Goodwill and Other Intangible Assets

9 Months Ended

Feb. 28, 2023

9. GOODWILL AND INTANGIBLE ASSETS

The following table summarizes goodwill by reportable segment:


(in thousands)	Food Safety			Animal Safety			Total
May 31, 2022	$	67,558		$	75,146		$	142,704
Acquisitions(1)		1,989,270			6,754			1,996,024
Impairment (2)		(1,300	)		—			(1,300	)
Foreign currency translation and other		(1,984	)		(326	)		(2,310	)
February 28, 2023	$	2,053,544		$	81,574		$	2,135,118

(1)

Animal Safety acquisitions represents portion of 3M Food Safety transaction recorded at Neogen Australasia.

(2)

Impairment during the nine months ended February 28, 2023 relates to discontinued product lines. The amount was determined based on a relative fair value basis of the product lines compared to the overall reporting unit.

As of February 28, 2023, non-amortizable intangible assets included licenses of $569,000, trademarks of $12,459,000 and other intangibles of $1,224,000. During the three and nine months ended February 28, 2023, the Company recorded an impairment of $1.0 million to its non-amortizable trademarks related to discontinued product lines.

As of May 31, 2022, non-amortizable intangible assets included licenses of $569,000, trademarks of $13,604,000 and other intangibles of $1,224,000.

Amortizable intangible assets consisted of the following and are included in customer-based intangibles and other non-current assets within the condensed consolidated balance sheets:


(in thousands)	Gross Carrying Amount		Less Accumulated Amortization		Net Carrying Amount
Licenses	$	17,401	$	6,952	$	10,449
Covenants not to compete		782		716		66
Patents		8,670		5,045		3,625
Customer relationships		1,245,875		65,764		1,180,111
Trade names and trademarks		111,167		2,453		108,714
Developed technology		311,350		13,198		298,152
Other product and service-related intangibles		27,530		8,418		19,112
February 28, 2023	$	1,722,775	$	102,546	$	1,620,229

Licenses	$	17,109	$	5,682	$	11,427
Covenants not to compete		846		671		175
Patents		8,347		4,583		3,764
Customer relationships		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
May 31, 2022	$	147,522	$	55,416	$	92,106

Amortization expense relating to definite-lived intangible assets was $22.9 million and $2.6 million during the three months ended February 28, 2023 and 2022, respectively, and $48.0 million and $7.3 million during the nine months ended February 28, 2023 and 2022, respectively.

The estimated amortization expense for each of the five succeeding fiscal years is as follows: $23.1 million remaining in 2023, $91.8 million in 2024, $91.3 million in 2025, $91.2 million in 2026 and $90.7 million in 2027 and $1.23 billion 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-based 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 February 28, 2023 and eight years as of May 31, 2022.