Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 60

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 8
Chunk 60
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 January 2025.  

        Fair Value of Derivatives Not Designated as Hedging  Instruments
         
        Balance Sheet Location
         
        November 30, 2024

        May 31, 2024

        Foreign currency forward contracts, net
         
        Other current liabilities
         
        $
        323

        $
        265

13

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

        Three months ended November 30,

        Derivatives Not Designated as Hedging Instruments
         
        Location in statements of operations
         
        2024

        2023

        Foreign currency forward contracts
         
        Other income (expense)
         
        $
        349

        $
        (221
        )

        Six months ended November 30,

        Derivatives Not Designated as Hedging Instruments
         
        Location in statements of operations
         
        2024

        2023

        Foreign currency forward contracts
         
        Other expense
         
        $
        (285
        )
         
        $
        (541
        )
       
      Derivatives Designated 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 November 30, 2024 and May 31, 2024 was a net (liability) asset of ($978) and $2,451, respectively. The Company expects to reclassify a $109 gain of accumulated other comprehensive income into earnings in the next 12 months.We record the fair value of our interest rate swaps on a recurring