Company: NEOG
Filing Date: 2025-07-30
Form Type: 10-K
Source: 0000950170-25-100064
Chunk: 60

Company: NEOGEN CORP
Filing Date: 2025-07-30
Form: 10-K
Item: Item 6
Chunk 60
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 Valuation allowance

         (1,440
         )

         (1,526
         )

         Net deferred income tax liabilities
          
         $
         (263,125
         )
          
         $
         (322,930
         )

         Net deferred income tax assets (jurisdictional) - other non-current assets
          
         $
         17,782

         $
         3,788

         Net deferred income tax liabilities (jurisdictional)

         (280,907
         )

         (326,718
         )

         Net deferred income tax liabilities
          
         $
         (263,125
         )
          
         $
         (322,930
         )
        
        The Company has the following net operating loss carryforwards:  

         As of May 31, 2025

         Expiry

         U.S.
          
         $
         91

         2038

         Foreign

         18,822

         2026 to Indefinite

         Total net operating loss carryforwards
          
         $
         18,913

        Valuation allowances against certain deferred tax assets are established based on management’s determination of a more likely than not standard that the tax benefits will not be realized. Management evaluates all available evidence, both positive and negative, when determining the need for a valuation allowance. Valuation allowances related to net operating losses are primarily evaluated based on evidence (or lack thereof) of historical and future earnings. Valuation allowances related to long-lived assets primarily are evaluated based on Management’s tax planning and intentions for underlying assets. The balance of deferred tax liabilities for indefinite and long-live assets was affected by the goodwill impairments discussed in Note 6, related to the portion of the impairments on goodwill carrying value that is deductible in some jurisdictions. These impairments resulted in a reduction of $22,801 to the deferred tax liability balance during the year ended May 31, 2025.We are subject to income taxes in the U.S. (federal and state) and in numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when we believe that certain positions might be challenged despite our belief that our tax return positions