001-15943 CHARLES RIVER LABORATORIES INTERNATIONAL, INC. ( Our Internet site is www.criver.com. The development of new drugs requires a steadily increasing investment of time and money. Research Animal Diagnostic Services. We recently launched a suite of products focused on sterility testing. Sterility testing is required prior to the release of sterile injectable products. In 2020, we launched the Celsis Complete™ and Celsis Advantage™ services. We are the global leader for the supply of SPF fertile chicken eggs and chickens. Pharmaceutical Manufacturing Support Portfolio. Flexible and Customized Environment to Provide the Right Solutions. Our clients' R&D needs continue to evolve. We also promote a healthy and safe workplace for our employees. Joseph W. LaPlume, age 47, joined us in 2005 as Senior Corporate Counsel. You should understand that it is not possible to predict or identify all such factors. Some of the same risks exist when we decide to sell a business, site or product line. Negative attention from special interest groups may impair our business. Our clients include researchers at pharmaceutical and biotechnology companies. This could result in a decrease in overall revenue and profits. The industries in which we operate are highly competitive. This could harm our reputation, our prospects for future work and our operating results. We are required to comply with the data privacy and security laws in many jurisdictions. We depend on the availability of, and good relations with, our team members. Such an impairment charge could materially and adversely affect our operating results. PropertiesWe own or lease the land and buildings where we have facilities. We own large Manufacturing facilities in the U.S., Ireland and China. Accordingly, we have and expect to continue to increase inventory and supplies in 2021. The proposed transaction is expected to close by the end of the first quarter of 2021. The acquisition was funded through available cash. The purchase price for MPI Research was $829.7 million in cash. Contracts with customers may contain multiple performance obligations. Revenue is recorded proportionally as costs are incurred. Our accounting for the elements of U.S. Tax Reform is complete. In fiscal 2020 we adopted ASU 2017-04, "Simplifying the Test for Goodwill Impairment." The increase to operating income was due primarily to the increase in revenue. These proceeds and payments are presented as gross financing activities. Purchase obligations exclude agreements that are cancellable at any time without penalty. Intercompany balances and transactions are eliminated in consolidation. On an on-going basis, the Company evaluates its estimates, judgments, and methodologies. Actual results may differ from these estimates under different assumptions or conditions. The observability of inputs may change for certain assets or liabilities. This condition could cause an asset or liability to be reclassified between levels. Inventories are stated at the lower of cost or net realizable value. Standard costs are trued-up to reflect actual cost. The Company revalues these contingent consideration obligations each reporting period. This determination is reassessed if the terms of the contract are changed. Generally, the Company does not extend payment terms beyond one year. Income taxes are accounted for under the liability method. The Company accounts for treasury stock transactions under the cost method. Thus, the
