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Goodwill and Other Intangible Assets | 12 Months Ended
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May 31, 2023
Goodwill and Other Intangible Assets | 2. Goodwill and Other Intangible Assets Goodwill Management completed the annual impairment analysis of goodwill using a third-party quantitative assessment as of the first day of the fourth quarter of fiscal year 2023. The fair value of each reporting unit was determined and compared to the carrying value. The inputs to the fair value are defined in the fair value hierarchy as Level 3 inputs. If the carrying value had exceeded the fair value, an impairment charge would have been recorded based on that difference. The annual impairment analysis resulted in no impairment for 2023. Management completed the annual impairment analysis of goodwill using a qualitative approach during fiscal year 2022, which resulted in no impairment charges. The following table summarizes goodwill by reportable segment:
|  | Food Safety |  |  | Animal Safety |  |  | Total |
Balance, May 31, 2021 |  | $ | 67,822 |  |  | $ | 63,654 |  |  | $ | 131,476 |
Acquisitions |  |  | 4,152 |  |  |  | 11,752 |  |  |  | 15,904 |
Foreign currency translation and other |  |  | (4,416 | ) |  |  | (260 | ) |  |  | (4,676 | )
Balance, May 31, 2022 |  | $ | 67,558 |  |  | $ | 75,146 |  |  | $ | 142,704 |
Acquisitions (1) |  |  | 1,985,476 |  |  |  | 6,783 |  |  |  | 1,992,259 |
Foreign currency translation and other |  |  | 3,127 |  |  |  | (594 | ) |  |  | 2,533 |
Balance, May 31, 2023 |  | $ | 2,056,161 |  |  | $ | 81,335 |  |  | $ | 2,137,496 |
(1) Animal Safety acquisitions represents portion of FSD transaction recorded at Neogen Australasia. Other Intangible Assets As of May 31, 2023, non-amortizable intangible assets included licenses of $569, trademarks of $12,522 and other intangibles of $1,224. During fiscal year 2023, the Company recorded an impairment of $1,000 to its non-amortizable trademarks related to discontinued product lines. As of May 31, 2022, non-amortizable intangible assets included licenses of $569, trademarks of $13,604 and other intangibles of $1,224. Management completed the annual impairment analysis of intangible assets with indefinite lives using a qualitative assessment for fiscal year 2023 and a quantitative assessment for fiscal year 2022. Other than the impairment in fiscal year 2023 related to the discrete trademarks discussed above, management determined that recorded amounts were not impaired and that no impairment charges were necessary. Amortizable intangible assets consisted of the following and are included in amortizable intangible assets within the consolidated balance sheets:
|  | Gross Carrying Amount |  |  | Less Accumulated Amortization |  |  | Net Carrying Amount |
Licenses |  | $ | 16,010 |  |  | $ | 6,763 |  |  | $ | 9,247 |
Covenants not to compete |  |  | 488 |  |  |  | 384 |  |  |  | 104 |
Patents |  |  | 8,499 |  |  |  | 4,865 |  |  |  | 3,634 |
Customer relationships intangibles |  |  | 1,244,635 |  |  |  | 81,577 |  |  |  | 1,163,058 |
Trade names and trademarks |  |  | 111,172 |  |  |  | 3,583 |  |  |  | 107,589 |
Developed technology |  |  | 309,609 |  |  |  | 20,175 |  |  |  | 289,434 |
Other product and service-related intangibles |  |  | 23,628 |  |  |  | 5,907 |  |  |  | 17,721 |
Balance, May 31, 2023 |  | $ | 1,714,041 |  |  | $ | 123,254 |  |  | $ | 1,590,787 |
Licenses |  | $ | 17,109 |  |  | $ | 5,682 |  |  | $ | 11,427 |
Covenants not to compete |  |  | 846 |  |  |  | 671 |  |  |  | 175 |
Patents |  |  | 8,347 |  |  |  | 4,583 |  |  |  | 3,764 |
Customer relationships intangibles |  |  | 75,000 |  |  |  | 33,662 |  |  |  | 41,338 |
Trade names and trademarks |  |  | 1,180 |  |  |  | 167 |  |  |  | 1,013 |
Developed technology |  |  | 17,741 |  |  |  | 6,124 |  |  |  | 11,617 |
Other product and service-related intangibles |  |  | 27,299 |  |  |  | 4,527 |  |  |  | 22,772 |
Balance, May 31, 2022 |  | $ | 147,522 |  |  | $ | 55,416 |  |  | $ | 92,106 |
During fiscal year 2023, the Company recorded an impairment of $2,109 to its amortizable licenses related to discontinued product lines. Amortization expense for intangibles totaled $71,085, $9,600, and $7,753 in fiscal years 2023, 2022, and 2021, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $93,200 in 2024, $92,900 in 2025, $92,300 in 2026, $91,700 in 2027, $90,900 in 2028 and $1,129,987 thereafter. The amortizable intangible assets' useful lives are 2 to 20 years for licenses, 3 to 10 years for covenants not to compete, 5 to 25 years for patents, 9 to 20 years for customer relationships, 10 to 25 years for trade names and trademarks, 10 to 20 years for developed technology and 5 to 15 years for other product and service-related intangibles. All definite-lived intangibles are amortized on a straight-line basis with the exception of definite-lived customer relationships intangibles and product and service-related intangibles, which are amortized on either a straight-line or an accelerated basis. The weighted average remaining amortization period for intangibles was 18 years as of May 31, 2023 and eight years as of May 31, 2022.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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