10-Q 1 crl-20240330.htm 10-Q crl-20240330
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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 March 30, 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 April 27, 2024, there were 51,511,687 shares of the Registrant’s common stock outstanding.



CHARLES RIVER LABORATORIES INTERNATIONAL, INC.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 30, 2024

TABLE OF CONTENTS
Item Page
PART I - FINANCIAL INFORMATION
1Financial Statements
Condensed Consolidated Statements of Income (Unaudited) for the three months ended March 30, 2024
and April 1, 2023
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended
March 30, 2024 and April 1, 2023
Condensed Consolidated Balance Sheets (Unaudited) as of March 30, 2024 and December 30, 2023
Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 30, 2024
and April 1, 2023
Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests (Unaudited) for
the three months ended March 30, 2024 and April 1, 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, and (3) the derivative lawsuit filed against members of the Board of Directors and certain current/former officers on November 8, 2023; 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, particularly with respect to our CDMO business); the impact of specific actions intended to improve overall operating efficiencies and profitability (and our ability to accommodate future demand with our infrastructure), including gains and losses attributable to businesses we plan to close, consolidate, divest or repurpose and the impact of operations and cost structure alignment efforts (including as estimated on an annualized basis); our expectations with respect to our study cancellation rates and the impact of such cancellations; 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 Ended
 March 30, 2024April 1, 2023
Service revenue$816,862 $857,366 
Product revenue194,698 172,007 
Total revenue1,011,560 1,029,373 
Costs and expenses:
Cost of services provided (excluding amortization of intangible assets) 578,164 565,477 
Cost of products sold (excluding amortization of intangible assets)88,553 86,242 
Selling, general and administrative186,291 174,846 
Amortization of intangible assets32,575 34,916 
Operating income125,977 167,892 
Other income (expense):
Interest income2,202 806 
Interest expense(35,001)(34,380)
Other income (expense), net5,833 (3,277)
Income before income taxes99,011 131,041 
Provision for income taxes24,529 27,087 
Net income74,482 103,954 
Less: Net income attributable to noncontrolling interests1,522 823 
Net income available to Charles River Laboratories International, Inc.
$72,960 $103,131 
Calculation of net income per share attributable to common shareholders of Charles River Laboratories International, Inc.
Net income available to Charles River Laboratories International, Inc.$72,960 $103,131 
Less: Adjustment of redeemable noncontrolling interest
401  
Less: Incremental dividends attributable to noncontrolling interest holders
5,230  
Net income available to Charles River Laboratories International, Inc. common shareholders
$67,329 $103,131 
Earnings per common share
Net income attributable to common shareholders:
Basic$1.31 $2.02 
Diluted$1.30 $2.01 
Weighted-average number of common shares outstanding:
Basic51,437 51,097 
Diluted51,842 51,428 
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 Ended
March 30, 2024April 1, 2023
Net income$74,482 $103,954 
Other comprehensive income (loss):
Foreign currency translation adjustment(62,840)23,313 
Amortization of net loss, settlement losses, and prior service benefit included in total cost for pension and other post-retirement benefit plans344 170 
Unrealized gains (losses) on hedging instruments768 (1,402)
Other comprehensive income (loss), before income taxes
(61,728)22,081 
Less: Income tax benefit related to items of other comprehensive income
(5,473)(1,038)
Comprehensive income, net of income taxes18,227 127,073 
Less: Comprehensive income (loss) related to noncontrolling interests, net of income taxes
(1,241)1,009 
Comprehensive income attributable to Charles River Laboratories International, Inc., net of income taxes
$19,468 $126,064 
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)
March 30, 2024December 30, 2023
Assets 
Current assets:  
Cash and cash equivalents$327,039 $276,771 
Trade receivables and contract assets, net of allowances for credit losses of $25,407 and $25,722, respectively
786,980 780,375 
Inventories361,281 380,259 
Prepaid assets93,834 87,879 
Other current assets99,054 83,378 
Total current assets1,668,188 1,608,662 
Property, plant and equipment, net1,618,708 1,639,741 
Venture capital and strategic equity investments243,543 243,811 
Operating lease right-of-use assets, net384,394 394,029 
Goodwill3,070,241 3,095,045 
Intangible assets, net827,638 864,051 
Deferred tax assets36,924 40,279 
Other assets303,147 309,383 
Total assets$8,152,783 $8,195,001 
Liabilities, Redeemable Noncontrolling Interests and Equity  
Current liabilities:  
Accounts payable$129,682 $168,937 
Accrued compensation189,606 213,290 
Deferred revenue256,383 241,820 
Accrued liabilities190,892 227,825 
Other current liabilities188,247 203,210 
Total current liabilities954,810 1,055,082 
Long-term debt, net and finance leases2,660,459 2,647,147 
Operating lease right-of-use liabilities418,054 419,234 
Deferred tax liabilities180,094 191,349 
Other long-term liabilities235,441 223,191 
Total liabilities4,448,858 4,536,003 
Commitments and contingencies (Notes 2, 11, 13, and 15)
Redeemable noncontrolling interest57,775 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; 51,552 shares issued and 51,510 shares outstanding as of March 30, 2024, and 51,338 shares issued and outstanding as of December 30, 2023
515 513 
Additional paid-in capital1,939,413 1,905,578 
Retained earnings1,959,777 1,887,218 
Treasury stock, at cost, 42 and zero shares, as of March 30, 2024 and December 30, 2023, respectively
(9,351) 
Accumulated other comprehensive loss(249,919)(196,427)
Total Charles River Laboratories International, Inc. equity3,640,435 3,596,882 
Nonredeemable noncontrolling interests5,715 5,394 
Total equity3,646,150 3,602,276 
Total liabilities, noncontrolling interests and equity
$8,152,783 $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)
 Three Months Ended
 March 30, 2024April 1, 2023
Cash flows relating to operating activities  
Net income$74,482 $103,954 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization85,357 77,069 
Stock-based compensation16,738 13,460 
Deferred income taxes(987)(11,584)
Long-lived asset impairment charges5,432 10,460 
(Gain) loss on venture capital and strategic equity investments, net(5,880)3,282 
Provision for credit losses839 3,238 
Other, net1,999 1,448 
Changes in assets and liabilities:  
Trade receivables and contract assets, net(17,281)(33,831)
Inventories5,600 (8,587)
Accounts payable(8,541)(41,313)
Accrued compensation(20,945)(21,469)
Deferred revenue19,957 (481)
Customer contract deposits6,140 1,509 
Other assets and liabilities, net(33,022)12,228 
Net cash provided by operating activities129,888 109,383 
Cash flows relating to investing activities  
Acquisition of businesses and assets, net of cash acquired (50,166)
Capital expenditures(79,144)(106,875)
Purchases of investments and contributions to venture capital investments(13,867)(12,570)
Proceeds from sale of investments7,502 1,953 
Other, net(283)(960)
Net cash used in investing activities(85,792)(168,618)
Cash flows relating to financing activities  
Proceeds from long-term debt and revolving credit facility300,882 192,500 
Proceeds from exercises of stock options21,505 11,792 
Payments on long-term debt, revolving credit facility, and finance lease obligations(292,482)(157,328)
Purchase of treasury stock(9,351)(19,012)
Payments of contingent consideration (2,711)
Other, net(2,208) 
Net cash provided by financing activities18,346 25,241 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(8,387)1,671 
Net change in cash, cash equivalents, and restricted cash54,055 (32,323)
Cash, cash equivalents, and restricted cash, beginning of period284,480 241,214 
Cash, cash equivalents, and restricted cash, end of period$338,535 $208,891 
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, 2024$57,775 51,552 $515 $1,939,413 $1,959,777 $(249,919)42 $(9,351)$3,640,435 $5,715 $3,646,150 
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, net of tax186 — — — — 22,933 — — 22,933 — 22,933 
Adjustment of redeemable noncontrolling interest to redemption value— — — — — — — — — —  
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, 2023$42,935 51,260 $512 $1,830,189 $1,536,032 $(239,124)78 $(19,012)$3,108,597 $5,286 $3,113,883 
See Notes to Unaudited Condensed Consolidated Financial Statements.
7

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. Certain reclassifications of prior year amounts have been made to conform to the current year presentation. The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations.
Use of Estimates
The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known.
Newly Issued Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures (Topic 280)”. ASU 2023-07 modifies reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses categorized as significant or regularly provided to the Chief Operating Decision Maker (CODM). In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures in the annual consolidated financial statements, but does not believe there will be a material impact.
In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 requires enhanced disclosures on income taxes paid, adds disaggregation of continuing operations before income taxes between foreign and domestic earnings and defines specific categories for the reconciliation of jurisdictional tax rate to effective tax rate. This ASU is effective for fiscal years beginning after December 15, 2024, and can be applied on a prospective basis. The Company is currently evaluating the impact this new standard will have on the related disclosures on the consolidated financial statements.
Summary of Significant Accounting Policies
The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for fiscal year 2023.
Consolidation
The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its unaudited condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Redeemable noncontrolling interests, where the noncontrolling interest holders have the ability to require the Company to purchase the remaining interests, are classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. Intercompany balances and transactions are eliminated in consolidation.
The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. A 53rd week in the fourth quarter of the fiscal year is occasionally necessary to align with a December 31 calendar year-end.
8

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 the Research Models, Research Model Services, and Cell Solutions businesses. Research Models includes the commercial production and sale of small research models, as well as the supply of large research models. Research Model Services includes: Insourcing Solutions (IS), which provides colony management of clients’ research operations (including recruitment, training, staffing, and management services) within the clients’ facilities and utilizing the Charles River Accelerator and Development Lab (CRADL™) offering, which provides vivarium space to clients, Genetically Engineered Models and Services (GEMS), which performs contract breeding and other services associated with genetically engineered models, and Research Animal Diagnostic Services (RADS), which provides health monitoring and diagnostics services related to research models; and Cell Solutions, which supplies controlled, consistent, customized primary cells and blood components derived from normal and mobilized peripheral blood and bone marrow.
The Company’s DSA reportable segment includes two businesses: Discovery Services and Safety Assessment. The Company provides regulated and non-regulated DSA services to support the research, development, and regulatory-required safety testing of potential new drugs, including therapeutic discovery and optimization plus in vitro and in vivo studies, laboratory support services, and strategic non-clinical consulting and program management to support product development.
The Company’s Manufacturing reportable segment includes Microbial Solutions, which provides in vitro (non-animal) 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 $374.8 million, which includes $144.6 million additional cash paid for the 41% equity interest, elimination of historical activity and intercompany balances of $198.8 million which includes a remeasurement gain on the 49% equity investment of $103.2 million, contingent consideration of $33.3 million, deferred purchase price of $12.0 million payable from 2024 through 2027, offset by estimated post-closing adjustments for working capital of $13.8 million. The contingent consideration fair value is estimated using a Monte Carlo Simulation model and the maximum contingent contractual payments are up to $55.0 million based on future performance and milestone achievements in fiscal years 2023 through 2025. The Company has the call option right to purchase the remaining 10% equity interest up until one month after the sixth anniversary of closing the 41% equity interest. On the first anniversary of the expiration of the call option, a 12-month put option will be triggered giving the seller the right to require the Company to acquire the remaining shares of the seller. The redemption price for the call/put is fixed and ranges from $47.0 million to $54.0 million depending on when exercised. The noncontrolling interest is classified as a redeemable noncontrolling interest in the mezzanine section of the unaudited condensed consolidated balance sheet. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment for NHPs vertically integrated into the DSA supply chain and the RMS reportable segment for those NHPs sold to third party customers. The Company incurred transaction and integration costs in connection with the acquisition of $0.2 million and $0.8 million for the three months ended March 30, 2024 and April 1, 2023, respectively, which was primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income.

SAMDI Tech, Inc.
On January 27, 2023, the Company acquired SAMDI Tech, Inc., (SAMDI), a leading provider of high-quality, label-free high-throughput screening (HTS) solutions for drug discovery research. The acquisition of SAMDI will provide clients with seamless access to the premier, label-free HTS MS platform and create a comprehensive, library of drug discovery solutions. The purchase price of SAMDI was $62.8 million, net of $0.4 million in cash, inclusive of a 20% strategic equity interest previously owned by the Company of $12.6 million. The acquisition was funded through a combination of available cash and proceeds from the Company’s Credit Facility. This business is reported as part of the Company’s DSA reportable segment. The Company did not incur material transaction and integration costs in connection with the acquisition for the three months ended March 30, 2024 and April 1, 2023.
9

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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)3,467 75 
Property, plant and equipment35,831 593 
Operating lease right-of-use asset, net104  
Goodwill (2)
172,846 37,129 
Definite-lived intangible assets9,500 33,070 
Other long-term assets (3)
167,907 6 
Deferred revenue (43)
Other current liabilities(16,378)(351)
Operating lease right-of-use liabilities (Long-term)(97) 
Deferred tax liabilities(12,984)(8,191)
Other long-term liabilities(7,796) 
Redeemable noncontrolling interest (4)
(45,374) 
Total purchase price allocation$374,834 $62,801 
(1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts, obligations, and finalization of any working capital adjustments. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition.
(2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses or synergies to be realized from acquiring an internal supplier servicing the DSA business and the assembled workforce of the acquirees, thus is not deductible for tax purposes.
(3) Other long-term assets acquired from the Noveprim acquisition include $167.8 million of biological assets, which will be amortized over an estimated eight-year useful life.
(4) Refer to Note 12. Equity and Noncontrolling Interests for further a description of the 10% noncontrolling interest fair value.
The definite-lived intangible assets acquired were as follows:
Noveprim GroupSAMDI Tech, Inc.
Definite-Lived Intangible Assets(in thousands)
Client relationships$ $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

10

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 major business line and timing of transfer of products or services:
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Timing of Revenue Recognition:
RMS
Services and products transferred over time$97,049 $93,639 
Services and products transferred at a point in time123,858 106,127 
Total RMS revenue220,907 199,766 
DSA
Services and products transferred over time604,125 661,836 
Services and products transferred at a point in time1,327 517 
Total DSA revenue605,452 662,353 
Manufacturing
Services and products transferred over time100,058 86,086 
Services and products transferred at a point in time85,143 81,168 
Total Manufacturing revenue185,201 167,254 
Total revenue$1,011,560 $1,029,373 
Contract Balances from Contracts with Customers
The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers:
March 30, 2024December 30, 2023
(in thousands)
Assets from contracts with customers
Client receivables$590,594 $578,077 
Unbilled revenue221,793 228,020 
Total812,387 806,097 
Less: Allowance for credit losses(25,407)(25,722)
Trade receivables and contract assets, net$786,980 $780,375 
Liabilities from contracts with customers
Current deferred revenue$256,383 $241,820 
Long-term deferred revenue (included in Other long-term liabilities)32,448 30,919 
Customer contract deposits (included in Other current liabilities)90,589 85,554 
Approximately 70% of unbilled revenue as of December 30, 2023, which was $228 million, was billed during the three months ended March 30, 2024. Approximately 70% of unbilled revenue as of December 31, 2022, which was $204 million, was billed during the three months ended April 1, 2023.
Approximately 60% of contract liabilities as of December 30, 2023, which was $273 million, were recognized as revenue during the three months ended March 30, 2024. Approximately 65% of contract liabilities as of December 31, 2022, which was $290 million, were recognized as revenue during the three months ended April 1, 2023.
When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. The Company excluded approximately $52 million and $41 million of unpaid advanced client billings from both client receivables and deferred revenue in the accompanying unaudited condensed consolidated balance sheets as of March 30, 2024 and December 30, 2023, respectively.
11

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Allowance for Credit Losses
The following is a summary of the activity of the Company’s allowance for credit losses:
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Beginning balance$25,722 $11,278 
Additions934 5,731 
Deductions(1,249)(315)
Ending balance$25,407 $16,694 
Net provisions were $0.8 million and $3.2 million during the three months ended March 30, 2024 and April 1, 2023, respectively and include recoveries of balances previously written off, which are excluded from the table above.
Transaction Price Allocated to Future Performance Obligations
The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 30, 2024. Excluded from the disclosure is the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed, and service revenue recognized in accordance with ASC 842, “Leases”. The aggregate amount of transaction price allocated to the remaining performance obligations for all open customer contracts as of March 30, 2024 was $920.5 million. The Company will recognize revenues for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remainder recognized thereafter during the remaining contract term.
Other Performance 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 Ended
March 30, 2024April 1, 2023
(in thousands)Affected Line Item in the Unaudited Condensed Consolidated Statements of Income
Lease revenue$20,974 $24,090 Service revenue
12

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 Ended
March 30, 2024April 1, 2023
(in thousands)
RMS
Revenue$220,907 $199,766 
Cost of revenue (excluding amortization of intangible assets)140,925 126,804 
Selling, general and administrative30,893 27,058 
Amortization of intangible assets5,940 5,495 
Operating income$43,149 $40,409 
DSA
Revenue$605,452 $662,353 
Cost of revenue (excluding amortization of intangible assets)417,912 411,523 
Selling, general and administrative56,859 61,998 
Amortization of intangible assets15,842 17,401 
Operating income$114,839 $171,431 
Manufacturing
Revenue$185,201 $167,254 
Cost of revenue (excluding amortization of intangible assets)107,880 113,392 
Selling, general and administrative32,847 39,736 
Amortization of intangible assets10,793 12,020 
Operating income$33,681 $2,106 
Unallocated Corporate
Selling, general and administrative$(65,692)$(46,054)
Operating income (1)
$(65,692)$(46,054)
Consolidated
Revenue$1,011,560 $1,029,373 
Cost of revenue (excluding amortization of intangible assets)666,717 651,719 
Selling, general and administrative186,291 174,846 
Amortization of intangible assets32,575 34,916 
Operating income$125,977 $167,892 
(1) Operating income for unallocated corporate consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations.

13

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:
March 30, 2024$20,044 $48,959 $8,862 $1,279 $79,144 
April 1, 202319,084 65,184 21,738 869 106,875 
Depreciation and amortization
Three Months Ended:
March 30, 2024$18,123 $45,789 $19,805 $1,640 $85,357 
April 1, 202313,489 42,450 20,084 1,046 77,069 
Revenue by geographic area is as follows:
U.S.EuropeCanadaAsia PacificOtherConsolidated
(in thousands)
Three Months Ended:
March 30, 2024$562,317 $276,319 $110,401 $45,772 $16,751 $1,011,560 
April 1, 2023605,441 267,703 110,606 42,813 2,810 1,029,373 
Included in the Other category above are operations located in Brazil, Israel, and Mauritius. Revenue represents sales originating in entities physically located in the identified geographic area.
Long-lived assets by geographic area are as follows:
U.S.EuropeCanadaAsia PacificOtherConsolidated
(in thousands)
Long-lived assets
March 30, 2024$954,225 $404,657 $153,443 $71,076 $35,307 $1,618,708 
December 30, 2023964,176 407,375 157,483 74,605 36,102 1,639,741 
Long-lived assets consist of property, plant, and equipment, net.
5. SUPPLEMENTAL CASH FLOW INFORMATION
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Cash paid for income taxes$18,728 $13,618 
Cash paid for interest38,258 36,807 
Non-cash investing activities:
Purchases of Property, plant and equipment included in Accounts payable and Accrued liabilities$23,911 $43,116 
Assets acquired under finance leases3,159  
Cash, cash equivalents and restricted cash is included in the accompanying unaudited balance sheet as follows:
March 30, 2024December 30, 2023
(in thousands)
Supplemental cash flow information:
Cash and cash equivalents$327,039 $276,771 
Restricted cash included in Other current assets10,327 5,803 
Restricted cash included in Other assets1,169 1,906 
Cash, cash equivalents, and restricted cash, end of period$338,535 $284,480 
14

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6. INVENTORY
Inventories
The composition of inventories is as follows:
March 30, 2024December 30, 2023
(in thousands)
Raw materials and supplies$44,603 $42,296 
Work in process43,252 59,727 
Finished products273,426 278,236 
Inventories$361,281 $380,259 
7. PROPERTY, PLANT AND EQUIPMENT, NET
The composition of property, plant and equipment, net is as follows:
March 30, 2024December 30, 2023
(in thousands)
Land$78,852 $79,546 
Buildings (1)
1,033,150 1,053,915 
Machinery and equipment (1)
985,006 984,867 
Leasehold improvements348,558 366,556 
Furniture and fixtures30,712 31,284 
Computer hardware and software (1)
254,018 254,413 
Vehicles (1)
6,974 6,746 
Construction in progress245,826 197,723 
Total2,983,096 2,975,050 
Less: Accumulated depreciation(1,364,388)(1,335,309)
Property, plant and equipment, net$1,618,708 $1,639,741 
(1) These balances include assets under finance leases.
Depreciation expense in the three months ended March 30, 2024 and April 1, 2023 was $45.7 million and $42.2 million, respectively.
8. VENTURE CAPITAL AND STRATEGIC EQUITY INVESTMENTS
Venture capital investments are summarized below:
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Beginning balance$121,158 $129,012 
Capital contributions3,829 3,214 
Distributions(9,353)(7,217)
Gains (losses)
8,174 (6,848)
Foreign currency translation(100)260 
Ending balance$123,708 $118,421 
15

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Company also invests, with minority positions, directly in equity of predominantly privately held companies. Strategic investments are summarized below:
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Beginning balance$122,653 $182,590 
Purchase of investments 9,266 
Distributions (4,146)
Gain (loss)(2,294)3,566 
Reduction for acquisition of entity (1)
 (12,635)
Foreign currency translation(524)(3,275)
Ending balance$119,835 $175,366 
(1) Refer to Note 2. Acquisitions for further discussion on the SAMDI acquisition.
9. FAIR VALUE
Assets and liabilities measured at fair value on a recurring basis are summarized below:
 March 30, 2024
Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$ $29 $ $29 
Term deposit
 10,068  10,068 
Other assets:
Life insurance policies 44,617  44,617 
Interest rate swap 1,734  1,734 
Total assets measured at fair value$ $56,448 $ $56,448 
Other long-term liabilities measured at fair value:
Contingent consideration$ $ $33,265 $33,265 
Total liabilities measured at fair value$ $ $33,265 $33,265 
The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the three months ended March 30, 2024, there were no transfers between levels.
 December 30, 2023
Level 1Level 2Level 3Total
Current assets measured at fair value:(in thousands)
Cash equivalents$ $29 $ $29 
Other assets:
Life insurance policies 40,912  40,912 
Interest rate swap 966  966 
Total assets measured at fair value$ $41,907 $ $41,907 
Other long-term liabilities measured at fair value
Contingent consideration$ $ $33,265 $33,265 
Total liabilities measured at fair value$ $ $33,265 $33,265 
During the year ended December 30, 2023, there were no transfers between levels.
16

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

Contingent Consideration
The following table provides a rollforward of the contingent consideration related to the Company’s acquisitions.
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Beginning balance$33,265 $13,431 
Payments (2,711)
Total gains or losses (realized/unrealized):
Foreign currency translation (177)
Ending balance$33,265 $10,543 
The Company estimates the fair value of contingent consideration obligations through valuation models, such as probability-weighted and option pricing models, which incorporate probability adjusted assumptions and simulations related to the achievement of the milestones and the likelihood of making related payments. The unobservable inputs used in the fair value measurements include the probabilities of successful achievement of certain financial targets, forecasted results or targets, volatility, and discount rates. The remaining maximum potential payments are approximately $55 million, of which the value accrued as of March 30, 2024 is $33 million as the probability of achieving the maximum target is estimated to be 60%. The volatility and weighted average cost of capital is approximately 7% and 9%, respectively. Increases or decreases in these assumptions may result in a higher or lower fair value measurement, respectively.
Cash Flow Hedge
The Company is exposed to market fluctuations in interest rates as well as variability in foreign exchange rates. The Company has an interest rate swap with a notional amount of $500 million maturing November 2, 2024 to manage interest rate fluctuation related to floating rate borrowings under the Credit Facility, at a fixed rate of 4.65%.
Debt Instruments
The book value of the Company’s revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2 within the fair value hierarchy.
The book value of the Company’s Senior Notes are fixed rate obligations carried at amortized cost. Fair value is based on quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other observable outputs, it is deemed to be Level 2 within the fair value hierarchy. The book value and fair value of the Company’s Senior Notes is summarized below:
March 30, 2024December 30, 2023
Book ValueFair ValueBook ValueFair Value
(in thousands)
4.25% Senior Notes due 2028
$500,000 $468,750 $500,000 $478,100 
3.75% Senior Notes due 2029
500,000 453,750 500,000 458,100 
4.00% Senior Notes due 2031
500,000 445,000 500,000 449,350 
10. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table provides a rollforward of the Company’s goodwill:
RMS
DSA (1)
ManufacturingTotal
(in thousands)
December 30, 2023$497,474 $1,662,434 $935,137 $3,095,045 
Acquisitions 497  497 
Foreign exchange(407)(21,340)(3,554)(25,301)
March 30, 2024$497,067 $1,641,591 $931,583 $3,070,241 
(1) DSA includes accumulated impairment losses of $1 billion, which were recognized in fiscal years 2008 and 2010.
The decrease in goodwill during the three months ended March 30, 2024 related to foreign exchange in the DSA and Manufacturing reportable segments.
17

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

Intangible Assets, Net
The following table displays intangible assets, net by major class:
 March 30, 2024December 30, 2023
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
(in thousands)
Client relationships$1,515,021 $(739,260)$775,761 $1,528,780 $(721,322)$807,458 
Technology140,982 (112,842)28,140 142,190 (111,764)30,426 
Trademarks and trade names11,842 (4,822)7,020 11,878 (4,568)7,310 
Backlog3,100 (2,485)615 3,100 (2,177)923 
Other43,008 (26,906)16,102 43,611 (25,677)17,934 
Intangible assets$1,713,953 $(886,315)$827,638 $1,729,559 $(865,508)$864,051 
The decrease in intangible assets, net during the three months ended March 30, 2024 related to normal amortization over the useful lives.
Amortization expense of definite-lived intangible assets for three months ended March 30, 2024 and April 1, 2023 was $32.6 million and $34.9 million, respectively.
11. DEBT AND OTHER FINANCING ARRANGEMENTS
Long-term debt, net and finance leases consists of the following:
March 30, 2024December 30, 2023
(in thousands)
Revolving facility$1,133,000 $1,129,243 
4.25% Senior Notes due 2028
500,000 500,000 
3.75% Senior Notes due 2029
500,000 500,000 
4.00% Senior Notes due 2031
500,000 500,000 
Other debt13,516 9,575 
Finance leases 30,230 28,550 
Total debt and finance leases2,676,746 2,667,368 
Less:
Current portion of long-term debt459 3,172 
Current portion of finance leases2,169 2,398 
Current portion of long-term debt and finance leases2,628 5,570 
Long-term debt and finance leases2,674,118 2,661,798 
Debt discount and debt issuance costs(13,659)(14,651)
Long-term debt, net and finance leases$2,660,459 $2,647,147 
As of March 30, 2024 and December 30, 2023, the weighted average interest rate on the Company’s debt was 4.97% and 4.93%, respectively.
Letters of Credit
As of March 30, 2024 and December 30, 2023, the Company had $21.2 million and $21.6 million, respectively, in outstanding letters of credit.
18

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

12. EQUITY AND NONCONTROLLING INTERESTS
Earnings Per Share
The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share:
Three Months Ended
March 30, 2024April 1, 2023
(in thousands)
Numerator:
Net income$74,482 $103,954 
Less: Net income attributable to noncontrolling interests1,522 823 
Net income available to Charles River Laboratories International, Inc.
72,960 103,131 
Less: Adjustment of redeemable noncontrolling interest (1)
401  
Less: Incremental dividends attributable to noncontrolling interest holders (2)
5,230  
Net income available to Charles River Laboratories International, Inc. common shareholders
$67,329 $103,131 
Denominator:
Weighted-average shares outstanding - Basic51,437 51,097 
Effect of dilutive securities:
Stock options, restricted stock units and performance share units405 331 
Weighted-average shares outstanding - Diluted51,842 51,428 
Anti-dilutive common stock equivalents (3)
448 405 
(1) Represents adjustments of redeemable noncontrolling interest that impact retained earnings.
(2) Represents incremental undeclared dividends attributable to Noveprim noncontrolling interest holders who are entitled to preferential dividends for fiscal year 2024.
(3) These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.
Treasury Shares
The Company’s Board of Directors has authorized a $1.3 billion stock repurchase program. As of March 30, 2024, the Company had $129.1 million remaining on the authorized stock repurchase program.
The Company’s stock-based compensation plans permit the netting of common stock upon vesting of RSUs and PSUs in order to satisfy individual statutory tax withholding requirements. The Company acquired shares of approximately 0.1 million in the three months ended March 30, 2024 and three months ended April 1, 2023, for $9.4 million and $19.0 million, respectively, from such netting.
Accumulated Other Comprehensive Income (Loss)
Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows:
Foreign Currency Translation Adjustment
and Other
Pension and Other Post-Retirement Benefit PlansNet Unrealized (Loss) Gain on Cash Flow HedgeTotal
(in thousands)
December 30, 2023$(149,999)$(47,167)$739 $(196,427)
Other comprehensive income (loss) before reclassifications
(60,077)344