Company: NEOG
Filing Date: 2025-07-30
Form Type: 10-K
Source: 0000950170-25-100064
Chunk: 48

Company: NEOGEN CORP
Filing Date: 2025-07-30
Form: 10-K
Item: Item 6
Chunk 48
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 2,642

         —

72

Future lease payments as of May 31, 2025 are as follows:  

         Operating

         Finance

         Years ending May 31,
          
         Leases

         Lease

         2026
          
         $
         6,257

         $
         2,431

         2027

         4,638

         —

         2028

         3,237

         —

         2029

         1,763

         —

         2030

         1,153

         —

         2031 and thereafter

         6,773

         —

         Total lease payments
          
         $
         23,821

         $
         2,431

         Less: imputed interest

         (5,320
         )

         (5
         )

         Total lease liabilities
          
         $
         18,501

         $
         2,426

        As of May 31, 2025, the Company had additional leases, primarily for real estate that have not yet commenced with undiscounted lease payments of approximately $2,316. The leases are expected to commence in the first half of fiscal year 2026 with lease terms up to seven years.6.       Goodwill and Other Intangible Assets GoodwillIn the second quarter of fiscal year 2025, the Company identified that the impact of integration challenges and end market conditions on the recent overall financial performance of the Food Safety reporting unit represented a triggering event to test goodwill within that reporting unit for impairment as of the first day of the second quarter of fiscal year 2025. Management utilized a third-party to quantitatively assess its Food Safety reporting unit. Based on the results of the analysis, the carrying value of the Food Safety reporting unit exceeded its fair value. Accordingly, an impairment charge of $461,390 was recorded. Differences in the balance sheet change and impairment charge are due to foreign exchange.Management also completed the annual impairment analysis of goodwill using a third-party quantitative assessment as of the first day of the fourth quarter of fiscal year 2025. Management utilized a third-party to quantitatively assess its Food Safety and Animal Safety reporting units. Based on the results of the analysis, the carrying value of the Food Safety and Animal Safety reporting units exceeded its fair value as of March 1, 2025. Accordingly, impairment charges of $584,826 and $13,105 were recorded