Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-15943 | |
Entity Registrant Name | CHARLES RIVER LABORATORIES INTERNATIONAL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1397316 | |
Entity Address, Address Line One | 251 Ballardvale Street | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01887 | |
City Area Code | 781 | |
Local Phone Number | 222-6000 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | CRL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,838,925 | |
Entity Central Index Key | 0001100682 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Total revenue | $ 667,951 | $ 585,295 | $ 1,930,088 | $ 1,664,566 |
Costs and expenses: | ||||
Selling, general and administrative | 129,509 | 113,033 | 388,024 | 336,936 |
Amortization of intangible assets | 23,805 | 18,805 | 65,611 | 47,813 |
Operating income | 92,802 | 84,362 | 242,362 | 228,901 |
Other income (expense): | ||||
Interest income | 385 | 230 | 838 | 694 |
Interest expense | (5,698) | (17,197) | (36,520) | (47,031) |
Other (expense) income, net | (14,254) | 5,910 | (8,161) | 24,069 |
Income from continuing operations, before income taxes | 73,235 | 73,305 | 198,519 | 206,633 |
(Benefit) provision for income taxes | (317) | 12,403 | 24,970 | 39,613 |
Income from continuing operations, net of income taxes | 73,552 | 60,902 | 173,549 | 167,020 |
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | 1,506 |
Net income | 73,552 | 60,902 | 173,549 | 168,526 |
Less: Net income attributable to noncontrolling interests | 742 | 534 | 1,878 | 1,818 |
Net income attributable to common shareholders | $ 72,810 | $ 60,368 | $ 171,671 | $ 166,708 |
Basic: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | $ 1.49 | $ 1.25 | $ 3.53 | $ 3.43 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.03 |
Net income attributable to common shareholders (in dollars per share) | 1.49 | 1.25 | 3.53 | 3.47 |
Diluted: | ||||
Continuing operations attributable to common shareholders (in dollars per share) | 1.46 | 1.22 | 3.46 | 3.36 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.03 |
Net income attributable to common shareholders (in dollars per share) | $ 1.46 | $ 1.22 | $ 3.46 | $ 3.39 |
Weighted-average shares outstanding—Basic (in shares) | 48,818 | 48,310 | 48,682 | 48,098 |
Weighted-average shares outstanding—Diluted (in shares) | 49,715 | 49,326 | 49,627 | 49,118 |
Service | ||||
Total revenue | $ 523,169 | $ 443,038 | $ 1,479,991 | $ 1,226,948 |
Costs and expenses: | ||||
Cost of services provided and products sold (excluding amortization of intangible assets) | 351,894 | 298,018 | 1,014,063 | 844,130 |
Product | ||||
Total revenue | 144,782 | 142,257 | 450,097 | 437,618 |
Costs and expenses: | ||||
Cost of services provided and products sold (excluding amortization of intangible assets) | $ 69,941 | $ 71,077 | $ 220,028 | $ 206,786 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 73,552 | $ 60,902 | $ 173,549 | $ 168,526 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment and other | (15,889) | (6,805) | (9,075) | (14,524) |
Amortization of net loss and prior service benefit included in net periodic cost for pension and other post-retirement benefit plans | 365 | 615 | 1,113 | 1,864 |
Comprehensive income, before income taxes | 58,028 | 54,712 | 165,587 | 155,866 |
Less: Income tax expense (benefit) related to items of other comprehensive income | (2,511) | 257 | (1,381) | (341) |
Comprehensive income, net of income taxes | 60,539 | 54,455 | 166,968 | 156,207 |
Less: Comprehensive income (loss) related to noncontrolling interests, net of income taxes | (37) | (74) | 1,064 | 886 |
Comprehensive income attributable to common shareholders, net of income taxes | $ 60,576 | $ 54,529 | $ 165,904 | $ 155,321 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 164,759 | $ 195,442 |
Trade receivables, net | 524,074 | 472,248 |
Inventories | 155,526 | 127,892 |
Prepaid assets | 51,274 | 53,447 |
Other current assets | 76,774 | 48,807 |
Total current assets | 972,407 | 897,836 |
Property, plant and equipment, net | 1,008,047 | 932,877 |
Operating lease right-of-use assets, net | 140,359 | |
Goodwill | 1,521,619 | 1,247,133 |
Client relationships and other intangible assets, net | 702,125 | 610,888 |
Deferred tax assets | 44,831 | 23,386 |
Other assets | 193,174 | 143,759 |
Total assets | 4,582,562 | 3,855,879 |
Current liabilities: | ||
Current portion of long-term debt and finance leases | 33,611 | 31,416 |
Accounts payable | 107,231 | 66,250 |
Accrued compensation | 130,292 | 137,212 |
Deferred revenue | 166,095 | 145,139 |
Accrued liabilities | 130,015 | 106,925 |
Other current liabilities | 114,402 | 71,280 |
Total current liabilities | 681,646 | 558,222 |
Long-term debt, net and finance leases | 1,882,593 | 1,636,598 |
Operating lease right-of-use liabilities | 116,868 | |
Deferred tax liabilities | 165,480 | 143,635 |
Other long-term liabilities | 171,243 | 179,121 |
Total liabilities | 3,017,830 | 2,517,576 |
Commitments and contingencies (Note 17) | ||
Redeemable noncontrolling interests | 28,345 | 18,525 |
Equity: | ||
Preferred stock, $0.01 par value; 20,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 120,000 shares authorized; 48,976 shares issued and 48,837 shares outstanding as of September 28, 2019, and 48,210 shares issued and 48,209 shares outstanding as of December 29, 2018 | 490 | 482 |
Additional paid-in capital | 1,514,620 | 1,447,512 |
Retained earnings | 213,767 | 42,096 |
Treasury stock, at cost, 139 and 1 shares, as of September 28, 2019 and December 29, 2018, respectively | (18,094) | (55) |
Accumulated other comprehensive loss | (178,470) | (172,703) |
Total equity attributable to common shareholders | 1,532,313 | 1,317,332 |
Noncontrolling interest | 4,074 | 2,446 |
Total equity | 1,536,387 | 1,319,778 |
Total liabilities, redeemable noncontrolling interests, and equity | 4,582,562 | 3,855,879 |
Client relationships, net | ||
Current assets: | ||
Client relationships and other intangible assets, net | 620,868 | 537,945 |
Other intangible assets, net | ||
Current assets: | ||
Client relationships and other intangible assets, net | $ 81,257 | $ 72,943 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 48,976,000 | 48,210,000 |
Common stock, shares outstanding (in shares) | 48,837,000 | 48,209,000 |
Treasury stock (in shares) | 139,000 | 1,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows relating to operating activities | ||
Net income | $ 173,549 | $ 168,526 |
Less: Income from discontinued operations, net of income taxes | 0 | 1,506 |
Income from continuing operations, net of income taxes | 173,549 | 167,020 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 146,262 | 120,198 |
Stock-based compensation | 43,429 | 35,908 |
Deferred income taxes | (25,092) | (10,385) |
Gain on venture capital investments | (5,724) | (22,760) |
Other, net | 4,865 | 10,036 |
Changes in assets and liabilities: | ||
Trade receivables, net | (24,491) | (30,318) |
Inventories | (12,981) | (10,340) |
Accounts payable | 24,481 | (5,322) |
Accrued compensation | (23,320) | 6,088 |
Deferred revenue | (1,556) | 33,491 |
Customer contract deposits | (7,586) | 34,455 |
Other assets and liabilities, net | 8,423 | (26,904) |
Net cash provided by operating activities | 300,259 | 301,167 |
Cash flows relating to investing activities | ||
Acquisition of businesses and assets, net of cash acquired | (515,647) | (822,611) |
Capital expenditures | (76,675) | (71,378) |
Purchases of investments and contributions to venture capital investments | (17,664) | (20,535) |
Proceeds from sale of investments | 15 | 30,595 |
Other, net | (660) | (118) |
Net cash used in investing activities | (610,631) | (884,047) |
Cash flows relating to financing activities | ||
Proceeds from long-term debt and revolving credit facility | 2,071,175 | 2,392,201 |
Proceeds from exercises of stock options | 26,982 | 30,228 |
Payments on long-term debt, revolving credit facility, and finance lease obligations | (1,798,620) | (1,832,805) |
Payment of debt financing costs | 0 | (18,337) |
Purchase of treasury stock | (18,040) | (13,791) |
Other, net | (10,516) | 0 |
Net cash provided by financing activities | 270,981 | 557,496 |
Discontinued operations | ||
Net cash used in operating activities from discontinued operations | 0 | (3,735) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 8,793 | 4,664 |
Net change in cash, cash equivalents, and restricted cash | (30,598) | (24,455) |
Cash, cash equivalents, and restricted cash, beginning of period | 197,318 | 166,331 |
Cash, cash equivalents, and restricted cash, end of period | 166,720 | 141,876 |
Supplemental cash flow information: | ||
Cash, cash equivalents, and restricted cash, end of period | $ 197,318 | $ 166,331 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Equity Attributable to Common Shareholders | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 30, 2017 | 87,495 | 40,093 | ||||||
Beginning balance at Dec. 30, 2017 | $ 1,047,407 | $ 875 | $ 2,560,192 | $ 288,658 | $ (144,731) | $ (1,659,914) | $ 1,045,080 | $ 2,327 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 53,095 | 52,631 | 52,631 | 464 | ||||
Other comprehensive income (loss) | 23,604 | 23,604 | 23,604 | |||||
Reclassification due to adoption of ASU 2018-02 Reclass | 0 | 3,330 | (3,330) | |||||
Issuance of stock under employee compensation plans (in shares) | 630 | |||||||
Issuance of stock under employee compensation plans | 20,094 | $ 6 | 20,088 | 20,094 | ||||
Acquisition of treasury shares (in shares) | 126 | |||||||
Acquisition of treasury shares | (13,549) | $ (13,549) | (13,549) | |||||
Stock-based compensation | 10,541 | 10,541 | 10,541 | |||||
Ending balance (in shares) at Mar. 31, 2018 | 88,125 | 40,219 | ||||||
Ending balance at Mar. 31, 2018 | 1,142,616 | $ 881 | 2,590,821 | 346,043 | (124,457) | $ (1,673,463) | 1,139,825 | 2,791 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 54,157 | 53,709 | 53,709 | 448 | ||||
Other comprehensive income (loss) | (29,151) | (29,151) | (29,151) | |||||
Issuance of stock under employee compensation plans (in shares) | 96 | |||||||
Issuance of stock under employee compensation plans | 4,155 | $ 1 | 4,154 | 4,155 | ||||
Acquisition of treasury shares (in shares) | 1 | |||||||
Acquisition of treasury shares | (119) | $ (119) | (119) | |||||
Stock-based compensation | 13,547 | 13,547 | 13,547 | |||||
Ending balance (in shares) at Jun. 30, 2018 | 88,221 | 40,220 | ||||||
Ending balance at Jun. 30, 2018 | 1,185,205 | $ 882 | 2,608,522 | 399,752 | (153,608) | $ (1,673,582) | 1,181,966 | 3,239 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 60,732 | 60,368 | 60,368 | 364 | ||||
Other comprehensive income (loss) | (5,840) | (5,840) | (5,840) | |||||
Adjustment of redeemable noncontrolling interest to redemption value | (1,111) | (1,111) | (1,111) | |||||
Issuance of stock under employee compensation plans (in shares) | 94 | |||||||
Issuance of stock under employee compensation plans | 6,026 | $ 1 | 6,025 | 6,026 | ||||
Acquisition of treasury shares (in shares) | 1 | |||||||
Acquisition of treasury shares | (123) | $ (123) | (123) | |||||
Stock-based compensation | 11,820 | 11,820 | 11,820 | |||||
Ending balance (in shares) at Sep. 29, 2018 | 88,315 | 40,221 | ||||||
Ending balance at Sep. 29, 2018 | 1,256,709 | $ 883 | 2,625,256 | 460,120 | (159,448) | $ (1,673,705) | 1,253,106 | 3,603 |
Beginning balance (in shares) at Dec. 29, 2018 | 48,210 | 1 | ||||||
Beginning balance at Dec. 29, 2018 | 1,319,778 | $ 482 | 1,447,512 | 42,096 | (172,703) | $ (55) | 1,317,332 | 2,446 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 55,602 | 55,133 | 55,133 | 469 | ||||
Other comprehensive income (loss) | 9,903 | 9,903 | 9,903 | |||||
Adjustment of redeemable noncontrolling interest to redemption value | (1,451) | (1,451) | (1,451) | |||||
Issuance of stock under employee compensation plans (in shares) | 674 | |||||||
Issuance of stock under employee compensation plans | 22,058 | $ 7 | 22,051 | 22,058 | ||||
Acquisition of treasury shares (in shares) | 136 | |||||||
Acquisition of treasury shares | (17,760) | $ (17,760) | (17,760) | |||||
Stock-based compensation | 12,899 | 12,899 | 12,899 | |||||
Ending balance (in shares) at Mar. 30, 2019 | 48,884 | 137 | ||||||
Ending balance at Mar. 30, 2019 | 1,401,029 | $ 489 | 1,481,011 | 97,229 | (162,800) | $ (17,815) | 1,398,114 | 2,915 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 44,111 | 43,728 | 43,728 | 383 | ||||
Other comprehensive income (loss) | (3,436) | (3,436) | (3,436) | |||||
Adjustment of redeemable noncontrolling interest to redemption value | (1,870) | (1,870) | (1,870) | |||||
Issuance of stock under employee compensation plans (in shares) | 53 | |||||||
Issuance of stock under employee compensation plans | 2,148 | 2,148 | 2,148 | |||||
Acquisition of treasury shares (in shares) | 1 | |||||||
Acquisition of treasury shares | (123) | $ (123) | (123) | |||||
Stock-based compensation | 16,505 | 16,505 | 16,505 | |||||
Ending balance (in shares) at Jun. 29, 2019 | 48,937 | 138 | ||||||
Ending balance at Jun. 29, 2019 | 1,458,364 | $ 489 | 1,497,794 | 140,957 | (166,236) | $ (17,938) | 1,455,066 | 3,298 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 73,586 | 72,810 | 72,810 | 776 | ||||
Other comprehensive income (loss) | (12,234) | (12,234) | (12,234) | |||||
Issuance of stock under employee compensation plans (in shares) | 39 | |||||||
Issuance of stock under employee compensation plans | 2,802 | $ 1 | 2,801 | 2,802 | ||||
Acquisition of treasury shares (in shares) | 1 | |||||||
Acquisition of treasury shares | (156) | $ (156) | (156) | |||||
Stock-based compensation | 14,025 | 14,025 | 14,025 | |||||
Ending balance (in shares) at Sep. 28, 2019 | 48,976 | 139 | ||||||
Ending balance at Sep. 28, 2019 | $ 1,536,387 | $ 490 | $ 1,514,620 | $ 213,767 | $ (178,470) | $ (18,094) | $ 1,532,313 | $ 4,074 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are unaudited and have been prepared by Charles River Laboratories International, Inc. (the Company) in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The year-end condensed consolidated balance sheet data was derived from the Company’s audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for fiscal year 2018 . The unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position and results of operations. Use of Estimates The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Consolidation The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for fiscal year 2018 as well as Note 16, “Leases” in this Quarterly Report on Form 10-Q. Newly Adopted Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees as well as improves financial reporting for share-based payments to nonemployees. This standard became effective for the Company in the three months ended March 30, 2019 and did not have a material impact on the consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. It also creates more transparency around how economic results are presented, both on the face of the financial statements and in the disclosures. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. This standard became effective for the Company in the three months ended March 30, 2019 and did not have a material impact on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard, including subsequently issued amendments, collectively referred to as Accounting Standards Codification (ASC) 842, “Leases”, established the principles that lessees and lessors will apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The Company adopted this standard using the modified retrospective transition approach as applied to leases existing as of or entered into after the adoption date (December 30, 2018) in the three months ended March 30, 2019. See Note 16, “Leases” for a discussion of the Company’s adoption of this standard and its impact on the consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computer Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied either retrospectively or prospectively. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In August 2018, the FASB issued ASU 2018-14, “Compensation Retirement Benefits - Defined Benefit Plans -General (Subtopic 715-20).” ASU 2018-14 removes the requirements to disclose the amounts in Accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year and the related party disclosures about the amount of future annual benefits covered by insurance contracts. In addition, the ASU adds the requirement to disclose an explanation for any significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes the disclosure requirement for the amount and reasons for transfers between Level 1 and Level 2 fair value measurements as well as the process for Level 3 fair value measurements. In addition, the ASU adds the disclosure requirements for changes in unrealized gains and losses included in Other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The standard, including subsequently issued amendments, requires a financial asset measured at amortized cost basis, such as accounts receivable, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and requires the modified retrospective approach. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS Citoxlab On April 29, 2019 , the Company acquired Citoxlab, a non-clinical CRO, specializing in regulated safety assessment services, non-regulated discovery services, and medical device testing. With operations in Europe and North America, the acquisition of Citoxlab further strengthens the Company’s position as a leading, global, early-stage CRO by expanding its scientific portfolio and geographic footprint, which enhances the Company’s ability to partner with clients across the drug discovery and development continuum. The preliminary purchase price for Citoxlab was $527.7 million in cash, subject to certain post-closing adjustments that may change the purchase price. The acquisition was funded through a combination of cash on hand and proceeds from the Company’s Credit Facility under the multi-currency revolving facility. This business is reported as part of the Company’s DSA reportable segment. The preliminary purchase allocation of $491.0 million , net of $36.7 million of cash acquired was as follows: April 29, 2019 (in thousands) Trade receivables (contractual amount of $35,405) $ 35,405 Inventories 5,282 Other current assets (excluding cash) 13,822 Property, plant and equipment 88,912 Goodwill 280,588 Definite-lived intangible assets 162,400 Other long-term assets 20,164 Deferred revenue (15,278 ) Current liabilities (46,682 ) Deferred tax liabilities (27,655 ) Other long-term liabilities (21,916 ) Redeemable noncontrolling interest (4,035 ) Total purchase price allocation $ 491,007 The preliminary purchase price allocation is 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. The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 134,600 13 Developed technology 19,900 3 Backlog 7,900 1 Total definite-lived intangible assets $ 162,400 12 The goodwill resulting from the transaction, $7.2 million of which is deductible for tax purposes due to a prior asset acquisition, is primarily attributable to the potential growth of the Company’s DSA business from customers introduced through Citoxlab and the assembled workforce of the acquired business. The Company incurred transaction and integration costs in connection with the acquisition of $1.9 million and $19.1 million for the three and nine months ended September 28, 2019 , respectively, which were primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. Beginning on April 29, 2019 , Citoxlab has been included in the operating results of the Company. Citoxlab revenue for the three and nine months ended September 28, 2019 was $44.0 million and $74.9 million , respectively. Citoxlab operating income for the three and nine months ended September 28, 2019 was $0.2 million and $2.2 million , respectively. The following selected unaudited pro forma consolidated results of operations are presented as if the Citoxlab acquisition had occurred as of the beginning of the period immediately preceding the period of acquisition, which is December 31, 2017, after giving effect to certain adjustments. For the nine months ended September 28, 2019 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $4.8 million , additional interest expense on borrowings of $1.2 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. For the nine months ended September 29, 2018 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $7.3 million , additional interest expense on borrowings of $3.1 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Revenue $ 667,951 $ 627,758 $ 1,992,472 $ 1,795,312 Net income attributable to common shareholders $ 74,948 $ 63,919 $ 189,601 $ 170,557 These unaudited pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the dates indicated or that may result in the future. No effect has been given for synergies, if any, that may be realized through the acquisition. MPI Research On April 3, 2018 , the Company acquired MPI Research, a non-clinical CRO providing comprehensive testing services to biopharmaceutical and medical device companies worldwide. The acquisition enhances the Company’s position as a leading global early-stage CRO by strengthening its ability to partner with clients across the drug discovery and development continuum. The purchase price for MPI Research was $829.7 million in cash. The acquisition was funded by borrowings on the Credit Facility as well as the issuance of the Company’s Senior Notes. See Note 9, “Long-Term Debt and Finance Lease Obligations.” This business is reported as part of the Company’s DSA reportable segment. The purchase allocation of $800.8 million , net of $27.7 million of cash acquired and a final net working capital adjustment of $1.2 million , was as follows: April 3, 2018 (in thousands) Trade receivables (contractual amount of $35,073) $ 35,073 Inventories 4,463 Other current assets (excluding cash) 5,893 Property, plant and equipment 128,403 Goodwill 441,656 Definite-lived intangible assets 309,200 Other long-term assets 1,081 Deferred revenue (23,926 ) Current liabilities (32,885 ) Deferred tax liabilities (65,945 ) Other long-term liabilities (2,213 ) Total purchase price allocation $ 800,800 From the date of the acquisition through March 30, 2019, the Company recorded measurement-period adjustments related to the acquisition that resulted in an immaterial change to the purchase price allocation on a consolidated basis. No further adjustments will be made to the purchase price allocation. The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 264,900 13 Developed technology 23,400 3 Backlog 20,900 1 Total definite-lived intangible assets $ 309,200 12 The goodwill resulting from the transaction, $4.1 million of which is deductible for tax purposes due to a prior asset acquisition, is primarily attributable to the potential growth of the Company’s DSA business from customers introduced through MPI Research and the assembled workforce of the acquired business. No significant integration costs were incurred in connection with the acquisition for the three and nine months ended September 28, 2019 . The Company incurred transaction and integration costs in connection with the acquisition of $0.8 million and $15.3 million for the three and nine months ended September 29, 2018 , respectively, which were primarily included in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income. The following selected unaudited pro forma consolidated results of operations are presented as if the MPI Research acquisition had occurred as of the beginning of the period immediately preceding the period of acquisition, which is January 1, 2017, after giving effect to certain adjustments. For the nine months ended September 29, 2018 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $11.8 million , additional interest expense on borrowings of $2.8 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. September 29, 2018 Three Months Ended Nine Months Ended (in thousands) Revenue $ 585,295 $ 1,726,683 Net income attributable to common shareholders 59,297 168,872 These unaudited pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition occurred on the dates indicated or that may result in the future. No effect has been given for synergies, if any, that may be realized through the acquisition. KWS BioTest Limited On January 11, 2018 , the Company acquired KWS BioTest Limited (KWS BioTest), a CRO specializing in in vitro and in vivo discovery testing services for immuno-oncology, inflammatory and infectious diseases. The acquisition enhances the Company’s discovery expertise, with complementary offerings that provide the Company’s customers with additional tools in the active therapeutic research areas of oncology and immunology. The purchase price for KWS BioTest was $20.3 million in cash and was funded by the Company’s various borrowings. In addition to the initial purchase price, the transaction includes aggregate, undiscounted contingent payments of up to £ 3.0 million based on future performance. During the three months ended September 29, 2018, the terms of these contingent payments were amended, resulting in a fixed payment of £ 2.0 million , or $2.6 million , which was paid during the three months ended March 30, 2019. The KWS BioTest business is reported as part of the Company’s DSA reportable segment. The purchase price allocation of $21.5 million , net of $1.0 million of cash acquired and a final net working capital adjustment of $0.4 million , was as follows: January 11, 2018 (in thousands) Trade receivables (contractual amount of $1,309) $ 1,309 Other current assets (excluding cash) 99 Property, plant and equipment 1,136 Definite-lived intangible assets - client relationships 3,647 Goodwill 17,660 Current liabilities (1,575 ) Deferred revenue (151 ) Long-term liabilities (596 ) Total purchase price allocation $ 21,529 From the date of the acquisition through December 29, 2018, the Company recorded measurement-period adjustments related to the acquisition that resulted in an immaterial change to the purchase price allocation on a consolidated basis. No further adjustments will be made to the purchase price allocation. The only definite-lived intangible asset relates to client relationships, which will be amortized over a weighted average life of 12 years . The goodwill resulting from the transaction is primarily attributable to the potential growth of the Company’s DSA business from customers introduced through KWS BioTest and the assembled workforce of the acquired business. The goodwill attributable to KWS BioTest is not deductible for tax purposes. No significant integration costs were incurred in connection with the acquisition for the three and nine months ended September 28, 2019 . The Company incurred transaction and integration costs of $0.1 million and $0.6 million in connection with the acquisition for the three and nine months ended September 29, 2018 , respectively, which were included in Selling, general and administrative expenses, within the unaudited condensed consolidated statements of income. Pro forma financial information as well as actual revenue and operating income have not been included because KWS BioTest’s financial results are not significant when compared to the Company’s consolidated financial results. Other Acquisition On August 28, 2019 , the Company acquired an 80% ownership interest in a supplier that supports the Company’s DSA reportable segment. The remaining 20% interest is a redeemable non-controlling interest. See Note 10, “Equity and Noncontrolling Interests.” The preliminary purchase price was $23.4 million , net of a $4.0 million pre-existing relationship for a supply agreement settled upon acquisition , and subject to certain post-closing adjustments that may change the purchase price. The acquisition was funded through a combination of cash on hand and proceeds from the Company’s Credit Facility under the multi-currency revolving facility. The business is reported as part of the Company’s DSA reportable segment. The preliminary purchase allocation of $23.1 million , net of $0.3 million of cash acquired was as follows: August 28, 2019 (in thousands) Trade receivables (contractual amount of $189) $ 189 Inventories 7,644 Property, plant and equipment 1,462 Goodwill 12,528 Other long-term assets 11,849 Current liabilities (300 ) Deferred tax liabilities (1,331 ) Other long-term liabilities (238 ) Redeemable noncontrolling interest (8,740 ) Total purchase price allocation $ 23,063 The purchase price allocation is 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. The Company incurred transaction and integration costs in connection with the acquisition of $2.1 million and $3.2 million for the three and nine months ended September 28, 2019 , respectively, which are primarily included in Selling, general and administrative expenses within the unaudited condensed statements of income. Pro forma financial information as well as the disclosure of actual results have not been included because these financial results are not significant when compared to the Company’s consolidated financial results. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer (“transaction price”). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Generally, the Company does not extend payment terms beyond one year. Applying the practical expedient, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component for the nine months ended September 28, 2019 and September 29, 2018 . Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes existing, enforceable rights and obligations. Generally, when contract modifications create new performance obligations, the modification is considered to be a separate contract and revenue is recognized prospectively. When contract modifications change existing performance obligations, the existing transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Product revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Service revenue is generally recognized over time as the services are delivered to the customer based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. Depending on which better depicts the transfer of value to the customer, the Company generally measures its progress using either cost-to-cost (input method) or right-to-invoice (output method). The Company uses the cost-to-cost measure of progress when it best depicts the transfer of value to the customer which occurs as the Company incurs costs on its contract, generally related to fixed fee service contracts . Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The costs calculation includes variables such as labor hours, allocation of overhead costs, research model costs, and subcontractor costs. Revenue is recorded proportionally as costs are incurred. The right-to-invoice measure of progress is generally related to rate per unit contracts, as the extent of progress towards completion is measured based on discrete service or time-based increments, such as samples tested or labor hours incurred. Revenue is recorded in the amount invoiced since that amount corresponds directly to the value of the Company’s performance to date. Disaggregation of Revenue The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Major Products/Service Lines: RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 56,243 $ 49,417 $ 168,377 $ 146,947 Services and products transferred at a point in time 76,303 77,394 237,395 244,248 DSA Services and products transferred over time 419,445 352,203 1,178,874 958,174 Services and products transferred at a point in time 634 54 919 491 Manufacturing Services and products transferred over time 36,308 31,420 102,674 92,978 Services and products transferred at a point in time 79,018 74,807 241,849 221,728 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 RMS The RMS business generates revenue through the commercial production and sale of research models and the provision of services related to the maintenance and monitoring of research models and management of clients’ research operations. Revenue from the sale of research models is recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the shipping terms of a contract. Revenue generated from research models services is recognized over time and is typically based on a right-to-invoice measure of progress (output method) as invoiced amounts correspond directly to the value of the Company’s performance to date . DSA The Discovery and Safety Assessment business provides a full suite of integrated drug discovery services directed at the identification, screening and selection of a lead compound for drug development and offers a full range of safety assessment services including bioanalysis, drug metabolism, pharmacokinetics, toxicology and pathology. Discovery and Safety Assessment services revenue is generally recognized over time using the cost-to-cost or right to invoice measures of progress, primarily representing fixed fee service contracts and per unit service contracts, respectively . Manufacturing The Manufacturing business includes Microbial Solutions, which provides in vitro (non-animal) lot-release testing products, microbial detection products, and species identification services; Biologics Testing Services (Biologics), which performs specialized testing of biologics; and Avian Vaccine Services (Avian), which supplies specific-pathogen-free chicken eggs and chickens. Species identification service revenue is generally recognized at a point in time as identifications are completed by the Company. Biologics service revenue is generally recognized over time using the cost-to-cost measure of progress. Microbial Solutions and Avian product sales are generally recognized at a point in time when the customer obtains control of the product, which may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Transaction Price Allocated to Future Performance Obligations The Company discloses the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 28, 2019 . Excluded from the disclosure is the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed. The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of September 28, 2019 : Revenue Expected to be Recognized in Future Periods Less than 1 Year 1 to 3 Years 4 to 5 Years Beyond 5 Years Total (in thousands) DSA $ 163,868 $ 111,890 $ 6,641 $ 409 $ 282,808 Manufacturing 10,165 12,997 20 8 23,190 Total $ 174,033 $ 124,887 $ 6,661 $ 417 $ 305,998 Contract Balances from Contracts with Customers The timing of revenue recognition, billings and cash collections results in billed receivables (client receivables), contract assets (unbilled revenue), contract liabilities (current and non-current deferred revenue), and customer deposits on the unaudited condensed consolidated balance sheets. The Company’s pay ment terms are generally 30 days in the United States and consistent with prevailing practice in international markets. A contract asset is recorded when a right to consideration in exchange for goods or services transferred to a customer is conditioned other than the passage of time. Client receivables are recorded separately from contract assets since only the passage of time is required before consideration is due. A contract liability is recorded when consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: September 28, 2019 December 29, 2018 (in thousands) Balances from contracts with customers: Client receivables $ 394,135 $ 370,131 Contract assets (unbilled revenue) 134,169 105,216 Contract liabilities (current and long-term deferred revenue) 191,443 179,559 Contract liabilities (customer contract deposits) 36,006 38,245 When the Company does not have the unconditional right to advanced billings, both advanced client payments and unpaid advanced client billings are excluded from deferred revenue, with the advanced billings also being excluded from client receivables. As of September 28, 2019 , the Company excluded approximately $21 million of unpaid advanced client billings from both client receivables and deferred revenue and approximately $36 million of advanced client payments have been presented as customer contract deposits within other current liabilities in the accompanying unaudited condensed consolidated balance sheets. Other changes in the contract asset and the contract liability balances during the nine months ended September 28, 2019 were as follows: (i) Changes due to business combinations: See Note 2. “Business Acquisitions” for client receivables, contract assets, and contract liabilities that were acquired as part of the Citoxlab acquisition on April 29, 2019 . (ii) Cumulative catch-up adjustments to revenue that affect the corresponding contract asset or contract liability, including adjustments arising from a change in the measure of progress, a change in an estimate of the transaction price (including any changes in the assessment of whether an estimate of variable consideration is constrained), or a contract modification: During the nine months ended September 28, 2019 , an immaterial cumulative catch-up adjustment to revenue was recorded. (iii) A change in the time frame for a right to consideration to become unconditional (that is, for a contract asset to be recorded as a client receivable): Approximately 85% of unbilled revenue as of December 29, 2018 was billed during the nine months ended September 28, 2019 . (iv) A change in the time frame for a performance obligation to be satisfied (that is, for the recognition of revenue arising from a contract liability): Approximately 80% of contract liabilities as of December 29, 2018 were recognized as revenue during the nine months ended September 28, 2019 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s three reportable segments are Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Support (Manufacturing). The following table presents revenue and other financial information by reportable segment: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS Revenue $ 132,546 $ 126,811 $ 405,772 $ 391,195 Operating income 34,385 32,121 103,729 104,893 Depreciation and amortization 4,895 4,811 14,198 14,565 Capital expenditures 5,818 8,166 14,979 18,105 DSA Revenue $ 420,079 $ 352,257 $ 1,179,793 $ 958,665 Operating income 64,995 62,909 175,214 160,391 Depreciation and amortization 39,898 31,433 111,231 83,262 Capital expenditures 21,141 10,800 45,130 34,496 Manufacturing Revenue $ 115,326 $ 106,227 $ 344,523 $ 314,706 Operating income 39,253 33,266 103,893 95,904 Depreciation and amortization 5,990 5,709 17,577 17,313 Capital expenditures 6,421 2,709 14,299 12,731 Reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Three Months Ended: Total reportable segments $ 138,633 $ 128,296 $ 50,783 $ 41,953 $ 33,380 $ 21,675 Unallocated corporate (45,831 ) (43,934 ) 975 1,639 1,783 764 Total consolidated $ 92,802 $ 84,362 $ 51,758 $ 43,592 $ 35,163 $ 22,439 Nine Months Ended: Total reportable segments $ 382,836 $ 361,188 $ 143,006 $ 115,140 $ 74,408 $ 65,332 Unallocated corporate (140,474 ) (132,287 ) 3,256 5,058 2,267 6,046 Total consolidated $ 242,362 $ 228,901 $ 146,262 $ 120,198 $ 76,675 $ 71,378 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 A summary of unallocated corporate expense consists of the following : Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Stock-based compensation $ 8,752 $ 7,910 $ 27,744 $ 24,517 Compensation, benefits, and other employee-related expenses 18,770 20,464 54,561 56,375 External consulting and other service expenses 4,156 4,767 12,060 12,711 Information technology 3,534 3,070 10,811 8,723 Depreciation 975 1,639 3,256 5,058 Acquisition and integration 5,679 1,122 23,621 15,678 Other general unallocated corporate 3,965 4,962 8,421 9,225 Total unallocated corporate expense $ 45,831 $ 43,934 $ 140,474 $ 132,287 Other general unallocated corporate expense consists of costs associated with departments such as senior executives, corporate accounting, legal, tax, human resources, treasury, and investor relations. Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 28, 2019 $ 373,094 $ 184,685 $ 71,984 $ 36,698 $ 1,490 $ 667,951 September 29, 2018 336,811 159,473 53,665 34,062 1,284 585,295 Nine Months Ended: September 28, 2019 $ 1,091,194 $ 533,820 $ 194,865 $ 106,090 $ 4,119 $ 1,930,088 September 29, 2018 919,807 481,955 153,802 104,817 4,185 1,664,566 Included in the Asia Pacific category above are operations located in China, Japan, Korea, Australia, Singapore, and India. Included in the Other category above are operations located in Brazil and Israel. Revenue represents sales originating in entities physically located in the identified geographic area. |
SUPPLEMENTAL BALANCE SHEET INFO
SUPPLEMENTAL BALANCE SHEET INFORMATION | 9 Months Ended |
Sep. 28, 2019 | |
Supplemental Balance Sheet Information [Abstract] | |
SUPPLEMENTAL BALANCE SHEET INFORMATION | SUPPLEMENTAL BALANCE SHEET INFORMATION The composition of trade receivables, net is as follows: September 28, 2019 December 29, 2018 (in thousands) Client receivables $ 394,135 $ 370,131 Unbilled revenue 134,169 105,216 Total 528,304 475,347 Less: Allowance for doubtful accounts (4,230 ) (3,099 ) Trade receivables, net $ 524,074 $ 472,248 The composition of inventories is as follows: September 28, 2019 December 29, 2018 (in thousands) Raw materials and supplies $ 23,670 $ 22,378 Work in process 36,851 21,732 Finished products 95,005 83,782 Inventories $ 155,526 $ 127,892 The composition of other current assets is as follows: September 28, 2019 December 29, 2018 (in thousands) Prepaid income tax $ 75,019 $ 47,157 Investments 855 885 Restricted cash 534 465 Other 366 300 Other current assets $ 76,774 $ 48,807 The composition of other assets is as follows: September 28, 2019 December 29, 2018 (in thousands) Venture capital investments $ 100,553 $ 87,545 Other investments 13,045 1,046 Life insurance policies 35,861 32,340 Restricted cash 1,427 1,411 Other 42,288 21,417 Other assets $ 193,174 $ 143,759 The composition of other current liabilities is as follows: September 28, 2019 December 29, 2018 (in thousands) Current portion of operating lease right-of-use liabilities $ 20,032 $ — Accrued income taxes 44,121 24,120 Customer contract deposits 36,006 38,245 Other 14,243 8,915 Other current liabilities $ 114,402 $ 71,280 The composition of other long-term liabilities is as follows: September 28, 2019 December 29, 2018 (in thousands) U.S. Transition Tax $ 52,066 $ 52,064 Long-term pension liability 29,028 24,671 Accrued executive supplemental life insurance retirement plan 37,328 36,086 Long-term deferred revenue 25,348 34,420 Other 27,473 31,880 Other long-term liabilities $ 171,243 $ 179,121 |
VENTURE CAPITAL AND OTHER INVES
VENTURE CAPITAL AND OTHER INVESTMENTS | 9 Months Ended |
Sep. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
VENTURE CAPITAL AND OTHER INVESTMENTS | VENTURE CAPITAL AND OTHER INVESTMENTS The Company invests in several venture capital funds that invest in start-up companies, primarily in the life sciences industry. The Company’s ownership interest in these funds ranges from less than 1% to 12.0% . The Company accounts for the investments in limited partnerships (LPs), which are variable interest entities, under the equity method of accounting. For publicly-held investments in the LPs, the Company adjusts for changes in fair market value based on reported share holdings at the end of each fiscal quarter. The Company is not the primary beneficiary because it has no power to direct the activities that most significantly affect the LPs’ economic performance. The Company accounts for the investments in limited liability companies, which are not variable interest entities, under the equity method of accounting. Venture capital investments were $100.6 million and $87.5 million as of September 28, 2019 and December 29, 2018 , respectively. The Company’s total commitment to the venture capital funds as of September 28, 2019 was $128.1 million , of which the Company funded $77.4 million through that date. The Company received dividends totaling $0.2 million and $5.6 million for the three months ended September 28, 2019 and September 29, 2018 , respectively. The Company received dividends totaling $1.8 million and $14.1 million for the nine months ended September 28, 2019 and September 29, 2018 , respectively. The Company recognized losses of $0.6 million and gains of $5.4 million related to the venture capital investments for the three months ended September 28, 2019 and September 29, 2018 , respectively. The Company recognized gains of $5.7 million and $22.8 million related to the venture capital investments for the nine months ended September 28, 2019 and September 29, 2018 , respectively. Gains and losses are recorded in Other income, net in the accompanying unaudited condensed consolidated statements of income. The Company also invests, with minority positions, directly in equity of predominantly privately-held companies. These investments are reported at fair value or under the equity method of accounting, as appropriate. Equity investments that do not have readily determinable fair values are generally recorded at cost, plus or minus certain adjustments. Other investments were $13.0 million and $1.0 million as of September 28, 2019 and December 29, 2018 , respectively. The Company recognized an insignificant amount of gains and losses related to these investments for the three and nine months ended September 28, 2019 and September 29, 2018 . Gains and losses from other investments are recorded in Other income, net in the accompanying unaudited consolidated statements of income. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company has certain assets and liabilities recorded at fair value, which have been classified as Level 1, 2, or 3 within the fair value hierarchy: • Level 1 - Fair values are determined utilizing prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access, • Level 2 - Fair values are determined by utilizing quoted prices for identical or similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves, and foreign currency spot rates, • Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The fair value hierarchy level is determined by asset and class based on the lowest level of significant input. The observability of inputs may change for certain assets or liabilities. This condition could cause an asset or liability to be reclassified between levels. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each quarter. During the nine months ended September 28, 2019 and September 29, 2018 , there were no transfers between levels. Valuation methodologies used for assets and liabilities measured or disclosed at fair value are as follows: • Cash equivalents - Valued at market prices determined through third-party pricing services; • Mutual funds - Valued at the unadjusted quoted net asset value of shares held by the Company; • Foreign currency forward contracts - Valued using market observable inputs, such as forward foreign exchange points and foreign exchanges rates; • Life insurance policies - Valued at cash surrender value based on the fair value of underlying investments; • Debt instruments - The book value of the Company’s term and revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. The book value of the Company’s 5.5% Senior Notes (Senior Notes) due in 2026, which are fixed rate debt, are carried at amortized cost. Fair value of the Senior Notes is based on quoted market prices and on borrowing rates available to the Company; and • Contingent consideration - Valued based on a probability weighting of the future cash flows associated with the potential outcomes. Assets and liabilities measured at fair value on a recurring basis are summarized below: September 28, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 436 $ — $ 436 Other assets: Foreign currency forward contract — 778 — 778 Life insurance policies — 28,207 — 28,207 Total assets measured at fair value $ — $ 29,421 $ — $ 29,421 Other current liabilities measured at fair value: Contingent consideration $ — $ — $ 692 $ 692 December 29, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 45,982 $ — $ 45,982 Other assets: Life insurance policies — 24,541 — 24,541 Total assets measured at fair value $ — $ 70,523 $ — $ 70,523 Other current liabilities: Contingent consideration $ — $ — $ 3,033 $ 3,033 Foreign currency forward contract — 1,319 — 1,319 Total liabilities measured at fair value $ — $ 1,319 $ 3,033 $ 4,352 Contingent Consideration The following table provides a rollforward of the contingent consideration related to previous business acquisitions. See Note 2, “Business Acquisitions.” Nine Months Ended September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 3,033 $ 298 Additions 2,869 3,315 Payments (5,252 ) — Foreign currency translation 42 (213 ) Ending balance $ 692 $ 3,400 The unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the probabilities of successful achievement of certain financial targets and a discount rate. Increases or decreases in any of the probabilities of success would result in a higher or lower fair value measurement, respectively. Increases or decreases in the discount rate would result in a lower or higher fair value measurement, respectively. Debt Instruments The book value of the Company’s term and revolving loans, which are variable rate loans carried at amortized cost, approximates the fair value based on current market pricing of similar debt. As the fair value is based on significant other observable inputs, including current interest and foreign currency exchange rates, it is deemed to be Level 2 within the fair value hierarchy. As of both September 28, 2019 and December 29, 2018 , the book value of the Company’s Senior Notes, which is a fixed rate obligation carried at amortized cost, was $500.0 million . The fair value of the Company’s Senior Notes as of September 28, 2019 and December 29, 2018 was $530.0 million and $495.0 million , respectively. Fair value is based on quoted market prices as well as borrowing rates available to the Company. As the fair value is based on significant other observable outputs, it is deemed to be Level 2 within the fair value hierarchy. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 29, 2018 Acquisitions Foreign Exchange September 28, 2019 (in thousands) RMS $ 56,968 $ — $ (761 ) $ 56,207 DSA 1,051,470 293,116 (13,660 ) 1,330,926 Manufacturing 138,695 — (4,209 ) 134,486 Goodwill $ 1,247,133 $ 293,116 $ (18,630 ) $ 1,521,619 The increase in goodwill during the nine months ended September 28, 2019 related primarily to the acquisition of Citoxlab in the DSA reportable segment and the impact of foreign exchange. Intangible Assets, Net The following table displays intangible assets, net by major class: September 28, 2019 December 29, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 28,716 $ (23,969 ) $ 4,747 $ 20,900 $ (18,691 ) $ 2,209 Technology 119,180 (52,291 ) 66,889 101,506 (41,870 ) 59,636 Trademarks and trade names 8,108 (4,724 ) 3,384 8,331 (4,640 ) 3,691 Other 17,850 (11,613 ) 6,237 17,448 (10,041 ) 7,407 Other intangible assets 173,854 (92,597 ) 81,257 148,185 (75,242 ) 72,943 Client relationships 919,738 (298,870 ) 620,868 791,725 (253,780 ) 537,945 Intangible assets $ 1,093,592 $ (391,467 ) $ 702,125 $ 939,910 $ (329,022 ) $ 610,888 The increase in intangible assets, net during the nine months ended September 28, 2019 related primarily to the acquisition of Citoxlab. |
LONG-TERM DEBT AND FINANCE LEAS
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS Long-Term Debt and Finance Lease Obligations Long-term debt, net and finance leases consists of the following: September 28, 2019 December 29, 2018 (in thousands) Term loans $ 703,125 $ 731,250 Revolving facility 691,459 397,452 2026 Senior Notes 500,000 500,000 Other debt 5,692 26,286 Finance leases (Note 16) 29,712 29,240 Total debt and finance leases 1,929,988 1,684,228 Less: Current portion of long-term debt 30,609 28,228 Current portion of finance leases (Note 16) 3,002 3,188 Current portion of long-term debt and finance leases 33,611 31,416 Long-term debt and finance leases 1,896,377 1,652,812 Debt discount and debt issuance costs (13,784 ) (16,214 ) Long-term debt, net and finance leases $ 1,882,593 $ 1,636,598 As of September 28, 2019 and December 29, 2018 , the weighted average interest rate on the Company’s debt was 3.33% and 4.24% , respectively. Term Loans and Revolving Facility On March 26, 2018, the Company amended and restated its $1.65 billion credit facility creating a $ 2.3 billion credit facility (Credit Facility). The amendment extended the maturity date and provided for a $ 750.0 million term loan and a $ 1.55 billion multi-currency revolving facility. The amendment was accounted for as a debt modification. In connection with the transaction, the Company capitalized approximately $6.2 million within Long-term debt, net and finance leases in the accompanying unaudited condensed consolidated balance sheets and expensed approximately $1.0 million of debt issuance costs recorded within Interest expense in the accompanying unaudited condensed consolidated statements of income for the year ended 2018. On September 25, 2019 the Company amended and restated the Credit Facility for certain administrative matters. The term loan facility matures in 19 quarterly installments with the last installment due March 26, 2023. The revolving facility matures on March 26, 2023, and requires no scheduled payment before that date. On October 23, 2019 , the Company prepaid $500.0 million of the term loan with proceeds from a $500.0 million unregistered private offering (see 2028 Senior Notes Offering below). Additionally, on November 4, 2019 , the Company amended and restated the Credit Facility to increase the multi-currency revolving facility by $500.0 million , from $ 1.55 billion to $2.05 billion . The amount outstanding under the multi-currency revolving facility has not significantly changed since September 28, 2019 . Under specified circumstances, the Company has the ability to increase the term loan and/or revolving facility by up to $ 1.0 billion in the aggregate. The interest rates applicable to the term loan and revolving facility under the Credit Facility are, at the Company’s option, equal to either the base rate (which is the higher of (1) the prime rate, (2) the federal funds rate plus 0.50% , or (3) the one-month adjusted LIBOR rate plus 1.0% ) or the adjusted LIBOR rate, plus an interest rate margin based upon the Company’s leverage ratio. The Credit Facility includes certain customary representations and warranties, events of default, notices of material adverse changes to the Company’s business and negative and affirmative covenants. These covenants include (1) maintenance of a ratio of consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) less capital expenditures to consolidated cash interest expense, for any period of four consecutive fiscal quarters, of no less than 3.50 to 1.0 as well as (2) maintenance of a ratio of consolidated indebtedness to consolidated EBITDA for any period of four consecutive fiscal quarters, of no more than 4.00 to 1.0. As of September 28, 2019 , the Company was compliant with all covenants. The obligations of the Company under the Credit Facility are collateralized by substantially all of the assets of the Company. During the three and nine months ended September 28, 2019 , the Company had multiple U.S. dollar denominated loans borrowed by a non-U.S. Euro functional currency entity under the Company’s Credit Facility, which ranged from $300 million to $350 million . This resulted in foreign currency losses recognized in Other income, net of $12.1 million during the three months ended September 28, 2019 and $14.9 million during the nine months ended September 28, 2019 . The Company entered into foreign exchange forward contracts to limit its foreign currency exposures related to these borrowings. As of September 28, 2019 , the Company did not have any outstanding borrowings in a currency different than its respective functional currency. See Note 14, “Foreign Currency Contracts”, for further discussion. Base Indenture for Senior Notes Offerings On April 3, 2018, the Company entered into an indenture (Base Indenture) with MUFG Union Bank, N.A., (Trustee). The purpose of the Indenture was to allow the Company the ability to issue senior notes. The Company has entered into two supplemental indentures in connection with two unregistered offerings, which are described below. The Indenture contains certain covenants including, but not limited to, limitations and restrictions on the ability of the Company and its U.S. subsidiaries to (i) create certain liens, (ii) enter into any Sale and Leaseback Transaction (as defined in the Indenture) with respect to any property, and (iii) merge, consolidate, sell or otherwise dispose of all or substantially all of their assets. These covenants are subject to a number of conditions, qualifications, exceptions and limitations. Any event of default, as defined, could result in the acceleration of the repayment of the obligations. 2026 Senior Notes Offering On April 3, 2018, the Company entered into the first supplemental indenture (First Supplemental Indenture) with the Trustee in connection with an offering of $500.0 million in aggregate principal amount of the Company’s 5.5% Senior Notes (2026 Senior Notes), due in 2026, in an unregistered offering. Under the terms of the First Supplemental Indenture, interest on the Senior Notes is payable semi-annually on April 1 and October 1, beginning on October 1, 2018. The 2026 Senior Notes are guaranteed fully and unconditionally, jointly and severally on a senior unsecured basis by the Company and certain of its U.S. subsidiaries. In connection with the transaction, the Company incurred $7.4 million of debt issuance costs within Long-term debt, net and finance leases in the accompanying unaudited condensed consolidated balance sheets. The Company may redeem all or part of the 2026 Senior Notes at any time prior to April 1, 2021, at its option, at a redemption price equal to 100% of the principal amount of such Senior Notes plus the Applicable Premium (as defined in the First Supplemental Indenture). The Company may also redeem up to 40% of the Senior Notes with the proceeds of certain equity offerings completed before April 1, 2021, at a redemption price equal to 105.5% of the principal amount of such 2026 Senior Notes. On or after April 1, 2021, the Company may on any one or more occasions redeem all or a part of the 2026 Senior Notes, at the redemption prices specified in the Indenture based on the applicable date of redemption. Upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture), the Company will be required to offer to repurchase the 2026 Senior Notes at a purchase price equal to 101% of the aggregate principal amount of such 2026 Senior Notes. Any redemption of the 2026 Senior Notes would also require settlement of accrued and unpaid interest, if any, up to but excluding the redemption date. Net proceeds from the 2026 Senior Notes of $493.8 million were used to partially repay the outstanding revolving credit facility on April 3, 2018 as well as fund the acquisition of MPI Research. 2028 Senior Notes Offering On October 23, 2019 , the Company entered into a second supplemental indenture (Second Supplemental Indenture) with the Trustee in connection with the offering of $500.0 million in aggregate principal amount of the Company’s 4.25% Senior Notes (2028 Senior Notes), due in 2028, in an unregistered offering. Under the terms of the Second Supplemental Indenture, interest on the 2028 Senior Notes is payable semi-annually on May 1 and November 1, beginning on May 1, 2020. The 2028 Senior Notes are guaranteed fully and unconditionally, jointly and severally on a senior unsecured basis by the Company and certain of its U.S. subsidiaries. In connection with the transaction, the Company incurred approximately $6 million of debt issuance costs, which were capitalized upon the 2028 Senior Notes issuance on October 23, 2019 . The Company may redeem all or part of the 2028 Senior Notes at any time prior to May 1, 2023 , at its option, at a redemption price equal to 100% of the principal amount of such 2028 Senior Notes plus the Applicable Premium (as defined in the Indenture). The Company may also redeem up to 40% of the 2028 Senior Notes with the proceeds of certain equity offerings completed before May 1, 2023 , at a redemption price equal to 104.25% of the principal amount of such 2028 Senior Notes. On or after May 1, 2023 , the Company may on any one or more occasions redeem all or a part of the 2028 Senior Notes, at the redemption prices specified in the Indenture based on the applicable date of redemption. Upon the occurrence of a Change of Control Triggering Event (as defined in the Indenture), the Company will be required to offer to repurchase the Senior Notes at a purchase price equal to 101% of the aggregate principal amount of such Senior Notes. Any redemption of the Senior Notes would also require settlement of accrued and unpaid interest, if any, up to but excluding the redemption date. Net proceeds from the 2028 Senior Notes of approximately $494 million and available cash were used to prepay a portion of the term loan on October 23, 2019 . Commitment Letter On February 12, 2018, the Company secured an $830 million commitment under a 364-day senior unsecured bridge loan facility (the Bridge Facility ) for the purpose of financing the acquisition of MPI Research. The Bridge Facility was terminated as of April 3, 2018 upon the successful acquisition of MPI Research. Debt issuance costs of $1.8 million , which were capitalized upon the execution of the Bridge Facility, were expensed upon termination of the agreement on April 3, 2018. In addition, the Company incurred and expensed $2.0 million of fees pertaining to a temporary backstop facility related to the negotiation of the Credit Facility during the three months ended March 31, 2018. These costs were included in Interest expense in the accompanying unaudited condensed consolidated statements of income. Letters of Credit As of September 28, 2019 and December 29, 2018 , the Company had $6.7 million and $6.5 million , respectively, in outstanding letters of credit. |
EQUITY AND NONCONTROLLING INTER
EQUITY AND NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
EQUITY AND NONCONTROLLING INTERESTS | EQUITY AND NONCONTROLLING INTERESTS Earnings Per Share The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 73,552 $ 60,902 $ 173,549 $ 167,020 Income from discontinued operations, net of income taxes — — — 1,506 Less: Net income attributable to noncontrolling interests 742 534 1,878 1,818 Net income attributable to common shareholders $ 72,810 $ 60,368 $ 171,671 $ 166,708 Denominator: Weighted-average shares outstanding - Basic 48,818 48,310 48,682 48,098 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 897 1,016 945 1,020 Weighted-average shares outstanding - Diluted 49,715 49,326 49,627 49,118 Options to purchase 0.4 million and 0.5 million shares for the three months ended September 28, 2019 and September 29, 2018 , respectively, as well as a non-significant number of restricted shares, restricted stock units (RSUs), and performance share units (PSUs), were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Options to purchase 0.4 million and 0.5 million shares for the nine months ended September 28, 2019 and September 29, 2018 , respectively, as well as a non-significant number of restricted shares, RSUs and PSUs, were not included in computing diluted earnings per share because their inclusion would have been anti-dilutive. Basic weighted-average shares outstanding for both the nine months ended September 28, 2019 and September 29, 2018 excluded the impact of 1.0 million shares of non-vested restricted stock and RSUs. Treasury Shares During the nine months ended September 28, 2019 and September 29, 2018 , the Company did no t repurchase any shares under its authorized stock repurchase program. As of September 28, 2019 , the Company had $129.1 million remaining on the authorized stock repurchase program. The Company’s stock-based compensation plans permit the netting of common stock upon vesting of RSUs and PSUs in order to satisfy individual statutory tax withholding requirements. During the nine months ended September 28, 2019 and September 29, 2018 , the Company acquired 0.1 million shares for $18.0 million and 0.1 million shares for $13.8 million , respectively, from such netting. Accumulated Other Comprehensive Income (Loss) Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 29, 2018 $ (102,199 ) $ (70,504 ) $ (172,703 ) Other comprehensive loss before reclassifications (8,261 ) — (8,261 ) Amounts reclassified from accumulated other comprehensive loss — 1,113 1,113 Net current period other comprehensive income (loss) (8,261 ) 1,113 (7,148 ) Income tax expense (benefit) (1,615 ) 234 (1,381 ) September 28, 2019 $ (108,845 ) $ (69,625 ) $ (178,470 ) Nonredeemable Noncontrolling Interest The Company has an investment in an entity whose financial results are consolidated in the Company’s financial statements, as it has the ability to exercise control over this entity. The interest of the noncontrolling party in this entity has been recorded as noncontrolling interest. The activity within the nonredeemable noncontrolling interest was immaterial during the three and nine months ended September 28, 2019 and September 29, 2018 . Redeemable Noncontrolling Interests On June 13, 2019, the Company purchased an additional 5% equity interest in Vital River for $7.9 million , resulting in total ownership of 92% . The Company recorded a $0.8 million gain in equity equal to the excess fair value of the 5% equity interest over the purchase price. Concurrent with the transaction, the pre-existing agreement was further amended to provide the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 8% equity interest (redeemable noncontrolling interest) at a contractually defined redemption value, subject to a redemption floor, which represents a derivative embedded within the equity instrument. These rights are exercisable beginning in 2022 and are accelerated in certain events. The Company recorded a charge of $2.2 million in Selling, general and administrative expenses within the unaudited condensed consolidated statements of income, equal to the excess fair value of the hybrid instrument (equity interest with embedded derivative) over the fair value of the 8% equity interest. The redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the contractually defined redemption value ( $14.5 million as of September 28, 2019 ) and the carrying amount adjusted for net income (loss) attributable to the noncontrolling interest. As the noncontrolling interest holders have the ability to require the Company to purchase the remaining 8% interest, the noncontrolling interest is classified in the mezzanine section of the unaudited condensed consolidated balance sheets, which is presented above the equity section and below liabilities. The agreement does not limit the amount that the Company could be required to pay to purchase the remaining 8% equity interest. As part of the Citoxlab acquisition on April 29, 2019 , the Company acquired a less than wholly owned subsidiary that is fully consolidated under the voting interest model. The Company acquired a 90% equity interest, which includes a 10% redeemable noncontrolling interest. The noncontrolling interest holders have the ability to require the Company to purchase the remaining 10% interest at certain dates in the future between 2021 through 2023. The noncontrolling interest is classified in the mezzanine section of the unaudited condensed consolidated balance sheets and is approximately $4 million as of September 28, 2019 . On August 28, 2019 , the Company acquired an 80% equity interest in a supplier, which included a 20% redeemable noncontrolling interest. The contract provides the Company the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 20% equity interest at its appraised value. These rights are exercisable beginning in 2022. The redeemable noncontrolling interest is measured at the greater of the amount that would be paid if settlement occurred as of the balance sheet date based on the appraised value and the carrying amount adjusted for net income (loss) attributable to the noncontrolling interest or a pre-determined floor value. As the noncontrolling interest holders have the ability to require the Company to purchase the remaining 20% interest, the noncontrolling interest is classified in the mezzanine section of the unaudited condensed balance sheets, which is presented above the equity section and below liabilities. The agreement does not limit the amount that the Company could be required to pay to purchase the remaining 20% equity interest. The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interests: Nine Months Ended September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 18,525 $ 16,609 Adjustment to Vital River redemption value 1,451 1,111 Purchase of Vital River 5% equity interest (8,745 ) — Change in fair value of Vital River 8% equity interest, included in additional-paid-in-capital 2,708 — Modification of Vital River 8% purchase option 2,196 — Acquisition of a 10% non-controlling interest through acquiring Citoxlab 4,035 — Acquisition of a 20% non-controlling interest through acquiring a supplier 8,740 — Net income attributable to noncontrolling interests 249 543 Foreign currency translation (814 ) (932 ) Ending balance $ 28,345 $ 17,331 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rates for the three months ended September 28, 2019 and September 29, 2018 were (0.4)% and 16.9% , respectively. The Company’s effective tax rates for the nine months ended September 28, 2019 and September 29, 2018 were 12.6% and 19.2% , respectively. For the three and nine months ended September 28, 2019 , the change in the effective tax rates from the prior year periods were primarily attributable to recognizing a $20.4 million deferred tax asset in the three months ended September 28, 2019 for net operating losses expected to be utilized in the future due to changes in the Company’s international financing structure. For the three months ended September 28, 2019 , the Company’s unrecognized tax benefits decreased by $5.8 million to $19.0 million , primarily due to the lapse of statutes of limitations, offset by an additional quarter of Canadian Scientific Research and Experimental Development Credit reserves. For the three months ended September 28, 2019 , the unrecognized income tax benefits that would impact the effective tax rate decreased by $6.1 million to $16.6 million , for the same reasons discussed above. The accrued interest on unrecognized tax benefits was $2.2 million at September 28, 2019 . The Company estimates that it is reasonably possible that the unrecognized tax benefits will decrease by up to $1.6 million over the next twelve-month period, primarily due to the outcome of pending tax audits. The Company conducts business in several tax jurisdictions. As a result, it is subject to tax audits in jurisdictions including the U.S., U.K., China, France, Germany, Canada, Japan and India. With few exceptions, the Company is no longer subject to U.S. and international income tax examinations for years before 2016. The Company and certain of its subsidiaries have ongoing tax controversies with various tax authorities in the U.S., Canada, Japan, India, China, and France. The Company does not anticipate resolution of these audits will have a material impact on its financial statements. |
PENSION AND OTHER POST-RETIREME
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS The following table provides the components of net periodic cost for the Company’s pension, deferred compensation and executive supplemental life insurance retirement plans: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Service cost $ 701 $ 814 $ 2,088 $ 2,629 Interest cost 2,902 2,752 8,652 8,241 Expected return on plan assets (3,236 ) (3,801 ) (9,706 ) (11,690 ) Amortization of prior service cost (credit) 92 (135 ) 274 (406 ) Amortization of net loss 489 736 1,466 2,267 Net periodic cost $ 948 $ 366 $ 2,774 $ 1,041 Service cost is recorded as an operating expense within the accompanying unaudited condensed consolidated statements of income. All other components of net periodic costs are recorded in Other income, net in the accompanying unaudited condensed consolidated statements of income. The net periodic cost for the Company’s other post-retirement benefit plan for the three and nine months ended September 28, 2019 and September 29, 2018 was not significant. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock, RSUs, and PSUs. The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Cost of revenue $ 2,354 $ 1,596 $ 6,792 $ 4,747 Selling, general and administrative 11,671 10,224 36,637 31,161 Stock-based compensation, before income taxes 14,025 11,820 43,429 35,908 Provision for income taxes (2,166 ) (2,370 ) (7,068 ) (6,940 ) Stock-based compensation, net of income taxes $ 11,859 $ 9,450 $ 36,361 $ 28,968 During the nine months ended September 28, 2019 , the Company granted stock options representing 0.5 million common shares with a per-share weighted-average grant date fair value of $33.97 , RSUs representing 0.2 million common shares with a per-share weighted-average grant date fair value of $142.89 , and PSUs representing 0.2 million common shares with a per-share weighted-average grant date fair value of $162.74 . The maximum number of common shares to be issued upon vesting of PSUs granted during the nine months ended September 28, 2019 is 0.3 million . |
FOREIGN CURRENCY CONTRACTS
FOREIGN CURRENCY CONTRACTS | 9 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FOREIGN CURRENCY CONTRACTS | FOREIGN CURRENCY CONTRACTS Cross currency loan The Company entered into foreign exchange forward contracts during the nine months ended September 28, 2019 and three months ended December 29, 2018 to limit its foreign currency exposure related to a U.S. dollar denominated loan borrowed by a non-U.S. Euro functional currency entity under the Credit Facility. These contracts are not designated as hedging instruments. Any gains or losses on these forward contracts are recognized immediately in Interest expense. The open contract at December 29, 2018 , which had a duration of approximately 3 months, was recorded at fair value in the Company’s accompanying unaudited condensed consolidated balance sheets. The notional amount and fair value of the open contract is summarized as follows: Notional Amount Fair Value Balance Sheet Location (in thousands) December 29, 2018 $ 343,300 $ (1,319 ) Other current liabilities The Company had no open forward contracts related to a U.S. dollar denominated loan borrowed by a non-U.S. Euro functional currency at September 28, 2019 . The following table summarizes the effect of the foreign exchange forward contracts entered into to limit its foreign currency exposure related to a U.S. dollar denominated loan borrowed by a non-U.S. Euro functional currency entity under the Credit Facility on the Company’s unaudited condensed consolidated statements of income: September 28, 2019 September 29, 2018 Location of hedge gain (loss) Financial statement caption amount Amount of gain (loss) Financial statement caption amount Amount of gain (loss) (in thousands) Three Months Ended: Interest expense $ (5,698 ) $ 14,311 $ (17,197 ) $ — Nine Months Ended: Interest expense $ (36,520 ) $ 21,622 $ (47,031 ) $ — Intercompany loans The Company also entered into foreign exchange forward contracts during the nine months ended September 28, 2019 to limit its foreign currency exposure related to certain intercompany loans. These contracts are not designated as hedging instruments. Any gains or losses on forward contracts associated with intercompany loans are recognized immediately in Other income, net and are largely offset by the remeasurement of the underlying intercompany loans. The Company had one open forward contract related to an intercompany loan at September 28, 2019 . The notional amount and fair value of the open contract is summarized as follows: Notional Amount Fair Value Balance Sheet Location (in thousands) September 28, 2019 $ 108,029 $ 778 Other current assets The forward contract outstanding as of September 28, 2019 had a duration of less than 1 month . The Company had no such open contracts at December 29, 2018 . The following table summarizes the effect of the foreign exchange forward contracts entered into in connection with intercompany loans on the Company’s unaudited condensed consolidated statements of income: September 28, 2019 September 29, 2018 Location of hedge gain (loss) Financial statement caption amount Amount of gain (loss) Financial statement caption amount Amount of gain (loss) (in thousands) Three Months Ended: Other (expense) income, net $ (14,254 ) $ 840 $ 5,910 $ 235 Nine Months Ended: Other (expense) income, net $ (8,161 ) $ 1,358 $ 24,069 $ (850 ) |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENTS | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING AND ASSET IMPAIRMENTS Global Restructuring Initiatives In recent fiscal years, the Company has undertaken productivity improvement initiatives within all reportable segments at various locations across the U.S., Europe, and Japan. This includes workforce right-sizing and scalability initiatives, resulting in severance and transition costs; and cost related to the consolidation of facilities, resulting in asset impairment and accelerated depreciation charges. The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income. Three Months Ended September 28, 2019 September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 435 $ 180 $ 615 $ 30 $ 5 $ 35 Selling, general and administrative 2,038 — 2,038 4,619 21 4,640 Total $ 2,473 $ 180 $ 2,653 $ 4,649 $ 26 $ 4,675 Nine Months Ended September 28, 2019 September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 1,074 $ 1,685 $ 2,759 $ 767 $ 27 $ 794 Selling, general and administrative 3,110 18 3,128 6,354 21 6,375 Total $ 4,184 $ 1,703 $ 5,887 $ 7,121 $ 48 $ 7,169 The following table presents restructuring costs by reportable segment for these productivity improvement initiatives: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS $ 381 $ — $ 1,323 $ — DSA 1,843 56 2,529 1,021 Manufacturing 429 — 2,035 870 Unallocated corporate — 4,619 — 5,278 Total $ 2,653 $ 4,675 $ 5,887 $ 7,169 2017 RMS Restructuring Initiative In the fourth quarter of fiscal year 2017, the Company committed to a plan to further reduce costs and improve operating efficiencies in its RMS reportable segment. The plan included ceasing production within the Company’s facility in Maryland and repurposing it for alternative initiatives, and reducing its workforce at certain RMS facilities during 2018. The following table presents a summary of severance and transition costs, and asset impairments (referred to as restructuring costs) during the three and nine months ended September 29, 2018 related to this initiative within the unaudited condensed consolidated statements of income. The Company did no t incur any restructuring costs in the three and nine months ended September 28, 2019 . September 29, 2018 Three Months Ended Nine Months Ended Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total Cost of services provided and products sold (excluding amortization of intangible assets) $ 95 $ 238 $ 333 $ 650 $ 822 $ 1,472 Selling, general and administrative (30 ) — (30 ) 158 — 158 Total $ 65 $ 238 $ 303 $ 808 $ 822 $ 1,630 Cumulative restructuring costs incurred during 2017 and 2018 were $20.1 million , which primarily related to non-cash asset impairments and accelerated depreciation charges of $17.7 million and cash payments for severance and transition costs of $1.2 million and were recorded in the RMS reportable segment. All severance and transition costs have been paid as of June 29, 2019 and n o further restructuring costs related to the 2017 RMS Restructuring Initiative are expected to be incurred. The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to all restructuring activities: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 2,758 $ 6,810 $ 2,921 $ 6,856 Expense (excluding non-cash charges) 2,653 4,714 5,508 7,929 Payments / utilization (1,604 ) (4,407 ) (4,608 ) (7,544 ) Foreign currency adjustments (24 ) (55 ) (38 ) (179 ) Ending balance $ 3,783 $ 7,062 $ 3,783 $ 7,062 As of September 28, 2019 and September 29, 2018 , $3.8 million and $2.6 million of severance and other personnel related costs liabilities and lease obligation liabilities, respectively, were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets and zero and $4.4 million , respectively, were included in other long-term liabilities within the Company’s unaudited condensed consolidated balance sheets. |
LEASES
LEASES | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Adoption of ASC Topic 842, “Leases” (ASC 842) ASC 842 became effective for the Company on December 30, 2018 and was adopted using the modified retrospective method for all leases that had commenced as of the effective date, along with certain available practical expedients. The Company elected to recognize any effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, which there were none. In addition, the Company elected to adopt the package of practical expedients permitted under the transition guidance within the new standard. The practical expedient package applied to leases that commenced prior to the effective date of the new standard and permits a reporting entity not to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the historical lease classification for any expired or existing leases, and iii) reassess initial direct costs for any existing leases. The reporting results for the nine months ended September 28, 2019 reflect the application of ASC 842 guidance while the historical results for fiscal year 2018 were prepared under the guidance of ASC 840. The adoption of the new standard did not have a significant impact upon the Company’s condensed consolidated statements of income and cash flows. The adoption of the new standard resulted in the following impact to the condensed consolidated balance sheet: i) no significant change in the carrying values of assets and liabilities related to the Company’s finance leases, previously referred to as capital leases (See Note 9, “Long-Term Debt and Finance Lease Obligations”), ii) the derecognition of assets and related liabilities pertaining to certain build-to-suit arrangements previously accounted for under ASC 840 and recording them under the guidance of ASC 842, and iii) the recording of right-of-use assets and corresponding lease liabilities pertaining to the Company’s operating leases on the condensed consolidated balance sheet, adjusted for existing balances of prepaid rent and deferred rent liabilities as of the transition date. The cumulative effect of applying ASC 842 to all leases that had commenced as of December 30, 2018 was as follows: Balance sheet captions impacted by ASC 842 December 30, 2018 (Prior to adoption of ASC 842) Effect of the adoption of ASC 842 December 30, 2018 (As adjusted) (in thousands) Prepaid assets $ 53,447 $ (4,413 ) (1) $ 49,034 Property, plant and equipment, net 932,877 (23,448 ) (2) 909,429 Operating lease right-of-use assets, net — 134,172 (3) 134,172 Other assets 143,759 (4,989 ) (4) 138,770 Other current liabilities 71,280 15,935 (5) 87,215 Operating lease right-of-use liabilities — 111,570 (6) 111,570 Long-term debt, net and finance leases 1,636,598 (26,183 ) (7) 1,610,415 ASC 842 adoption adjustments: (1) Short term prepaid rent reclassified from Prepaid assets to the Operating lease right-of-use asset. (2) Derecognition of approximately $26 million of leased properties, recorded in Property, plant and equipment, specifically Construction-in-process, that were recognized under the previously existing build-to-suit accounting (3) Recognition of Operating lease right-to-use asset and adjusted for prepaid rent and deferred rent liability reclassification adjustments identified in adjustments (1) (4) (5) . (4) Long-term prepaid rent reclassified from Other assets to the Operating lease right-of-use asset. (5) Recognition of short-term portion of the Operating lease right-of-use liabilities offset by reclassification of deferred rent liability to Operating lease right-of-use asset. (6) Recognition of long-term portion of the Operating lease right-of-use liabilities. (7) Derecognition of approximately $26 million of Other debt associated with leased properties that were recognized under the previously existing build-to-suit accounting rules. Operating and Finance Leases At inception of a contract, the Company determines if a contract meets the definition of a lease. A lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines if the contract conveys the right to control the use of an identified asset for a period of time. The Company assesses throughout the period of use whether the Company has both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset, and (2) the right to direct the use of the identified asset. This determination is reassessed if the terms of the contract are changed. Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified asset. Right-of-use assets and lease liabilities are recognized at lease commencement date based on the present value of the minimum future lease payments. The Company leases laboratory, production, and office space (real estate), as well as land, vehicles and certain equipment under non-cancellable operating and finance leases. The carrying value of the Company’s right-of-use lease assets is substantially concentrated in its real estate leases, while the volume of lease agreements is primarily concentrated in vehicles and equipment leases. The Company’s policy is to not record leases with an original term of twelve months or less on the condensed consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Certain lease agreements include rental payments that are adjusted periodically for inflation or other variables. In addition to rent, the leases may require the Company to pay additional amounts for taxes, insurance, maintenance and other expenses, which are generally referred to as non-lease components. Such adjustments to rental payments and variable non-lease components are treated as variable lease payments and recognized in the period in which the obligation for these payments was incurred. Variable lease components and variable non-lease components are not measured as part of the right of use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right of use asset and liability. Total contract consideration is allocated to the combined fixed lease and non-lease component. This policy election applies consistently to all asset classes under lease agreements. Most leases contain clauses for renewal at the Company’s option with renewal terms that generally extend the lease term from 1 to 5 years . Certain lease agreements contain options to purchase the leased property and options to terminate the lease. Payments to be made in option periods are recognized as part of the right-of-use lease assets and lease liabilities when it is reasonably certain that the option to extend the lease will be exercised or the option to terminate the lease will not be exercised, or is not at the Company’s option. The Company determines whether the reasonably certain threshold is met by considering contract-, asset-, market-, and entity-based factors. A portfolio approach is applied to certain lease contracts with similar characteristics. The Company’s lease agreements do not contain any significant residual value guarantees or material restrictive covenants imposed by the leases. The Company subleases a limited number of lease arrangements. Sublease activity is not material to the condensed consolidated financial statements. Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows: September 28, 2019 (in thousands) Operating leases Operating lease right-of-use assets, net $ 140,359 Other current liabilities $ 20,032 Operating lease right-of-use liabilities 116,868 Total operating lease liabilities $ 136,900 Finance leases Property, plant and equipment, net $ 32,076 Current portion of long-term debt and finance leases $ 3,002 Long-term debt, net and finance leases 26,710 Total finance lease liabilities $ 29,712 The components of operating and finance lease costs for the three and nine months ended September 28, 2019 were as follows: September 28, 2019 Three Months Ended Nine Months Ended (in thousands) Operating lease costs $ 7,839 $ 23,433 Finance lease costs: Amortization of right-of-use assets 1,070 2,921 Interest on lease liabilities 360 1,001 Short-term lease costs 256 652 Variable lease costs 646 1,911 Sublease income (383 ) (474 ) Total lease costs $ 9,788 $ 29,444 Other information related to leases was as follows: Supplemental cash flow information Nine Months Ended September 28, 2019 (in thousands) Cash flows included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20,084 Operating cash flows from finance leases 1,058 Finance cash flows from finance leases 2,862 Non-cash leases activity: Right-of-use lease assets obtained in exchange for new operating lease liabilities $ 20,805 Right-of-use lease assets obtained in exchange for new finance lease liabilities 4,741 Lease term and discount rate As of September 28, 2019 Weighted-average remaining lease term (in years) Operating lease 8.35 Finance lease 12.94 Weighted-average discount rate Operating lease 4.37 Finance lease 4.40 At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate. As of September 28, 2019 , maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows: Operating Leases Finance Leases (in thousands) 2019 (excluding the nine months ended September 28, 2019) $ 6,264 $ 1,244 2020 25,519 4,658 2021 23,993 3,651 2022 20,188 3,622 2023 16,197 2,760 Thereafter 74,148 24,235 Total minimum future lease payments 166,309 40,170 Less: Imputed interest 29,409 10,458 Total lease liabilities $ 136,900 $ 29,712 Total minimum future lease payments (predominantly operating leases) of approximately $47 million for leases that have not commenced as of September 28, 2019 , as the Company does not yet control the underlying assets, are not included in the condensed consolidated financial statements. These leases are expected to commence between fiscal years 2019 and 2024 with lease terms of approximately 3 to 15 years . As of December 29, 2018 , minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows: Operating Leases (1) Finance Leases (1) (in thousands) 2019 $ 25,411 $ 3,972 2020 22,400 3,759 2021 21,544 2,869 2022 18,535 2,967 2023 15,398 2,209 Thereafter 66,870 24,304 Total minimum future lease payments $ 170,158 $ 40,080 (1) Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space. |
LEASES | LEASES Adoption of ASC Topic 842, “Leases” (ASC 842) ASC 842 became effective for the Company on December 30, 2018 and was adopted using the modified retrospective method for all leases that had commenced as of the effective date, along with certain available practical expedients. The Company elected to recognize any effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, which there were none. In addition, the Company elected to adopt the package of practical expedients permitted under the transition guidance within the new standard. The practical expedient package applied to leases that commenced prior to the effective date of the new standard and permits a reporting entity not to: i) reassess whether any expired or existing contracts are or contain leases, ii) reassess the historical lease classification for any expired or existing leases, and iii) reassess initial direct costs for any existing leases. The reporting results for the nine months ended September 28, 2019 reflect the application of ASC 842 guidance while the historical results for fiscal year 2018 were prepared under the guidance of ASC 840. The adoption of the new standard did not have a significant impact upon the Company’s condensed consolidated statements of income and cash flows. The adoption of the new standard resulted in the following impact to the condensed consolidated balance sheet: i) no significant change in the carrying values of assets and liabilities related to the Company’s finance leases, previously referred to as capital leases (See Note 9, “Long-Term Debt and Finance Lease Obligations”), ii) the derecognition of assets and related liabilities pertaining to certain build-to-suit arrangements previously accounted for under ASC 840 and recording them under the guidance of ASC 842, and iii) the recording of right-of-use assets and corresponding lease liabilities pertaining to the Company’s operating leases on the condensed consolidated balance sheet, adjusted for existing balances of prepaid rent and deferred rent liabilities as of the transition date. The cumulative effect of applying ASC 842 to all leases that had commenced as of December 30, 2018 was as follows: Balance sheet captions impacted by ASC 842 December 30, 2018 (Prior to adoption of ASC 842) Effect of the adoption of ASC 842 December 30, 2018 (As adjusted) (in thousands) Prepaid assets $ 53,447 $ (4,413 ) (1) $ 49,034 Property, plant and equipment, net 932,877 (23,448 ) (2) 909,429 Operating lease right-of-use assets, net — 134,172 (3) 134,172 Other assets 143,759 (4,989 ) (4) 138,770 Other current liabilities 71,280 15,935 (5) 87,215 Operating lease right-of-use liabilities — 111,570 (6) 111,570 Long-term debt, net and finance leases 1,636,598 (26,183 ) (7) 1,610,415 ASC 842 adoption adjustments: (1) Short term prepaid rent reclassified from Prepaid assets to the Operating lease right-of-use asset. (2) Derecognition of approximately $26 million of leased properties, recorded in Property, plant and equipment, specifically Construction-in-process, that were recognized under the previously existing build-to-suit accounting (3) Recognition of Operating lease right-to-use asset and adjusted for prepaid rent and deferred rent liability reclassification adjustments identified in adjustments (1) (4) (5) . (4) Long-term prepaid rent reclassified from Other assets to the Operating lease right-of-use asset. (5) Recognition of short-term portion of the Operating lease right-of-use liabilities offset by reclassification of deferred rent liability to Operating lease right-of-use asset. (6) Recognition of long-term portion of the Operating lease right-of-use liabilities. (7) Derecognition of approximately $26 million of Other debt associated with leased properties that were recognized under the previously existing build-to-suit accounting rules. Operating and Finance Leases At inception of a contract, the Company determines if a contract meets the definition of a lease. A lease is a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. The Company determines if the contract conveys the right to control the use of an identified asset for a period of time. The Company assesses throughout the period of use whether the Company has both of the following: (1) the right to obtain substantially all of the economic benefits from use of the identified asset, and (2) the right to direct the use of the identified asset. This determination is reassessed if the terms of the contract are changed. Leases are classified as operating or finance leases based on the terms of the lease agreement and certain characteristics of the identified asset. Right-of-use assets and lease liabilities are recognized at lease commencement date based on the present value of the minimum future lease payments. The Company leases laboratory, production, and office space (real estate), as well as land, vehicles and certain equipment under non-cancellable operating and finance leases. The carrying value of the Company’s right-of-use lease assets is substantially concentrated in its real estate leases, while the volume of lease agreements is primarily concentrated in vehicles and equipment leases. The Company’s policy is to not record leases with an original term of twelve months or less on the condensed consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Certain lease agreements include rental payments that are adjusted periodically for inflation or other variables. In addition to rent, the leases may require the Company to pay additional amounts for taxes, insurance, maintenance and other expenses, which are generally referred to as non-lease components. Such adjustments to rental payments and variable non-lease components are treated as variable lease payments and recognized in the period in which the obligation for these payments was incurred. Variable lease components and variable non-lease components are not measured as part of the right of use asset and liability. Only when lease components and their associated non-lease components are fixed are they accounted for as a single lease component and are recognized as part of a right of use asset and liability. Total contract consideration is allocated to the combined fixed lease and non-lease component. This policy election applies consistently to all asset classes under lease agreements. Most leases contain clauses for renewal at the Company’s option with renewal terms that generally extend the lease term from 1 to 5 years . Certain lease agreements contain options to purchase the leased property and options to terminate the lease. Payments to be made in option periods are recognized as part of the right-of-use lease assets and lease liabilities when it is reasonably certain that the option to extend the lease will be exercised or the option to terminate the lease will not be exercised, or is not at the Company’s option. The Company determines whether the reasonably certain threshold is met by considering contract-, asset-, market-, and entity-based factors. A portfolio approach is applied to certain lease contracts with similar characteristics. The Company’s lease agreements do not contain any significant residual value guarantees or material restrictive covenants imposed by the leases. The Company subleases a limited number of lease arrangements. Sublease activity is not material to the condensed consolidated financial statements. Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows: September 28, 2019 (in thousands) Operating leases Operating lease right-of-use assets, net $ 140,359 Other current liabilities $ 20,032 Operating lease right-of-use liabilities 116,868 Total operating lease liabilities $ 136,900 Finance leases Property, plant and equipment, net $ 32,076 Current portion of long-term debt and finance leases $ 3,002 Long-term debt, net and finance leases 26,710 Total finance lease liabilities $ 29,712 The components of operating and finance lease costs for the three and nine months ended September 28, 2019 were as follows: September 28, 2019 Three Months Ended Nine Months Ended (in thousands) Operating lease costs $ 7,839 $ 23,433 Finance lease costs: Amortization of right-of-use assets 1,070 2,921 Interest on lease liabilities 360 1,001 Short-term lease costs 256 652 Variable lease costs 646 1,911 Sublease income (383 ) (474 ) Total lease costs $ 9,788 $ 29,444 Other information related to leases was as follows: Supplemental cash flow information Nine Months Ended September 28, 2019 (in thousands) Cash flows included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20,084 Operating cash flows from finance leases 1,058 Finance cash flows from finance leases 2,862 Non-cash leases activity: Right-of-use lease assets obtained in exchange for new operating lease liabilities $ 20,805 Right-of-use lease assets obtained in exchange for new finance lease liabilities 4,741 Lease term and discount rate As of September 28, 2019 Weighted-average remaining lease term (in years) Operating lease 8.35 Finance lease 12.94 Weighted-average discount rate Operating lease 4.37 Finance lease 4.40 At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate. As of September 28, 2019 , maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows: Operating Leases Finance Leases (in thousands) 2019 (excluding the nine months ended September 28, 2019) $ 6,264 $ 1,244 2020 25,519 4,658 2021 23,993 3,651 2022 20,188 3,622 2023 16,197 2,760 Thereafter 74,148 24,235 Total minimum future lease payments 166,309 40,170 Less: Imputed interest 29,409 10,458 Total lease liabilities $ 136,900 $ 29,712 Total minimum future lease payments (predominantly operating leases) of approximately $47 million for leases that have not commenced as of September 28, 2019 , as the Company does not yet control the underlying assets, are not included in the condensed consolidated financial statements. These leases are expected to commence between fiscal years 2019 and 2024 with lease terms of approximately 3 to 15 years . As of December 29, 2018 , minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows: Operating Leases (1) Finance Leases (1) (in thousands) 2019 $ 25,411 $ 3,972 2020 22,400 3,759 2021 21,544 2,869 2022 18,535 2,967 2023 15,398 2,209 Thereafter 66,870 24,304 Total minimum future lease payments $ 170,158 $ 40,080 (1) Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Various lawsuits, claims and proceedings of a nature considered normal to its business are pending against the Company. While the outcome of any of these proceedings cannot be accurately predicted, the Company does not believe the ultimate resolution of any of these existing matters would have a material adverse effect on the Company’s business or financial condition. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of unaudited condensed consolidated financial statements in accordance with U.S. GAAP requires that the Company make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. |
Consolidation | The Company’s unaudited condensed consolidated financial statements reflect its financial statements and those of its subsidiaries in which the Company holds a controlling financial interest. For consolidated entities in which the Company owns or is exposed to less than 100% of the economics, the Company records net income (loss) attributable to noncontrolling interests in its consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation. |
Fiscal Period | The Company’s fiscal year is typically based on 52-weeks, with each quarter composed of 13 weeks ending on the last Saturday on, or closest to, March 31, June 30, September 30, and December 31. |
Newly Adopted and Newly Issued Accounting Pronouncements | In June 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” ASU 2018-07 aligns the accounting for share-based payment awards issued to employees and nonemployees as well as improves financial reporting for share-based payments to nonemployees. This standard became effective for the Company in the three months ended March 30, 2019 and did not have a material impact on the consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. It also creates more transparency around how economic results are presented, both on the face of the financial statements and in the disclosures. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. This standard became effective for the Company in the three months ended March 30, 2019 and did not have a material impact on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard, including subsequently issued amendments, collectively referred to as Accounting Standards Codification (ASC) 842, “Leases”, established the principles that lessees and lessors will apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The Company adopted this standard using the modified retrospective transition approach as applied to leases existing as of or entered into after the adoption date (December 30, 2018) in the three months ended March 30, 2019. See Note 16, “Leases” for a discussion of the Company’s adoption of this standard and its impact on the consolidated financial statements and related disclosures. Newly Issued Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computer Arrangement that is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied either retrospectively or prospectively. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In August 2018, the FASB issued ASU 2018-14, “Compensation Retirement Benefits - Defined Benefit Plans -General (Subtopic 715-20).” ASU 2018-14 removes the requirements to disclose the amounts in Accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year and the related party disclosures about the amount of future annual benefits covered by insurance contracts. In addition, the ASU adds the requirement to disclose an explanation for any significant gains and losses related to changes in the benefit obligation for the period. The ASU is effective for fiscal years ending after December 15, 2020 and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures . In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 removes the disclosure requirement for the amount and reasons for transfers between Level 1 and Level 2 fair value measurements as well as the process for Level 3 fair value measurements. In addition, the ASU adds the disclosure requirements for changes in unrealized gains and losses included in Other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period as well as the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and will be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. This standard is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and will be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The standard, including subsequently issued amendments, requires a financial asset measured at amortized cost basis, such as accounts receivable, to be presented at the net amount expected to be collected based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and requires the modified retrospective approach. Early adoption is permitted. The Company is still evaluating the impact this standard will have on its consolidated financial statements and related disclosures, but does not believe there will be a material impact upon adoption. |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The preliminary purchase allocation of $491.0 million , net of $36.7 million of cash acquired was as follows: April 29, 2019 (in thousands) Trade receivables (contractual amount of $35,405) $ 35,405 Inventories 5,282 Other current assets (excluding cash) 13,822 Property, plant and equipment 88,912 Goodwill 280,588 Definite-lived intangible assets 162,400 Other long-term assets 20,164 Deferred revenue (15,278 ) Current liabilities (46,682 ) Deferred tax liabilities (27,655 ) Other long-term liabilities (21,916 ) Redeemable noncontrolling interest (4,035 ) Total purchase price allocation $ 491,007 The purchase price allocation of $21.5 million , net of $1.0 million of cash acquired and a final net working capital adjustment of $0.4 million , was as follows: January 11, 2018 (in thousands) Trade receivables (contractual amount of $1,309) $ 1,309 Other current assets (excluding cash) 99 Property, plant and equipment 1,136 Definite-lived intangible assets - client relationships 3,647 Goodwill 17,660 Current liabilities (1,575 ) Deferred revenue (151 ) Long-term liabilities (596 ) Total purchase price allocation $ 21,529 The purchase allocation of $800.8 million , net of $27.7 million of cash acquired and a final net working capital adjustment of $1.2 million , was as follows: April 3, 2018 (in thousands) Trade receivables (contractual amount of $35,073) $ 35,073 Inventories 4,463 Other current assets (excluding cash) 5,893 Property, plant and equipment 128,403 Goodwill 441,656 Definite-lived intangible assets 309,200 Other long-term assets 1,081 Deferred revenue (23,926 ) Current liabilities (32,885 ) Deferred tax liabilities (65,945 ) Other long-term liabilities (2,213 ) Total purchase price allocation $ 800,800 The preliminary purchase allocation of $23.1 million , net of $0.3 million of cash acquired was as follows: August 28, 2019 (in thousands) Trade receivables (contractual amount of $189) $ 189 Inventories 7,644 Property, plant and equipment 1,462 Goodwill 12,528 Other long-term assets 11,849 Current liabilities (300 ) Deferred tax liabilities (1,331 ) Other long-term liabilities (238 ) Redeemable noncontrolling interest (8,740 ) Total purchase price allocation $ 23,063 |
Schedule of Definite-Lived Intangible Assets Acquired as Part of Business Combination | The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 264,900 13 Developed technology 23,400 3 Backlog 20,900 1 Total definite-lived intangible assets $ 309,200 12 The breakout of definite-lived intangible assets acquired was as follows: Definite-Lived Intangible Assets Weighted Average Amortization Life (in thousands) (in years) Client relationships $ 134,600 13 Developed technology 19,900 3 Backlog 7,900 1 Total definite-lived intangible assets $ 162,400 12 |
Schedule of Business Acquisition, Pro Forma Information | For the nine months ended September 29, 2018 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $7.3 million , additional interest expense on borrowings of $3.1 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Revenue $ 667,951 $ 627,758 $ 1,992,472 $ 1,795,312 Net income attributable to common shareholders $ 74,948 $ 63,919 $ 189,601 $ 170,557 nine months ended September 29, 2018 , these adjustments included additional amortization of intangible assets and depreciation of fixed assets of $11.8 million , additional interest expense on borrowings of $2.8 million , elimination of intercompany activity and other one-time costs, and the tax impacts of these adjustments. September 29, 2018 Three Months Ended Nine Months Ended (in thousands) Revenue $ 585,295 $ 1,726,683 Net income attributable to common shareholders 59,297 168,872 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of Revenue | The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Major Products/Service Lines: RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 56,243 $ 49,417 $ 168,377 $ 146,947 Services and products transferred at a point in time 76,303 77,394 237,395 244,248 DSA Services and products transferred over time 419,445 352,203 1,178,874 958,174 Services and products transferred at a point in time 634 54 919 491 Manufacturing Services and products transferred over time 36,308 31,420 102,674 92,978 Services and products transferred at a point in time 79,018 74,807 241,849 221,728 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 28, 2019 $ 373,094 $ 184,685 $ 71,984 $ 36,698 $ 1,490 $ 667,951 September 29, 2018 336,811 159,473 53,665 34,062 1,284 585,295 Nine Months Ended: September 28, 2019 $ 1,091,194 $ 533,820 $ 194,865 $ 106,090 $ 4,119 $ 1,930,088 September 29, 2018 919,807 481,955 153,802 104,817 4,185 1,664,566 |
Schedule of Estimated Revenue Related to Performance Obligations | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) as of September 28, 2019 : Revenue Expected to be Recognized in Future Periods Less than 1 Year 1 to 3 Years 4 to 5 Years Beyond 5 Years Total (in thousands) DSA $ 163,868 $ 111,890 $ 6,641 $ 409 $ 282,808 Manufacturing 10,165 12,997 20 8 23,190 Total $ 174,033 $ 124,887 $ 6,661 $ 417 $ 305,998 |
Schedule of Client Receivables, Contract Assets and Contract Liabilities | The following table provides information about client receivables, contract assets, and contract liabilities from contracts with customers: September 28, 2019 December 29, 2018 (in thousands) Balances from contracts with customers: Client receivables $ 394,135 $ 370,131 Contract assets (unbilled revenue) 134,169 105,216 Contract liabilities (current and long-term deferred revenue) 191,443 179,559 Contract liabilities (customer contract deposits) 36,006 38,245 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Other Financial Information by Business Segment | The following table presents revenue and other financial information by reportable segment: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS Revenue $ 132,546 $ 126,811 $ 405,772 $ 391,195 Operating income 34,385 32,121 103,729 104,893 Depreciation and amortization 4,895 4,811 14,198 14,565 Capital expenditures 5,818 8,166 14,979 18,105 DSA Revenue $ 420,079 $ 352,257 $ 1,179,793 $ 958,665 Operating income 64,995 62,909 175,214 160,391 Depreciation and amortization 39,898 31,433 111,231 83,262 Capital expenditures 21,141 10,800 45,130 34,496 Manufacturing Revenue $ 115,326 $ 106,227 $ 344,523 $ 314,706 Operating income 39,253 33,266 103,893 95,904 Depreciation and amortization 5,990 5,709 17,577 17,313 Capital expenditures 6,421 2,709 14,299 12,731 |
Reconciliation of Segment Operating Income to Consolidated Operating Income | Reconciliations of segment operating income, depreciation and amortization, and capital expenditures to the respective consolidated amounts are as follows: Operating Income Depreciation and Amortization Capital Expenditures September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Three Months Ended: Total reportable segments $ 138,633 $ 128,296 $ 50,783 $ 41,953 $ 33,380 $ 21,675 Unallocated corporate (45,831 ) (43,934 ) 975 1,639 1,783 764 Total consolidated $ 92,802 $ 84,362 $ 51,758 $ 43,592 $ 35,163 $ 22,439 Nine Months Ended: Total reportable segments $ 382,836 $ 361,188 $ 143,006 $ 115,140 $ 74,408 $ 65,332 Unallocated corporate (140,474 ) (132,287 ) 3,256 5,058 2,267 6,046 Total consolidated $ 242,362 $ 228,901 $ 146,262 $ 120,198 $ 76,675 $ 71,378 |
Revenue Disaggregated by Products and Services and Geographic Area | The following tables disaggregate the Company’s revenue by major business line and timing of transfer of products or services: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Major Products/Service Lines: RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Timing of Revenue Recognition: RMS Services and products transferred over time $ 56,243 $ 49,417 $ 168,377 $ 146,947 Services and products transferred at a point in time 76,303 77,394 237,395 244,248 DSA Services and products transferred over time 419,445 352,203 1,178,874 958,174 Services and products transferred at a point in time 634 54 919 491 Manufacturing Services and products transferred over time 36,308 31,420 102,674 92,978 Services and products transferred at a point in time 79,018 74,807 241,849 221,728 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Revenue for each significant product or service offering is as follows: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS $ 132,546 $ 126,811 $ 405,772 $ 391,195 DSA 420,079 352,257 1,179,793 958,665 Manufacturing 115,326 106,227 344,523 314,706 Total revenue $ 667,951 $ 585,295 $ 1,930,088 $ 1,664,566 Revenue by geographic area is as follows: U.S. Europe Canada Asia Pacific Other Consolidated (in thousands) Three Months Ended: September 28, 2019 $ 373,094 $ 184,685 $ 71,984 $ 36,698 $ 1,490 $ 667,951 September 29, 2018 336,811 159,473 53,665 34,062 1,284 585,295 Nine Months Ended: September 28, 2019 $ 1,091,194 $ 533,820 $ 194,865 $ 106,090 $ 4,119 $ 1,930,088 September 29, 2018 919,807 481,955 153,802 104,817 4,185 1,664,566 |
Summary of Unallocated Corporate Overhead | A summary of unallocated corporate expense consists of the following : Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Stock-based compensation $ 8,752 $ 7,910 $ 27,744 $ 24,517 Compensation, benefits, and other employee-related expenses 18,770 20,464 54,561 56,375 External consulting and other service expenses 4,156 4,767 12,060 12,711 Information technology 3,534 3,070 10,811 8,723 Depreciation 975 1,639 3,256 5,058 Acquisition and integration 5,679 1,122 23,621 15,678 Other general unallocated corporate 3,965 4,962 8,421 9,225 Total unallocated corporate expense $ 45,831 $ 43,934 $ 140,474 $ 132,287 |
SUPPLEMENTAL BALANCE SHEET IN_2
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Supplemental Balance Sheet Information [Abstract] | |
Composition of Net Trade Receivables | The composition of trade receivables, net is as follows: September 28, 2019 December 29, 2018 (in thousands) Client receivables $ 394,135 $ 370,131 Unbilled revenue 134,169 105,216 Total 528,304 475,347 Less: Allowance for doubtful accounts (4,230 ) (3,099 ) Trade receivables, net $ 524,074 $ 472,248 |
Composition of Inventories | The composition of inventories is as follows: September 28, 2019 December 29, 2018 (in thousands) Raw materials and supplies $ 23,670 $ 22,378 Work in process 36,851 21,732 Finished products 95,005 83,782 Inventories $ 155,526 $ 127,892 |
Composition of Other Current Assets | The composition of other current assets is as follows: September 28, 2019 December 29, 2018 (in thousands) Prepaid income tax $ 75,019 $ 47,157 Investments 855 885 Restricted cash 534 465 Other 366 300 Other current assets $ 76,774 $ 48,807 |
Composition of Other Assets | The composition of other assets is as follows: September 28, 2019 December 29, 2018 (in thousands) Venture capital investments $ 100,553 $ 87,545 Other investments 13,045 1,046 Life insurance policies 35,861 32,340 Restricted cash 1,427 1,411 Other 42,288 21,417 Other assets $ 193,174 $ 143,759 |
Composition of Other Current Liabilities | The composition of other current liabilities is as follows: September 28, 2019 December 29, 2018 (in thousands) Current portion of operating lease right-of-use liabilities $ 20,032 $ — Accrued income taxes 44,121 24,120 Customer contract deposits 36,006 38,245 Other 14,243 8,915 Other current liabilities $ 114,402 $ 71,280 |
Composition of Other Long-Term Liabilities | The composition of other long-term liabilities is as follows: September 28, 2019 December 29, 2018 (in thousands) U.S. Transition Tax $ 52,066 $ 52,064 Long-term pension liability 29,028 24,671 Accrued executive supplemental life insurance retirement plan 37,328 36,086 Long-term deferred revenue 25,348 34,420 Other 27,473 31,880 Other long-term liabilities $ 171,243 $ 179,121 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: September 28, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 436 $ — $ 436 Other assets: Foreign currency forward contract — 778 — 778 Life insurance policies — 28,207 — 28,207 Total assets measured at fair value $ — $ 29,421 $ — $ 29,421 Other current liabilities measured at fair value: Contingent consideration $ — $ — $ 692 $ 692 December 29, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents $ — $ 45,982 $ — $ 45,982 Other assets: Life insurance policies — 24,541 — 24,541 Total assets measured at fair value $ — $ 70,523 $ — $ 70,523 Other current liabilities: Contingent consideration $ — $ — $ 3,033 $ 3,033 Foreign currency forward contract — 1,319 — 1,319 Total liabilities measured at fair value $ — $ 1,319 $ 3,033 $ 4,352 |
Rollforward of Contingent Consideration Related to Previous Acquisitions | The following table provides a rollforward of the contingent consideration related to previous business acquisitions. See Note 2, “Business Acquisitions.” Nine Months Ended September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 3,033 $ 298 Additions 2,869 3,315 Payments (5,252 ) — Foreign currency translation 42 (213 ) Ending balance $ 692 $ 3,400 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Rollforward of Goodwill | The following table provides a rollforward of the Company’s goodwill: Adjustments to Goodwill December 29, 2018 Acquisitions Foreign Exchange September 28, 2019 (in thousands) RMS $ 56,968 $ — $ (761 ) $ 56,207 DSA 1,051,470 293,116 (13,660 ) 1,330,926 Manufacturing 138,695 — (4,209 ) 134,486 Goodwill $ 1,247,133 $ 293,116 $ (18,630 ) $ 1,521,619 |
Schedule of Intangible Assets | The following table displays intangible assets, net by major class: September 28, 2019 December 29, 2018 Gross Accumulated Amortization Net Gross Accumulated Amortization Net (in thousands) Backlog $ 28,716 $ (23,969 ) $ 4,747 $ 20,900 $ (18,691 ) $ 2,209 Technology 119,180 (52,291 ) 66,889 101,506 (41,870 ) 59,636 Trademarks and trade names 8,108 (4,724 ) 3,384 8,331 (4,640 ) 3,691 Other 17,850 (11,613 ) 6,237 17,448 (10,041 ) 7,407 Other intangible assets 173,854 (92,597 ) 81,257 148,185 (75,242 ) 72,943 Client relationships 919,738 (298,870 ) 620,868 791,725 (253,780 ) 537,945 Intangible assets $ 1,093,592 $ (391,467 ) $ 702,125 $ 939,910 $ (329,022 ) $ 610,888 |
LONG-TERM DEBT AND FINANCE LE_2
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Finance Lease Obligations | Long-term debt, net and finance leases consists of the following: September 28, 2019 December 29, 2018 (in thousands) Term loans $ 703,125 $ 731,250 Revolving facility 691,459 397,452 2026 Senior Notes 500,000 500,000 Other debt 5,692 26,286 Finance leases (Note 16) 29,712 29,240 Total debt and finance leases 1,929,988 1,684,228 Less: Current portion of long-term debt 30,609 28,228 Current portion of finance leases (Note 16) 3,002 3,188 Current portion of long-term debt and finance leases 33,611 31,416 Long-term debt and finance leases 1,896,377 1,652,812 Debt discount and debt issuance costs (13,784 ) (16,214 ) Long-term debt, net and finance leases $ 1,882,593 $ 1,636,598 |
EQUITY AND NONCONTROLLING INT_2
EQUITY AND NONCONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Reconciliation of the Numerator and Denominator in the Computations of the Basic and Diluted Earnings Per Share | The following table reconciles the numerator and denominator in the computations of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Numerator: Income from continuing operations, net of income taxes $ 73,552 $ 60,902 $ 173,549 $ 167,020 Income from discontinued operations, net of income taxes — — — 1,506 Less: Net income attributable to noncontrolling interests 742 534 1,878 1,818 Net income attributable to common shareholders $ 72,810 $ 60,368 $ 171,671 $ 166,708 Denominator: Weighted-average shares outstanding - Basic 48,818 48,310 48,682 48,098 Effect of dilutive securities: Stock options, restricted stock units, performance share units and restricted stock 897 1,016 945 1,020 Weighted-average shares outstanding - Diluted 49,715 49,326 49,627 49,118 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes to each component of accumulated other comprehensive income (loss), net of income taxes, are as follows: Foreign Currency Translation Adjustment and Other Pension and Other Post-Retirement Benefit Plans Total (in thousands) December 29, 2018 $ (102,199 ) $ (70,504 ) $ (172,703 ) Other comprehensive loss before reclassifications (8,261 ) — (8,261 ) Amounts reclassified from accumulated other comprehensive loss — 1,113 1,113 Net current period other comprehensive income (loss) (8,261 ) 1,113 (7,148 ) Income tax expense (benefit) (1,615 ) 234 (1,381 ) September 28, 2019 $ (108,845 ) $ (69,625 ) $ (178,470 ) |
Rollforward Redeemable Noncontrolling Interest | The following table provides a rollforward of the activity related to the Company’s redeemable noncontrolling interests: Nine Months Ended September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 18,525 $ 16,609 Adjustment to Vital River redemption value 1,451 1,111 Purchase of Vital River 5% equity interest (8,745 ) — Change in fair value of Vital River 8% equity interest, included in additional-paid-in-capital 2,708 — Modification of Vital River 8% purchase option 2,196 — Acquisition of a 10% non-controlling interest through acquiring Citoxlab 4,035 — Acquisition of a 20% non-controlling interest through acquiring a supplier 8,740 — Net income attributable to noncontrolling interests 249 543 Foreign currency translation (814 ) (932 ) Ending balance $ 28,345 $ 17,331 |
PENSION AND OTHER POST-RETIRE_2
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Cost | The following table provides the components of net periodic cost for the Company’s pension, deferred compensation and executive supplemental life insurance retirement plans: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Service cost $ 701 $ 814 $ 2,088 $ 2,629 Interest cost 2,902 2,752 8,652 8,241 Expected return on plan assets (3,236 ) (3,801 ) (9,706 ) (11,690 ) Amortization of prior service cost (credit) 92 (135 ) 274 (406 ) Amortization of net loss 489 736 1,466 2,267 Net periodic cost $ 948 $ 366 $ 2,774 $ 1,041 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table provides stock-based compensation by the financial statement line item in which it is reflected: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Cost of revenue $ 2,354 $ 1,596 $ 6,792 $ 4,747 Selling, general and administrative 11,671 10,224 36,637 31,161 Stock-based compensation, before income taxes 14,025 11,820 43,429 35,908 Provision for income taxes (2,166 ) (2,370 ) (7,068 ) (6,940 ) Stock-based compensation, net of income taxes $ 11,859 $ 9,450 $ 36,361 $ 28,968 |
FOREIGN CURRENCY CONTRACTS (Tab
FOREIGN CURRENCY CONTRACTS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Fair Value of Foreign Currency Contracts | The notional amount and fair value of the open contract is summarized as follows: Notional Amount Fair Value Balance Sheet Location (in thousands) December 29, 2018 $ 343,300 $ (1,319 ) Other current liabilities Notional Amount Fair Value Balance Sheet Location (in thousands) September 28, 2019 $ 108,029 $ 778 Other current assets |
Schedule of Derivative Instruments on Statements of Income | The following table summarizes the effect of the foreign exchange forward contracts entered into in connection with intercompany loans on the Company’s unaudited condensed consolidated statements of income: September 28, 2019 September 29, 2018 Location of hedge gain (loss) Financial statement caption amount Amount of gain (loss) Financial statement caption amount Amount of gain (loss) (in thousands) Three Months Ended: Other (expense) income, net $ (14,254 ) $ 840 $ 5,910 $ 235 Nine Months Ended: Other (expense) income, net $ (8,161 ) $ 1,358 $ 24,069 $ (850 ) The following table summarizes the effect of the foreign exchange forward contracts entered into to limit its foreign currency exposure related to a U.S. dollar denominated loan borrowed by a non-U.S. Euro functional currency entity under the Credit Facility on the Company’s unaudited condensed consolidated statements of income: September 28, 2019 September 29, 2018 Location of hedge gain (loss) Financial statement caption amount Amount of gain (loss) Financial statement caption amount Amount of gain (loss) (in thousands) Three Months Ended: Interest expense $ (5,698 ) $ 14,311 $ (17,197 ) $ — Nine Months Ended: Interest expense $ (36,520 ) $ 21,622 $ (47,031 ) $ — |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | The following table presents restructuring costs by reportable segment for these productivity improvement initiatives: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) RMS $ 381 $ — $ 1,323 $ — DSA 1,843 56 2,529 1,021 Manufacturing 429 — 2,035 870 Unallocated corporate — 4,619 — 5,278 Total $ 2,653 $ 4,675 $ 5,887 $ 7,169 no t incur any restructuring costs in the three and nine months ended September 28, 2019 . September 29, 2018 Three Months Ended Nine Months Ended Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total Cost of services provided and products sold (excluding amortization of intangible assets) $ 95 $ 238 $ 333 $ 650 $ 822 $ 1,472 Selling, general and administrative (30 ) — (30 ) 158 — 158 Total $ 65 $ 238 $ 303 $ 808 $ 822 $ 1,630 The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income. Three Months Ended September 28, 2019 September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 435 $ 180 $ 615 $ 30 $ 5 $ 35 Selling, general and administrative 2,038 — 2,038 4,619 21 4,640 Total $ 2,473 $ 180 $ 2,653 $ 4,649 $ 26 $ 4,675 Nine Months Ended September 28, 2019 September 29, 2018 Severance and Transition Costs Asset Impairments and Other Costs Total Severance and Transition Costs Asset Impairments and Other Costs Total (in thousands) Cost of services provided and products sold (excluding amortization of intangible assets) $ 1,074 $ 1,685 $ 2,759 $ 767 $ 27 $ 794 Selling, general and administrative 3,110 18 3,128 6,354 21 6,375 Total $ 4,184 $ 1,703 $ 5,887 $ 7,121 $ 48 $ 7,169 |
Rollforward of Company's Severance and Transition Costs and Lease Obligation Liabilities | The following table provides a rollforward for all of the Company’s severance and transition costs, and lease obligation liabilities related to all restructuring activities: Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 (in thousands) Beginning balance $ 2,758 $ 6,810 $ 2,921 $ 6,856 Expense (excluding non-cash charges) 2,653 4,714 5,508 7,929 Payments / utilization (1,604 ) (4,407 ) (4,608 ) (7,544 ) Foreign currency adjustments (24 ) (55 ) (38 ) (179 ) Ending balance $ 3,783 $ 7,062 $ 3,783 $ 7,062 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Schedule of Cumulative Effect of Adoption of ASC 842 | The cumulative effect of applying ASC 842 to all leases that had commenced as of December 30, 2018 was as follows: Balance sheet captions impacted by ASC 842 December 30, 2018 (Prior to adoption of ASC 842) Effect of the adoption of ASC 842 December 30, 2018 (As adjusted) (in thousands) Prepaid assets $ 53,447 $ (4,413 ) (1) $ 49,034 Property, plant and equipment, net 932,877 (23,448 ) (2) 909,429 Operating lease right-of-use assets, net — 134,172 (3) 134,172 Other assets 143,759 (4,989 ) (4) 138,770 Other current liabilities 71,280 15,935 (5) 87,215 Operating lease right-of-use liabilities — 111,570 (6) 111,570 Long-term debt, net and finance leases 1,636,598 (26,183 ) (7) 1,610,415 ASC 842 adoption adjustments: (1) Short term prepaid rent reclassified from Prepaid assets to the Operating lease right-of-use asset. (2) Derecognition of approximately $26 million of leased properties, recorded in Property, plant and equipment, specifically Construction-in-process, that were recognized under the previously existing build-to-suit accounting (3) Recognition of Operating lease right-to-use asset and adjusted for prepaid rent and deferred rent liability reclassification adjustments identified in adjustments (1) (4) (5) . (4) Long-term prepaid rent reclassified from Other assets to the Operating lease right-of-use asset. (5) Recognition of short-term portion of the Operating lease right-of-use liabilities offset by reclassification of deferred rent liability to Operating lease right-of-use asset. (6) Recognition of long-term portion of the Operating lease right-of-use liabilities. (7) Derecognition of approximately $26 million of Other debt associated with leased properties that were recognized under the previously existing build-to-suit accounting rules. |
Schedule of Right-of-Use Lease Assets and Lease Liabilities in Condensed Financial Statements | Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows: September 28, 2019 (in thousands) Operating leases Operating lease right-of-use assets, net $ 140,359 Other current liabilities $ 20,032 Operating lease right-of-use liabilities 116,868 Total operating lease liabilities $ 136,900 Finance leases Property, plant and equipment, net $ 32,076 Current portion of long-term debt and finance leases $ 3,002 Long-term debt, net and finance leases 26,710 Total finance lease liabilities $ 29,712 |
Schedule of Operating and Finance Lease Costs and Supplemental Cash Flow Information | Supplemental cash flow information Nine Months Ended September 28, 2019 (in thousands) Cash flows included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20,084 Operating cash flows from finance leases 1,058 Finance cash flows from finance leases 2,862 Non-cash leases activity: Right-of-use lease assets obtained in exchange for new operating lease liabilities $ 20,805 Right-of-use lease assets obtained in exchange for new finance lease liabilities 4,741 Lease term and discount rate As of September 28, 2019 Weighted-average remaining lease term (in years) Operating lease 8.35 Finance lease 12.94 Weighted-average discount rate Operating lease 4.37 Finance lease 4.40 The components of operating and finance lease costs for the three and nine months ended September 28, 2019 were as follows: September 28, 2019 Three Months Ended Nine Months Ended (in thousands) Operating lease costs $ 7,839 $ 23,433 Finance lease costs: Amortization of right-of-use assets 1,070 2,921 Interest on lease liabilities 360 1,001 Short-term lease costs 256 652 Variable lease costs 646 1,911 Sublease income (383 ) (474 ) Total lease costs $ 9,788 $ 29,444 |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases After Adoption | As of September 28, 2019 , maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows: Operating Leases Finance Leases (in thousands) 2019 (excluding the nine months ended September 28, 2019) $ 6,264 $ 1,244 2020 25,519 4,658 2021 23,993 3,651 2022 20,188 3,622 2023 16,197 2,760 Thereafter 74,148 24,235 Total minimum future lease payments 166,309 40,170 Less: Imputed interest 29,409 10,458 Total lease liabilities $ 136,900 $ 29,712 |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Finance Leases After Adoption | As of September 28, 2019 , maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows: Operating Leases Finance Leases (in thousands) 2019 (excluding the nine months ended September 28, 2019) $ 6,264 $ 1,244 2020 25,519 4,658 2021 23,993 3,651 2022 20,188 3,622 2023 16,197 2,760 Thereafter 74,148 24,235 Total minimum future lease payments 166,309 40,170 Less: Imputed interest 29,409 10,458 Total lease liabilities $ 136,900 $ 29,712 |
Schedule of Future Minimum Lease Payments, Non-Cancellable Operating Leases Before Adoption | As of December 29, 2018 , minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows: Operating Leases (1) Finance Leases (1) (in thousands) 2019 $ 25,411 $ 3,972 2020 22,400 3,759 2021 21,544 2,869 2022 18,535 2,967 2023 15,398 2,209 Thereafter 66,870 24,304 Total minimum future lease payments $ 170,158 $ 40,080 (1) Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space. |
Schedule of Future Minimum Lease Payments, Non-Cancellable Capital Leases Before Adoption | As of December 29, 2018 , minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows: Operating Leases (1) Finance Leases (1) (in thousands) 2019 $ 25,411 $ 3,972 2020 22,400 3,759 2021 21,544 2,869 2022 18,535 2,967 2023 15,398 2,209 Thereafter 66,870 24,304 Total minimum future lease payments $ 170,158 $ 40,080 (1) Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space. |
BUSINESS ACQUISITIONS - Narrati
BUSINESS ACQUISITIONS - Narrative (Details) $ in Thousands, £ in Millions | Aug. 28, 2019USD ($) | Apr. 29, 2019USD ($) | Apr. 03, 2018USD ($) | Jan. 11, 2018USD ($) | Sep. 28, 2019USD ($) | Mar. 30, 2019USD ($) | Mar. 30, 2019GBP (£) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 29, 2018GBP (£) | Jan. 11, 2018GBP (£) |
Citoxlab | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 527,700 | |||||||||||
Purchase price allocation | 491,007 | |||||||||||
Cash acquired | 36,700 | |||||||||||
Goodwill, amount expected to be deductible for tax purposes | $ 7,200 | |||||||||||
Integration related costs and transaction costs | $ 1,900 | $ 19,100 | ||||||||||
Actual revenue from acquiree | 44,000 | 74,900 | ||||||||||
Operating income from acquiree | 200 | 2,200 | ||||||||||
Weighted average amortization life of intangible assets acquired | 12 years | |||||||||||
Citoxlab | Client relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average amortization life of intangible assets acquired | 13 years | |||||||||||
MPI Research | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 829,700 | |||||||||||
Purchase price allocation | 800,800 | |||||||||||
Cash acquired | 27,700 | |||||||||||
Goodwill, amount expected to be deductible for tax purposes | 4,100 | |||||||||||
Integration related costs and transaction costs | 0 | $ 800 | 0 | $ 15,300 | ||||||||
Adjustments related to prior period | $ 1,200 | |||||||||||
Weighted average amortization life of intangible assets acquired | 12 years | |||||||||||
MPI Research | Client relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average amortization life of intangible assets acquired | 13 years | |||||||||||
KWS BioTest Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 20,300 | |||||||||||
Purchase price allocation | 21,529 | |||||||||||
Cash acquired | 1,000 | |||||||||||
Integration related costs and transaction costs | 0 | 100 | $ 0 | 600 | ||||||||
Adjustments related to prior period | $ 400 | |||||||||||
Undiscounted contingent payments | $ 2,600 | 2,600 | £ 2 | £ 3 | ||||||||
Payments for contingent liabilities | $ 2,600 | £ 2 | ||||||||||
KWS BioTest Limited | Client relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Weighted average amortization life of intangible assets acquired | 12 years | |||||||||||
Other Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 23,400 | |||||||||||
Purchase price allocation | 23,063 | |||||||||||
Cash acquired | 300 | |||||||||||
Integration related costs and transaction costs | $ 2,100 | $ 3,200 | ||||||||||
Prepayments for future purchases and other post-closing adjustments | $ 4,000 | |||||||||||
Depreciation and Amortization Expense | Citoxlab | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustments related to prior period | 4,800 | 7,300 | ||||||||||
Depreciation and Amortization Expense | MPI Research | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustments related to prior period | 11,800 | |||||||||||
Interest Expense | Citoxlab | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustments related to prior period | $ 1,200 | 3,100 | ||||||||||
Interest Expense | MPI Research | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Adjustments related to prior period | $ 2,800 | |||||||||||
Supplier | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Ownership percentage | 80.00% | |||||||||||
Noncontrolling interest ownership percentage | 20.00% | 20.00% | ||||||||||
Supplier | Other Acquisitions | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Ownership percentage | 80.00% | |||||||||||
Noncontrolling interest ownership percentage | 20.00% |
BUSINESS ACQUISITIONS - Purchas
BUSINESS ACQUISITIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Aug. 28, 2019 | Apr. 29, 2019 | Dec. 29, 2018 | Apr. 03, 2018 | Jan. 11, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,521,619 | $ 1,247,133 | ||||
Citoxlab | ||||||
Business Acquisition [Line Items] | ||||||
Trade receivables, contractual amount | $ 35,547 | |||||
Trade receivables | 35,405 | |||||
Inventories | 5,282 | |||||
Other current assets (excluding cash) | 13,822 | |||||
Property, plant and equipment | 88,912 | |||||
Goodwill | 280,588 | |||||
Definite-lived intangible assets | 162,400 | |||||
Other long-term assets | 20,164 | |||||
Deferred revenue | (15,278) | |||||
Current liabilities | (46,682) | |||||
Deferred tax liabilities | (27,655) | |||||
Long-term liabilities | (21,916) | |||||
Redeemable noncontrolling interest | (4,035) | |||||
Total purchase price allocation | $ 491,007 | |||||
MPI Research | ||||||
Business Acquisition [Line Items] | ||||||
Trade receivables, contractual amount | $ 35,073 | |||||
Trade receivables | 35,073 | |||||
Inventories | 4,463 | |||||
Other current assets (excluding cash) | 5,893 | |||||
Property, plant and equipment | 128,403 | |||||
Goodwill | 441,656 | |||||
Definite-lived intangible assets | 309,200 | |||||
Other long-term assets | 1,081 | |||||
Deferred revenue | (23,926) | |||||
Current liabilities | (32,885) | |||||
Deferred tax liabilities | (65,945) | |||||
Other long-term liabilities | (2,213) | |||||
Total purchase price allocation | $ 800,800 | |||||
KWS BioTest Limited | ||||||
Business Acquisition [Line Items] | ||||||
Trade receivables, contractual amount | $ 1,309 | |||||
Trade receivables | 1,309 | |||||
Other current assets (excluding cash) | 99 | |||||
Property, plant and equipment | 1,136 | |||||
Goodwill | 17,660 | |||||
Definite-lived intangible assets | 3,647 | |||||
Deferred revenue | (151) | |||||
Current liabilities | (1,575) | |||||
Long-term liabilities | (596) | |||||
Total purchase price allocation | $ 21,529 | |||||
Other Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Trade receivables, contractual amount | $ 189 | |||||
Trade receivables | 189 | |||||
Inventories | 7,644 | |||||
Property, plant and equipment | 1,462 | |||||
Goodwill | 12,528 | |||||
Other long-term assets | 11,849 | |||||
Current liabilities | (300) | |||||
Deferred tax liabilities | (1,331) | |||||
Other long-term liabilities | (238) | |||||
Redeemable noncontrolling interest | (8,740) | |||||
Total purchase price allocation | $ 23,063 |
BUSINESS ACQUISITIONS - Definit
BUSINESS ACQUISITIONS - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 29, 2019 | Apr. 03, 2018 |
Citoxlab | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 162,400 | |
Weighted Average Amortization Life | 12 years | |
MPI Research | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 309,200 | |
Weighted Average Amortization Life | 12 years | |
Client relationships | Citoxlab | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 134,600 | |
Weighted Average Amortization Life | 13 years | |
Client relationships | MPI Research | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 264,900 | |
Weighted Average Amortization Life | 13 years | |
Developed technology | Citoxlab | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 19,900 | |
Weighted Average Amortization Life | 3 years | |
Developed technology | MPI Research | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 23,400 | |
Weighted Average Amortization Life | 3 years | |
Backlog | Citoxlab | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 7,900 | |
Weighted Average Amortization Life | 1 year | |
Backlog | MPI Research | ||
Business Acquisition [Line Items] | ||
Definite-Lived Intangible Assets | $ 20,900 | |
Weighted Average Amortization Life | 1 year |
BUSINESS ACQUISITIONS - Pro For
BUSINESS ACQUISITIONS - Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Citoxlab | ||||
Business Acquisition [Line Items] | ||||
Revenue | $ 667,951 | $ 627,758 | $ 1,992,472 | $ 1,795,312 |
Net income attributable to common shareholders | $ 74,948 | 63,919 | $ 189,601 | 170,557 |
MPI Research | ||||
Business Acquisition [Line Items] | ||||
Revenue | 585,295 | 1,726,683 | ||
Net income attributable to common shareholders | $ 59,297 | $ 168,872 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenues by Major Business Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 667,951 | $ 585,295 | $ 1,930,088 | $ 1,664,566 |
RMS | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 132,546 | 126,811 | 405,772 | 391,195 |
RMS | Services and products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 56,243 | 49,417 | 168,377 | 146,947 |
RMS | Services and products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 76,303 | 77,394 | 237,395 | 244,248 |
DSA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 420,079 | 352,257 | 1,179,793 | 958,665 |
DSA | Services and products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 419,445 | 352,203 | 1,178,874 | 958,174 |
DSA | Services and products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 634 | 54 | 919 | 491 |
Manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 115,326 | 106,227 | 344,523 | 314,706 |
Manufacturing | Services and products transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 36,308 | 31,420 | 102,674 | 92,978 |
Manufacturing | Services and products transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 79,018 | $ 74,807 | $ 241,849 | $ 221,728 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Estimated Revenue Related to Performance Obligations (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 174,033 |
Performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 124,887 |
Performance obligations expected to be satisfied, expected timing | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 6,661 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 417 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 305,998 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 163,868 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 111,890 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 6,641 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 409 |
DSA | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 282,808 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 10,165 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 12,997 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 20 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 8 |
Manufacturing | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 23,190 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Payment terms | 30 days | |
Unpaid advanced client billings | $ 21,000 | |
Contract liabilities (customer contract deposits) | $ 36,006 | $ 38,245 |
Percentage of unbilled revenue billed during period | 85.00% | |
Percentage of contract liabilities recognized as revenue during period | 80.00% |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Client Receivables, Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Client receivables | $ 394,135 | $ 370,131 |
Contract assets (unbilled revenue) | 134,169 | 105,216 |
Contract liabilities (current and long-term deferred revenue) | 191,443 | 179,559 |
Contract liabilities (customer contract deposits) | $ 36,006 | $ 38,245 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 28, 2019segments | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Revenue a
SEGMENT INFORMATION - Revenue and Other Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 667,951 | $ 585,295 | $ 1,930,088 | $ 1,664,566 |
Operating income | 92,802 | 84,362 | 242,362 | 228,901 |
Depreciation and amortization | 51,758 | 43,592 | 146,262 | 120,198 |
Capital expenditures | 35,163 | 22,439 | 76,675 | 71,378 |
RMS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 132,546 | 126,811 | 405,772 | 391,195 |
Operating income | 34,385 | 32,121 | 103,729 | 104,893 |
Depreciation and amortization | 4,895 | 4,811 | 14,198 | 14,565 |
Capital expenditures | 5,818 | 8,166 | 14,979 | 18,105 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 420,079 | 352,257 | 1,179,793 | 958,665 |
Operating income | 64,995 | 62,909 | 175,214 | 160,391 |
Depreciation and amortization | 39,898 | 31,433 | 111,231 | 83,262 |
Capital expenditures | 21,141 | 10,800 | 45,130 | 34,496 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 115,326 | 106,227 | 344,523 | 314,706 |
Operating income | 39,253 | 33,266 | 103,893 | 95,904 |
Depreciation and amortization | 5,990 | 5,709 | 17,577 | 17,313 |
Capital expenditures | $ 6,421 | $ 2,709 | $ 14,299 | $ 12,731 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Segment Operating Income, Depreciation and Amortization, and Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 92,802 | $ 84,362 | $ 242,362 | $ 228,901 |
Depreciation and amortization | 51,758 | 43,592 | 146,262 | 120,198 |
Capital expenditures | 35,163 | 22,439 | 76,675 | 71,378 |
Total reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 138,633 | 128,296 | 382,836 | 361,188 |
Depreciation and amortization | 50,783 | 41,953 | 143,006 | 115,140 |
Capital expenditures | 33,380 | 21,675 | 74,408 | 65,332 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (45,831) | (43,934) | (140,474) | (132,287) |
Depreciation and amortization | 975 | 1,639 | 3,256 | 5,058 |
Capital expenditures | $ 1,783 | $ 764 | $ 2,267 | $ 6,046 |
SEGMENT INFORMATION - Revenue P
SEGMENT INFORMATION - Revenue Per Significant Product or Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 667,951 | $ 585,295 | $ 1,930,088 | $ 1,664,566 |
RMS | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 132,546 | 126,811 | 405,772 | 391,195 |
DSA | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 420,079 | 352,257 | 1,179,793 | 958,665 |
Manufacturing | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 115,326 | $ 106,227 | $ 344,523 | $ 314,706 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Unallocated Corporate Overhead (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | $ 14,025 | $ 11,820 | $ 43,429 | $ 35,908 |
Unallocated corporate | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation | 8,752 | 7,910 | 27,744 | 24,517 |
Compensation, benefits, and other employee-related expenses | 18,770 | 20,464 | 54,561 | 56,375 |
External consulting and other service expenses | 4,156 | 4,767 | 12,060 | 12,711 |
Information technology | 3,534 | 3,070 | 10,811 | 8,723 |
Depreciation | 975 | 1,639 | 3,256 | 5,058 |
Acquisition and integration | 5,679 | 1,122 | 23,621 | 15,678 |
Other general unallocated corporate | 3,965 | 4,962 | 8,421 | 9,225 |
Total unallocated corporate expense | $ 45,831 | $ 43,934 | $ 140,474 | $ 132,287 |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 667,951 | $ 585,295 | $ 1,930,088 | $ 1,664,566 |
U.S. | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 373,094 | 336,811 | 1,091,194 | 919,807 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 184,685 | 159,473 | 533,820 | 481,955 |
Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 71,984 | 53,665 | 194,865 | 153,802 |
Asia Pacific | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | 36,698 | 34,062 | 106,090 | 104,817 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenue | $ 1,490 | $ 1,284 | $ 4,119 | $ 4,185 |
SUPPLEMENTAL BALANCE SHEET IN_3
SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Sep. 29, 2018 |
Composition of trade receivables | ||||
Client receivables | $ 394,135 | $ 370,131 | ||
Unbilled revenue | 134,169 | 105,216 | ||
Total | 528,304 | 475,347 | ||
Less: Allowance for doubtful accounts | (4,230) | (3,099) | ||
Trade receivables, net | 524,074 | 472,248 | ||
Composition of inventories | ||||
Raw materials and supplies | 23,670 | 22,378 | ||
Work in process | 36,851 | 21,732 | ||
Finished products | 95,005 | 83,782 | ||
Inventories | 155,526 | 127,892 | ||
Composition of other current assets | ||||
Prepaid income tax | 75,019 | 47,157 | ||
Investments | 855 | 885 | ||
Restricted cash | 534 | 465 | $ 426 | |
Other | 366 | 300 | ||
Other current assets | 76,774 | 48,807 | ||
Composition of other assets | ||||
Venture capital investments | 100,553 | 87,545 | ||
Other investments | 13,045 | 1,046 | ||
Life insurance policies | 35,861 | 32,340 | ||
Restricted cash | 1,427 | 1,411 | $ 2,584 | |
Other | 42,288 | 21,417 | ||
Other assets | 193,174 | $ 138,770 | 143,759 | |
Composition of other current liabilities | ||||
Current portion of operating lease right-of-use liabilities | 20,032 | |||
Accrued income taxes | 44,121 | 24,120 | ||
Customer contract deposits | 36,006 | 38,245 | ||
Other | 14,243 | 8,915 | ||
Other current liabilities | 114,402 | $ 87,215 | 71,280 | |
Composition of other long-term liabilities | ||||
U.S. Transition Tax | 52,066 | 52,064 | ||
Long-term pension liability | 29,028 | 24,671 | ||
Accrued executive supplemental life insurance retirement plan | 37,328 | 36,086 | ||
Long-term deferred revenue | 25,348 | 34,420 | ||
Other | 27,473 | 31,880 | ||
Other long-term liabilities | $ 171,243 | $ 179,121 |
VENTURE CAPITAL AND OTHER INV_2
VENTURE CAPITAL AND OTHER INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Venture capital investments | $ 100,553 | $ 100,553 | $ 87,545 | ||
Committed contribution | 128,100 | 128,100 | |||
Amount funded for venture capital investments | 77,400 | 77,400 | |||
Dividends received | 200 | $ 5,600 | 1,800 | $ 14,100 | |
Gains (losses) recognized from venture capital investments | (600) | $ 5,400 | 5,700 | $ 22,800 | |
Other equity investments | $ 13,045 | $ 13,045 | $ 1,046 | ||
Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 1.00% | 1.00% | |||
Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 12.00% | 12.00% |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - Senior Notes - Senior Notes Due 2026 - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 | Apr. 03, 2018 |
Debt Instrument [Line Items] | |||
Stated interest rate | 5.50% | ||
Book Value | |||
Debt Instrument [Line Items] | |||
Debt instrument value | $ 500 | $ 500 | |
Estimated Fair Value | |||
Debt Instrument [Line Items] | |||
Debt instrument value | $ 530 | $ 495 |
FAIR VALUE - Fair Value of Asse
FAIR VALUE - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 436 | $ 45,982 |
Other assets: | ||
Foreign currency forward contract | 778 | |
Life insurance policies | 28,207 | 24,541 |
Total assets measured at fair value | 29,421 | 70,523 |
Other current liabilities measured at fair value: | ||
Contingent consideration | 692 | 3,033 |
Foreign currency forward contract | 1,319 | |
Total liabilities measured at fair value | 4,352 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other assets: | ||
Foreign currency forward contract | 0 | |
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other current liabilities measured at fair value: | ||
Contingent consideration | 0 | 0 |
Foreign currency forward contract | 0 | |
Total liabilities measured at fair value | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 436 | 45,982 |
Other assets: | ||
Foreign currency forward contract | 778 | |
Life insurance policies | 28,207 | 24,541 |
Total assets measured at fair value | 29,421 | 70,523 |
Other current liabilities measured at fair value: | ||
Contingent consideration | 0 | 0 |
Foreign currency forward contract | 1,319 | |
Total liabilities measured at fair value | 1,319 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Other assets: | ||
Foreign currency forward contract | 0 | |
Life insurance policies | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Other current liabilities measured at fair value: | ||
Contingent consideration | $ 692 | 3,033 |
Foreign currency forward contract | 0 | |
Total liabilities measured at fair value | $ 3,033 |
FAIR VALUE - Contingent Conside
FAIR VALUE - Contingent Consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 3,033 | $ 298 |
Additions | 2,869 | 3,315 |
Payments | (5,252) | 0 |
Foreign currency translation | 42 | (213) |
Ending balance | $ 692 | $ 3,400 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Rollforward of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 29, 2018 | $ 1,247,133 |
Acquisitions | 293,116 |
Foreign Exchange | (18,630) |
September 28, 2019 | 1,521,619 |
RMS | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 29, 2018 | 56,968 |
Acquisitions | 0 |
Foreign Exchange | (761) |
September 28, 2019 | 56,207 |
DSA | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 29, 2018 | 1,051,470 |
Acquisitions | 293,116 |
Foreign Exchange | (13,660) |
September 28, 2019 | 1,330,926 |
Manufacturing | |
Changes in gross carrying amount and accumulated amortization of goodwill | |
December 29, 2018 | 138,695 |
Acquisitions | 0 |
Foreign Exchange | (4,209) |
September 28, 2019 | $ 134,486 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Other intangible assets | ||
Gross | $ 1,093,592 | $ 939,910 |
Accumulated Amortization | (391,467) | (329,022) |
Net | 702,125 | 610,888 |
Backlog | ||
Other intangible assets | ||
Gross | 28,716 | 20,900 |
Accumulated Amortization | (23,969) | (18,691) |
Net | 4,747 | 2,209 |
Technology | ||
Other intangible assets | ||
Gross | 119,180 | 101,506 |
Accumulated Amortization | (52,291) | (41,870) |
Net | 66,889 | 59,636 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross | 8,108 | 8,331 |
Accumulated Amortization | (4,724) | (4,640) |
Net | 3,384 | 3,691 |
Other | ||
Other intangible assets | ||
Gross | 17,850 | 17,448 |
Accumulated Amortization | (11,613) | (10,041) |
Net | 6,237 | 7,407 |
Other intangible assets | ||
Other intangible assets | ||
Gross | 173,854 | 148,185 |
Accumulated Amortization | (92,597) | (75,242) |
Net | 81,257 | 72,943 |
Client relationships | ||
Other intangible assets | ||
Gross | 919,738 | 791,725 |
Accumulated Amortization | (298,870) | (253,780) |
Net | $ 620,868 | $ 537,945 |
LONG-TERM DEBT AND FINANCE LE_3
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
Debt Instrument [Line Items] | |||
Finance leases (Note 16) | $ 29,712 | ||
Finance leases (Note 16) | $ 29,240 | ||
Total debt and finance leases | 1,929,988 | 1,684,228 | |
Current portion of long-term debt | 30,609 | 28,228 | |
Current portion of finance leases (Note 16) | 3,002 | ||
Current portion of finance leases (Note 16) | 3,188 | ||
Current portion of long-term debt and finance leases | 33,611 | 31,416 | |
Long-term debt and finance leases | 1,896,377 | 1,652,812 | |
Debt discount and debt issuance costs | (13,784) | (16,214) | |
Long-term debt, net and finance leases | 1,882,593 | $ 1,610,415 | 1,636,598 |
Term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 703,125 | 731,250 | |
Revolving facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 691,459 | 397,452 | |
2026 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 500,000 | 500,000 | |
Other debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 5,692 | $ 26,286 |
LONG-TERM DEBT AND FINANCE LE_4
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS - Narrative (Details) | Oct. 23, 2019USD ($) | Apr. 03, 2018USD ($) | Mar. 26, 2018USD ($)payment | Sep. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Nov. 04, 2019USD ($) | Feb. 12, 2018USD ($) | Mar. 29, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 3.33% | 3.33% | 4.24% | ||||||
Number of consecutive fiscal quarters | 1 year | ||||||||
$1.65 Billion Credit Facility | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 1,650,000,000 | ||||||||
$2.3 Billion Credit Facility | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 2,300,000,000 | ||||||||
Gross debt issuance costs | $ 6,200,000 | ||||||||
Debt issuance costs | 1,000,000 | ||||||||
$1.55 Billion Credit Facility | Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 1,550,000,000 | ||||||||
$2.05 Billion Credit Facility | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum EBITDA less capital expenditures to consolidated cash interest expense ratio | 3.50 | ||||||||
$2.05 Billion Credit Facility | Credit Facility | Federal Funds Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate | 0.50% | ||||||||
$2.05 Billion Credit Facility | Credit Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate | 1.00% | ||||||||
$2.05 Billion Credit Facility | Credit Facility | Revolving Credit Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 2,050,000,000 | ||||||||
Maximum borrowing capacity, term loan and line of credit facility, potential increase available | 1,000,000,000 | ||||||||
Term Loan Facility | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 750,000,000 | ||||||||
Number of quarterly installment payments | payment | 19 | ||||||||
Term Loan Facility | Credit Facility | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayments of long-term debt | $ 500,000,000 | ||||||||
Senior Notes Due 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross debt issuance costs | $ 7,400,000 | ||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||
Stated interest rate | 5.50% | ||||||||
Redemption price percentage, conditional upon equity offerings | 40.00% | ||||||||
Redemption price percentage in the event of a change of control | 101.00% | ||||||||
Net proceeds from debt | $ 493,800,000 | ||||||||
Senior Notes Due 2026 | Senior Notes | Redemption Period One | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage | 100.00% | ||||||||
Senior Notes Due 2026 | Senior Notes | Redemption Period Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage | 105.50% | ||||||||
Senior Notes Due 2028 | Senior Notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Gross debt issuance costs | 6,000,000 | ||||||||
Proceeds from private offering of debt | 500,000,000 | ||||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | |||||||
Maximum consolidated indebtedness to consolidated EBITDA | 4 | ||||||||
Stated interest rate | 4.25% | ||||||||
Redemption price percentage, conditional upon equity offerings | 40.00% | ||||||||
Redemption price percentage in the event of a change of control | 101.00% | ||||||||
Net proceeds from debt | $ 494,000,000 | ||||||||
Senior Notes Due 2028 | Senior Notes | Redemption Period One | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage | 100.00% | ||||||||
Senior Notes Due 2028 | Senior Notes | Redemption Period Two | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage | 104.25% | ||||||||
Bridge Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility | $ 830,000,000 | ||||||||
Gross debt issuance costs | $ 1,800,000 | $ 1,800,000 | |||||||
Fees paid for temporary backstop facility | 2,000,000 | ||||||||
Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding | 6,700,000 | 6,700,000 | $ 6,500,000 | ||||||
Minimum | Foreign Exchange Forward | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative amount | 300,000,000 | 300,000,000 | |||||||
Maximum | Foreign Exchange Forward | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative amount | 350,000,000 | 350,000,000 | |||||||
Other Nonoperating Income (Expense) | Foreign Exchange Forward | |||||||||
Debt Instrument [Line Items] | |||||||||
Foreign currency losses recognized | $ 12,100,000 | $ 14,900,000 |
EQUITY AND NONCONTROLLING INT_3
EQUITY AND NONCONTROLLING INTERESTS - Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Numerator: | ||||
Income from continuing operations, net of income taxes | $ 73,552 | $ 60,902 | $ 173,549 | $ 167,020 |
Income from discontinued operations, net of income taxes | 0 | 0 | 0 | 1,506 |
Less: Net income attributable to noncontrolling interests | 742 | 534 | 1,878 | 1,818 |
Net income attributable to common shareholders | $ 72,810 | $ 60,368 | $ 171,671 | $ 166,708 |
Denominator: | ||||
Weighted-average shares outstanding—Basic (in shares) | 48,818 | 48,310 | 48,682 | 48,098 |
Effect of dilutive securities: | ||||
Stock options, restricted stock units, performance share units and restricted stock (in shares) | 897 | 1,016 | 945 | 1,020 |
Weighted-average shares outstanding—Diluted (in shares) | 49,715 | 49,326 | 49,627 | 49,118 |
EQUITY AND NONCONTROLLING INT_4
EQUITY AND NONCONTROLLING INTERESTS - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Jun. 13, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Aug. 28, 2019 | Apr. 29, 2019 |
Vital River | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Additional equity interest percentage purchased | (5.00%) | ||||||
Ownership percentage | 92.00% | ||||||
Noncontrolling interest ownership percentage | 8.00% | ||||||
Citoxlab | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Ownership percentage | 90.00% | ||||||
Noncontrolling interest ownership percentage | 10.00% | ||||||
Supplier | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Ownership percentage | 80.00% | ||||||
Noncontrolling interest ownership percentage | 20.00% | 20.00% | |||||
Employee Stock Option | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0.4 | 0.5 | 0.4 | 0.5 | |||
Restricted Stock and Restricted Stock Units | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1 | 1 | |||||
Vital River | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Purchase of additional equity interest | $ 7.9 | ||||||
Gain in equity equal to the excess fair value of additional equity interest purchase | 0.8 | ||||||
Contractually defined redemption value | $ 14.5 | $ 14.5 | |||||
Vital River | Selling, general and administrative | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Charges equal to the excess fair value of hybrid equity instrument | $ 2.2 | ||||||
Citoxlab | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Contractually defined redemption value | $ 4 | $ 4 |
EQUITY AND NONCONTROLLING INT_5
EQUITY AND NONCONTROLLING INTERESTS - Treasury Shares (Details) - USD ($) | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Treasury Shares | ||
Purchase of treasury stock | $ 18,040,000 | $ 13,791,000 |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments (in shares) | 100,000 | 100,000 |
Shares acquired to satisfy minimum individual statutory tax withholdings for vesting of equity instruments | $ 18,000,000 | $ 13,800,000 |
Authorized Share Repurchase Program | ||
Treasury Shares | ||
Purchase of treasury stock | $ 0 | $ 0 |
Shares repurchased during period (in shares) | 0 | 0 |
Remaining authorized repurchase amount | $ 129,100,000 |
EQUITY AND NONCONTROLLING INT_6
EQUITY AND NONCONTROLLING INTERESTS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Beginning balance | $ 1,458,364 | $ 1,185,205 | $ 1,319,778 | $ 1,047,407 |
Other comprehensive loss before reclassifications | (8,261) | |||
Amounts reclassified from accumulated other comprehensive loss | 1,113 | |||
Net current period other comprehensive income (loss) | (7,148) | |||
Income tax expense (benefit) | (2,511) | 257 | (1,381) | (341) |
Ending balance | 1,536,387 | 1,256,709 | 1,536,387 | 1,256,709 |
Foreign Currency Translation Adjustment and Other | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Beginning balance | (102,199) | |||
Other comprehensive loss before reclassifications | (8,261) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Net current period other comprehensive income (loss) | (8,261) | |||
Income tax expense (benefit) | (1,615) | |||
Ending balance | (108,845) | (108,845) | ||
Pension and Other Post-Retirement Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Beginning balance | (70,504) | |||
Other comprehensive loss before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,113 | |||
Net current period other comprehensive income (loss) | 1,113 | |||
Income tax expense (benefit) | 234 | |||
Ending balance | (69,625) | (69,625) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||
Beginning balance | (166,236) | (153,608) | (172,703) | (144,731) |
Ending balance | $ (178,470) | $ (159,448) | $ (178,470) | $ (159,448) |
EQUITY AND NONCONTROLLING INT_7
EQUITY AND NONCONTROLLING INTERESTS - Rollforward of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Aug. 28, 2019 | Jun. 13, 2019 | Apr. 29, 2019 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Beginning balance | $ 18,525 | $ 16,609 | |||
Modification of Vital River 8% purchase option | |||||
Adjustment to Vital River redemption value | 1,451 | 1,111 | |||
Purchase of Vital River 5% equity interest | (8,745) | 0 | |||
Change in fair value of Vital River 8% equity interest, included in additional-paid-in-capital | 2,708 | 0 | |||
Modification of Vital River 8% purchase option | 2,196 | 0 | |||
Net income attributable to noncontrolling interests | 249 | 543 | |||
Foreign currency translation | (814) | (932) | |||
Ending balance | 28,345 | 17,331 | |||
Vital River | |||||
Modification of Vital River 8% purchase option | |||||
Additional equity interest percentage purchased | 5.00% | ||||
Noncontrolling interest ownership percentage | 8.00% | ||||
Citoxlab | |||||
Modification of Vital River 8% purchase option | |||||
Acquisition of non-controlling interest | 4,035 | 0 | |||
Noncontrolling interest ownership percentage | 10.00% | ||||
Supplier | |||||
Modification of Vital River 8% purchase option | |||||
Acquisition of non-controlling interest | $ 8,740 | $ 0 | |||
Noncontrolling interest ownership percentage | 20.00% | 20.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (0.40%) | 16.90% | 12.60% | 19.20% |
Valuation allowance against certain foreign deferred tax assets | $ 20.4 | |||
Decrease in unrecognized tax benefits | 5.8 | |||
Unrecognized tax benefits | 19 | $ 19 | ||
Decrease in unrecognized tax benefits that would impact effective tax rate | 6.1 | |||
Unrecognized tax benefits that would impact effective tax rate | 16.6 | 16.6 | ||
Accrued interest and penalties on unrecognized tax benefits | 2.2 | 2.2 | ||
Decrease in unrecognized tax benefits that are reasonably possibly over the next twelve-month period (up to) | $ 1.6 | $ 1.6 |
PENSION AND OTHER POST-RETIRE_3
PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Pension | ||||
Employee benefits | ||||
Service cost | $ 701 | $ 814 | $ 2,088 | $ 2,629 |
Interest cost | 2,902 | 2,752 | 8,652 | 8,241 |
Expected return on plan assets | (3,236) | (3,801) | (9,706) | (11,690) |
Amortization of prior service cost (credit) | 92 | (135) | 274 | (406) |
Amortization of net loss | 489 | 736 | 1,466 | 2,267 |
Net periodic cost | 948 | 366 | 2,774 | 1,041 |
Other Postretirement Benefits Plan | ||||
Employee benefits | ||||
Net periodic cost | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 14,025 | $ 11,820 | $ 43,429 | $ 35,908 |
Provision for income taxes | (2,166) | (2,370) | (7,068) | (6,940) |
Stock-based compensation, net of income taxes | 11,859 | 9,450 | 36,361 | 28,968 |
Cost of revenue | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | 2,354 | 1,596 | 6,792 | 4,747 |
Selling, general and administrative | ||||
Stock-based compensation expense | ||||
Stock-based compensation, before income taxes | $ 11,671 | $ 10,224 | $ 36,637 | $ 31,161 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Grants (Details) shares in Millions | 9 Months Ended |
Sep. 28, 2019$ / sharesshares | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options granted (in shares) | 0.5 |
Stock options weighted average grant date fair value (in dollars per share) | $ / shares | $ 33.97 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 0.2 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 142.89 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (in shares) | 0.2 |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 162.74 |
Maximum shares to be awarded under plan (in shares) | 0.3 |
FOREIGN CURRENCY CONTRACTS - Na
FOREIGN CURRENCY CONTRACTS - Narrative (Details) - Foreign Exchange Forward - derivative_instrument | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Number of derivative instruments held | 1 | 0 |
Derivative contract, period outstanding | 1 month |
FOREIGN CURRENCY CONTRACTS - Sc
FOREIGN CURRENCY CONTRACTS - Schedule of Notional and Fair Value of Foreign Currency Contracts (Details) - Foreign Exchange Forward - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 343,300 | |
Fair value, derivative liability | $ (1,319) | |
Other current assets | Affiliated Entity | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 108,029 | |
Fair value, derivative asset | $ 778 |
FOREIGN CURRENCY CONTRACTS - _2
FOREIGN CURRENCY CONTRACTS - Schedule of Derivative Instruments on Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | $ (5,698) | $ (17,197) | $ (36,520) | $ (47,031) |
Other (expense) income, net | (14,254) | 5,910 | (8,161) | 24,069 |
Foreign Exchange Forward | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) | 14,311 | 0 | 21,622 | 0 |
Foreign Exchange Forward | Other Nonoperating Income (Expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) | $ 840 | $ 235 | $ 1,358 | $ (850) |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs by Classification on the Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 2,653 | $ 4,675 | $ 5,887 | $ 7,169 |
Cost of services provided and products sold (excluding amortization of intangible assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 615 | 35 | 2,759 | 794 |
Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2,038 | 4,640 | 3,128 | 6,375 |
Severance and Transition Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2,473 | 4,649 | 4,184 | 7,121 |
Severance and Transition Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 435 | 30 | 1,074 | 767 |
Severance and Transition Costs | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2,038 | 4,619 | 3,110 | 6,354 |
Asset Impairments and Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 180 | 26 | 1,703 | 48 |
Asset Impairments and Other Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 180 | 5 | 1,685 | 27 |
Asset Impairments and Other Costs | Selling, general and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 21 | $ 18 | $ 21 |
RESTRUCTURING AND ASSET IMPAI_4
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 24 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Segment Reporting Information [Line Items] | |||||
Restructuring costs | $ 2,653 | $ 4,675 | $ 5,887 | $ 7,169 | |
RMS | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring costs | 381 | 0 | 1,323 | 0 | $ 20,100 |
DSA | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring costs | 1,843 | 56 | 2,529 | 1,021 | |
Manufacturing | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring costs | 429 | 0 | 2,035 | 870 | |
Unallocated corporate | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring costs | $ 0 | $ 4,619 | $ 0 | $ 5,278 |
RESTRUCTURING AND ASSET IMPAI_5
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs by Related to RMS Restructuring Initiative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 24 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 2,653,000 | $ 4,675,000 | $ 5,887,000 | $ 7,169,000 | |
Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 615,000 | 35,000 | 2,759,000 | 794,000 | |
Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 2,038,000 | 4,640,000 | 3,128,000 | 6,375,000 | |
Severance and Transition Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 2,473,000 | 4,649,000 | 4,184,000 | 7,121,000 | |
Severance and Transition Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 435,000 | 30,000 | 1,074,000 | 767,000 | |
Severance and Transition Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 2,038,000 | 4,619,000 | 3,110,000 | 6,354,000 | |
Asset Impairments and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 180,000 | 26,000 | 1,703,000 | 48,000 | |
Asset Impairments and Other Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 180,000 | 5,000 | 1,685,000 | 27,000 | |
Asset Impairments and Other Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 0 | 21,000 | 18,000 | 21,000 | |
RMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 381,000 | 0 | 1,323,000 | 0 | $ 20,100,000 |
RMS | Severance and Transition Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 1,200,000 | ||||
2017 RMS Restructuring | RMS | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 0 | 303,000 | $ 0 | 1,630,000 | |
2017 RMS Restructuring | RMS | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 333,000 | 1,472,000 | |||
2017 RMS Restructuring | RMS | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | (30,000) | 158,000 | |||
2017 RMS Restructuring | RMS | Severance and Transition Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 65,000 | 808,000 | |||
2017 RMS Restructuring | RMS | Severance and Transition Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 95,000 | 650,000 | |||
2017 RMS Restructuring | RMS | Severance and Transition Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | (30,000) | 158,000 | |||
2017 RMS Restructuring | RMS | Asset Impairments and Other Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 238,000 | 822,000 | |||
2017 RMS Restructuring | RMS | Asset Impairments and Other Costs | Cost of services provided and products sold (excluding amortization of intangible assets) | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | 238,000 | 822,000 | |||
2017 RMS Restructuring | RMS | Asset Impairments and Other Costs | Selling, general and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total severance and transition costs | $ 0 | $ 0 |
RESTRUCTURING AND ASSET IMPAI_6
RESTRUCTURING AND ASSET IMPAIRMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 24 Months Ended | |||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 2,653,000 | $ 4,675,000 | $ 5,887,000 | $ 7,169,000 | ||||
Severance and other personnel related costs liability and lease obligation liabilities | 3,783,000 | 7,062,000 | 3,783,000 | 7,062,000 | $ 2,921,000 | $ 2,758,000 | $ 6,810,000 | $ 6,856,000 |
Accrued Compensation | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and other personnel related costs liability and lease obligation liabilities | 3,800,000 | 2,600,000 | 3,800,000 | 2,600,000 | ||||
RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 381,000 | 0 | 1,323,000 | 0 | 20,100,000 | |||
Asset Impairments and Accelerated Depreciation | RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 17,700,000 | |||||||
Severance and Transition Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | 2,473,000 | 4,649,000 | 4,184,000 | 7,121,000 | ||||
Severance and Transition Costs | Other Noncurrent Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Severance and other personnel related costs liability and lease obligation liabilities | $ 0 | $ 4,400,000 | $ 0 | $ 4,400,000 | ||||
Severance and Transition Costs | RMS | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs | $ 1,200,000 |
RESTRUCTURING AND ASSET IMPAI_7
RESTRUCTURING AND ASSET IMPAIRMENTS - Rollforward of Severance and Transition Costs Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 2,758 | $ 6,810 | $ 2,921 | $ 6,856 |
Expense (excluding non-cash charges) | 2,653 | 4,714 | 5,508 | 7,929 |
Payments / utilization | (1,604) | (4,407) | (4,608) | (7,544) |
Foreign currency adjustments | (24) | (55) | (38) | (179) |
Ending balance | $ 3,783 | $ 7,062 | $ 3,783 | $ 7,062 |
LEASES - Schedule of Cumulative
LEASES - Schedule of Cumulative Effect of Adoption of ASC 842 (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid assets | $ 51,274 | $ 49,034 | $ 53,447 |
Property, plant and equipment, net | 1,008,047 | 909,429 | 932,877 |
Operating lease right-of-use assets, net | 140,359 | 134,172 | |
Other assets | 193,174 | 138,770 | 143,759 |
Other current liabilities | 114,402 | 87,215 | 71,280 |
Operating lease right-of-use liabilities | 116,868 | 111,570 | |
Long-term debt, net and finance leases | $ 1,882,593 | 1,610,415 | $ 1,636,598 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid assets | (4,413) | ||
Property, plant and equipment, net | (23,448) | ||
Operating lease right-of-use assets, net | 134,172 | ||
Other assets | (4,989) | ||
Other current liabilities | 15,935 | ||
Operating lease right-of-use liabilities | 111,570 | ||
Long-term debt, net and finance leases | $ (26,183) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Lessor, Lease, Description [Line Items] | |||
Derecognition of leased properties recorded in property, plant and equipment | $ (1,008,047) | $ (909,429) | $ (932,877) |
Derecognition of other debt associated with leased properties | (1,882,593) | (1,610,415) | $ (1,636,598) |
Future minimum lease payments for leases that have not yet commenced | $ 47,000 | ||
Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease renewal term | 1 year | ||
Terms for leases that have not yet commenced | 3 years | ||
Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Operating lease renewal term | 5 years | ||
Terms for leases that have not yet commenced | 15 years | ||
Accounting Standards Update 2016-02 | |||
Lessor, Lease, Description [Line Items] | |||
Derecognition of leased properties recorded in property, plant and equipment | 23,448 | ||
Derecognition of other debt associated with leased properties | 26,183 | ||
Build-To-Suit Lease | Accounting Standards Update 2016-02 | |||
Lessor, Lease, Description [Line Items] | |||
Derecognition of leased properties recorded in property, plant and equipment | 26,000 | ||
Derecognition of other debt associated with leased properties | $ 26,000 |
LEASES - Right-of-Use Lease Ass
LEASES - Right-of-Use Lease Assets and Lease Liabilities in Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net | $ 140,359 | $ 134,172 |
Other current liabilities | 20,032 | |
Operating lease right-of-use liabilities | 116,868 | $ 111,570 |
Total operating lease liabilities | 136,900 | |
Finance leases - property, plant and equipment, net | 32,076 | |
Current portion of long-term debt and finance leases | 3,002 | |
Long-term debt, net and finance leases | 26,710 | |
Total finance lease liabilities | $ 29,712 |
LEASES - Components of Operatin
LEASES - Components of Operating and Finance Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 7,839 | $ 23,433 |
Amortization of right-of-use assets | 1,070 | 2,921 |
Interest on lease liabilities | 360 | 1,001 |
Short-term lease costs | 256 | 652 |
Variable lease costs | 646 | 1,911 |
Sublease income | (383) | (474) |
Total lease costs | $ 9,788 | $ 29,444 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Cash flows included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 20,084 |
Operating cash flows from finance leases | 1,058 |
Finance cash flows from finance leases | 2,862 |
Non-cash leases activity: | |
Right-of-use lease assets obtained in exchange for new operating lease liabilities | 20,805 |
Right-of-use lease assets obtained in exchange for new finance lease liabilities | $ 4,741 |
LEASES - Weighted Average Remai
LEASES - Weighted Average Remaining Lease Term and Discount Rates (Details) | Sep. 28, 2019 |
Weighted-average remaining lease term (in years) | |
Operating lease | 8 years 4 months 6 days |
Finance lease | 12 years 11 months 8 days |
Weighted-average discount rate | |
Operating lease | 4.37% |
Finance lease | 4.40% |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases After Adoption (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Operating Leases, After Adoption of 842 | |
2019 (excluding the nine months ended September 28, 2019) | $ 6,264 |
2020 | 25,519 |
2021 | 23,993 |
2022 | 20,188 |
2023 | 16,197 |
Thereafter | 74,148 |
Total minimum future lease payments | 166,309 |
Less: Imputed interest | 29,409 |
Total lease liabilities | 136,900 |
Finance Leases, After Adoption of 842 | |
2019 (excluding the nine months ended September 28, 2019) | 1,244 |
2020 | 4,658 |
2021 | 3,651 |
2022 | 3,622 |
2023 | 2,760 |
Thereafter | 24,235 |
Total minimum future lease payments | 40,170 |
Less: Imputed interest | 10,458 |
Total lease liabilities | $ 29,712 |
LEASES - Schedule of Future M_2
LEASES - Schedule of Future Minimum Lease Payments, Non-Cancellable Operating Leases Before Adoption (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Operating Leases, Before Adoption of 842 | |
2019 | $ 25,411 |
2020 | 22,400 |
2021 | 21,544 |
2022 | 18,535 |
2023 | 15,398 |
Thereafter | 66,870 |
Total minimum future lease payments | 170,158 |
Capital Leases, Before Adoption of 842 | |
2019 | 3,972 |
2020 | 3,759 |
2021 | 2,869 |
2022 | 2,967 |
2023 | 2,209 |
Thereafter | 24,304 |
Total minimum future lease payments | 40,080 |
Minimum future lease payments for leases that have not yet commenced | $ 14,000 |
Uncategorized Items - crl928201
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,424,000 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,424,000 |
Accounting Standards Update 2016-01 [Member] | Total Equity Attributable to Common Shareholders [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,424,000 |