Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 10

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 1
Chunk 10
---
1,636

        $
        216

        Animal Safety

        7,077

        1,330

        7,077

        1,330

        Corporate

        987

        477

        1,225

        869

        Total
         
        $
        9,568

        $
        1,856

        $
        9,938

        $
        2,415

      Restructuring activity for the six months ended November 30, 2024 was as follows:

        Employee Separation Costs

        Other Exit Costs

        Total

        Balance as of May 31, 2024

        -

        -

        -

        Expense

        1,983

        7,955

        9,938

        Cash Payments

        (516
        )

        (627
        )

        (1,143
        )

        Asset impairments and other

        -

        (7,328
        )

        (7,328
        )

        Balance as of November 30, 2024

        1,467

        -

        1,467

7. INCOME TAXES Income tax benefit was $20,290 and $23,290 during the three and six months ended November 30, 2024, respectively. Income tax benefit was $260 and $100 during the three and six months ended November 30, 2023. The net tax benefit for the quarter is primarily related to pre-tax losses due to amortization expense and interest expense from the 3M FSD acquisition. Additionally, the Company recognized an income tax benefit of $9,225 during the quarter as a result of a goodwill impairment charge. The Organization for Economic Cooperation and Development (“OECD”) Pillar 2 global minimum tax rules, which generally provide for a minimum effective tax rate of 15%, are intended to apply for tax years beginning in 2024. The Company is closely monitoring developments and evaluating the impact these new rules will have on its tax rate, including eligibility to qualify for certain safe harbors. Where no safe harbor is met, the Company has included a forecasted amount of “top-up” tax for its foreign subsidiaries as required under the applicable rules of the countries that have adopted the Pillar Two directives, in its income tax benefit for the three and six months ended November 30, 2024.The total amounts of unrecognized tax benefits that, if recognized,