Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 168

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 168
---
ologics Solutions’ long range financial outlook. In response, management conducted a quantitative impairment test for goodwill to determine if the goodwill in the Biologics Solutions reporting unit was impaired. The fair value of the Biologics Solutions reporting unit was determined by using a weighted combination of a market-based approach and an income approach. Under the market-based approach, the Company utilized entity specific information about the reporting unit as well as publicly available industry information to determine key assumptions including earnings multiples and sales multiples. Under the income approach, fair value was determined based on the estimated future cash flows of the reporting unit which includes key assumptions for future revenue, long term growth rates, and operating income margins, discounted by an estimated weighted-average cost of capital. The Biologics Solutions reporting unit fair value measurement is classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs.Upon completion of the quantitative impairment test, it was determined that the fair value of the reporting unit did not exceed its carrying value. As a result, the Company recognized a goodwill impairment charge of $215.0 million within the accompanying consolidated statements of income. The Company will continue to closely monitor future performance and any potential impacts on the value of the reporting unit.Intangible Assets, NetThe following table displays intangible assets, net by major class: December 28, 2024December 30, 2023GrossAccumulatedAmortization NetGrossAccumulatedAmortizationNet(in thousands)Client relationships$1,505,871 $(823,903)$681,968 $1,528,780 $(721,322)$807,458 Technology139,335 (116,536)22,799 142,190 (111,764)30,426 Trademarks and trade names11,827 (5,630)6,197 11,878 (4,568)7,310 Backlog— — — 3,100 (2,177)923 Other39,819 (27,383)12,436 43,611 (25,677)17,934 Intangible assets$1,696,852 $(973,452)$723,400 $1,729,559 $(865,508)$864,051 During the fourth quarter ended December 28, 2024, a triggering event was identified for the Cell Therapy asset group within the Biologics Solutions business as there was a loss of key customers