Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 167

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 167
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 offset by measurement period adjustments related to the acquisition of Noveprim in the DSA reportable segment. The increase in goodwill during fiscal year 2023 is related to the acquisitions of Noveprim and SAMDI in the DSA reportable segment.Annual Goodwill Impairment AssessmentGoodwill is tested for impairment annually during the fourth quarter or more frequently if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of the Company's reporting units below their carrying amounts. Based on the Company’s quantitative goodwill impairment test, which was performed in the fourth quarter for each of the fiscal years 2024, 2023, and 2022, the fair value of each reporting unit exceeded the reporting unit’s book value and, therefore, goodwill was not impaired. 

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

2024 Goodwill Impairment Results from Triggering EventsDuring the third quarter of fiscal 2024, a triggering event was identified for the Discovery Services reporting unit (part of the DSA reportable segment). This resulted from a continuous decline in market conditions and operational challenges, ultimately resulting in a reduction of Discovery Services’ long range financial outlook. In response, management conducted a quantitative impairment test for goodwill to determine if the goodwill in the Discovery Services reporting unit was impaired. Upon completion of a quantitative impairment test, it was determined that the fair value of the reporting unit exceeded its carrying value as of the end of the third quarter of fiscal 2024, and no impairment was recognized. During the fourth quarter of fiscal 2024, as part of the annual impairment assessment, the Company revised the estimated cash flow inputs utilized in the quantitative impairment test which resulted in the fair value of the reporting unit exceeding its carrying value by approximately 16%, and no impairment was recognized as of December 28, 2024. The goodwill assigned to the Discovery Services reporting unit was $325 million as of December 28, 2024. While the Discovery Services reporting unit is not currently impaired, the Company will continue to closely monitor future performance and any potential impacts on the value of the reporting unit.In December 2024 subsequent to the annual goodwill impairment test, a triggering event was identified for the Biologics Solutions reporting unit (part of the Manufacturing reporting segment) which has goodwill assigned to it of $606 million. This resulted from a loss of key customers, ultimately resulting in a reduction in Bi