Company: CRL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001100682-25-000034
Chunk: 37

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 37
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,650)(435.6)%Total other expense, net$(67,407)$(58,965)$(8,442)14.3 %

Interest income for the six months ended June 28, 2025 was $2.5 million, a decrease of $2.7 million, or 52.0%, driven primarily from lower interest rates and interest earning asset balances.

Interest expense for the six months ended June 28, 2025 was $57.9 million, a decrease of $9.9 million, or 14.6%, compared to $67.8 million in the corresponding period in 2024 due primarily to lower average debt balances.

Other expense, net for the six months ended June 28, 2025 was $12.1 million compared to Other income, net of $3.6 million for the corresponding period in 2024 due primarily to venture capital investment losses of $9.0 million as compared to gains of $1.8 million in the corresponding period in 2024.

Income Taxes

Six Months EndedJune 28, 2025June 29, 2024$ change% change(in thousands, except percentages)Provision for income taxes$28,825 $49,921 $(21,096)(42.3)%Effective tax rate26.8 %22.8 %400 bps

Income tax expense for the six months ended June 28, 2025 was $28.8 million, a decrease of $21.1 million compared to $49.9 million for the corresponding period in 2024. Our effective tax rate was 26.8% for the six months ended June 28, 2025 compared to 22.8% for the corresponding period in 2024. The increase in our effective tax rate in the six months ended June 28, 2025 compared to the corresponding period in 2024 was primarily attributable to the tax effects from stock-based compensation deductions, as well as non-taxable remeasurement gains on a previous equity investment in Noveprim during the six months ended June 29, 2024.

Liquidity and Capital Resources 

Liquidity and Cash Flows

In general we require cash to fund our working capital needs, capital expansion, acquisitions, debt payments, lease payments, venture capital investment, restructuring initiatives, and pension obligations. Our principal sources of liquidity have been our cash flows from operations supplemented by long-term borrowings. Based on our