Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 56

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 8
Chunk 56
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        117,497

        116,075

        230,078

        233,994

        Total revenue
         
        $
        231,258

        $
        229,629

        $
        448,222

        $
        458,616

5. GOODWILLThe following table summarizes goodwill by reportable segment: 

        Food Safety

        Animal Safety

        Total

        May 31, 2024
         
        $
        2,054,205

        $
        81,427

        $
        2,135,632

        Impairment

        (461,175
        )

        -

        (461,175
        )

        Foreign currency translation and other

        (1,755
        )

        (201
        )

        (1,956
        )

        November 30, 2024
         
        $
        1,591,275

        $
        81,226

        $
        1,672,501

In 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 September 1, 2024. Management utilized a third-party to quantitatively assess its Food Safety reporting unit. Fair value of the reporting unit was estimated based on a combination of an income-based approach, consisting of a discounted cash flows analysis, and a market-based approach, consisting of pricing multiples derived from an analysis of comparable public companies multiplied against historical and/or anticipated financial metrics of the reporting unit. The inputs to the fair value are defined in the fair value hierarchy as Level 3 inputs. Based on the results of the analysis, the carrying value of the Food Safety reporting unit exceeded its fair value as of September 1, 2024. Accordingly, an impairment charge of $461,390 was recorded. Differences in the balance sheet change and impairment charge are due to foreign exchange.  

11

6. 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 facilities throughout the world and rationalization of its operations. In the second quarter of fiscal year 2025, management initiated a restructuring plan primarily designed to focus the end market exposure and streamline the