Company: NEOG
Filing Date: 2025-07-30
Form Type: 10-K
Source: 0000950170-25-100064
Chunk: 65

Company: NEOGEN CORP
Filing Date: 2025-07-30
Form: 10-K
Item: Item 6
Chunk 65
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 currencies, and has entered into a number of foreign currency forward contracts each month to mitigate that exposure. These contracts are recorded net at fair value on our consolidated balance sheets, classified as Level 2 in the fair value hierarchy. Gains and losses from these foreign currency forward contracts are recognized in Other, net in our consolidated statements of operations. The notional amount of forward contracts in place was $65,023 and $70,315 as of May 31, 2025 and 2024, respectively, and consisted of foreign currency hedges of transactions up to July 2025.  

         Fair Value of Derivatives Not Designated as Hedging  Instruments
          
         Balance Sheet Location
          
         May 31, 2025

         May 31, 2024

         Foreign currency forward contracts, net
          
         Other current liabilities
          
         $
         407

         $
         265

        The location and amount of gains (loss) from derivatives not designated as hedging instruments in our consolidated statements of operations were as follows:  

         Derivatives Not Designated as Hedging Instruments
          
         Location in statements of operations
          
         May 31, 2025

         May 31, 2024

         May 31, 2023

         Foreign currency forward contracts
          
         Other, net
          
         $
         484

         $
         88

         $
         (10,092
         )

87

 Derivatives Designed as Hedging Instruments  In November 2022, the Company entered into a receive-variable, pay-fixed interest rate swap agreement with a $250,000 notional value, which is designated as a cash flow hedge. In accordance with the agreement, the notional value decreased to $200,000 in November 2024. This agreement fixed a portion of the variable interest due on our term loan facility, with an effective date of December 2, 2022 and a maturity date of June 30, 2027. Under the terms of the agreement, the Company pays a fixed interest rate of 4.215%, plus an applicable margin ranging between 150 to 225 basis points and receive a variable rate of interest based on term SOFR from the counterparty, which is reset according to the duration of the SOFR term. The fair value of the interest rate swap as of May 31, 2025 and May 31,