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ACQUISITIONS AND DIVESTITURES (Tables) | 6 Months Ended
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Jun. 25, 2022
Business Combination and Asset Acquisition [Abstract] |
Schedule of Purchase Price Allocation and Transaction and Integration Costs | The purchase price allocation was as follows:
| Explora (1) |  | Vigene |  | Retrogenix |  | Cognate |  | Distributed Bio
| April 5, 2022 |  | June 28, 2021 |  | March 30, 2021 |  | March 29, 2021 |  | December 31, 2020
| (in thousands)
Trade receivables | $ | 7,679 |  |  | $ | 3,548 |  |  | $ | 2,266 |  |  | $ | 18,566 |  |  | $ | 2,722 |
Other current assets (excluding cash) | 1,067 |  |  | 1,657 |  |  | 209 |  |  | 14,128 |  |  | 221 |
Property, plant and equipment | 37,369 |  |  | 7,649 |  |  | 400 |  |  | 52,082 |  |  | 2,382 |
Operating lease right-of-use asset, net | 48,613 |  |  | 22,507 |  |  | 1,385 |  |  | 34,349 |  |  | 1,586 |
Goodwill (2) | 216,324 |  |  | 239,681 |  |  | 34,489 |  |  | 611,555 |  |  | 71,585 |
Definite-lived intangible assets | 70,100 |  |  | 93,900 |  |  | 22,126 |  |  | 270,900 |  |  | 24,540 |
Other long-term assets | 556 |  |  | 694 |  |  | — |  |  | 6,098 |  |  | 469 |
Deferred revenue | (3,507) |  |  | (4,260) |  |  | (434) |  |  | (20,539) |  |  | (1,319) |
Other current liabilities (3) | (15,507) |  |  | (6,319) |  |  | (1,141) |  |  | (45,388) |  |  | (1,504) |
Operating lease right-of-use liabilities (Long-term) | (57,193) |  |  | (21,220) |  |  | (1,205) |  |  | (31,383) |  |  | (1,123) |
Deferred tax liabilities | (19,173) |  |  | (13,958) |  |  | (4,174) |  |  | (32,503) |  |  | (2,529) |
Other long-term liabilities | (1,807) |  |  | — |  |  | — |  |  | — |  |  | — |
Total purchase price allocation | $ | 284,521 |  |  | $ | 323,879 |  |  | $ | 53,921 |  |  | $ | 877,865 |  |  | $ | 97,030 |
(1) Purchase price allocation is preliminary and subject to change as additional information becomes available concerning the fair value and tax basis of the assets acquired and liabilities assumed, including certain contracts and obligations. Any additional adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition.
(2) The goodwill resulting from these transactions is primarily attributable to the potential growth of the Company’s segments from new customers introduced to the acquired businesses and the assembled workforce of the acquirees, thus is not deductible for tax purposes. Explora BioLabs had $5.0 million of goodwill due to a prior asset acquisition that is not deductible for tax purposes.
(3) In connection with its acquisitions of businesses, the Company routinely records liabilities related to indirect state and local taxes for preacquisition periods when such liabilities are estimable and deemed probable. The Company may or may not be indemnified for such indirect tax liabilities under terms of the acquisitions. As these indirect tax contingencies are resolved, actual obligations, and any indemnifications, may differ from the recorded amounts and any differences are reflected in reported results in the period in which these are resolved. Specifically for Cognate, as of March 29, 2021, the Company recorded an estimated liability of $17 million pertaining to indirect state sales taxes. During the three months ended June 25, 2022, the Company received a favorable ruling from the applicable state in which the indirect state sales tax liability arose and, accordingly, this liability was reduced in full, resulting in a gain recorded through selling, general and administrative expenses in the period.
| Three Months Ended |  | Six Months Ended
| June 25, 2022 |  | June 26, 2021 |  | June 25, 2022 |  | June 26, 2021
| (in thousands)
Transaction and Integration Costs |  |  |  |  |  |  |
Selling, general and administrative expenses | $ | 4,426 |  |  | $ | 14,694 |  |  | $ | 11,539 |  |  | $ | 23,411 |
Schedule of Definite-Lived Intangible Assets Acquired as Part of Business Combination | The definite-lived intangible assets acquired were as follows:
| Explora BioLabs |  | Vigene |  | Retrogenix |  | Cognate |  | Distributed Bio
Definite-Lived Intangible Assets | (in thousands)
Client relationships | $ | 64,000 |  |  | $ | 87,500 |  |  | $ | 17,340 |  |  | $ | 257,200 |  |  | $ | 16,080 |
Other intangible assets | 6,100 |  |  | 6,400 |  |  | 4,786 |  |  | 13,700 |  |  | 8,460 |
Total definite-lived intangible assets | $ | 70,100 |  |  | $ | 93,900 |  |  | $ | 22,126 |  |  | $ | 270,900 |  |  | $ | 24,540 |
Weighted Average Amortization Life | (in years)
Client relationships | 13 |  | 12 |  | 13 |  | 13 |  | 9
Other intangible assets | 4 |  | 2 |  | 3 |  | 2 |  | 4
Total definite-lived intangible assets | 12 |  | 11 |  | 11 |  | 13 |  | 7
Schedule of Pro Forma Information |
| June 26, 2021
| Three Months Ended |  | Six Months Ended
| (in thousands)
| (unaudited)
Revenue | $ | 923,859 |  |  | $ | 1,782,659 |
Net income attributable to common shareholders | 94,984 |  |  | 132,559 |
Schedule of Major Classes of Assets and Liabilities Associated with Divestitures | The carrying amounts of the major classes of assets and liabilities associated with the divestitures of the businesses were as follows:
| October 12, 2021
| RMS Japan |  | CDMO Sweden
| (in thousands)
Assets |  |  |
Current assets | $ | 26,524 |  |  | $ | 8,187 |
Property, plant, and equipment, net | 17,379 |  |  | 14,339 |
Operating lease right-of-use assets, net | — |  |  | 19,733 |
Goodwill | 4,129 |  |  | 27,764 |
Intangible assets, net | — |  |  | 14,089 |
Other assets | 3,695 |  |  | — |
Total assets | $ | 51,727 |  |  | $ | 84,112 |
Liabilities |  |  |
Current liabilities | $ | 8,705 |  |  | $ | 6,386 |
Operating lease right-of-use liabilities | — |  |  | 18,221 |
Long-term liabilities | 94 |  |  | — |
Total liabilities | $ | 8,799 |  |  | $ | 24,607 |

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