Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 179

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 179
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CHARLES RIVER LABORATORIES INTERNATIONAL, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

A reconciliation of the Company’s beginning and ending unrecognized income tax benefits is as follows:Fiscal Year202420232022(in thousands)Beginning balance$22,702 $23,242 $32,592 Additions to tax positions for current year2,649 3,093 4,756 Additions to tax positions for prior years852 721 962 Reductions to tax positions for prior years(801)(4,058)(1,420)Settlements— — (10,514)Expiration of statute of limitations(362)(296)(3,134)Ending balance$25,040 $22,702 $23,242 The $2.3 million increase in unrecognized income tax benefits during fiscal year 2024 as compared to the corresponding period in 2023 is primarily attributable to an additional year of Canadian Scientific Research and Experimental Development (SR&ED) credit additions, offset by favorable foreign exchange movement, as well as statute of limitations lapse on R&D credits. The amount of unrecognized income tax benefits that, if recognized, would favorably impact the effective tax rate was $22.0 million as of December 28, 2024 and $20.3 million as of December 30, 2023. It is reasonably possible as of December 28, 2024 that the liability for unrecognized tax benefits for the uncertain tax position will decrease by approximately $7.5 million over the next twelve-month period. The Company continues to recognize interest and penalties related to unrecognized income tax benefits in income tax expense. The total amount of cumulative accrued interest related to unrecognized income tax benefits as of December 28, 2024 and December 30, 2023 was $2.0 million and $1.3 million, respectively. Interest expense recorded as a component of income taxes was immaterial for all periods. There were no accrued penalties related to unrecognized income tax benefits as of December 28, 2024 or as of December 30, 2023.The Company conducts business in a number of tax jurisdictions. As a result, it is subject to tax audits on a regular basis including, but not limited to, such major jurisdictions as the U.S., the U.K., China, France, Germany, and Canada. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years