Company: NEOG
Filing Date: 2025-01-15
Form Type: 10-Q
Source: 0000950170-25-005818
Chunk: 13

Company: NEOGEN CORP
Filing Date: 2025-01-15
Form: 10-Q
Item: Item 1
Chunk 13
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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 basis using Level 2 observable market inputs for similar assets or liabilities in active markets.  

        Fair Value of Derivatives Designated as Hedging Instruments
         
        Balance Sheet Location
         
        November 30, 2024

        May 31, 2024

        Interest rate swap – current
         
        Other current assets
         
        $
        144

        $
        2,222

        Interest rate swap – non-current
         
        Other (non-current liabilities) non-current assets
         
        $
        (1,121
        )
         
        $
        229

       Fair Value of Financial Instruments   Fair value measurements are determined based upon the exit price