Employee Benefits

12 Months Ended

Dec. 29, 2012

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

Charles River Laboratories Employee Savings Plan

Our defined contribution plan, the Charles River Laboratories Employee Savings Plan, qualifies under section 401(k) of the Internal Revenue Code. It covers substantially all U.S. employees and contains a provision whereby we match a percentage of employee contributions. The costs associated with this defined contribution plan totaled $4,364, $4,178 and $4,694, in 2012, 2011 and 2010, respectively.

Charles River Laboratories Deferred Compensation Plan and Executive Supplemental Life Insurance Retirement Plan

The Charles River Laboratories Deferred Compensation Plan (Deferred Compensation Plan) is designed for select eligible employees, including our Named Executive Officers. Under the Deferred Compensation Plan, participants may elect to defer bonus and salary amounts, and may select the investment returns to be applied to deferred amounts from among a number of reference mutual funds as well as an interest crediting rate. The plan is not qualified under Section 401(a) of the Internal Revenue Code and is not subject to the Employee Retirement Income Security Act of 1974. At the present time, no contributions will be credited to the plan, except as set forth below. Participants must specify the distribution date for deferred amounts at the time of deferral, in accordance with applicable IRS regulations. Generally, amounts may be paid in lump sum or installments upon retirement or termination of employment, or later if the employee terminates employment after age 55 and before age 65. Amounts may also be distributed during employment, subject to a minimum deferral requirement of three years.

In addition to the Deferred Compensation Plan, certain officers and key employees also participate, or in the past participated, in our amended and restated Executive Supplemental Life Insurance Retirement Plan (ESLIRP) which is a non-funded, non-qualified arrangement. Annual benefits under this plan will equal a percentage of the highest five consecutive years of compensation, offset by amounts payable under the Charles River Laboratories, Inc. Pension Plan and Social Security.

In addition, we provide certain active employees an annual contribution into their Deferred Compensation Plan account of 10% of the employee's base salary plus the lesser of their target annual bonus or actual annual bonus. The costs associated with these defined contribution plans, including the ESLIRP, totaled $2,930, $2,048 and $3,082 in 2012, 2011 and 2010, respectively.

We have invested in several corporate-owned key-person life insurance policies as well as mutual funds and U.S. Treasury Securities with the intention of using these investments to fund the ESLIRP and the Deferred Compensation Plan. Participants have no interest in any such investments. At December 29, 2012 and December 31, 2011 the cash surrender value of these life insurance policies were $25,240 and $25,057, respectively.

Post-Retirement Health and Life Insurance Plans

Our Montreal location offers post-retirement life insurance benefits to its employees and post-retirement medical & dental insurance coverage to certain executives. The plan is non-contributory and unfunded. As of December 29, 2012, the accumulated benefit obligation related to the plan was $1,344. In addition, accumulated other comprehensive income includes $105 of deferred gains and losses, net of tax. Expenses related to the plan were $201, $188 and $177 for 2012, 2011 and 2010, respectively.

Pension Plans

The Charles River Laboratories, Inc. Pension Plan is a qualified, non-contributory defined benefit plan covering certain US employees. Effective 2002, the plan was amended to exclude new participants from joining and in 2008 the accrual of benefits was frozen.

The Charles River Pension Plan is a defined contribution and defined contribution pension plan covering certain UK employees. Benefits are based on participants' final pensionable salary and years of service. Participants' rights vest immediately. Effective December 31, 2002, the plan was amended to exclude new participants from joining the defined benefit section of the plan and a defined contribution section was established for new entrants. Contributions under the defined contribution plan are determined as a percentage of gross salary.

The defined benefit pension plans for Japan and our Canadian RMS operation are non-contributory plans that cover substantially all employees of those respective companies. Benefits are based upon length of service and final salary. In addition, our French RMS operation has a defined benefit statutory indemnity plan covering most of its employees.

The following tables summarize the funded status of our defined benefit plans and amounts reflected in our consolidated balance sheets.

Obligations and Funded Status:

	Pension Benefits						Supplemental Retirement Benefits
	2012			2011			2012			2011
Change in benefit obligations
Benefit obligation at beginning of year	$	251,916		$	228,810		$	26,456		$	30,572
Service cost	3,729			3,056			640			636
Interest cost	11,289			12,107			892			1,201
Plan participants' contributions	53			574			—			—
Curtailment	—			—			—			—
Settlements	—			(158		)	—			(5,113		)
Benefit payments	(6,186		)	(6,664		)	(743		)	(764		)
Actuarial loss (gain)	16,699			13,319			127			(76		)
Plan amendments	—			53			—			—
Administrative expenses paid	(266		)	(272		)	—			—
Effect of foreign exchange	5,829			1,091			—			—
Benefit obligation at end of year	$	283,063		$	251,916		$	27,372		$	26,456
Change in plan assets
Fair value of plan assets at beginning of year	$	202,652		$	192,429		$	—		$	—
Plan assets assumed	—			—			—			—
Actual return on plan assets	22,467			3,661			—			—
Settlements	—			(158		)	—			(5,113		)
Employer contributions	14,222			12,170			743			5,877
Plan participants' contributions	53			574			—			—
Benefit payments	(6,186		)	(6,664		)	(743		)	(764		)
Premiums paid	(266		)	(272		)	—			—
Other	—			—			—			—
Effect of foreign exchange	5,730			912			—			—
Fair value of plan assets at end of year	$	238,672		$	202,652		$	—		$	—
Funded status
Projected benefit obligation	$	283,063		$	251,916		$	27,372		$	26,456
Fair value of plan assets	238,672			202,652			—			—
Net balance sheet liability	$	44,391		$	49,264		$	27,372		$	26,456
Classification of net balance sheet liability
Non-current assets	$	—		$	11		$	—		$	—
Current liabilities	75			52			709			717
Non-current liabilities	44,316			49,223			26,663			25,739

Amounts recognized in statement of financial position as part of accumulated other comprehensive income ("AOCI"):

	Pension Benefits						Supplemental Retirement Benefits
	2012			2011			2012		2011
Net actuarial loss	$	58,594		$	52,384		$	3,056	$	3,190
Net prior service cost/(credit)	(6,815		)	(7,117		)	1,320		1,981
Total	$	51,779		$	45,267		$	4,376	$	5,171
The accumulated benefit obligation for all defined benefit plans	$	275,162		$	245,705		$	26,495	$	24,663

Information for defined benefit plans with accumulated benefit obligation in excess of plan assets:

	Pension Benefits				Supplemental Retirement Benefits
	2012		2011		2012		2011
Projected benefit obligation	$	277,187	$	247,232	$	27,372	$	26,457
Accumulated benefit obligation	271,204		242,467		26,495		24,663
Fair value of plan assets	233,182		198,689		—		—

Information for defined benefit plans with projected benefit obligation in excess of plan assets:

	Pension Benefits				Supplemental Retirement Benefits
	2012		2011		2012		2011
Projected benefit obligation	$	283,063	$	251,723	$	27,372	$	26,457
Accumulated benefit obligation	275,162		245,574		26,495		24,663
Fair value of plan assets	238,672		202,448		—		—

Amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year:

	Pension Benefits			Supplemental Retirement Benefits
Amortization of net actuarial (gain)/loss	$	2,764		$	249
Amortization of net prior service cost/(credit)	(622		)	660

Components of net periodic benefit cost:

	Pension Benefits									Supplemental Retirement Benefits
	2012			2011			2010			2012		2011			2010
Service cost	$	3,729		$	3,056		$	2,617		$	640	$	636		$	597
Interest cost	11,289			12,107			11,214			892		1,201			1,341
Expected return on plan assets	(13,799		)	(13,677		)	(12,185		)	—		—			—
Amortization of prior service cost (credit)	2,461			(617		)	(598		)	260		498			498
Amortization of net loss (gain)	(609		)	978			749			660		210			155
Net periodic benefit cost	3,071			1,847			1,797			2,452		2,545			2,591
Settlement	—			23			27			—		(487		)	—
Net pension cost	$	3,071		$	1,870		$	1,824		$	2,452	$	2,058		$	2,591

Rollforward of accumulated other comprehensive income:

	Pension Benefits						Supplemental Retirement Benefits
	2012			2011			2012			2011
Beginning balance	$	45,267		$	22,311		$	5,171		$	5,467
Amortization of prior service cost	(2,461		)	617			(660		)	(497		)
Amortization of net gain (loss)	609			(978		)	(260		)	(210		)
Asset loss/(gain)	8,030			10,016			125			—
Liability loss/(gain)	—			13,319			—			(76		)
Recognized prior service (cost) credit due to curtailment	—			53			—			—
Recognized (loss)/gain due to settlement	—			(23		)	—			487
Currency impact	334			(48		)	—			—
Ending balance	$	51,779		$	45,267		$	4,376		$	5,171

Assumptions

Weighted-average assumptions used to determine benefit obligations:

	Pension Benefits				Supplemental Retirement Benefits
	2012		2011		2012		2011
Discount rate	4.13	%	4.47	%	2.63	%	3.42	%
Rate of compensation increase	3.04	%	3.12	%	2.50	%	2.50	%

Weighted-average assumptions used to determine net periodic benefit cost:

	Pension Benefits						Supplemental Retirement Benefits
	2012		2011		2010		2012		2011		2010
Discount rate	4.47	%	5.20	%	5.63	%	3.42	%	4.34	%	5.22	%
Expected long-term return on plan assets	6.55	%	6.79	%	7.11	%	—		—		—
Rate of compensation increase	3.12	%	3.48	%	2.50	%	2.50	%	2.50	%	2.50	%

The expected long-term rate of return on plan assets was made considering the pension plan's asset mix, historical returns and the expected yields on plan assets. The discount rates reflect the rates at which amounts that are invested in a portfolio of high-quality debt instruments would provide the future cash flows necessary to pay benefits when they become due. The rate of compensation increase reflects the expected annual salary increases for the plan participants based on historical experience and our current employee compensation strategy.

Plan assets:

Our pension plans' weighted-average asset allocations are as follows:

	Target Allocation		Pension Benefits
	2013		2012		2011
Equity securities	67	%	60	%	59	%
Fixed income	31	%	36	%	37	%
Other	2	%	4	%	4	%
Total	100	%	100	%	100	%

Our investment objective is to obtain the highest possible return commensurate with the level of assumed risk. Fund performances are compared to benchmarks including the S&P 500 Index, Russell 2000, BC Aggregate Index and MSCI EAFE Index. Our Investment Committee meets on a quarterly basis to review plan assets.

Plan assets did not include any of our common stock at December 29, 2012 and December 31, 2011, respectively.

The fair value of our pension assets by asset category are as follows.

	Fair Value Measurements at December 29, 2012
Assets	Quoted Prices in Active Markets for Identical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Assets at Fair Value
Cash	$	1,336	$	—	$	—	$	1,336
Common stock(a)	100,864		4,261		—		105,125
Debt securities(a)	63,283		3,169		—		66,452
Mutual funds(b)	55,453		8,551		—		64,004
Life insurance policies(c)	—		43		—		43
Other (d)	224		—		1,488		1,712
Total	$	221,160	$	16,024	$	1,488	$	238,672

(a) This category comprises investments valued at the closing price reported on the active market on which the individual securities are traded.

(b) This category comprises mutual funds valued at the net asset value of shares held at year end.

(c) This category comprises life insurance policies valued at cash surrender value at year end.

(d) This comprises annuity policies held with various insurance companies valued at face value.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2011	$	1,419
Actual return on plan assets:
Relating to assets still held at December 29, 2012	51
Relating to assets sold during the period
Purchases, sales and settlements	(78		)
Transfers in and/or out of Level 3	96
Balance at December 29, 2012	$	1,488

Contributions:

During 2012, we contributed $13,966 to our pension plans. We expect to contribute $13,868 to our pension plan in 2013.

Estimated future benefit payments:

	Pension Benefits		Supplemental Retirement Benefits
2013	$	7,180	$	721
2014	6,773		800
2015	7,559		745
2016	8,591		12,379
2017	8,657		721
2018-2022	$	54,207	$	8,811