Company: NEOG
Filing Date: 2025-07-30
Form Type: 10-K
Source: 0000950170-25-100064
Chunk: 50

Company: NEOGEN CORP
Filing Date: 2025-07-30
Form: 10-K
Item: Item 6
Chunk 50
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 the intangible assets using a qualitative assessment and determined that recorded amounts were not impaired. 7.       Restructuring The Company regularly evaluates its business and objectives to ensure that it is properly configured and sized based on changing market conditions. Accordingly, the Company has implemented certain restructuring initiatives, including consolidation of certain facilities throughout the world and rationalization of its operations. In fiscal year 2024, management initiated a restructuring plan to begin streamlining the Company's global genomics business. Management continued and primarily finalized the restructuring plan to streamline operations of the Company's global genomics business. This restructuring plan was complete by May 31, 2025. The Company’s restructuring charges consist of severance payments, costs for outplacement services, and post-employment benefits (collectively, “employee separation costs”), other related exit costs and asset impairment charges related to restructuring activities. These amounts are partially recorded within cost of service revenues and partially recorded within general and administrative expense on the consolidated statements of operations.Restructuring charges by segment were as follows:

         Year ended May 31,

         2025

         2024

         Food Safety
          
         $
         2,146

         $
         402

         Animal Safety

         7,430

         1,385

         Corporate

         1,520

         1,726

         Total
          
         $
         11,096

         $
         3,513

         Restructuring activity for the twelve months ended May 31, 2025 was as follows:

         Employee Separation Costs

         Other Exit Costs

         Total

         Balance as of May 31, 2024
          
         $
         -

         $
         -

         $
         -

         Expense

         3,041

         8,055

         11,096

         Cash Payments

         (2,285
         )

         (481
         )

         (2,766
         )

         Asset impairments and other (1)

         -

         (7,574
         )

         (7,574
         )

         Balance as of May 31, 2025
          
         $
         756

         $
         -

         $
         756

        (1) Asset impairment charges primarily relate to Inventory and Property and Equipment charges incurred by the Company's Animal Safety operating segment and global genomics business.  

75

8.       Business Combinations The consolidated statements of operations reflect