Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 128

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 128
---
 a critical audit matter are a high degree of auditor subjectivity and effort in performing procedures and evaluating audit evidence related to the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation, review of contracts, testing of budget versus actual costs incurred, and testing of revenue recognition. These procedures also included, among others (i) reading contracts and reports describing the results of services provided for a sample of DSA service contracts; (ii) testing management’s process for determining the amount of DSA service revenue recognized over time for a sample of DSA service contracts; (iii) evaluating the appropriateness of the cost-to-cost method used by management; (iv) evaluating the reasonableness of the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations through performing a retrospective comparison of actual costs incurred to historical estimated costs for completed service contracts; and (v) testing actual costs incurred for a sample of in-progress service contracts by examining evidence of costs incurred.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2025

We have served as the Company’s auditor since 1999.

58

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share amounts)

 Fiscal Year 202420232022Service revenue$3,304,138 $3,440,019 $3,216,904 Product revenue745,851 689,390 759,156 Total revenue4,049,989 4,129,409 3,976,060 Costs and expenses   Cost of services provided (excluding amortization of intangible assets) 2,345,781 2,295,983 2,143,318 Cost of products sold (excluding amortization of intangible assets)372,387 330,870 370,091 Selling, general and administrative751,003 747,855 665,098 Amortization of intangible assets138,471 137,440 146,578 Goodwill impairment215,000 — — Operating income227,347