Contingent payments upon selling business

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)  
12. RESTRUCTURING AND ASSET IMPAIRMENTSIn recent fiscal years, the Company has undertaken productivity improvement initiatives within all reportable segments at various locations across the U.S., Canada, and Europe. 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 Company does not have any significant remaining lease obligations for facilities associated with restructuring activities. The following table presents a summary of restructuring costs related to these initiatives within the unaudited condensed consolidated statements of income:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 24, 2022 |  | September 25, 2021 |  | September 24, 2022 |  | September 25, 2021 |
|  | (in thousands) |
| RMS | $ | (110) |  |  | $ | —  |  |  | $ | 1,017  |  |  | $ | 7  |  |
| DSA | 71  |  |  | 815  |  |  | 687  |  |  | 2,449  |  |
| Manufacturing | 1,165  |  |  | 1,516  |  |  | 1,543  |  |  | 2,385  |  |
| Unallocated corporate | (23) |  |  | —  |  |  | 1,231  |  |  | (151) |  |
| Total | $ | 1,103  |  |  | $ | 2,331  |  |  | $ | 4,478  |  |  | $ | 4,690  |  |

As of September 24, 2022 and September 25, 2021, $1.7 million and $3.4 million, respectively, of severance and other personnel related costs liabilities and lease obligation liabilities were included in accrued compensation and accrued liabilities within the Company’s unaudited condensed consolidated balance sheets.13. COMMITMENTS AND CONTINGENCIESLitigationVarious lawsuits, claims and proceedings 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.14. SUBSEQUENT EVENTAvian Vaccine Services DivestitureOn November 1, 2022, the Company signed an agreement with a private investor group to sell its Avian Vaccine Services business (“Avian”) for approximately $170 million in cash, subject to certain customary closing adjustments, and future contingent payments up to an additional $30 million. The Company is in the process of evaluating the transaction and its impact on the consolidated financial statements. The proposed transaction is expected to close in the fourth quarter of fiscal 2022.26 
