Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 21

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 1
Chunk 21
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Income tax benefit was $20.3 million and $23.3 million during the three and six months ended November 30, 2024 compared to income tax benefit of $0.3 million and $0.1 million 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, we recognized an income tax benefit of $9.2 million during the quarter as a result of a goodwill impairment charge. The 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. We are closely monitoring developments and evaluating the impact these new rules will have on our tax rate, including eligibility to qualify for certain safe harbors. Where no safe harbor is met, we have 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 our income tax benefit for the three and six months ended November 30, 2024.

Segment Results of Operations

    Three months ended November 30,

    2024

    2023

    Increase / (Decrease)

    % Change

    Food Safety
     
    $
    164,238

    $
    164,403

    $
    (165
    )

    (0
    )%

    Animal Safety

    67,020

    65,226

    1,794

    3
    %

    Total Revenues
     
    $
    231,258

    $
    229,629

    $
    1,629

    1
    %

    Food Safety
     
    $
    (436,798
    )
     
    $
    24,329

    $
    (461,127
    )

    (1895
    )%

    Animal Safety

    (362
    )

    7,739

    (8,101
    )

    (105
    )%

    Segment Operating (Loss) Income
     
    $
    (437,160
    )
     
    $
    32,068

    $
    (469,228
    )

    (1463
    )%

    Corporate

    (20