us-gaap:CommonStockMember2023-01-012023-04-010001100682us-gaap:AdditionalPaidInCapitalMember2023-01-012023-04-010001100682us-gaap:TreasuryStockCommonMember2023-01-012023-04-0100011006822023-04-010001100682us-gaap:CommonStockMember2023-04-010001100682us-gaap:AdditionalPaidInCapitalMember2023-04-010001100682us-gaap:RetainedEarningsMember2023-04-010001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-010001100682us-gaap:TreasuryStockCommonMember2023-04-010001100682us-gaap:ParentMember2023-04-010001100682us-gaap:NoncontrollingInterestMember2023-04-0100011006822023-04-022023-07-010001100682us-gaap:RetainedEarningsMember2023-04-022023-07-010001100682us-gaap:ParentMember2023-04-022023-07-010001100682us-gaap:NoncontrollingInterestMember2023-04-022023-07-010001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-022023-07-010001100682us-gaap:CommonStockMember2023-04-022023-07-010001100682us-gaap:AdditionalPaidInCapitalMember2023-04-022023-07-010001100682us-gaap:TreasuryStockCommonMember2023-04-022023-07-0100011006822023-07-010001100682us-gaap:CommonStockMember2023-07-010001100682us-gaap:AdditionalPaidInCapitalMember2023-07-010001100682us-gaap:RetainedEarningsMember2023-07-010001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-010001100682us-gaap:TreasuryStockCommonMember2023-07-010001100682us-gaap:ParentMember2023-07-010001100682us-gaap:NoncontrollingInterestMember2023-07-010001100682us-gaap:RetainedEarningsMember2023-07-022023-09-300001100682us-gaap:ParentMember2023-07-022023-09-300001100682us-gaap:NoncontrollingInterestMember2023-07-022023-09-300001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-022023-09-300001100682us-gaap:CommonStockMember2023-07-022023-09-300001100682us-gaap:AdditionalPaidInCapitalMember2023-07-022023-09-300001100682us-gaap:TreasuryStockCommonMember2023-07-022023-09-300001100682us-gaap:CommonStockMember2023-09-300001100682us-gaap:AdditionalPaidInCapitalMember2023-09-300001100682us-gaap:RetainedEarningsMember2023-09-300001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001100682us-gaap:TreasuryStockCommonMember2023-09-300001100682us-gaap:ParentMember2023-09-300001100682us-gaap:NoncontrollingInterestMember2023-09-300001100682crl:NoveprimGroupMember2023-11-300001100682crl:NoveprimGroupMember2022-12-310001100682crl:NoveprimGroupMember2021-12-262022-12-310001100682crl:NoveprimGroupMember2021-12-262023-11-300001100682crl:NoveprimGroupMember2024-09-280001100682crl:NoveprimGroupMember2023-12-312024-09-280001100682crl:NoveprimGroupMembersrt:MinimumMember2023-11-300001100682crl:NoveprimGroupMembersrt:MaximumMember2023-11-300001100682crl:NoveprimGroupMember2024-06-302024-09-280001100682crl:NoveprimGroupMember2023-07-022023-09-300001100682crl:NoveprimGroupMember2023-01-012023-09-300001100682crl:SAMDITechIncMember2023-01-272023-01-270001100682crl:SAMDITechIncMember2023-01-270001100682crl:SAMDITechIncMember2024-06-302024-09-280001100682crl:SAMDITechIncMember2023-12-312024-09-280001100682crl:SAMDITechIncMember2023-07-022023-09-300001100682crl:SAMDITechIncMember2023-01-012023-09-300001100682crl:NoveprimGroupMemberus-gaap:CustomerRelationshipsMember2023-11-302023-11-300001100682crl:SAMDITechIncMemberus-gaap:CustomerRelationshipsMember2023-01-272023-01-270001100682crl:NoveprimGroupMemberus-gaap:OtherIntangibleAssetsMember2023-11-302023-11-300001100682crl:SAMDITechIncMemberus-gaap:OtherIntangibleAssetsMember2023-01-272023-01-270001100682crl:NoveprimGroupMember2023-11-302023-11-300001100682us-gaap:TransferredOverTimeMembercrl:ResearchModelsAndServicesSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredOverTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredOverTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredOverTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-01-012023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:ResearchModelsAndServicesSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:ResearchModelsAndServicesSegmentMember2023-01-012023-09-300001100682crl:ResearchModelsAndServicesSegmentMember2024-06-302024-09-280001100682crl:ResearchModelsAndServicesSegmentMember2023-07-022023-09-300001100682crl:ResearchModelsAndServicesSegmentMember2023-12-312024-09-280001100682crl:ResearchModelsAndServicesSegmentMember2023-01-012023-09-300001100682us-gaap:TransferredOverTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredOverTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredOverTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredOverTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-01-012023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-01-012023-09-300001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2024-06-302024-09-280001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2023-07-022023-09-300001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2023-12-312024-09-280001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2023-01-012023-09-300001100682us-gaap:TransferredOverTimeMembercrl:ManufacturingSupportSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredOverTimeMembercrl:ManufacturingSupportSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredOverTimeMembercrl:ManufacturingSupportSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredOverTimeMembercrl:ManufacturingSupportSegmentMember2023-01-012023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:ManufacturingSupportSegmentMember2024-06-302024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:ManufacturingSupportSegmentMember2023-07-022023-09-300001100682us-gaap:TransferredAtPointInTimeMembercrl:ManufacturingSupportSegmentMember2023-12-312024-09-280001100682us-gaap:TransferredAtPointInTimeMembercrl:ManufacturingSupportSegmentMember2023-01-012023-09-300001100682crl:ManufacturingSupportSegmentMember2024-06-302024-09-280001100682crl:ManufacturingSupportSegmentMember2023-07-022023-09-300001100682crl:ManufacturingSupportSegmentMember2023-12-312024-09-280001100682crl:ManufacturingSupportSegmentMember2023-01-012023-09-3000011006822024-09-292024-09-280001100682us-gaap:OperatingSegmentsMembercrl:ResearchModelsAndServicesSegmentMember2024-06-302024-09-280001100682us-gaap:OperatingSegmentsMembercrl:ResearchModelsAndServicesSegmentMember2023-07-022023-09-300001100682us-gaap:OperatingSegmentsMembercrl:ResearchModelsAndServicesSegmentMember2023-12-312024-09-280001100682us-gaap:OperatingSegmentsMembercrl:ResearchModelsAndServicesSegmentMember2023-01-012023-09-300001100682us-gaap:OperatingSegmentsMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2024-06-302024-09-280001100682us-gaap:OperatingSegmentsMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-07-022023-09-300001100682us-gaap:OperatingSegmentsMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-12-312024-09-280001100682us-gaap:OperatingSegmentsMembercrl:DiscoveryAndSafetyAssessmentSegmentMember2023-01-012023-09-300001100682us-gaap:OperatingSegmentsMembercrl:ManufacturingSupportSegmentMember2024-06-302024-09-280001100682us-gaap:OperatingSegmentsMembercrl:ManufacturingSupportSegmentMember2023-07-022023-09-300001100682us-gaap:OperatingSegmentsMembercrl:ManufacturingSupportSegmentMember2023-12-312024-09-280001100682us-gaap:OperatingSegmentsMembercrl:ManufacturingSupportSegmentMember2023-01-012023-09-300001100682us-gaap:CorporateNonSegmentMember2024-06-302024-09-280001100682us-gaap:CorporateNonSegmentMember2023-07-022023-09-300001100682us-gaap:CorporateNonSegmentMember2023-12-312024-09-280001100682us-gaap:CorporateNonSegmentMember2023-01-012023-09-300001100682country:US2024-06-302024-09-280001100682srt:EuropeMember2024-06-302024-09-280001100682country:CA2024-06-302024-09-280001100682srt:AsiaPacificMember2024-06-302024-09-280001100682crl:OtherMember2024-06-302024-09-280001100682country:US2023-07-022023-09-300001100682srt:EuropeMember2023-07-022023-09-300001100682country:CA2023-07-022023-09-300001100682srt:AsiaPacificMember2023-07-022023-09-300001100682crl:OtherMember2023-07-022023-09-300001100682country:US2023-12-312024-09-280001100682srt:EuropeMember2023-12-312024-09-280001100682country:CA2023-12-312024-09-280001100682srt:AsiaPacificMember2023-12-312024-09-280001100682crl:OtherMember2023-12-312024-09-280001100682country:US2023-01-012023-09-300001100682srt:EuropeMember2023-01-012023-09-300001100682country:CA2023-01-012023-09-300001100682srt:AsiaPacificMember2023-01-012023-09-300001100682crl:OtherMember2023-01-012023-09-300001100682country:US2024-09-280001100682srt:EuropeMember2024-09-280001100682country:CA2024-09-280001100682srt:AsiaPacificMember2024-09-280001100682crl:OtherMember2024-09-280001100682country:US2023-12-300001100682srt:EuropeMember2023-12-300001100682country:CA2023-12-300001100682srt:AsiaPacificMember2023-12-300001100682crl:OtherMember2023-12-300001100682us-gaap:LandMember2024-09-280001100682us-gaap:LandMember2023-12-300001100682us-gaap:BuildingMember2024-09-280001100682us-gaap:BuildingMember2023-12-300001100682us-gaap:MachineryAndEquipmentMember2024-09-280001100682us-gaap:MachineryAndEquipmentMember2023-12-300001100682us-gaap:LeaseholdImprovementsMember2024-09-280001100682us-gaap:LeaseholdImprovementsMember2023-12-300001100682us-gaap:FurnitureAndFixturesMember2024-09-280001100682us-gaap:FurnitureAndFixturesMember2023-12-300001100682us-gaap:ComputerEquipmentMember2024-09-280001100682us-gaap:ComputerEquipmentMember2023-12-300001100682us-gaap:VehiclesMember2024-09-280001100682us-gaap:VehiclesMember2023-12-300001100682us-gaap:ConstructionInProgressMember2024-09-280001100682us-gaap:ConstructionInProgressMember2023-12-300001100682us-gaap:VentureCapitalFundsMember2023-12-300001100682us-gaap:VentureCapitalFundsMember2022-12-310001100682us-gaap:VentureCapitalFundsMember2023-12-312024-09-280001100682us-gaap:VentureCapitalFundsMember2023-01-012023-09-300001100682us-gaap:VentureCapitalFundsMember2024-09-280001100682us-gaap:VentureCapitalFundsMember2023-09-300001100682crl:StrategicInvestmentsMember2023-12-300001100682crl:StrategicInvestmentsMember2022-12-310001100682crl:StrategicInvestmentsMember2023-12-312024-09-280001100682crl:StrategicInvestmentsMember2023-01-012023-09-300001100682crl:StrategicInvestmentsMember2024-09-280001100682crl:StrategicInvestmentsMember2023-09-300001100682us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-280001100682us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-280001100682us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-280001100682us-gaap:FairValueMeasurementsRecurringMember2024-09-280001100682us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-300001100682us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-300001100682us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-300001100682us-gaap:FairValueMeasurementsRecurringMember2023-12-300001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2023-12-300001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2022-12-310001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2023-12-312024-09-280001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2023-01-012023-09-300001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2024-09-280001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMember2023-09-300001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMembersrt:MaximumMember2024-09-280001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMemberus-gaap:MeasurementInputPriceVolatilityMember2024-09-280001100682us-gaap:FairValueInputsLevel3Membercrl:ContingentConsiderationMemberus-gaap:MeasurementInputDiscountRateMember2024-09-280001100682us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-09-280001100682crl:SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2028Memberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2028Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2028Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2029Memberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2029Memberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2029Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2029Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2029Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2029Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2031Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2031Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2024-09-280001100682crl:SeniorNotesDue2031Memberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:SeniorNotesDue2031Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SeniorNotesMember2023-12-300001100682crl:ResearchModelsAndServicesSegmentMember2023-12-300001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2023-12-300001100682crl:ManufacturingSupportSegmentMember2023-12-300001100682crl:ResearchModelsAndServicesSegmentMember2024-09-280001100682crl:DiscoveryAndSafetyAssessmentSegmentMember2024-09-280001100682crl:ManufacturingSupportSegmentMember2024-09-280001100682crl:DiscoverServicesReportingUnitMember2024-09-280001100682crl:DiscoverServicesReportingUnitMember2024-06-302024-09-280001100682us-gaap:CustomerRelationshipsMember2024-09-280001100682us-gaap:CustomerRelationshipsMember2023-12-300001100682us-gaap:TechnologyBasedIntangibleAssetsMember2024-09-280001100682us-gaap:TechnologyBasedIntangibleAssetsMember2023-12-300001100682us-gaap:TrademarksAndTradeNamesMember2024-09-280001100682us-gaap:TrademarksAndTradeNamesMember2023-12-300001100682us-gaap:OrderOrProductionBacklogMember2024-09-280001100682us-gaap:OrderOrProductionBacklogMember2023-12-300001100682us-gaap:OtherIntangibleAssetsMember2024-09-280001100682us-gaap:OtherIntangibleAssetsMember2023-12-300001100682us-gaap:LineOfCreditMember2024-09-280001100682us-gaap:LineOfCreditMember2023-12-300001100682crl:OtherLongTermDebtMember2024-09-280001100682crl:OtherLongTermDebtMember2023-12-300001100682us-gaap:LetterOfCreditMember2024-09-280001100682us-gaap:LetterOfCreditMember2023-12-300001100682crl:NewStockRepurchaseAuthorizationMember2024-08-020001100682crl:PriorStockRepurchaseAuthorizationMember2024-08-010001100682crl:NewStockRepurchaseAuthorizationMember2024-06-302024-09-280001100682crl:NewStockRepurchaseAuthorizationMember2023-12-312024-09-280001100682crl:NewStockRepurchaseAuthorizationMember2024-09-280001100682us-gaap:AccumulatedTranslationAdjustmentMember2023-12-300001100682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-300001100682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-300001100682us-gaap:AccumulatedTranslationAdjustmentMember2023-12-312024-09-280001100682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-312024-09-280001100682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-312024-09-280001100682us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-312024-09-280001100682us-gaap:AccumulatedTranslationAdjustmentMember2024-09-280001100682us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-09-280001100682us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-09-280001100682crl:NoveprimGroupMember2024-09-280001100682crl:NoveprimGroupMembersrt:MinimumMember2024-09-280001100682crl:NoveprimGroupMembersrt:MaximumMember2024-09-280001100682crl:NoveprimGroupMember2023-12-312024-09-280001100682crl:NoveprimGroupMemberus-gaap:AdditionalPaidInCapitalMember2023-12-312024-09-280001100682crl:NoveprimGroupMemberus-gaap:RetainedEarningsMember2023-12-312024-09-280001100682crl:SupplierMember2019-12-280001100682crl:SupplierMember2022-06-012022-06-300001100682crl:SupplierMember2022-06-300001100682crl:SupplierMember2024-03-300001100682crl:SupplierMemberus-gaap:AdditionalPaidInCapitalMember2023-12-312024-03-300001100682crl:SupplierMember2024-03-312024-06-290001100682crl:VitalRiverMember2022-12-310001100682crl:VitalRiverMember2023-12-300001100682crl:VitalRiverMember2023-01-012023-12-300001100682us-gaap:ProductAndServiceOtherMember2024-06-302024-09-280001100682us-gaap:ProductAndServiceOtherMember2023-07-022023-09-300001100682us-gaap:ProductAndServiceOtherMember2023-12-312024-09-280001100682us-gaap:ProductAndServiceOtherMember2023-01-012023-09-300001100682crl:SeveranceAndTransitionCostsMember2023-12-300001100682crl:AssetImpairmentsMember2023-12-300001100682crl:OtherCostsMember2023-12-300001100682crl:SeveranceAndTransitionCostsMember2023-12-312024-09-280001100682crl:AssetImpairmentsMember2023-12-312024-09-280001100682crl:OtherCostsMember2023-12-312024-09-280001100682crl:SeveranceAndTransitionCostsMember2024-09-280001100682crl:AssetImpairmentsMember2024-09-280001100682crl:OtherCostsMember2024-09-280001100682crl:SeveranceAndTransitionCostsMember2022-12-310001100682crl:AssetImpairmentsMember2022-12-310001100682crl:OtherCostsMember2022-12-310001100682crl:SeveranceAndTransitionCostsMember2023-01-012023-09-300001100682crl:AssetImpairmentsMember2023-01-012023-09-300001100682crl:OtherCostsMember2023-01-012023-09-300001100682crl:SeveranceAndTransitionCostsMember2023-09-300001100682crl:AssetImpairmentsMember2023-09-300001100682crl:OtherCostsMember2023-09-300001100682crl:AccruedCompensationMembercrl:SeveranceAndTransitionCostsMember2024-09-280001100682crl:AccruedCompensationMembercrl:SeveranceAndTransitionCostsMember2023-12-300001100682crl:USFishAndWildlifeServiceMemberus-gaap:PendingLitigationMember2024-09-280001100682crl:GeorgeMassaroMember2023-12-312024-09-280001100682crl:GeorgeMassaroMember2024-06-302024-09-280001100682crl:GeorgeMassaroTradingArrangementCommonStockMembercrl:GeorgeMassaroMember2024-09-280001100682crl:GeorgeMassaroTradingArrangementRestrictedStockUnitsRSUsMembercrl:GeorgeMassaroMember2024-09-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 28, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
Commission File No. 001-15943
charlesriverlablogoa03.jpg
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 06-1397316
(State or Other Jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
251 Ballardvale Street
Wilmington, Massachusetts 01887
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s telephone number, including area code): (781222-6000

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTicker symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueCRLNew York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 
As of October 26, 2024, there were 51,136,178 shares of the Registrant’s common stock outstanding.



CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 28, 2024

TABLE OF CONTENTS
Item Page
PART I - FINANCIAL INFORMATION
1Financial Statements
Condensed Consolidated Statements of Income (Unaudited) for the three and nine months ended September 28, 2024 and September 30, 2023
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and nine months ended September 28, 2024 and September 30, 2023
Condensed Consolidated Balance Sheets (Unaudited) as of September 28, 2024 and December 30, 2023
Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 28, 2024 and September 30, 2023
Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests (Unaudited) for
the three and nine months ended September 28, 2024 and September 30, 2023
Notes to Unaudited Condensed Consolidated Financial Statements
2Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
Results of Operations
Liquidity and Capital Resources
Critical Accounting Policies and Estimates
Recent Accounting Pronouncements
3Quantitative and Qualitative Disclosure About Market Risk
4Controls and Procedures
PART II - OTHER INFORMATION
1Legal Proceedings
1ARisk Factors
2Unregistered Sales of Equity Securities and Use of Proceeds
5Other Information
6Exhibits
Signatures

1


Special Note on Factors Affecting Future Results
This Quarterly Report on Form 10-Q contains forward-looking statements regarding future events and the future results of Charles River Laboratories International, Inc. that are based on our current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expect,” “anticipate,” “target,” “goal,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “likely,” “may,” “designed,” “would,” “future,” “can,” “could,” and other similar expressions which are predictions of, indicate future events and trends or which do not relate to historical matters, are intended to identify such forward-looking statements. These statements are based on our current expectations and beliefs and involve a number of risks, uncertainties and assumptions that are difficult to predict.
For example, we may use forward-looking statements when addressing topics such as: our expectations regarding the availability of non-human primates and our ability to diversify our non-human primate (NHP) supply chain; the outcome of (1) the U.S. government investigations and inquiries related to the NHP supply chain (including shipments of non-human primates from Cambodia received by the Company), (2) the putative securities class action lawsuit filed against us and certain current/former officers on May 19, 2023, (3) the derivative lawsuit filed against members of the Board of Directors and certain current/former officers on November 8, 2023, and (4) the derivative lawsuit filed against certain current/former members of the Board of Directors and certain current/former officers on August 2, 2024; the timing and impact of the development and implementation of enhanced procedures to reasonably ensure that non-human primates we source are purpose-bred; changes and uncertainties in the global economy and financial markets, including any changes in business, political, or economic conditions due to the November 16, 2022 announcement by the U.S. Department of Justice through the U.S. Attorney’s Office for the Southern District of Florida that a Cambodian non-human primate supplier and two Cambodian officials had been criminally charged in connection with illegally importing non-human primates into the United States; client demand, particularly future demand for drug discovery and development products and services, including the outsourcing of these services; our expectations with respect to our ability to meet financial targets; our expectations regarding stock repurchases, including the number of shares to be repurchased, expected timing and duration, the amount of capital that may be expended and the treatment of repurchased shares; our ability to successfully execute our business strategy; our ability to timely build infrastructure to satisfy capacity needs and support business growth, our ability to fund our operations for the foreseeable future, the impact of unauthorized access into our information systems, including the timing and effectiveness of any enhanced security and monitoring present spending trends and other cost reduction activities by our clients; future actions by our management; the outcome of contingencies; changes in our business strategy, business practices and methods of generating revenue; the development and performance of our services and products; market and industry conditions, including competitive and pricing trends and the impact of those conditions, including on our allowances for credit losses; our strategic relationships with leading pharmaceutical and biotechnology companies, venture capital investments, and opportunities for future similar arrangements; our cost structure; our expectations regarding our acquisitions and divestitures, including their impact and projected timing; our expectations with respect to revenue growth and operating synergies (including the impact of specific actions intended to cause related improvements); the nature, timing and impact of specific actions intended to improve overall operating efficiencies and profitability (and our ability to accommodate future demand with our infrastructure), including actions to optimize our global footprint, and gains and losses attributable to businesses we plan to close, consolidate, divest or repurpose and the impact of operations and restructuring actions (including as estimated on an annualized basis); our expectations with respect to our study cancellation rates and the impact of such cancellations; our expectations with respect to tax rates and benefits; changes in our expectations regarding future stock option, restricted stock, performance share units and other equity grants to employees and directors; expectations with respect to foreign currency exchange; assessing (or changing our assessment of) our tax positions for financial statement purposes; our liquidity; and the impact of litigation, including our ability to successfully defend litigation against us. In addition, these statements include the impact of economic and market conditions on us and our clients, the effects of our cost-saving actions and the steps to optimize returns to shareholders on an effective and timely basis; and our ability to withstand the current market conditions.
Forward-looking statements are predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document, or in the case of statements incorporated by reference, on the date of the document incorporated by reference. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 30, 2023, under the sections entitled “Our Strategy,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and in this Quarterly Report on Form 10-Q, under the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors,” in our press releases, and other financial filings with the Securities and Exchange Commission. We have no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or risks. New information, future events, or risks may cause the forward-looking events we discuss in this report not to occur.

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amounts)
 Three Months EndedNine Months Ended
 September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Service revenue$832,463 $869,759 $2,492,225 $2,602,016 
Product revenue177,300 156,864 555,215 513,917 
Total revenue1,009,763 1,026,623 3,047,440 3,115,933 
Costs and expenses  
Cost of services provided (excluding amortization of intangible assets) 568,699 587,560 1,724,246 1,731,136 
Cost of products sold (excluding amortization of intangible assets)92,043 77,223 275,617 246,326 
Selling, general and administrative199,213 176,109 555,295 550,713 
Amortization of intangible assets32,403 34,229 97,248 103,419 
Operating income117,405 151,502 395,034 484,339 
Other income (expense) 
Interest income1,528 1,373 6,740 3,605 
Interest expense(30,284)(33,742)(98,054)(103,166)
Other income (expense), net2,592 (6,260)6,185 (12,200)
Income before income taxes91,241 112,873 309,905 372,578 
Provision for income taxes20,946 24,852 70,867 81,160 
Net income70,295 88,021 239,038 291,418 
Less: Net income attributable to noncontrolling interests638 632 2,340 3,878 
Net income attributable to Charles River Laboratories International Inc.$69,657 $87,389 $236,698 $287,540 
Calculation of net income per share attributable to Charles River Laboratories International Inc. common shareholders
Net income attributable to Charles River Laboratories International Inc.$69,657 $87,389 $236,698 $287,540 
Less: Adjustment of redeemable noncontrolling interest379  1,081  
Less: Incremental dividends attributed to noncontrolling interest holders599  9,621  
Net income available to Charles River Laboratories International Inc. common shareholders$68,679 $87,389 $225,996 $287,540 
Earnings per common share  
Basic$1.34 $1.70 $4.39 $5.62 
Diluted$1.33 $1.69 $4.37 $5.58 
Weighted-average number of common shares outstanding
Basic51,394 51,283 51,461 51,199 
Diluted51,583 51,607 51,713 51,493 
See Notes to Unaudited Condensed Consolidated Financial Statements.
3


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
Three Months EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Net income$70,295 $88,021 $239,038 $291,418 
Other comprehensive income (loss):
Foreign currency translation adjustment85,018 (63,997)500 (17,457)
Amortization of net loss, settlement losses, and prior service benefit included in total cost for pension and other post-retirement benefit plans352 177 1,038 521 
Unrealized gains (losses) on hedging instruments(1,060)539 (688)5,183 
Other comprehensive income (loss), before income taxes
84,310 (63,281)850 (11,753)
Less: Income tax expense (benefit) related to items of other comprehensive income8,348 (3,292)848 (3,393)
Comprehensive income, net of income taxes146,257 28,032 239,040 283,058 
Less: Comprehensive income (loss) related to noncontrolling interests, net of income taxes
(238)440 (1,214)1,527 
Comprehensive income attributable to Charles River Laboratories International, Inc., net of income taxes
$146,495 $27,592 $240,254 $281,531 
See Notes to Unaudited Condensed Consolidated Financial Statements.
4


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)
September 28, 2024December 30, 2023
Assets 
Current assets:  
Cash and cash equivalents$210,171 $276,771 
Trade receivables and contract assets, net of allowances for credit losses of $23,877 and $25,722, respectively
754,207 780,375 
Inventories336,200 380,259 
Prepaid assets92,631 87,879 
Other current assets101,514 83,378 
Total current assets1,494,723 1,608,662 
Property, plant and equipment, net1,639,978 1,639,741 
Venture capital and strategic equity investments235,987 243,811 
Operating lease right-of-use assets, net385,133 394,029 
Goodwill3,124,592 3,095,045 
Intangible assets, net778,461 864,051 
Deferred tax assets37,963 40,279 
Other assets307,005 309,383 
Total assets$8,003,842 $8,195,001 
Liabilities, Redeemable Noncontrolling Interests and Equity  
Current liabilities:  
Accounts payable$135,963 $168,937 
Accrued compensation211,077 213,290 
Deferred revenue251,968 241,820 
Accrued liabilities208,124 227,825 
Other current liabilities205,089 203,210 
Total current liabilities1,012,221 1,055,082 
Long-term debt, net and finance leases2,326,653 2,647,147 
Operating lease right-of-use liabilities432,836 419,234 
Deferred tax liabilities167,746 191,349 
Other long-term liabilities236,669 223,191 
Total liabilities4,176,125 4,536,003 
Commitments and contingencies (Notes 2, 11, 13, and 15)
Redeemable noncontrolling interest40,590 56,722 
Equity:  
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding
  
Common stock, $0.01 par value; 120,000 shares authorized; 51,718 shares issued and 51,134 shares outstanding as of September 28, 2024, and 51,338 shares issued and outstanding as of December 30, 2023
517 513 
Additional paid-in capital1,971,413 1,905,578 
Retained earnings2,122,835 1,887,218 
Treasury stock, at cost, 584 and zero shares, as of September 28, 2024 and December 30, 2023, respectively
(119,621) 
Accumulated other comprehensive loss(192,871)(196,427)
Total Charles River Laboratories International, Inc. equity3,782,273 3,596,882 
Nonredeemable noncontrolling interests4,854 5,394 
Total equity3,787,127 3,602,276 
Total liabilities, noncontrolling interests and equity
$8,003,842 $8,195,001 
See Notes to Unaudited Condensed Consolidated Financial Statements.
5


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
 Nine Months Ended
 September 28, 2024September 30, 2023
Cash flows relating to operating activities  
Net income$239,038 $291,418 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization259,637 233,610 
Stock-based compensation52,656 52,527 
Deferred income taxes (25,988)(28,251)
Long-lived asset impairment charges17,339 26,202 
(Gain) loss on venture capital & strategic equity investments, net(8,788)9,246 
Provision for credit losses8,223 11,030 
Loss on divestitures, net659 995 
Other, net20,372 6,947 
Changes in assets and liabilities:  
Trade receivables and contract assets, net18,300 (59,081)
Inventories13,789 (44,126)
Accounts payable(7,095)(26,531)
Accrued compensation(1,981)28,438 
Deferred revenue13,583 (9,997)
Customer contract deposits14,707 (21,534)
Other assets and liabilities, net(39,236)(7,938)
Net cash provided by operating activities575,215 462,955 
Cash flows relating to investing activities  
Acquisition of businesses and assets, net of cash acquired(5,479)(50,166)
Capital expenditures(157,351)(240,205)
Purchases of investments and contributions to venture capital investments(45,264)(36,322)
Proceeds from sale of investments39,470 3,953 
Other, net(358)(2,044)
Net cash used in investing activities(168,982)(324,784)
Cash flows relating to financing activities  
Proceeds from long-term debt and revolving credit facility976,783 333,034 
Proceeds from exercises of stock options23,110 19,658 
Payments on long-term debt, revolving credit facility, and finance lease obligations(1,316,990)(530,909)
Purchase of treasury stock(119,051)(24,016)
Payments of contingent consideration (2,711)
Purchase of remaining equity interest of other redeemable noncontrolling interest(12,000) 
Other, net(26,900)(4,145)
Net cash used in financing activities(475,048)(209,089)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(4,025)(4,680)
Net change in cash, cash equivalents, and restricted cash(72,840)(75,598)
Cash, cash equivalents, and restricted cash, beginning of period284,480 241,214 
Cash, cash equivalents, and restricted cash, end of period$211,640 $165,616 
See Notes to Unaudited Condensed Consolidated Financial Statements.
6


CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (UNAUDITED)
(in thousands)
Redeemable Noncontrolling Interests
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
Total Charles River Laboratories, Inc. Equity
Noncontrolling InterestTotal Equity
SharesAmountSharesAmount
December 30, 2023$56,722 51,338 $513 $1,905,578 $1,887,218 $(196,427) $ $3,596,882 $5,394 $3,602,276 
Net income1,201 — — — 72,960 — — — 72,960 321 73,281 
Other comprehensive (loss), net of tax(2,763)— — — — (53,492)— — (53,492)— (53,492)
Adjustment of redeemable noncontrolling interests to redemption value
4,807 — — (4,406)(401)— — — (4,807)— (4,807)
Dividends to noncontrolling interests(2,192)— — — — — — — — — — 
Issuance of stock under employee compensation plans— 214 2 21,503 — — — — 21,505 — 21,505 
Purchase of treasury shares— — — — — — 42 (9,351)(9,351)— (9,351)
Stock-based compensation— — — 16,738 — — — — 16,738 — 16,738 
March 30, 202457,775 51,552 515 1,939,413 1,959,777 (249,919)42 (9,351)3,640,435 5,715 3,646,150 
Net income(332)— — — 94,081 — — — 94,081 512 94,593 
Other comprehensive income (loss), net of tax
85 — — — — (19,790)— — (19,790)— (19,790)
Adjustment of redeemable noncontrolling interest to redemption value496 — — (195)(301)— — — (496)— (496)
Dividends to noncontrolling interests— — — — — — — — — (1,938)(1,938)
Purchase of remaining equity interest of other redeemable noncontrolling interest
(12,000)— — — — — — — — — — 
Adjustment of purchase price of Noveprim redeemable noncontrolling interest52 — — — — — — — — — — 
Issuance of stock under employee compensation plans— 144 2 824 — — — — 826 — 826 
Purchase of treasury shares— — — — — — 41 (8,914)(8,914)— (8,914)
Stock-based compensation— — — 16,587 — — — — 16,587 — 16,587 
June 29, 202446,076 51,696 517 1,956,629 2,053,557 (269,709)83 (18,265)3,722,729 4,289 3,727,018 
Net income73 — — — 69,657 — — — 69,657 565 70,222 
Other comprehensive (loss) income, net of tax(876)— — — — 76,838 — — 76,838 — 76,838 
Adjustment of redeemable noncontrolling interest to redemption value5,705 — — (5,326)(379)— — — (5,705)— (5,705)
Dividends to noncontrolling interest(10,388)— — — — — — — — — — 
Issuance of stock under employee compensation plans— 22 — 779 — — — — 779 — 779 
Purchase of treasury shares— — — — — — 501 (100,786)(100,786)— (100,786)
Share repurchase excise tax— — — — — — — (570)(570)— (570)
Stock-based compensation— — — 19,331 — — — — 19,331 — 19,331 
September 28, 2024$40,590 51,718 $517 $1,971,413 $2,122,835 $(192,871)584 $(119,621)$3,782,273 $4,854 $3,787,127 
See Notes to Unaudited Condensed Consolidated Financial Statements.
7



CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (UNAUDITED)
(continued; in thousands)
Redeemable Noncontrolling Interests
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
Total Charles River Laboratories, Inc. Equity
Noncontrolling InterestTotal Equity
SharesAmountSharesAmount
December 31, 2022$42,427 50,944 $509 $1,804,940 $1,432,901 $(262,057) $ $2,976,293 $4,785 $2,981,078 
Net income322 — — — 103,131 — — — 103,131 501 103,632 
Other comprehensive income (loss), net of tax186 — — — — 22,933 — — 22,933 — 22,933 
Issuance of stock under employee compensation plans— 316 3 11,789 — — — — 11,792 — 11,792 
Purchase of treasury shares— — — — — — 78 (19,012)(19,012)— (19,012)
Stock-based compensation— — — 13,460 — — — — 13,460 — 13,460 
April 1, 202342,935 51,260 512 1,830,189 1,536,032 (239,124)78 (19,012)3,108,597 5,286 3,113,883 
Net income1,857 — — — 97,020 — — — 97,020 566 97,586 
Other comprehensive income (loss), net of tax(2,345)— — — — 30,855 — — 30,855 — 30,855 
Issuance of stock under employee compensation plans— 110 1 3,926 — — — — 3,927 — 3,927 
Purchase of treasury shares— — — — — — 26 (4,966)(4,966)— (4,966)
Stock-based compensation— — — 16,270 — — — — 16,270 — 16,270 
July 1, 202342,447 51,370 513 1,850,385 1,633,052 (208,269)104 (23,978)3,251,703 5,852 3,257,555 
Net income71 — — — 87,389 — — — 87,389 561 87,950 
Other comprehensive income (loss), net of tax(192)— — — — (59,797)— — (59,797)— (59,797)
Dividends to noncontrolling interest
(2,378)— — — — — — — — (1,645)(1,645)
Issuance of stock under employee compensation plans— 30 1 3,938 — — — — 3,939 — 3,939 
Purchase of treasury shares— — — — — — — (38)(38)— (38)
Stock-based compensation— — — 22,797 — — — — 22,797 — 22,797 
September 30, 2023$39,948 51,400 $514 $1,877,120 $1,720,441 $(268,066)104 $(24,016)$3,305,993 $4,768 $3,310,761 
See Notes to Unaudited Condensed Consolidated Financial Statements.
8

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The year-end condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal year 2023 as filed with the SEC on February 14, 2024. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations.
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known.
Newly Issued Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures (Topic 280)”. ASU 2023-07 modifies reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses categorized as significant or regularly provided to the Chief Operating Decision Maker (CODM). In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures on the consolidated financial statements, but does not believe there will be a material impact.
In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate. This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures on the consolidated financial statements.
Summary of Significant Accounting Policies
The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for fiscal year 2023 as filed with the SEC on February 14, 2024.
Consolidation
The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its unaudited condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Redeemable noncontrolling interests, where the noncontrolling interest holders have the ability to require the Company to purchase the remaining interests, are classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. Intercompany balances and transactions are eliminated in consolidation.
The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end.
9

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Segment Reporting
The Company reports its results in three reportable segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing).
The Company’s RMS reportable segment includes products and services offered within the Research Models, Research Model Services, and Cell Solutions. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of clients’ research operations (including recruitment, training, staffing, and management services) within the clients’ facilities and utilizing the Charles River Accelerator and Development Lab (CRADL™) offering, which provides vivarium space to clients, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models, and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models; and Cell Solutions, which supplies controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow.
The Company’s DSA reportable segment includes Discovery Services and Safety Assessment services. The Company provides regulated and non-regulated DSA services to support the research, development, and regulatory-required safety testing of potential new drugs, including therapeutic discovery and optimization plus in vitro (non-animal) and in vivo (in research models) studies, laboratory support services, and strategic non-clinical consulting and program management to support product development.
The Company’s Manufacturing reportable segment includes Microbial Solutions, which provides in vitro lot-release testing products, microbial detection products, and species identification services and Biologics Solutions (Biologics), which performs specialized testing of biologics (Biologics Testing Solutions) as well as contract development and manufacturing products and services (CDMO).
2. ACQUISITIONS AND DIVESTITURES
Fiscal 2023 Acquisition
Noveprim Group
On November 30, 2023, the Company completed the acquisition of an additional 41% equity interest of Noveprim Group (Noveprim), a leading supplier of non-human primates (NHPs) located in Mauritius, resulting in a 90% controlling interest. The Company had previously acquired a 49% equity interest in 2022 for $90.0 million plus additional contingent payments up to $5.0 million based on future performance. The total consideration allocable to the Noveprim acquisition is $392.4 million, which includes $144.6 million additional cash paid for the 41% equity interest, elimination of historical activity and intercompany balances of $209.5 million which includes a remeasurement gain on the 49% equity investment of $113.0 million, contingent consideration of $33.3 million, deferred purchase price of $12.0 million payable from 2024 through 2027, offset by estimated post-closing adjustments for working capital of $7.0 million. The purchase price reflected an agreement with seller on working capital and debt, which was adjusted from $13.8 million to $7.0 million during the nine months ended September 28, 2024. As a result of measurement period adjustments to the purchase price, goodwill and remeasurement gains on the previous 49% equity investment for the nine months ended September 28, 2024, were increased by $17.6 million and $9.8 million, respectively. Remeasurement gains are recorded in Other income (expense), net, within the unaudited condensed consolidated statements of income. The contingent consideration fair value is estimated using a Monte Carlo Simulation model and the maximum contingent contractual payments are up to $55.0 million based on future performance and milestone achievements in fiscal years 2023 through 2025. The Company has the call option right to purchase the remaining 10% equity interest up until one month after the sixth anniversary of closing the 41% equity interest. On the first anniversary of the expiration of the call option, a 12-month put option will be triggered giving the seller the right to require the Company to acquire the remaining shares of the seller. The redemption price for the call/put is fixed and ranges from $47.0 million to $54.0 million depending on when exercised. The noncontrolling interest is classified as a redeemable noncontrolling interest in the mezzanine section of the unaudited condensed consolidated balance sheets. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment for NHPs vertically integrated into the DSA supply chain and the RMS reportable segment for those NHPs sold to third party customers. The Company incurred transaction and integration costs in connection with the acquisition of $0.3 million and $0.7 million for the three months ended September 28, 2024 and September 30, 2023, respectively, which was primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. The Company incurred transaction and integration costs in connection with the acquisition of $1.2 million and $2.9 million for the nine months ended September 28, 2024 and September 30, 2023, respectively, which was primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income.
10

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SAMDI Tech, Inc.
On January 27, 2023, the Company acquired SAMDI Tech, Inc., (SAMDI), a leading provider of high-quality, label-free high-throughput screening (HTS) solutions for drug discovery research. The acquisition of SAMDI will provide clients with seamless access to the premier, label-free HTS MS platform and create a comprehensive, library of drug discovery solutions. The purchase price of SAMDI was $62.8 million, net of $0.4 million in cash, inclusive of a 20% strategic equity interest previously owned by the Company of $12.6 million. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment. No significant transaction and integration costs were incurred with the acquisition for the three and nine months ended September 28, 2024. The Company incurred transaction and integration costs in connection with the acquisition of $0.5 million and $0.8 million for the three and nine months ended September 30, 2023, respectively, which was primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income.
Purchase price information
The purchase price allocation was as follows:
Noveprim Group(1)
SAMDI Tech, Inc.
November 30, 2023January 27, 2023
(in thousands)
Trade receivables$1,308 $513 
Inventories66,500  
Other current assets (excluding cash)3,261 75 
Property, plant and equipment36,154 593 
Operating lease right-of-use asset, net104  
Goodwill (2)
190,024 37,129 
Definite-lived intangible assets9,500 33,070 
Other long-term assets (3)
167,907 6 
Deferred revenue (43)
Other current liabilities(16,268)(351)
Operating lease right-of-use liabilities (Long-term)(97) 
Deferred tax liabilities(12,984)(8,191)
Other long-term liabilities(7,579) 
Redeemable noncontrolling interest (4)
(45,426) 
Total purchase price allocation$392,404 $62,801 
(1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts, obligations, and finalization of any working capital adjustments. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition.
(2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses or synergies to be realized from acquiring an internal supplier servicing the DSA business and the assembled workforce of the acquirees, thus is not deductible for tax purposes.
(3) Other long-term assets acquired from the Noveprim acquisition include $167.8 million of biological assets, which will be amortized over an estimated eight-year useful life.
(4) Refer to Note 12 – Equity and Noncontrolling Interests for further a description of the 10% noncontrolling interest fair value.
The definite-lived intangible assets acquired were as follows:
Noveprim GroupSAMDI Tech, Inc.
Definite-Lived Intangible Assets(in thousands)
Client relationships$ $23,400 
Other intangible assets9,500 9,670 
Total definite-lived intangible assets$9,500 $33,070 
Weighted Average Amortization Life(in years)
Client relationships— 15
Other intangible assets77
Total definite-lived intangible assets712

11

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by reportable segment and timing of transfer of products or services:
Three Months EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$93,446 $94,883 $285,794 $282,980 
Services and products transferred at a point in time104,378 91,965 339,326 313,582 
Total RMS revenue197,824 186,848 625,120 596,562 
DSA
Services and products transferred over time613,388 663,128 1,844,298 1,987,617 
Services and products transferred at a point in time1,672 900 3,633 2,221 
Total DSA revenue615,060 664,028 1,847,931 1,989,838 
Manufacturing
Services and products transferred over time107,284 94,446 311,823 280,992 
Services and products transferred at a point in time89,595 81,301 262,566 248,541 
Total Manufacturing revenue196,879 175,747 574,389 529,533 
Total revenue$1,009,763 $1,026,623 $3,047,440 $3,115,933 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
September 28, 2024December 30, 2023
(in thousands)
Assets from contracts with customers
Client receivables$557,761 $578,077 
Unbilled revenue220,323 228,020 
Total778,084 806,097 
Less: Allowance for credit losses(23,877)(25,722)
Trade receivables and contract assets, net$754,207 $780,375 
Liabilities from contracts with customers
Current deferred revenue$251,968 $241,820 
Long-term deferred revenue (included in Other long-term liabilities)34,915 30,919 
Customer contract deposits (included in Other current liabilities)99,455 85,554 
Approximately 90% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the nine months ended September 28, 2024. Approximately 90% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the nine months ended September 30, 2023.
Approximately 80% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the nine months ended September 28, 2024. Approximately 80% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the nine months ended September 30, 2023.
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client
12

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
receivables. The Company excluded approximately $36 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of September 28, 2024 and December 30, 2023, respectively.
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
Nine Months Ended
September 28, 2024September 30, 2023
(in thousands)
Beginning balance$25,722 $11,278 
Provisions8,223 11,030 
Reductions(10,068)(1,121)
Ending balance$23,877 $21,187 
Net provision expenses were $7.2 million and $10.2 million during the nine months ended September 28, 2024 and September 30, 2023, respectively and include recoveries of balances previously written off, which are excluded from the table above.
Transaction Price Allocated to Future Performance Obligations
The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 28, 2024. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases”. The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of September 28, 2024 was $803.5 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
Other Performance Obligations
As part of the Company’s service offerings, the Company has identified performance obligations related to leasing Company owned assets. In certain arrangements, customers obtain substantially all of the economic benefits of the identified assets, which may include manufacturing suites and related equipment, and have the right to direct the assets’ use over the term of the contract. The associated revenue is recognized on a straight-line basis over the term of the lease, which is generally less than one year.
Three Months EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
(in thousands)
Lease revenue$16,622 $22,254 $54,312 $70,235 Service revenue
13

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4. SEGMENT AND GEOGRAPHIC INFORMATION
The Company operates in three reportable segments, RMS, DSA and Manufacturing. Asset information on a reportable segment basis is not disclosed as this information is not separately identified and internally reported to the Company’s Chief Operating Decision Maker (CODM). The following table presents the results of operations by reportable segment:
Three Months EndedNine Months Ended
September 28, 2024September 30, 2023September 28, 2024September 30, 2023
(in thousands)
RMS  
Revenue$197,824 $186,848 $625,120 $596,562 
Cost of revenue (excluding amortization of intangible assets)137,906 126,640 421,773 381,332 
Selling, general and administrative26,453 26,483 84,943 81,194 
Amortization of intangible assets5,921 5,399 17,763 16,383 
Operating income$27,544 $28,326 $100,641 $117,653 
DSA
Revenue$615,060 $664,028 $1,847,931 $1,989,838 
Cost of revenue (excluding amortization of intangible assets)409,684 436,174 1,246,560 1,268,248 
Selling, general and administrative63,260 63,369 174,598 189,076 
Amortization of intangible assets15,680 17,666 47,122 52,726 
Operating income$126,436 $146,819 $379,651 $479,788 
Manufacturing
Revenue$196,879 $175,747 $574,389 $529,533 
Cost of revenue (excluding amortization of intangible assets)113,152 101,968 331,530 327,882 
Selling, general and administrative32,737 36,338 99,397 114,556 
Amortization of intangible assets10,802 11,166 32,363 34,311 
Operating income$40,188 $26,275 $111,099 $52,784 
Unallocated Corporate
Selling, general and administrative$76,763 $49,918 $196,357 $165,886 
Operating income (1)
$(76,763)$(49,918)$(196,357)$(165,886)
Consolidated
Revenue$1,009,763 $1,026,623 $3,047,440 $3,115,933 
Cost of revenue (excluding amortization of intangible assets)660,742 664,783 1,999,863 1,977,462 
Selling, general and administrative199,213 176,109 555,295 550,713 
Amortization of intangible assets32,403 34,229 97,248 103,419 
Operating income$117,405 $151,502 $395,034 $484,339 
(1) Operating income for unallocated corporate consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations.

14

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Capital expenditures and depreciation and amortization (related to both intangible assets and certain assets acquired in business combinations) by reportable segment are as follows:
RMSDSAManufacturingUnallocated CorporateConsolidated
(in thousands)
Capital Expenditures
Three Months Ended:
September 28, 2024$7,186 $22,773 $8,735 $27 $38,721 
September 30, 20239,192 41,967 14,349 439 65,947 
Nine Months Ended:
September 28, 2024$36,543 $91,176 $28,180 $1,452 $157,351 
September 30, 202335,769 155,477 46,949 2,010 240,205 
Depreciation and amortization
Three Months Ended:
September 28, 2024$18,389