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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 28, 2024
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans The Charles River Pension Plan (U.K. Pension Plan) is a defined contribution and defined benefit pension plan covering certain U.K. employees. Benefits are based on participants’ final pensionable salary and years of service. Participants’ rights vest immediately. The plan was previously amended to exclude new participants from joining the defined benefit section of the plan and a defined contribution section was established for new entrants. Contributions under the defined contribution plan are determined as a percentage of gross salary. Additionally, the U.K. Pension Plan was amended such that the members of the defined benefit section of the plan ceased to accrue additional benefits; however, their benefits continue to be adjusted for changes in their final pensionable salary or a specified inflation index, as applicable. During fiscal 2024, the Company made $3.8 million in contributions to the U.K. Pension Plan. As of fiscal 2024 year-end, this plan was in a funded status of $31.4 million. During 2022, the Company terminated a non-contributory defined benefit plan that covered certain employees in Canada (Canada Pension Plan). Upon settlement of the pension liability in fiscal year 2022, the Company recognized a $1.0 million loss related to the net periodic benefit cost recorded in Other expense in the consolidated statements of income. In addition, the Company has several defined benefit plans in certain other countries in which it maintains an operating presence, including Canada, France, Germany, Italy, Mauritius, Netherlands, and Japan. The net periodic benefit cost (income) associated with these plans for fiscal years 2024, 2023 and 2022 totaled $4.8 million, $2.8 million and $0.1 million, respectively. Charles River Laboratories Deferred Compensation Plan and Executive Supplemental Life Insurance Retirement Plan The Company maintains a non-qualified deferred compensation plan, known as the Charles River Laboratories Deferred Compensation Plan (DCP), which allows a select group of eligible employees to defer a portion of their compensation. At the present time, no contributions are credited to the DCP, except as set forth below. Participants must specify the distribution date for deferred amounts at the time of deferral, in accordance with applicable IRS regulations. Generally, amounts may be paid in lump sum or installments upon retirement or termination of employment, or later if the employee terminates employment after age 55 and before age 65. Amounts may also be distributed during employment, subject to a minimum deferral requirement of three years. The Company provides certain active employees an annual contribution into their DCP account of 10% of the employee’s base salary plus the lesser of their target annual bonus or actual annual bonus. Each annual employer contribution shall become vested and non-forfeitable in four equal installments on December 31 (the “Vesting Date”) of each of the four years following the year in respect of which the annual employer contribution was made, provided that the employee remains employed by the Company on the applicable Vesting Date. All of an employee’s annual employer contributions will vest and become non-forfeitable upon (i) a change in control, (ii) the employee’s death or disability, or (iii) the attainment by such employee of age 60 following continuous employment by the Company until such time. In addition to the DCP, certain officers and key employees also participate, or in the past participated, in the Company’s Executive Supplemental Life Insurance Retirement Plan (ESLIRP), which is a non-funded, non-qualified arrangement. Annual benefits under this plan will equal a percentage of the highest five consecutive years of compensation, offset by amounts payable under the U.S. Pension Plan and Social Security. In connection with the establishment of the DCP, certain active ESLIRP participants, who agreed to convert their accrued ESLIRP benefit to a comparable deferred compensation benefit, discontinued their direct participation in the ESLIRP. Instead, the present values of the accrued benefits of ESLIRP participants were credited to their DCP accounts, and future accruals are converted to present values and credited to their DCP accounts annually. The net periodic benefit cost associated with these plans for fiscal years 2024, 2023 and 2022 totaled $3.0 million, $2.8 million and $4.3 million, respectively. The Company has invested in several corporate-owned key-person life insurance policies with the intention of using these investments to fund the ESLIRP and the DCP. Participants have no interest in any such investments. As of December 28, 2024 and December 30, 2023, the cash surrender value of these life insurance policies were $55.8 million and $48.4 million, respectively. The following table provides a reconciliation of benefit obligations and plan assets of the Company’s pension, DCP, and ESLIRP plans:
| December 28, 2024 |  | December 30, 2023
| (in thousands)
Change in projected benefit obligations: |  |  |
Benefit obligation at beginning of year | $ | 224,875 |  |  | $ | 205,551 |
Service cost | 2,807 |  |  | 2,474 |
Interest cost | 10,417 |  |  | 9,941 |
Benefit payments | (8,034) |  |  | (6,239) |
Curtailment | (7) |  |  | — |
Settlements | (74) |  |  | — |
Transfer in due to acquisition | — |  |  | 1,106 |
Actuarial (gain) loss | (10,667) |  |  | 3,600 |
Effect of foreign exchange | (3,358) |  |  | 8,442 |
Benefit obligation at end of year | $ | 215,959 |  |  | $ | 224,875 |
Change in fair value of plan assets: |  |  |
Fair value of plan assets at beginning of year | $ | 203,657 |  |  | $ | 192,540 |
Actual return on plan assets | (15,713) |  |  | 5,578 |
Employer contributions | 5,496 |  |  | 1,744 |
Settlements | (74) |  |  | — |
Transfer in due to acquisition | — |  |  | 181 |
Benefit payments | (8,034) |  |  | (6,239) |
Effect of foreign exchange | (2,685) |  |  | 9,853 |
Fair value of plan assets at end of year | $ | 182,647 |  |  | $ | 203,657 |
Net balance sheet liability | $ | 33,312 |  |  | $ | 21,218 |
Amounts recognized in balance sheet: |  |  |
Noncurrent assets | $ | 31,628 |  |  | $ | 36,957 |
Current liabilities | 873 |  |  | 1,164 |
Noncurrent liabilities | 64,067 |  |  | 57,011 |
Actuarial gains and losses are driven by changes in economic assumptions, principally discount rates. Amounts recognized in accumulated other comprehensive loss related to the Company’s pension, DCP, and ESLIRP plans are as follows:
| Fiscal Year
| 2024 |  | 2023 |  | 2022
| (in thousands)
Net actuarial loss | $ | 69,340 |  |  | $ | 58,855 |  |  | $ | 54,509 |
Net prior service cost (credit) | (125) |  |  | (121) |  |  | (585) |
Net amount recognized | $ | 69,215 |  |  | $ | 58,734 |  |  | $ | 53,924 |
The accumulated benefit obligation and fair value of plan assets for the Company’s pension, DCP, and ESLIRP plans with accumulated benefit obligations in excess of plan assets are as follows:
| December 28, 2024 |  | December 30, 2023
| (in thousands)
Accumulated benefit obligation | $ | 59,920 |  |  | $ | 54,310 |
Fair value of plan assets | 2,901 |  |  | 2,824 |
The projected benefit obligation and fair value of plan assets for the Company’s pension, DCP, and ESLIRP plans with projected benefit obligations in excess of plan assets are as follows:
| December 28, 2024 |  | December 30, 2023
| (in thousands)
Projected benefit obligation | $ | 68,487 |  |  | $ | 61,671 |
Fair value of plan assets | 3,548 |  |  | 3,496 |
Components of total benefit cost for the Company’s pension, DCP, and ESLIRP plans are as follows:
| Fiscal Year
| 2024 |  | 2023 |  | 2022
| (in thousands)
Service cost | $ | 2,807 |  |  | $ | 2,474 |  |  | $ | 3,213 |
Interest cost | 10,417 |  |  | 9,941 |  |  | 6,140 |
Expected return on plan assets | (7,077) |  |  | (7,556) |  |  | (7,322) |
Amortization of prior service credit | 4 |  |  | (464) |  |  | (506) |
Amortization of net loss | 1,632 |  |  | 1,231 |  |  | 2,869 |
Net periodic benefit cost | 7,783 |  |  | 5,626 |  |  | 4,394 |
Settlement | — |  |  | — |  |  | 981 |
Total benefit cost | $ | 7,783 |  |  | $ | 5,626 |  |  | $ | 5,375 |
Assumptions Weighted-average assumptions used to determine projected benefit obligations are as follows:
| December 28, 2024 |  | December 30, 2023
Discount rate | 5.2 | % |  | 4.7 | %
Rate of compensation increase | 3.2 | % |  | 3.2 | %
The discount rate reflects the rate the Company would have to pay to purchase high-quality investments that would provide cash sufficient to settle its current pension obligations. Weighted-average assumptions used to determine net periodic benefit cost are as follows:
| December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Discount rate | 4.7 | % |  | 4.8 | % |  | 1.8 | %
Expected long-term return on plan assets | 3.5 | % |  | 3.9 | % |  | 2.4 | %
Rate of compensation increase | 3.1 | % |  | 3.2 | % |  | 3.7 | %
In fiscal year 2023, new mortality improvement scales were issued in the U.S. and the United Kingdom (U.K.) reflecting a decline in longevity projection from previous releases the Company adopted, which decreased the Company’s benefit obligations by $3.5 million as of December 30, 2023. There were no new mortality improvement scales issued in fiscal 2024. Plan Assets The Company invests its pension assets with the objective of achieving a total long-term rate of return sufficient to fund future pension obligations and to minimize future pension contributions. The Company is willing to tolerate a commensurate level of risk to achieve this objective. The Company controls its risk by maintaining a diversified portfolio of asset classes. Plan assets did not include any of the Company’s common stock as of December 28, 2024 or December 30, 2023. The weighted-average target asset allocations are 6.0% to equity securities, 85.3% to fixed income securities, and 8.7% to other securities. The fair value of the Company’s pension plan assets by asset category are as follows:
| December 28, 2024 |  | December 30, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
| (in thousands)
Cash and cash equivalents | $ | 2,406 |  |  | $ | 25 |  |  | $ | — |  |  | $ | 2,431 |  |  | $ | 446 |  |  | $ | 798 |  |  | $ | — |  |  | $ | 1,244 |
Equity securities (1) | — |  |  | 11,962 |  |  | — |  |  | 11,962 |  |  | — |  |  | 10,701 |  |  | — |  |  | 10,701 |
Debt securities (2) | — |  |  | 126,965 |  |  | — |  |  | 126,965 |  |  | — |  |  | 144,822 |  |  | — |  |  | 144,822 |
Mutual funds (3) | 8,507 |  |  | 11,080 |  |  | — |  |  | 19,587 |  |  | 9,207 |  |  | 10,368 |  |  | — |  |  | 19,575 |
Other (4) | — |  |  | 21,645 |  |  | 57 |  |  | 21,702 |  |  | — |  |  | 27,254 |  |  | 61 |  |  | 27,315 |
Total | $ | 10,913 |  |  | $ | 171,677 |  |  | $ | 57 |  |  | $ | 182,647 |  |  | $ | 9,653 |  |  | $ | 193,943 |  |  | $ | 61 |  |  | $ | 203,657 |
(1) This category comprises equity investments and securities held by non-U.S. pension plans valued at the quoted closing price and translated into U.S. dollars using a foreign currency exchange rate at year end.
(2) This category comprises debt investments and securities held by non-U.S. pension plans valued at the quoted closing price and translated into U.S. dollars using a foreign currency exchange rate at year end. Holdings primarily include treasury securities and investment-grade corporate bonds at various durations.
(3) This category comprises mutual funds valued at the net asset value of shares held by non-U.S. pension plans at year end and translated into U.S. dollars using a foreign currency exchange rate at year end.
(4) This category mainly comprises fixed income securities tied to various U.K. government bond yields held by non-US pension plans valued at the net asset value of shares held at year-end and translated into U.S. dollars using a foreign currency exchange rate at year end.
The activity within the Level 3 pension plan assets was not material during the periods presented. During fiscal year 2024, the Company contributed $3.5 million to the pension plans and expects to make no contributions in fiscal year 2025. During fiscal year 2024, the Company paid $2.0 million directly to certain participants outside of plan assets. Expected benefit payments are estimated using the same assumptions used in determining the Company’s benefit obligation as of 2024. Benefit payments will depend on future employment and compensation levels, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. Estimated future benefit payments during the next five years and in the aggregate for fiscal years 2030 through 2034, are as follows.
Fiscal Year |  | Pension Plans
|  | (in thousands)
2025 |  | $ | 6,706 |
2026 |  | 49,809 |
2027 |  | 7,503 |
2028 |  | 8,251 |
2029 |  | 9,371 |
2030-2034 |  | 57,076 |
Charles River Laboratories Employee Savings Plan The Charles River Laboratories Employee Savings Plan is a defined contribution plan in the form of a qualified 401(k) plan in which substantially all U.S. employees are eligible to participate upon employment. The plan contains a provision whereby the Company matches a percentage of employee contributions. During fiscal years 2024, 2023, and 2022, the costs associated with this defined contribution plan totaled $30.9 million, $31.6 million, and $28.8 million, respectively.

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