Intangible assets, net

CHARLES RIVER LABORATORIES INTERNATIONAL, INC.NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)The carrying amounts of the major classes of assets and liabilities associated with the divestitures of the businesses were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | October 12, 2021 |
|  | RMS Japan |  | CDMO Sweden |
|  | (in thousands) |
| Assets |  |  |  |
| Current assets | $ | 26,524  |  |  | $ | 8,187  |  |
| Property, plant, and equipment, net | 17,379  |  |  | 14,339  |  |
| Operating lease right-of-use assets, net | —  |  |  | 19,733  |  |
| Goodwill | 4,129  |  |  | 27,764  |  |
| Intangible assets, net | —  |  |  | 14,089  |  |
| Other assets | 3,695  |  |  | —  |  |
| Total assets | $ | 51,727  |  |  | $ | 84,112  |  |
|  |  |  |  |
| Liabilities |  |  |  |
| Current liabilities | $ | 8,705  |  |  | $ | 6,386  |  |
| Operating lease right-of-use liabilities | —  |  |  | 18,221  |  |
| Long-term liabilities | 94  |  |  | —  |  |
| Total liabilities | $ | 8,799  |  |  | $ | 24,607  |  |

3. REVENUE FROM CONTRACTS WITH CUSTOMERSDisaggregation of RevenueThe following table disaggregates the Company’s revenue by major business line and timing of transfer of products or services:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 24, 2022 |  | September 25, 2021 |  | September 24, 2022 |  | September 25, 2021 |
|  | (in thousands) |
| Timing of Revenue Recognition: |  |  |  |  |  |  |  |
| RMS |  |  |  |  |  |  |  |
| Services and products transferred over time | $ | 88,174  |  |  | $ | 65,805  |  |  | $ | 243,901  |  |  | $ | 197,035  |  |
| Services and products transferred at a point in time | 91,940  |  |  | 105,453  |  |  | 299,165  |  |  | 327,827  |  |
| Total RMS revenue | 180,114  |  |  | 171,258  |  |  | 543,066  |  |  | 524,862  |  |
| DSA |  |  |  |  |  |  |  |
| Services and products transferred over time | 618,270  |  |  | 531,637  |  |  | 1,749,977  |  |  | 1,571,895  |  |
| Services and products transferred at a point in time | 1,193  |  |  | 186  |  |  | 5,662  |  |  | 1,200  |  |
| Total DSA revenue | 619,463  |  |  | 531,823  |  |  | 1,755,639  |  |  | 1,573,095  |  |
| Manufacturing |  |  |  |  |  |  |  |
| Services and products transferred over time | 89,173  |  |  | 93,473  |  |  | 276,993  |  |  | 240,015  |  |
| Services and products transferred at a point in time | 100,407  |  |  | 99,383  |  |  | 300,519  |  |  | 297,138  |  |
| Total Manufacturing revenue | 189,580  |  |  | 192,856  |  |  | 577,512  |  |  | 537,153  |  |
| Total revenue | $ | 989,157  |  |  | $ | 895,937  |  |  | $ | 2,876,217  |  |  | $ | 2,635,110  |  |

RMSThe RMS business generates revenue through the commercial production and sale of research models, research and GMP-compliant cells (cell supply), 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 and cell supply 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.14
