Company: CRL
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001100682-25-000011
Chunk: 114

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 114
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7,079 15.6 %Goodwill impairment215,000 — 215,000 100.0 %Operating income (loss)$(71,453)$88,329 $(159,782)(180.9)%(0.9)%Operating income (loss)% of revenue(9.3)%12.2 %(2,150) bps

Manufacturing revenue increased $47.9 million primarily due to increased revenue in both our Biologics Solutions and Microbial Solutions businesses, driven by higher endotoxin product revenue coupled with increased revenue related to our Biologics Testing and CDMO services.

Manufacturing operating income (loss) decreased $159.8 million compared to fiscal year 2023. Manufacturing operating income (loss) as a percentage of revenue for fiscal year 2024 was (9.3)%, a decrease of 2,150 bps from 12.2% for fiscal year 2023. Operating income (loss) and operating income (loss) as a percentage of revenue decreased primarily due to the goodwill impairment of $215.0 million within our Biologics Solutions reporting unit, higher severance related to the recent restructuring activity, and accelerated amortization of certain client relationships in the CDMO business due to a change in estimate of the remaining useful life; partially offset by the higher revenue described above and improved operating leverage as well as lower legal costs from an environmental litigation related to the Microbial Solutions business compared to the corresponding period in 2023.

Unallocated Corporate

Fiscal Year20242023$ change% changeImpact of FX(in thousands, except percentages)Unallocated corporate$258,121 $231,810 $26,311 11.4 %0.2 %Unallocated corporate % of revenue6.4 %5.6 %80 bps

Unallocated corporate costs consist of selling, general and administrative expenses that are not directly related or allocated to the reportable segments. The increase in unallocated corporate costs of $26.3 million, or 11.4%, compared to fiscal year 2023 is primarily related to severance associated with recent restructuring activities, adjustments to contingent consideration associated with a recent divestiture, and the absence of positive net settlements recognized on virtual power purchase agreements as compared to the corresponding period in 2023. Costs as a percentage of revenue for fiscal year 2024 was 6.4%, an increase of 80 b