Neogen (NEOG) 10-K 29 Jul 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	May 31, 2016	Jun. 30, 2016	Nov. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	May 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	NEOG
Entity Registrant Name	NEOGEN CORP
Entity Central Index Key	711,377
Current Fiscal Year End Date	--05-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		37,574,890
Entity Public Float			$ 2,211,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Current Assets
Cash and cash equivalents	$ 55,257	$ 66,061
Marketable securities	52,539	48,103
Accounts receivable, less allowance of $1,500 and $1,300 at May 31, 2016 and 2015	67,652	59,208
Inventories	64,371	51,601
Deferred income taxes	1,775	1,991
Prepaid expenses and other current assets	8,407	4,231
Total Current Assets	250,001	231,195
Property and Equipment
Land and improvements	2,659	2,296
Buildings and improvements	33,417	26,925
Machinery and equipment	56,470	46,794
Furniture and fixtures	3,068	2,691
Construction in progress	1,057	783
Property, Plant and Equipment, Gross, Total	96,671	79,489
Less accumulated depreciation	41,988	35,016
Net Property and Equipment	54,683	44,473
Other Assets
Goodwill	88,506	70,119
Other non-amortizable intangible assets	9,170	9,020
Amortizable intangible assets, net of accumulated amortization	49,355	37,374
Total Other Assets	147,031	116,513
Total Assets	451,715	392,181
Current Liabilities
Accounts payable	15,800	13,691
Accruals
Compensation and benefits	4,986	4,142
Federal income taxes	0	1,275
Other	7,812	6,348
Total Current Liabilities	28,598	25,456
Deferred Income Taxes	16,533	13,711
Other Long-Term Liabilities	2,423	2,051
Total Liabilities	47,554	41,218
Commitments and Contingencies (note 7)
Equity
Preferred stock, $1.00 par value - shares authorized 100,000; none issued and outstanding	0	0
Common stock, $0.16 par value - shares authorized 60,000,000; 37,567,689 and 37,128,269 shares issued and outstanding at May 31, 2016 and 2015	6,011	5,941
Additional paid-in capital	150,000	131,906
Accumulated other comprehensive loss	(3,946)	(2,442)
Retained earnings	252,133	215,569
Total Neogen Corporation and Subsidiaries Stockholders' Equity	404,198	350,974
Non-controlling interest	(37)	(11)
Total Equity	404,161	350,963
TOTAL LIABILITIES AND EQUITY	451,715	392,181
Customer-based intangibles
Other Assets
Amortizable intangible assets, net of accumulated amortization	30,909	24,170
Other Intangible Assets
Other Assets
Other non-amortizable intangible assets	1,224	1,224
Amortizable intangible assets, net of accumulated amortization	$ 18,446	$ 13,204

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Accounts receivable, allowance	$ 1,500	$ 1,300
Accumulated Amortization	$ 24,807	$ 20,523
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.16	$ 0.16
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	37,567,689	37,128,269
Common stock, shares outstanding	37,567,689	37,128,269
Customer-based intangibles
Accumulated Amortization	$ 17,277	$ 14,446
Other Intangible Assets
Accumulated Amortization	$ 7,530	$ 6,077

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Revenues
Product revenues	$ 273,570	$ 243,909	$ 216,148
Service revenues	47,705	39,165	31,257
Total Revenues	321,275	283,074	247,405
Cost of Revenues
Cost of product revenues	137,766	120,377	106,067
Cost of service revenues	30,445	23,012	18,740
Total Cost of Revenues	168,211	143,389	124,807
Gross Margin	153,064	139,685	122,598
Operating Expenses
Sales and marketing	57,599	51,757	46,432
General and administrative	29,189	25,233	24,449
Research and development	9,890	9,577	8,326
Operating Expenses, Total	96,678	86,567	79,207
Operating Income	56,386	53,118	43,391
Other Income (Expense)
Interest income	322	228	115
Royalty income	217	150	231
Change in purchase consideration	0	(297)	38
Other, net	(1,412)	(1,123)	(744)
Nonoperating Income (Expense), Total	(873)	(1,042)	(360)
Income Before Income Taxes	55,513	52,076	43,031
Provision for Income Taxes	18,975	18,500	15,000
Net Income	36,538	33,576	28,031
Net (Income) Loss Attributable to Non-controlling Interest	26	(50)	127
Net Income Attributable to Neogen	$ 36,564	$ 33,526	$ 28,158
Net Income Attributable to Neogen Per Share
Basic	$ 0.98	$ 0.91	$ 0.77
Diluted	$ 0.97	$ 0.90	$ 0.76

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Net Income	$ 36,538	$ 33,576	$ 28,031
Other comprehensive income (loss), net of tax: currency translation adjustments	(1,504)	(2,813)	1,743
Comprehensive income	35,034	30,763	29,774
Comprehensive (income) loss attributable to non-controlling interest	26	(50)	127
Comprehensive income attributable to Neogen Corporation	$ 35,060	$ 30,713	$ 29,901

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Non-controlling Interest
Beginning Balance at May. 31, 2013	$ 258,287	$ 5,773	$ 99,935	$ (1,372)	$ 153,885	$ 66
Beginning Balance (in shares) at May. 31, 2013		36,084,021
Exercise of options, share based compensation and income tax benefit (in shares)		629,826
Exercise of options, share based compensation and income tax benefit	$ 17,623	$ 101	17,522
Issuance of shares under employee stock purchase plan (in shares)	18,466	18,466
Issuance of shares under employee stock purchase plan	$ 616	$ 3	613
Net income (loss)	28,031				28,158	(127)
Other comprehensive income (loss)	1,743			1,743
Ending Balance at May. 31, 2014	306,300	$ 5,877	118,070	371	182,043	(61)
Ending Balance (in shares) at May. 31, 2014		36,732,313
Exercise of options, share based compensation and income tax benefit (in shares)		376,364
Exercise of options, share based compensation and income tax benefit	$ 13,176	$ 61	13,115
Issuance of shares under employee stock purchase plan (in shares)	19,592	19,592
Issuance of shares under employee stock purchase plan	$ 724	$ 3	721
Net income (loss)	33,576				33,526	50
Other comprehensive income (loss)	(2,813)			(2,813)
Ending Balance at May. 31, 2015	$ 350,963	$ 5,941	131,906	(2,442)	215,569	(11)
Ending Balance (in shares) at May. 31, 2015	37,128,269	37,128,269
Exercise of options, share based compensation and income tax benefit (in shares)		421,143
Exercise of options, share based compensation and income tax benefit	$ 17,378	$ 67	17,311
Issuance of shares under employee stock purchase plan (in shares)	18,277	18,277
Issuance of shares under employee stock purchase plan	$ 786	$ 3	783
Net income (loss)	36,538				36,564	(26)
Other comprehensive income (loss)	(1,504)			(1,504)
Ending Balance at May. 31, 2016	$ 404,161	$ 6,011	$ 150,000	$ (3,946)	$ 252,133	$ (37)
Ending Balance (in shares) at May. 31, 2016	37,567,689	37,567,689

Consolidated Statements of Equ7

Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Exercise of options, share based compensation , income tax benefit	$ 2,945	$ 2,475	$ 4,757

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Cash Flows From Operating Activities
Net Income	$ 36,538	$ 33,576	$ 28,031
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization	12,540	10,649	9,180
Deferred income taxes	1,906	496	(542)
Share based compensation	5,468	4,450	3,686
Excess income tax benefit from the exercise of stock options	(2,945)	(2,475)	(4,757)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(6,002)	(7,252)	(10,602)
Inventories	(9,427)	319	(3,529)
Prepaid expenses and other current assets	(3,836)	3,264	(2,654)
Accounts payable	704	412	1,970
Accruals and other changes	385	353	885
Net Cash From Operating Activities	35,331	43,792	21,668
Cash Flows Used In Investing Activities
Purchases of property, equipment and other non-current intangible assets	(14,222)	(9,619)	(11,543)
Proceeds from the sale of marketable securities	147,189	93,662	91,207
Purchases of marketable securities	(151,625)	(105,944)	(91,691)
Business acquisitions, net of cash acquired	(42,491)	(6,554)	(39,265)
Net Cash Used In Investing Activities	(61,149)	(28,455)	(51,292)
Cash Flows From Financing Activities
Exercise of stock options	12,363	8,558	14,851
Excess income tax benefit from the exercise of stock options	2,945	2,475	4,757
Net Cash From Financing Activities	15,308	11,033	19,608
Effect of Exchange Rate on Cash	(294)	(984)	659
Net Increase (Decrease) In Cash and Cash Equivalents	(10,804)	25,386	(9,357)
Cash And Cash Equivalents At Beginning of Year	66,061	40,675	50,032
Cash And Cash Equivalents At End of Year	55,257	66,061	40,675
Supplementary Cash Flow Information
Income taxes paid, net of refunds	$ 13,413	$ 10,454	$ 9,956

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	May 31, 2016
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Nature of Operations Neogen Corporation develops, manufactures and markets a diverse line of products and services dedicated to food and animal safety. Basis of Consolidation The consolidated financial statements include the accounts of Neogen Corporation and its subsidiaries (collectively, the Company), all of which are wholly owned, with the exception of Neogen Latinoamerica and Neogen do Brasil, which are each 90% owned as of May 31, 2016 and 2015, respectively. The Company made an additional capital contribution on December 31, 2013 which increased its ownership interest in Neogen Latinoamerica from 60% to 90%. Non-controlling interest represents the non-controlling owner’s proportionate share in the equity of these two subsidiaries; the non-controlling owner’s proportionate share in the income or losses of the subsidiaries is subtracted from, or added to, Company net income to calculate the net income attributable to Neogen Corporation. All intercompany accounts and transactions have been eliminated in consolidation. Share and per share amounts reflect the October 30, 2013 3-for-2 stock split as if it took place at the beginning of the period presented. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates impacting the accompanying consolidated financial statements include the allowance for uncollectible accounts receivable, inventory valuation and intangible assets. Comprehensive Income Comprehensive income represents net income and any revenues, expenses, gains and losses that, under U.S. generally accepted accounting principles, are excluded from net income and recognized directly as a component of equity. Accumulated other comprehensive income (loss) consists solely of foreign currency translation adjustments. Accounts Receivable and Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. Management attempts to minimize credit risk by reviewing customers’ credit history before extending credit and by monitoring credit exposure on a regular basis. An allowance for doubtful accounts on accounts receivable is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, that amount is charged against the allowance for doubtful accounts. No customer accounted for more than 10% of accounts receivable at May 31, 2016 or 2015, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in Thousands) 2016 2015 2014 Beginning Balance $ 1,300 $ 1,200 $ 900 Provision 305 337 367 Recoveries 90 92 8 Write-offs (195 ) (329 ) (75 ) Ending Balance $ 1,500 $ 1,300 $ 1,200 Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments other than cash equivalents and marketable securities, which include accounts receivable and accounts payable, approximate fair value based on either their short maturity or current terms for similar instruments. Fair Value Measurements Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Cash and Cash Equivalents Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents were $55,257,000 and $66,061,000 at May 31, 2016 and 2015, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and meet the Level 1 criteria. Cash held by foreign subsidiaries was $5,320,000 and $13,277,000 at May 31, 2016 and 2015, respectively. Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2016 consisting of short-term domestic certificates of deposit of $25,873,000 and commercial paper rated at least A-2/P-2 with maturities between 91 days and one year of $26,666,000. Outstanding marketable securities at May 31, 2016 were $52,539,000; there were $48,103,000 in marketable securities outstanding at May 31, 2015. These securities are classified as available for sale. The primary objective of the Company’s short-term investment activity is to preserve capital for the purpose of funding operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities are recorded at fair value (that approximates cost) based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within Other Income on the income statement. Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or market. The components of inventories were as follows: May 31 (in thousands) 2016 2015 Raw materials $ 29,501 $ 21,605 Work-in-process 4,498 3,972 Finished and purchased finished goods 30,372 26,024 $ 64,371 $ 51,601 The Company’s inventories are analyzed for slow moving, expired and obsolete items no less frequently than quarterly and the valuation allowance is adjusted as required. The valuation allowance for inventory was $1,550,000 at both May 31, 2016 and 2015, respectively. Property and Equipment Property and equipment is stated at cost. Expenditures for major improvements are capitalized while repairs and maintenance are charged to expense. Depreciation is provided on the straight-line method over the estimated useful lives of the respective assets, which are generally seven to 39 years for buildings and improvements and three to ten years for furniture, fixtures, machinery and equipment. Depreciation expense was $7,452,000, $6,318,000 and $5,383,000 in fiscal years 2016, 2015 and 2014, respectively. Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete and patents. Amortizable intangible assets are amortized on either an accelerated or a straight-line basis over 5 to 25 years. The Company reviews the carrying amounts of goodwill and other non-amortizable intangible assets annually, or when indications of impairment exist, to determine if such assets may be impaired. If the Company’s qualitative assessment concludes that it is more likely than not that an impairment exists, or the Company skips the qualitative assessment, then the Company performs a quantitative assessment. If the carrying amounts of these assets are deemed to be less than fair value based upon a discounted cash flow analysis and comparison to comparable earnings multiples of peer companies, such assets are reduced to their estimated fair value and a charge is made to operations. The remaining weighted-average amortization period for customer-based intangibles and other intangibles are both 12 years, respectively, at May 31, 2016 and May 31, 2015. Long-lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset are less than the carrying value of the asset. In such an event, fair value is determined using discounted cash flows and if lower than the carrying value, impairment is recognized through a charge to operations. Reclassifications Certain amounts in the fiscal 2015 and 2014 financial statements have been reclassified to conform to the fiscal 2016 presentation. Stock Options At May 31, 2016, the Company had stock option plans which are described more fully in Note 5. The weighted-average fair value per share of stock options granted during fiscal years 2016, 2015 and 2014, estimated on the date of grant using the Black-Scholes option pricing model, was $13.11, $11.91 and $9.87, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2016 2015 2014 Risk-free interest rate 1.2% 1.2% 0.8% Expected dividend yield 0% 0% 0% Expected stock price volatility 33.3% 36.2% 33.1% Expected option life 4.0 years 4.0 years 4.0 years The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on historical volatility of the Company’s stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. The Company recognizes the fair value of stock options using the accelerated method over their requisite service periods which the Company has determined to be the vesting periods. Revenue Recognition Revenue from products and services is recognized when the product has been shipped or the service performed, the sales price is fixed and determinable, and collection of any receivable is probable. To the extent that customer payment has been received before all recognition criteria are met, these revenues are initially deferred and later recognized in the period that all recognition criteria have been met. Customer credits for sales returns, pricing and other disputes, and other related matters (including volume rebates offered to certain distributors as marketing support) represent approximately 3% of reported net revenue in fiscal years 2016, 2015 and 2014. Shipping and Handling Costs Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenues, while the related expenses incurred by the Company are recorded in sales and marketing expense; these expenses totaled $9,734,000, $8,648,000 and $7,497,000 in fiscal years 2016, 2015 and 2014, respectively. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit carry forwards and are measured using the enacted tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax expense represents the change in net deferred income tax assets and liabilities during the year. The Company’s foreign subsidiaries are comprised of Neogen Europe (wholly-owned subsidiary), Lab M Holdings (wholly-owned subsidiary), Neogen Latinoamerica (90% owned subsidiary), Neogen do Brasil (90% owned subsidiary), Neogen Bio-Scientific Technology (Shanghai) Co (wholly-owned subsidiary), Neogen Food and Animal Security (India) (wholly-owned subsidiary), Neogen Canada (wholly-owned subsidiary) and Deoxi Biotecnologia Ltda (wholly-owned subsidiary). Based on historical experience, as well as the Company’s future plans, earnings from these subsidiaries are expected to be re-invested indefinitely for future expansion and working capital needs. Furthermore, the Company’s domestic operations have historically produced sufficient operating cash flow to mitigate the need to remit foreign earnings. On an annual basis, the Company evaluates the current business environment and whether any new events or other external changes might require a re-evaluation of the decision to indefinitely re-invest foreign earnings. At May 31, 2016, unremitted earnings of the foreign subsidiaries were $27,880,000. Research and Development Costs Research and development costs, which consist primarily of compensation costs, administrative expenses and new product development, among other items, are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred and totaled $1,463,000, $1,371,000 and $1,344,000 in fiscal years 2016, 2015 and 2014, respectively. Net Income Attributable to Neogen per Share Basic net income per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is based on the weighted average number of common shares and dilutive potential common shares outstanding. The Company’s dilutive potential common shares outstanding during the years result entirely from dilutive stock options. The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2016 2015 2014 Numerator for basic and diluted net income per share - Net income attributable to Neogen $ 36,564 $ 33,526 $ 28,158 Denominator for basic net income per share - Weighted average shares 37,402 36,953 36,511 Effect of dilutive stock options 473 491 756 Denominator for diluted net income per share 37,875 37,444 37,267 Net income attributable to Neogen per share Basic $ 0.98 $ 0.91 $ 0.77 Diluted $ 0.97 $ 0.90 $ 0.76 At both May 31, 2016 and 2015, the market price of the common stock exceeded the option exercise price for all outstanding options; therefore, no shares were excluded from the diluted net income per share computation. At May 31, 2014, 48,716 shares were excluded from the computation, as the option exercise prices exceeded the average market price of the common shares. On October 30, 2013, the Company paid a 3-for-2 stock split effected in the form of a dividend of its common stock. All share and per share amounts, with the exception of par value per share, have been adjusted to reflect the stock split as if it had taken place at the beginning of the period presented. The common stock and additional paid-in capital accounts at May 31, 2013 reflect the retroactive capitalization of the 3-for-2 stock split. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a new standard on revenue recognition. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and the change will be presented retrospectively. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17—Balance Sheet Classification of Deferred Taxes. As part of the FASB’s accounting simplification initiative, ASU 2015-17 removes the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Instead, the update requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. ASU 2015-17 is effective for entities for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. The Company is currently evaluating the effects of ASU 2015-17 on our consolidated balance sheet and statements of income. In September 2015, the FASB issued ASU 2015-16—Simplifying the Accounting for Measurement -Period Adjustments. Changes to the accounting for measurement-period adjustments relate to business combinations. Currently, an acquiring entity is required to retrospectively adjust the balance sheet amounts of the acquiree recognized at the acquisition date with a corresponding adjustment to goodwill as a result of changes made to the balance sheet amounts of the acquiree. The measurement period is the period after the acquisition date during which the acquirer may adjust the balance sheet amounts recognized for a business combination (generally up to one year from the date of acquisition). The changes eliminate the requirement to make such retrospective adjustments, and, instead require the acquiring entity to record these adjustments in the reporting period they are determined. The new standard is effective for public companies for periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU No. 2015-11—Inventory: Simplifying the Measurement of Inventory. The update requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The update is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact of ASU 2015-11 on our consolidated financial condition and results of operations. In February 2016, the FASB issued ASU No. 2016-02—Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Modified retrospective application is permitted with certain practical expedients. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on our consolidated financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to provide guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance also allows for the employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of ASU No. 2016-09 on our consolidated financial condition and results of operations.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	May 31, 2016
Goodwill and Other Intangible Assets	2. Goodwill and Other Intangible Assets Management has completed the annual impairment analysis of goodwill and intangible assets with indefinite lives using a quantitative assessment as of the first day of the fourth quarter of fiscal years 2016, 2015 and 2014, respectively, and determined that recorded amounts were not impaired and that no write-down was necessary. The following table summarizes goodwill by reportable segment: (in thousands) Food Safety Animal Safety Total Balance, May 31, 2014 $ 16,696 $ 51,494 $ 68,190 Goodwill acquired and/or adjusted 2,110 (181 ) 1,929 Balance, May 31, 2015 $ 18,806 $ 51,313 $ 70,119 Goodwill acquired and/or adjusted 7,322 11,065 18,387 Balance, May 31, 2016 $ 26,128 $ 62,378 $ 88,506 At May 31, 2016, non-amortizable intangible assets included licenses of $569,000, trademarks of $7,377,000 and other intangibles of $1,224,000. At May 31, 2015, non-amortizable intangible assets included licenses of $569,000, trademarks of $7,227,000 and other intangibles of $1,224,000. Amortizable intangible assets consisted of the following and are included in customer-based intangible and other non-current assets within the consolidated balance sheets: (in thousands) Gross Less Net Licenses $ 5,189 $ 1,782 $ 3,407 Covenants not to compete 491 193 298 Patents 8,040 3,631 4,409 Customer-based intangibles 48,186 17,277 30,909 Other product and service-related intangibles 12,256 1,924 10,332 Balance, May 31, 2016 $ 74,162 $ 24,807 $ 49,355 Licenses $ 4,919 $ 1,630 $ 3,289 Covenants not to compete 428 124 304 Patents 7,701 3,087 4,614 Customer-based intangibles 38,616 14,446 24,170 Other product and service-related intangibles 6,233 1,236 4,997 Balance, May 31, 2015 $ 57,897 $ 20,523 $ 37,374 Amortization expense for intangibles totaled $5,088,000, $4,331,000 and $3,797,000 in fiscal years 2016, 2015, and 2014, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $5,759,000 in 2017, $5,405,000 in 2018, $5,012,000 in 2019, $4,706,000 in 2020 and $4,459,000 in 2021. The amortizable intangible assets useful lives are 5 to 20 years for licenses, 5 to 13 years for covenants not to compete, 5 to 25 years for patents, 6 to 20 years for customer-based intangibles and 5 to 20 years for other product and service-related intangibles, which primarily consist of product formulations. 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 an accelerated basis.

Business Combinations

Business Combinations	12 Months Ended
	May 31, 2016
Business Combinations	3. Business Combinations The Consolidated Statements of Income reflect the results of operations for business acquisitions since the respective dates of purchase. All are accounted for using the acquisition method. Goodwill recognized in the acquisitions described below relates primarily to enhancing the Company’s strategic platform for the expansion of available product offerings. On July 1, 2013, the Company acquired the assets of SyrVet Inc., a veterinary business based in Waukee, Iowa. SyrVet offered a product line similar to Neogen’s Ideal Instruments line of veterinary instruments with a strong presence in Mexico and Latin America. Consideration for the purchase was $10,012,000 in cash and up to $1,500,000 of a contingent consideration liability, due at the end of the first year, based on an excess net sales formula. The Company estimated the contingent consideration liability to be $930,000, based on forecasted sales. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $747,000, inventory of $2,195,000, property and equipment of $556,000, current liabilities of $226,000, contingent consideration liabilities of $930,000, non-amortizable trademarks of $790,000, intangible assets of $4,810,000 (with an estimated life of 15 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business has been relocated to Lexington, Kentucky and integrated with the Company’s current operations there, reporting within the Animal Safety segment. In August 2014, the Company paid $689,000 to the former owner for contingent consideration based upon the level of achievement of sales targets; the remaining $241,000 of the accrual was reversed to other income. On November 1, 2013, the Company acquired the assets of Prima Tech Incorporated, a veterinary instrument company based in Kenansville, North Carolina. Prima Tech manufactures devices used by farmers, ranchers and veterinarians to inject animals, provide topical applications, and to use for oral administration. Prima Tech is also a supplier of products used in artificial insemination in the swine industry. Consideration for the purchase was $12,068,000 in cash and up to $600,000 of contingent consideration, due at the end of the first year, based on an excess net sales formula. The Company estimated the contingent consideration liability to be $146,000 based on forecasted sales. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $963,000, inventory of $2,796,000, property and equipment of $1,653,000, prepaid assets of $8,000, current liabilities of $1,840,000, contingent consideration liabilities of $146,000, non-amortizable trademarks of $1,500,000, intangible assets of $4,400,000 (with an estimated life of 5-15 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business continues to operate in its current location and reports within the Animal Safety segment. In October 2014, the Company paid the former owners $600,000 for contingent consideration based on achievement of defined sales targets, recording an additional $454,000 charge to other expense. On January 2, 2014, the Company acquired all of the stock of Chem-Tech Ltd., a pest control manufacturing and distribution business located in Pleasantville, Iowa. Consideration for the purchase was $17,185,000 in cash and up to $1,000,000 of a contingent consideration liability, due at the end of the first year, based on an excess net sales formula. The Company estimated the contingent consideration liability to be $390,000, based on forecasted sales. The final purchase price allocation based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $380,000, inventory of $4,184,000, prepaid assets of $100,000, property and equipment of $807,000, current liabilities of $184,000, contingent consideration liabilities of $390,000, intangible assets of $8,327,000 (with an estimated life of 5-25 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business continues to operate in its current location and reports within the Animal Safety segment. In February 2015, the Company paid the former owners $474,000 for contingent consideration, based upon achievement of sales targets, and recorded an additional $84,000 charge to other expense. On October 1, 2014, the Company acquired all of the stock of BioLumix, Inc., a manufacturer and marketer of automated systems for the detection of microbial contaminants located in Ann Arbor, Michigan. Consideration for the purchase was $4,514,000 in cash. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $499,000, other receivable of $178,000, net inventory of $421,000 prepaid assets of $48,000, property and equipment of $159,000, current liabilities of $155,000, long-term liabilities of $780,000, intangible assets of $2,090,000 (with an estimated life of 5-15 years) and the remainder to goodwill (non-deductible for tax purposes). These values are Level 3 fair value measurements. This business has been relocated to Lansing, Michigan and integrated with the Company’s operations there, reporting within the Food Safety segment. On December 8, 2014, the Company acquired the food safety and veterinary genomic assets of its Chinese distributor Beijing Anapure BioScientific Co., Ltd. Consideration for the purchase was $2,040,000 in cash. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included inventory of $525,000, property and equipment of $64,000, intangible assets of $422,000 (with an estimated life of 5-15 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business has been integrated into the Company’s subsidiary in China and reports within the Food Safety segment. On June 1, 2015, the Company acquired the assets of Sterling Test House, a commercial food testing laboratory based in India. Consideration for the purchase was $1,118,000 in cash and approximately $150,000 of a contingent consideration liability, due in installments on the first two anniversary dates, based on an excess sales formula. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $43,000, inventory of $14,000, property and equipment of $141,000, contingent consideration of $97,000, intangible assets of $345,000 and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business continues to operate in its current location and reports within the Animal Safety segment. On August 26, 2015, the Company acquired all of the stock of Lab M Holdings, a developer, manufacturer and supplier of microbiological culture media and diagnostic systems located in the United Kingdom. Consideration for the purchase was $12,436,000 in cash. The preliminary purchase price allocation included cash of $285,000, accounts receivable of $975,000, inventory of $1,169,000, property and equipment of $3,337,000, other current assets of $596,000, current liabilities of $1,350,000, long-term deferred tax liability of $784,000, intangible assets of $3,918,000 (with an estimated life of 3-15 years) and the remainder to goodwill (non-deductible for tax purposes). These values are Level 3 fair value measurements. This business continues to operate in its current location and reports within the Food Safety segment. On December 22, 2015, the Company acquired the rodenticide assets of Virbac Corporation, the North American affiliate of the France-based Virbac group, a global animal health company. The acquired assets include a rodenticide active ingredient that complements Neogen’s existing active ingredients, and more than 40 regulatory approvals for a variety of formulations in the United States, Canada and Mexico. The acquired assets also include a large retail and OEM customer base. Consideration for the purchase was $3,525,000 in cash and up to $300,000 of contingent consideration. The preliminary purchase price allocation included inventory of $317,000, property and equipment of $60,000, intangible assets of $2,545,000 (with an estimated life of 5-15 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. The products will be manufactured at the Company’s production facility in Randolph, Wisconsin and will report through Animal Safety. On April 26, 2016, the Company acquired the stock of Deoxi Biotecnologia Ltda, an animal genomics laboratory located in Aracatuba, Brazil. Deoxi was a competitor of Neogen’s in the livestock genomics market and this acquisition is intended to help accelerate the growth of Neogen’s GeneSeek animal genomics services in Brazil. Consideration for the purchase was $1,560,000 in cash and up to $2,552,000 of contingent consideration, due at the end of the each of the first two years, based on an excess net sales formula. The preliminary purchase price allocation included accounts receivable of $150,000, inventory of $89,000, other current assets of $6,000, property and equipment of $229,000, current liabilities of $246,000, contingent consideration liabilities of $741,000, intangible assets of $852,000 (with an estimated life of 5-15 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. This business will continue to operate in its current location and reports within the Food Safety segment. On May 1, 2016, the Company acquired the stock of Preserve International and its sister company, Tetradyne LLC., manufacturers and marketers of cleaners, disinfectants and associated products to the swine, poultry, food processing and dairy markets. Preserve and Tetradyne have manufacturing locations in Memphis, Tennessee and Turlock, California. Consideration for the purchase was $24,086,000 in cash. The preliminary purchase price allocation included accounts receivable of $1,588,000, inventory of $1,964,000, other current assets of $338,000, land, property and equipment of $1,625,000, current liabilities of $756,000, long-term liabilities of $660,000, intangible assets of $10,590,000 (with an estimated life of 5-15 years) and the remainder to goodwill (partially deductible for tax purposes). These values are Level 3 fair value measurements. This business continues to operate in its current locations and reports within the Animal Safety segment.

Long-Term Debt

Long-Term Debt	12 Months Ended
	May 31, 2016
Long-Term Debt	4. Long-Term Debt The Company has a financing agreement with a bank providing for an unsecured revolving line of credit of up to $12,000,000, which expires on September 1, 2017. There were no advances against this line of credit during fiscal years 2016, 2015 and 2014, and no balance outstanding at May 31, 2016 and 2015. Interest is at LIBOR plus 100 basis points (rate under the terms of the agreement was 1.58% at May 31, 2016). Financial covenants include maintaining specified levels of tangible net worth, debt service coverage and funded debt to EBITDA, each of which the Company was in compliance with at May 31, 2016 and May 31, 2015.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	May 31, 2016
Equity Compensation Plans	5. Equity Compensation Plans Qualified and non-qualified options to purchase shares of common stock may be granted to directors, officers and employees of the Company under the terms of the Company’s stock option plans. These options are granted at an exercise price of not less than the fair market value of the stock on the date of grant. Remaining shares available for grant under stock option plans were 2,457,000, 306,000 and 805,000 at May 31, 2016, 2015 and 2014, respectively. Options vest ratably over three and five year periods and the contractual terms are generally five or ten years. (shares in thousands) Shares Weighted-Average Weighted-Average Outstanding at May 31, 2013 (749 exercisable) 2,092 19.21 6.00 Granted 512 36.44 9.87 Exercised (643 ) 13.69 4.28 Forfeited (92 ) 22.08 6.65 Outstanding at May 31, 2014 (577 exercisable) 1,869 25.69 7.62 Granted 536 39.79 11.91 Exercised (380 ) 16.69 5.17 Forfeited (37 ) 33.55 9.45 Outstanding at May 31, 2015 (639 exercisable) 1,988 31.04 9.20 Granted 549 46.98 13.11 Exercised (427 ) 23.47 7.15 Forfeited (29 ) 38.57 11.14 Outstanding at May 31, 2016 (656 exercisable) 2,081 36.71 10.63 The following is a summary of stock options outstanding at May 31, 2016: (options in thousands) Options Outstanding Options Exercisable Range of Exercise price Number Average Remaining (in years) Weighted-Average Number Weighted Average $ 6.01 - $28.26 277 1.8 $ 20.67 209 $ 19.88 28.27 - 32.37 321 2.1 28.67 173 28.67 32.38 - 38.03 408 2.6 36.07 156 36.07 38.04 - 43.75 532 4.1 39.88 118 40.10 43.76 - 47.12 543 4.9 46.99 0 — 2,081 3.4 36.71 656 29.69 The weighted average exercise price of shares that were exercisable at May 31, 2016 and 2015 was $29.69 and $24.50, respectively. Compensation expense related to share-based awards was $5,468,000, $4,450,000 and $3,686,000 in fiscal years 2016, 2015 and 2014, respectively. Remaining compensation cost to be expensed in future periods for non-vested options was $7,335,000 at May 31, 2016, with a weighted average expense recognition period of 2.3 years. The aggregate intrinsic value of options outstanding and options exercisable was $26,344,000 and $12,912,000, respectively, at May 31, 2016, $31,204,000 and $14,201,000 respectively, at May 31, 2015 and $22,751,000 and $10,984,000 respectively, at May 31, 2014. The aggregate intrinsic value of options exercised during the year was $12,980,000 in fiscal 2016, $10,690,000 in fiscal 2015 and $17,669,000 in fiscal 2014. Common stock totaling 27,440 of the 337,500 originally authorized shares are reserved for issuance under the terms of the 2002 Employee Stock Purchase Plan. An additional 375,000 shares are also reserved for issuance under the terms of the 2011 Employee Stock Purchase Plan. The plans give eligible employees the option to purchase common stock at a 5% discount to the lower of the market value of the stock at the beginning or end of each participation period. Total individual purchases in any year are limited to 10% of compensation. Shares purchased by employees were 18,277, 19,592 and 18,466 in fiscal years 2016, 2015 and 2014, respectively.

Income Taxes

Income Taxes	12 Months Ended
	May 31, 2016
Income Taxes	6. Income Taxes Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2016 2015 2014 U.S. $ 50,662 $ 45,156 $ 37,568 Foreign 4,851 6,920 5,463 $ 55,513 $ 52,076 $ 43,031 The provision for income taxes consisted of the following: Year ended May 31 (in thousands) 2016 2015 2014 Current: U.S. Taxes $ 14,630 $ 15,269 $ 14,442 Foreign 1,756 1,364 1,100 Deferred 2,589 1,867 (542 ) $ 18,975 $ 18,500 $ 15,000 The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows: Year ended May 31 (in thousands) 2016 2015 2014 Tax at U.S. statutory rates $ 19,429 $ 18,227 $ 15,061 Section 199 domestic production deduction (1,143 ) (1,067 ) (821 ) Foreign rate differential (699 ) (949 ) (726 ) Subpart F income 1,049 1,396 1,143 Tax credits and other 337 39 (170 ) Provisions for state income taxes, net of federal benefit 779 854 513 Amended U.S. Federal tax returns, FY12, FY13 & FY14 (777 ) 0 0 $ 18,975 $ 18,500 $ 15,000 Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax liabilities and assets are as follows: May 31 (in thousands) 2016 2015 Deferred income tax liabilities Indefinite and long-lived assets $ (19,296 ) $ (15,906 ) Prepaid expenses (824 ) (431 ) Brazil valuation allowance (542 ) (542 ) (20,662 ) (16,879 ) Deferred income tax assets Stock options 2,786 2,234 Inventories and accounts receivable 2,076 1,809 Tax loss carryforwards 813 542 Accrued expenses and other 229 574 5,904 5,159 Net deferred income tax liabilities $ (14,758 ) $ (11,720 ) The Company had no accrual for unrecognized tax benefits at both May 31, 2016 and 2015. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, such accruals will be reflected within income tax accounts. The Company is no longer subject to U.S. Federal income tax examinations by tax authorities for fiscal years before 2011.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	May 31, 2016
Commitments and Contingencies	7. Commitments and Contingencies The Company is involved in environmental remediation and monitoring activities at its Randolph, Wisconsin manufacturing facility and accrues for related costs when such costs are determined to be probable and estimable. The Company expenses annual costs of remediation which have ranged from $47,000 to $57,000 per year over the past five years. The Company’s estimated liability for these costs is $916,000 at May 31, 2016 and 2015, measured on an undiscounted basis over an estimated period of 15 years; $60,000 of the liability is recorded within current liabilities and the remainder is recorded within other long term liabilities in the consolidated balance sheet. The Company has agreements with unrelated third parties that provide for the payment of license fees and royalties on the sale of certain products. Royalty expense under the terms of these agreements was $1,969,000, $2,189,000 and $2,278,000 for fiscal years 2016, 2015 and 2014, respectively. Some of these agreements provide for guaranteed minimum royalty payments to be paid each fiscal year by the Company for certain technologies. Future minimum royalty payments are as follows: 2017—$572,000, 2018—$597,000, 2019—$597,000, 2020—$593,000 and 2021—$586,000. The Company leases office and manufacturing facilities under non-cancelable operating leases. Rent expense for fiscal years 2016, 2015 and 2014 was $662,000, $736,000 and $856,000, respectively. Future fiscal year minimum rental payments for these leases over their remaining terms are as follows: 2017—$541,000, 2018—$290,000, 2019—$195,000, 2020 – $96,000 and 2021 later—$22,000. The Company is subject to certain legal and other proceedings in the normal course of business that, in the opinion of management, should not have a material effect on its future results of operations or financial position.

Defined Contribution Benefit Pl

Defined Contribution Benefit Plan	12 Months Ended
	May 31, 2016
Defined Contribution Benefit Plan	8. Defined Contribution Benefit Plan The Company maintains a defined contribution 401(k) benefit plan covering substantially all employees. Employees are permitted to defer compensation up to IRS limits, with the Company matching 100% of the first 3% of deferred compensation and 50% of the next 2% deferred. The Company’s expense under this plan was $1,188,000, $1,051,000 and $954,000 in fiscal years 2016, 2015 and 2014, respectively.

Segment Information

Segment Information	12 Months Ended
	May 31, 2016
Segment Information	9. Segment Information The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants, and insecticides to assist in control of rodents, insects and disease in and around agricultural, food production and other facilities. These segments are managed separately because they represent strategic business units that offer different products and require different marketing strategies. The Company evaluates performance based on total sales and operating income of the respective segments. The accounting policies of each of the segments are the same as those described in Note 1. Segment information is as follows: (in thousands) Food Safety Animal Safety Corporate and Total Fiscal 2016 Product revenues to external customers $ 133,685 $ 139,885 $ 0 $ 273,570 Service revenues to external customers 12,156 35,549 0 47,705 Total revenues to external customers 145,841 175,434 0 321,275 Operating income (loss) 29,185 30,777 (3,576 ) 56,386 Depreciation and amortization 5,745 6,795 0 12,540 Total assets 142,078 216,599 93,038 451,715 Expenditures for long-lived assets 9,192 5,030 0 14,222 Fiscal 2015 Product revenues to external customers $ 119,990 $ 123,919 $ 0 $ 243,909 Service revenues to external customers 11,489 27,676 0 39,165 Total revenues to external customers 131,479 151,595 0 283,074 Operating income (loss) 30,265 26,034 (3,181 ) 53,118 Depreciation and amortization 4,620 6,029 0 10,649 Total assets 110,655 179,082 102,444 392,181 Expenditures for long-lived assets 4,216 5,403 0 9,619 Fiscal 2014 Product revenues to external customers $ 107,959 $ 108,189 $ 0 $ 216,148 Service revenues to external customers 8,331 22,926 0 31,257 Total revenues to external customers 116,290 131,115 0 247,405 Operating income (loss) 28,009 18,571 (3,189 ) 43,391 Depreciation and amortization 4,181 4,999 0 9,180 Total assets 105,607 173,643 66,051 345,301 Expenditures for long-lived assets 5,999 5,544 0 11,543 (1) Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and noncontrolling interests. Revenues to customers located outside the United States amounted to $107,680,000 or 33.5% of consolidated revenues in fiscal 2016, $103,867,000 or 36.7% in fiscal 2015 and $96,111,000 or 38.8% in fiscal 2014 and were derived primarily in various countries throughout Europe, Canada, South and Central America and Asia. No customer represented revenues in excess of 10% of consolidated net sales in any of the three years. The United States based operations represent 89% of the Company’s long-lived assets as of May 31, 2016 and 95% as May 31, 2015.

Stock Repurchase

Stock Repurchase	12 Months Ended
	May 31, 2016
Stock Repurchase	10. Stock Repurchase In December 2008, the Company’s Board of Directors authorized a program to purchase, subject to market conditions, up to 1,125,000 shares of the Company’s common stock. As of May 31, 2016, 112,026 cumulative shares have been purchased in negotiated and open market transactions for a total price, including commissions, of approximately $923,000. There were no purchases in fiscal years 2016 or 2015. Shares purchased under the program were retired.

Summary of Quarterly Data (Unau

Summary of Quarterly Data (Unaudited)	12 Months Ended
	May 31, 2016
Summary of Quarterly Data (Unaudited)	11. Summary of Quarterly Data (Unaudited) Quarter Ended (in thousands, except per share) August November February May Total revenues $ 74,860 $ 79,610 $ 76,725 $ 90,080 Gross margin 37,792 38,224 35,196 41,852 Net income 9,289 9,142 8,289 9,818 Net income attributable to Neogen 9,323 9,073 8,311 9,857 Basic net income per share 0.25 0.24 0.22 0.27 Diluted net income per share 0.25 0.24 0.22 0.26 Quarter Ended (in thousands, except per share) August November February May Total revenues 67,599 68,455 68,409 $ 78,611 Gross margin 34,076 34,208 33,703 37,698 Net income 8,909 7,826 7,409 9,432 Net income attributable to Neogen 8,883 7,806 7,454 9,384 Basic net income per share 0.24 0.21 0.20 0.26 Diluted net income per share 0.24 0.21 0.20 0.25 Quarterly net income per share is based on weighted-average shares outstanding and potentially dilutive stock options for the specific period, and as a result, will not necessarily aggregate to total net income per share as computed for the year as disclosed in the consolidated statements of income.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	May 31, 2016
Nature of Operations	Nature of Operations Neogen Corporation develops, manufactures and markets a diverse line of products and services dedicated to food and animal safety.
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the accounts of Neogen Corporation and its subsidiaries (collectively, the Company), all of which are wholly owned, with the exception of Neogen Latinoamerica and Neogen do Brasil, which are each 90% owned as of May 31, 2016 and 2015, respectively. The Company made an additional capital contribution on December 31, 2013 which increased its ownership interest in Neogen Latinoamerica from 60% to 90%. Non-controlling interest represents the non-controlling owner’s proportionate share in the equity of these two subsidiaries; the non-controlling owner’s proportionate share in the income or losses of the subsidiaries is subtracted from, or added to, Company net income to calculate the net income attributable to Neogen Corporation. All intercompany accounts and transactions have been eliminated in consolidation. Share and per share amounts reflect the October 30, 2013 3-for-2 stock split as if it took place at the beginning of the period presented.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates. Significant estimates impacting the accompanying consolidated financial statements include the allowance for uncollectible accounts receivable, inventory valuation and intangible assets.
Comprehensive Income	Comprehensive Income Comprehensive income represents net income and any revenues, expenses, gains and losses that, under U.S. generally accepted accounting principles, are excluded from net income and recognized directly as a component of equity. Accumulated other comprehensive income (loss) consists solely of foreign currency translation adjustments.
Accounts Receivable and Concentrations of Credit Risk	Accounts Receivable and Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. Management attempts to minimize credit risk by reviewing customers’ credit history before extending credit and by monitoring credit exposure on a regular basis. An allowance for doubtful accounts on accounts receivable is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, that amount is charged against the allowance for doubtful accounts. No customer accounted for more than 10% of accounts receivable at May 31, 2016 or 2015, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in Thousands) 2016 2015 2014 Beginning Balance $ 1,300 $ 1,200 $ 900 Provision 305 337 367 Recoveries 90 92 8 Write-offs (195 ) (329 ) (75 ) Ending Balance $ 1,500 $ 1,300 $ 1,200
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments other than cash equivalents and marketable securities, which include accounts receivable and accounts payable, approximate fair value based on either their short maturity or current terms for similar instruments.
Fair Value Measurements	Fair Value Measurements Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents were $55,257,000 and $66,061,000 at May 31, 2016 and 2015, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and meet the Level 1 criteria. Cash held by foreign subsidiaries was $5,320,000 and $13,277,000 at May 31, 2016 and 2015, respectively.
Marketable Securities	Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2016 consisting of short-term domestic certificates of deposit of $25,873,000 and commercial paper rated at least A-2/P-2 with maturities between 91 days and one year of $26,666,000. Outstanding marketable securities at May 31, 2016 were $52,539,000; there were $48,103,000 in marketable securities outstanding at May 31, 2015. These securities are classified as available for sale. The primary objective of the Company’s short-term investment activity is to preserve capital for the purpose of funding operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities are recorded at fair value (that approximates cost) based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within Other Income on the income statement.
Inventories	Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out method, or market. The components of inventories were as follows: May 31 (in thousands) 2016 2015 Raw materials $ 29,501 $ 21,605 Work-in-process 4,498 3,972 Finished and purchased finished goods 30,372 26,024 $ 64,371 $ 51,601 The Company’s inventories are analyzed for slow moving, expired and obsolete items no less frequently than quarterly and the valuation allowance is adjusted as required. The valuation allowance for inventory was $1,550,000 at both May 31, 2016 and 2015, respectively.
Property and Equipment	Property and Equipment Property and equipment is stated at cost. Expenditures for major improvements are capitalized while repairs and maintenance are charged to expense. Depreciation is provided on the straight-line method over the estimated useful lives of the respective assets, which are generally seven to 39 years for buildings and improvements and three to ten years for furniture, fixtures, machinery and equipment. Depreciation expense was $7,452,000, $6,318,000 and $5,383,000 in fiscal years 2016, 2015 and 2014, respectively.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete and patents. Amortizable intangible assets are amortized on either an accelerated or a straight-line basis over 5 to 25 years. The Company reviews the carrying amounts of goodwill and other non-amortizable intangible assets annually, or when indications of impairment exist, to determine if such assets may be impaired. If the Company’s qualitative assessment concludes that it is more likely than not that an impairment exists, or the Company skips the qualitative assessment, then the Company performs a quantitative assessment. If the carrying amounts of these assets are deemed to be less than fair value based upon a discounted cash flow analysis and comparison to comparable earnings multiples of peer companies, such assets are reduced to their estimated fair value and a charge is made to operations. The remaining weighted-average amortization period for customer-based intangibles and other intangibles are both 12 years, respectively, at May 31, 2016 and May 31, 2015.
Long-lived Assets	Long-lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset are less than the carrying value of the asset. In such an event, fair value is determined using discounted cash flows and if lower than the carrying value, impairment is recognized through a charge to operations.
Reclassifications	Reclassifications Certain amounts in the fiscal 2015 and 2014 financial statements have been reclassified to conform to the fiscal 2016 presentation.
Stock Options	Stock Options At May 31, 2016, the Company had stock option plans which are described more fully in Note 5. The weighted-average fair value per share of stock options granted during fiscal years 2016, 2015 and 2014, estimated on the date of grant using the Black-Scholes option pricing model, was $13.11, $11.91 and $9.87, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2016 2015 2014 Risk-free interest rate 1.2% 1.2% 0.8% Expected dividend yield 0% 0% 0% Expected stock price volatility 33.3% 36.2% 33.1% Expected option life 4.0 years 4.0 years 4.0 years The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on historical volatility of the Company’s stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. The Company recognizes the fair value of stock options using the accelerated method over their requisite service periods which the Company has determined to be the vesting periods.
Revenue Recognition	Revenue Recognition Revenue from products and services is recognized when the product has been shipped or the service performed, the sales price is fixed and determinable, and collection of any receivable is probable. To the extent that customer payment has been received before all recognition criteria are met, these revenues are initially deferred and later recognized in the period that all recognition criteria have been met. Customer credits for sales returns, pricing and other disputes, and other related matters (including volume rebates offered to certain distributors as marketing support) represent approximately 3% of reported net revenue in fiscal years 2016, 2015 and 2014.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenues, while the related expenses incurred by the Company are recorded in sales and marketing expense; these expenses totaled $9,734,000, $8,648,000 and $7,497,000 in fiscal years 2016, 2015 and 2014, respectively.
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit carry forwards and are measured using the enacted tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax expense represents the change in net deferred income tax assets and liabilities during the year. The Company’s foreign subsidiaries are comprised of Neogen Europe (wholly-owned subsidiary), Lab M Holdings (wholly-owned subsidiary), Neogen Latinoamerica (90% owned subsidiary), Neogen do Brasil (90% owned subsidiary), Neogen Bio-Scientific Technology (Shanghai) Co (wholly-owned subsidiary), Neogen Food and Animal Security (India) (wholly-owned subsidiary), Neogen Canada (wholly-owned subsidiary) and Deoxi Biotecnologia Ltda (wholly-owned subsidiary). Based on historical experience, as well as the Company’s future plans, earnings from these subsidiaries are expected to be re-invested indefinitely for future expansion and working capital needs. Furthermore, the Company’s domestic operations have historically produced sufficient operating cash flow to mitigate the need to remit foreign earnings. On an annual basis, the Company evaluates the current business environment and whether any new events or other external changes might require a re-evaluation of the decision to indefinitely re-invest foreign earnings. At May 31, 2016, unremitted earnings of the foreign subsidiaries were $27,880,000.
Research and Development Costs	Research and Development Costs Research and development costs, which consist primarily of compensation costs, administrative expenses and new product development, among other items, are expensed as incurred.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred and totaled $1,463,000, $1,371,000 and $1,344,000 in fiscal years 2016, 2015 and 2014, respectively.
Net Income Attributable to Neogen per Share	Net Income Attributable to Neogen per Share Basic net income per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is based on the weighted average number of common shares and dilutive potential common shares outstanding. The Company’s dilutive potential common shares outstanding during the years result entirely from dilutive stock options. The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2016 2015 2014 Numerator for basic and diluted net income per share - Net income attributable to Neogen $ 36,564 $ 33,526 $ 28,158 Denominator for basic net income per share - Weighted average shares 37,402 36,953 36,511 Effect of dilutive stock options 473 491 756 Denominator for diluted net income per share 37,875 37,444 37,267 Net income attributable to Neogen per share Basic $ 0.98 $ 0.91 $ 0.77 Diluted $ 0.97 $ 0.90 $ 0.76 At both May 31, 2016 and 2015, the market price of the common stock exceeded the option exercise price for all outstanding options; therefore, no shares were excluded from the diluted net income per share computation. At May 31, 2014, 48,716 shares were excluded from the computation, as the option exercise prices exceeded the average market price of the common shares. On October 30, 2013, the Company paid a 3-for-2 stock split effected in the form of a dividend of its common stock. All share and per share amounts, with the exception of par value per share, have been adjusted to reflect the stock split as if it had taken place at the beginning of the period presented. The common stock and additional paid-in capital accounts at May 31, 2013 reflect the retroactive capitalization of the 3-for-2 stock split.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued a new standard on revenue recognition. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and jurisdictions and also requires enhanced disclosures. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and the change will be retroactive. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17—Balance Sheet Classification of Deferred Taxes. As part of the FASB’s accounting simplification initiative, ASU 2015-17 removes the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Instead, the update requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. ASU 2015-17 is effective for entities for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. The Company is currently evaluating the effects of ASU 2015-17 on our consolidated balance sheet and statements of income. In September 2015, the FASB issued ASU 2015-16—Simplifying the Accounting for Measurement -Period Adjustments. Changes to the accounting for measurement-period adjustments relate to business combinations. Currently, an acquiring entity is required to retrospectively adjust the balance sheet amounts of the acquiree recognized at the acquisition date with a corresponding adjustment to goodwill as a result of changes made to the balance sheet amounts of the acquiree. The measurement period is the period after the acquisition date during which the acquirer may adjust the balance sheet amounts recognized for a business combination (generally up to one year from the date of acquisition). The changes eliminate the requirement to make such retrospective adjustments, and, instead require the acquiring entity to record these adjustments in the reporting period they are determined. The new standard is effective for both public and private companies for periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting this guidance. In July 2015, the FASB issued ASU No. 2015-11—Inventory: Simplifying the Measurement of Inventory. The update requires inventory not measured using either the last in, first out (LIFO) or the retail inventory method to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The update is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted for financial statements that have not been previously issued. The Company is currently evaluating the impact of ASU 2015-11 on our consolidated financial condition and results of operations. In February 2016, the FASB issued ASU No. 2016-02—Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Modified retrospective application is permitted with certain practical expedients. Early adoption is permitted. The Company is currently evaluating the impact of ASU No. 2016-02 on our consolidated financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting to provide guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance also allows for the employer to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of ASU No. 2016-09 on our consolidated financial condition and results of operations.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	May 31, 2016
Allowance for Doubtful Accounts	The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in Thousands) 2016 2015 2014 Beginning Balance $ 1,300 $ 1,200 $ 900 Provision 305 337 367 Recoveries 90 92 8 Write-offs (195 ) (329 ) (75 ) Ending Balance $ 1,500 $ 1,300 $ 1,200
Inventories	The components of inventories were as follows: May 31 (in thousands) 2016 2015 Raw materials $ 29,501 $ 21,605 Work-in-process 4,498 3,972 Finished and purchased finished goods 30,372 26,024 $ 64,371 $ 51,601
Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions	The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2016 2015 2014 Risk-free interest rate 1.2% 1.2% 0.8% Expected dividend yield 0% 0% 0% Expected stock price volatility 33.3% 36.2% 33.1% Expected option life 4.0 years 4.0 years 4.0 years
Calculation of Net Income Per Share	The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2016 2015 2014 Numerator for basic and diluted net income per share - Net income attributable to Neogen $ 36,564 $ 33,526 $ 28,158 Denominator for basic net income per share - Weighted average shares 37,402 36,953 36,511 Effect of dilutive stock options 473 491 756 Denominator for diluted net income per share 37,875 37,444 37,267 Net income attributable to Neogen per share Basic $ 0.98 $ 0.91 $ 0.77 Diluted $ 0.97 $ 0.90 $ 0.76

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	May 31, 2016
Goodwill by Business Segment	The following table summarizes goodwill by reportable segment: (in thousands) Food Safety Animal Safety Total Balance, May 31, 2014 $ 16,696 $ 51,494 $ 68,190 Goodwill acquired and/or adjusted 2,110 (181 ) 1,929 Balance, May 31, 2015 $ 18,806 $ 51,313 $ 70,119 Goodwill acquired and/or adjusted 7,322 11,065 18,387 Balance, May 31, 2016 $ 26,128 $ 62,378 $ 88,506
Amortizable of Intangible Assets	Amortizable intangible assets consisted of the following and are included in customer-based intangible and other non-current assets within the consolidated balance sheets: (in thousands) Gross Less Net Licenses $ 5,189 $ 1,782 $ 3,407 Covenants not to compete 491 193 298 Patents 8,040 3,631 4,409 Customer-based intangibles 48,186 17,277 30,909 Other product and service-related intangibles 12,256 1,924 10,332 Balance, May 31, 2016 $ 74,162 $ 24,807 $ 49,355 Licenses $ 4,919 $ 1,630 $ 3,289 Covenants not to compete 428 124 304 Patents 7,701 3,087 4,614 Customer-based intangibles 38,616 14,446 24,170 Other product and service-related intangibles 6,233 1,236 4,997 Balance, May 31, 2015 $ 57,897 $ 20,523 $ 37,374

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	May 31, 2016
Stock Option Activity	Qualified and non-qualified options to purchase shares of common stock may be granted to directors, officers and employees of the Company under the terms of the Company’s stock option plans. These options are granted at an exercise price of not less than the fair market value of the stock on the date of grant. Remaining shares available for grant under stock option plans were 2,457,000, 306,000 and 805,000 at May 31, 2016, 2015 and 2014, respectively. Options vest ratably over three and five year periods and the contractual terms are generally five or ten years. (shares in thousands) Shares Weighted-Average Weighted-Average Outstanding at May 31, 2013 (749 exercisable) 2,092 19.21 6.00 Granted 512 36.44 9.87 Exercised (643 ) 13.69 4.28 Forfeited (92 ) 22.08 6.65 Outstanding at May 31, 2014 (577 exercisable) 1,869 25.69 7.62 Granted 536 39.79 11.91 Exercised (380 ) 16.69 5.17 Forfeited (37 ) 33.55 9.45 Outstanding at May 31, 2015 (639 exercisable) 1,988 31.04 9.20 Granted 549 46.98 13.11 Exercised (427 ) 23.47 7.15 Forfeited (29 ) 38.57 11.14 Outstanding at May 31, 2016 (656 exercisable) 2,081 36.71 10.63
Summary of Stock Options Outstanding	The following is a summary of stock options outstanding at May 31, 2016: (options in thousands) Options Outstanding Options Exercisable Range of Exercise price Number Average Remaining (in years) Weighted-Average Number Weighted Average $ 6.01 - $28.26 277 1.8 $ 20.67 209 $ 19.88 28.27 - 32.37 321 2.1 28.67 173 28.67 32.38 - 38.03 408 2.6 36.07 156 36.07 38.04 - 43.75 532 4.1 39.88 118 40.10 43.76 - 47.12 543 4.9 46.99 0 — 2,081 3.4 36.71 656 29.69

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	May 31, 2016
Income Before Income Taxes	Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2016 2015 2014 U.S. $ 50,662 $ 45,156 $ 37,568 Foreign 4,851 6,920 5,463 $ 55,513 $ 52,076 $ 43,031
Provision for Income Taxes	The provision for income taxes consisted of the following: Year ended May 31 (in thousands) 2016 2015 2014 Current: U.S. Taxes $ 14,630 $ 15,269 $ 14,442 Foreign 1,756 1,364 1,100 Deferred 2,589 1,867 (542 ) $ 18,975 $ 18,500 $ 15,000
Reconciliation of Income Taxes Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense	The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows: Year ended May 31 (in thousands) 2016 2015 2014 Tax at U.S. statutory rates $ 19,429 $ 18,227 $ 15,061 Section 199 domestic production deduction (1,143 ) (1,067 ) (821 ) Foreign rate differential (699 ) (949 ) (726 ) Subpart F income 1,049 1,396 1,143 Tax credits and other 337 39 (170 ) Provisions for state income taxes, net of federal benefit 779 854 513 Amended U.S. Federal tax returns, FY12, FY13 & FY14 (777 ) 0 0 $ 18,975 $ 18,500 $ 15,000
Significant Components of Deferred Income Tax Liabilities and Assets	Significant components of the Company’s deferred income tax liabilities and assets are as follows: May 31 (in thousands) 2016 2015 Deferred income tax liabilities Indefinite and long-lived assets $ (19,296 ) $ (15,906 ) Prepaid expenses (824 ) (431 ) Brazil valuation allowance (542 ) (542 ) (20,662 ) (16,879 ) Deferred income tax assets Stock options 2,786 2,234 Inventories and accounts receivable 2,076 1,809 Tax loss carryforwards 813 542 Accrued expenses and other 229 574 5,904 5,159 Net deferred income tax liabilities $ (14,758 ) $ (11,720 )

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	May 31, 2016
Segment Information	Segment information is as follows: (in thousands) Food Safety Animal Safety Corporate and Total Fiscal 2016 Product revenues to external customers $ 133,685 $ 139,885 $ 0 $ 273,570 Service revenues to external customers 12,156 35,549 0 47,705 Total revenues to external customers 145,841 175,434 0 321,275 Operating income (loss) 29,185 30,777 (3,576 ) 56,386 Depreciation and amortization 5,745 6,795 0 12,540 Total assets 142,078 216,599 93,038 451,715 Expenditures for long-lived assets 9,192 5,030 0 14,222 Fiscal 2015 Product revenues to external customers $ 119,990 $ 123,919 $ 0 $ 243,909 Service revenues to external customers 11,489 27,676 0 39,165 Total revenues to external customers 131,479 151,595 0 283,074 Operating income (loss) 30,265 26,034 (3,181 ) 53,118 Depreciation and amortization 4,620 6,029 0 10,649 Total assets 110,655 179,082 102,444 392,181 Expenditures for long-lived assets 4,216 5,403 0 9,619 Fiscal 2014 Product revenues to external customers $ 107,959 $ 108,189 $ 0 $ 216,148 Service revenues to external customers 8,331 22,926 0 31,257 Total revenues to external customers 116,290 131,115 0 247,405 Operating income (loss) 28,009 18,571 (3,189 ) 43,391 Depreciation and amortization 4,181 4,999 0 9,180 Total assets 105,607 173,643 66,051 345,301 Expenditures for long-lived assets 5,999 5,544 0 11,543 (1) Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and noncontrolling interests.

Summary of Quarterly Data (Un26

Summary of Quarterly Data (Unaudited) (Tables)	12 Months Ended
	May 31, 2016
Summary of Quarterly Data	Quarter Ended (in thousands, except per share) August November February May Total revenues $ 74,860 $ 79,610 $ 76,725 $ 90,080 Gross margin 37,792 38,224 35,196 41,852 Net income 9,289 9,142 8,289 9,818 Net income attributable to Neogen 9,323 9,073 8,311 9,857 Basic net income per share 0.25 0.24 0.22 0.27 Diluted net income per share 0.25 0.24 0.22 0.26 Quarter Ended (in thousands, except per share) August November February May Total revenues 67,599 68,455 68,409 $ 78,611 Gross margin 34,076 34,208 33,703 37,698 Net income 8,909 7,826 7,409 9,432 Net income attributable to Neogen 8,883 7,806 7,454 9,384 Basic net income per share 0.24 0.21 0.20 0.26 Diluted net income per share 0.24 0.21 0.20 0.25

Summary of Significant Accoun27

Summary of Significant Accounting Policies - Additional Information (Detail)	Dec. 31, 2013	Oct. 30, 2013	May 31, 2016USD ($)$ / sharesshares	May 31, 2015USD ($)$ / sharesshares	May 31, 2014USD ($)$ / sharesshares	May 31, 2013USD ($)
Significant Accounting Policies [Line Items]
Stock Split ratio		1.5
Cash and cash equivalents			$ 55,257,000	$ 66,061,000	$ 40,675,000	$ 50,032,000
Cash held at foreign subsidiaries			5,320,000	13,277,000
Short-term domestic certificates of deposit			25,873,000
Commercial Paper			26,666,000
Marketable securities			52,539,000	48,103,000
Valuation allowance for inventory			1,550,000	1,550,000
Depreciation expense			$ 7,452,000	$ 6,318,000	$ 5,383,000
Weighted-average fair value per share of stock options granted | $ / shares			$ 13.11	$ 11.91	$ 9.87
Percentage of customer credits for sales returns, pricing and other disputes, and other related matters against net revenue			3.00%	3.00%	3.00%
Shipping and handling costs			$ 9,734,000	$ 8,648,000	$ 7,497,000
Unremitted earnings of foreign subsidiaries			27,880,000
Advertising costs			$ 1,463,000	$ 1,371,000	$ 1,344,000
Shares excluded from computations of diluted net income per share | shares			0	0	48,716
Minimum
Significant Accounting Policies [Line Items]
Marketable securities, maturity period			91 days
Finite lived intangible assets, useful life			5 years
Maximum
Significant Accounting Policies [Line Items]
Marketable securities, maturity period			1 year
Finite lived intangible assets, useful life			25 years
Buildings And Improvements | Minimum
Significant Accounting Policies [Line Items]
Property, plant and equipment estimated useful life			7 years	7 years	7 years
Buildings And Improvements | Maximum
Significant Accounting Policies [Line Items]
Property, plant and equipment estimated useful life			39 years	39 years	39 years
Furniture, Machinery and Equipment | Minimum
Significant Accounting Policies [Line Items]
Property, plant and equipment estimated useful life			3 years	3 years	3 years
Furniture, Machinery and Equipment | Maximum
Significant Accounting Policies [Line Items]
Property, plant and equipment estimated useful life			10 years	10 years	10 years
Customer Relationships
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life			12 years	12 years
Other Intangible Assets
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life			12 years	12 years
Neogen Latin America
Significant Accounting Policies [Line Items]
Percentage of ownership in subsidiaries			90.00%	90.00%
Percentage of ownership in subsidiaries before capital contribution	60.00%
Percentage of ownership in subsidiaries after capital contribution	90.00%
Neogen Do Brazil
Significant Accounting Policies [Line Items]
Percentage of ownership in subsidiaries			90.00%	90.00%
Customer one
Significant Accounting Policies [Line Items]
Account receivable percentage from major customer			10.00%	10.00%

Activity in Allowance for Doubt

Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 1,300	$ 1,200	$ 900
Provision	305	337	367
Recoveries	90	92	8
Write-offs	(195)	(329)	(75)
Ending Balance	$ 1,500	$ 1,300	$ 1,200

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Inventory [Line Items]
Raw materials	$ 29,501	$ 21,605
Work-in-process	4,498	3,972
Finished and purchased finished goods	30,372	26,024
Inventories	$ 64,371	$ 51,601

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate	1.20%	1.20%	0.80%
Expected dividend yield	0.00%	0.00%	0.00%
Expected stock price volatility	33.30%	36.20%	33.10%
Expected option life (in years)	4 years	4 years	4 years

Calculation of Net Income Per S

Calculation of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2015	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2016	May 31, 2015	May 31, 2014
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net income attributable to Neogen	$ 9,818	$ 8,289	$ 9,142	$ 9,289	$ 9,432	$ 7,409	$ 7,826	$ 8,909	$ 36,564	$ 33,526	$ 28,158
Denominator for basic net income per share - Weighted average shares									37,402	36,953	36,511
Effect of dilutive stock options									473	491	756
Denominator for diluted net income per share									37,875	37,444	37,267
Net Income Attributable to Neogen Per Share
Basic	$ 0.27	$ 0.22	$ 0.24	$ 0.25	$ 0.26	$ 0.20	$ 0.21	$ 0.24	$ 0.98	$ 0.91	$ 0.77
Diluted	$ 0.26	$ 0.22	$ 0.24	$ 0.25	$ 0.25	$ 0.20	$ 0.21	$ 0.24	$ 0.97	$ 0.90	$ 0.76

Goodwill By Business Segment (D

Goodwill By Business Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015
Goodwill [Line Items]
Beginning Balance	$ 70,119	$ 68,190
Goodwill acquired and/or adjusted	18,387	1,929
Ending Balance	88,506	70,119
Food Safety
Goodwill [Line Items]
Beginning Balance	18,806	16,696
Goodwill acquired and/or adjusted	7,322	2,110
Ending Balance	26,128	18,806
Animal Safety
Goodwill [Line Items]
Beginning Balance	51,313	51,494
Goodwill acquired and/or adjusted	11,065	(181)
Ending Balance	$ 62,378	$ 51,313

Goodwill and Other Intangible33

Goodwill and Other Intangible Asset Table - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Goodwill And Other Intangible Asset [Line Items]
Other non-amortizable intangible assets	$ 9,170,000	$ 9,020,000
Amortization expense for intangible assets	5,088,000	4,331,000	$ 3,797,000
Estimated amortization expense for period, 2017	5,759,000
Estimated amortization expense for period, 2018	5,405,000
Estimated amortization expense for period, 2019	5,012,000
Estimated amortization expense for period, 2020	4,706,000
Estimated amortization expense for period, 2021	$ 4,459,000
Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	5 years
Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	25 years
Licenses
Goodwill And Other Intangible Asset [Line Items]
Other non-amortizable intangible assets	$ 569,000	569,000
Licenses | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	5 years
Licenses | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	20 years
Trademarks
Goodwill And Other Intangible Asset [Line Items]
Other non-amortizable intangible assets	$ 7,377,000	7,227,000
Other Intangible Assets
Goodwill And Other Intangible Asset [Line Items]
Other non-amortizable intangible assets	$ 1,224,000	$ 1,224,000
Finite lived intangible assets, useful life	12 years	12 years
Noncompete Agreements | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	5 years
Noncompete Agreements | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	13 years
Patents | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	5 years
Patents | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	25 years
Customer-based intangibles | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	6 years
Customer-based intangibles | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	20 years
Other product and service-related intangibles | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	5 years
Other product and service-related intangibles | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	20 years

Amortizable of Intangible Asset

Amortizable of Intangible Assets (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 74,162	$ 57,897
Less Accumulated Amortization	24,807	20,523
Net Carrying Amount	49,355	37,374
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,189	4,919
Less Accumulated Amortization	1,782	1,630
Net Carrying Amount	3,407	3,289
Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	491	428
Less Accumulated Amortization	193	124
Net Carrying Amount	298	304
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,040	7,701
Less Accumulated Amortization	3,631	3,087
Net Carrying Amount	4,409	4,614
Customer-based intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	48,186	38,616
Less Accumulated Amortization	17,277	14,446
Net Carrying Amount	30,909	24,170
Other product and service-related intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,256	6,233
Less Accumulated Amortization	1,924	1,236
Net Carrying Amount	$ 10,332	$ 4,997

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - USD ($)

May 01, 2016

Apr. 26, 2016

Dec. 22, 2015

Aug. 26, 2015

Jun. 01, 2015

Dec. 08, 2014

Oct. 01, 2014

Jan. 02, 2014

Nov. 01, 2013

Jul. 01, 2013

Feb. 28, 2015

Oct. 31, 2014

Aug. 31, 2014

May 31, 2016

May 31, 2015

May 31, 2014

Business Acquisition [Line Items]

Reversed the remaining contingent consideration accrual to other income

$ 0

$ (297,000)

$ 38,000

Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

25 years

Beijing Anapure BioScientific Co., Ltd.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 2,040,000

Purchase price allocation for inventory

525,000

Purchase price allocation for land, property and equipment

64,000

Purchase price allocation for intangible assets

$ 422,000

Beijing Anapure BioScientific Co., Ltd. | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Beijing Anapure BioScientific Co., Ltd. | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Sterling Test House

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 1,118,000

Contingent consideration potential payment

150,000

Purchase price allocation for accounts receivable

43,000

Purchase price allocation for inventory

14,000

Purchase price allocation for land, property and equipment

141,000

Allocation of purchase price for contingent consideration potential payment

97,000

Purchase price allocation for intangible assets

$ 345,000

Lab M Holdings

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 12,436,000

Purchase price allocation for accounts receivable

975,000

Purchase price allocation for inventory

1,169,000

Purchase price allocation for land, property and equipment

3,337,000

Purchase price allocation for current liabilities

1,350,000

Purchase price allocation for intangible assets

3,918,000

Purchase price allocation for cash

285,000

Purchase price allocation for other current assets

596,000

Purchase price allocation for deferred tax liability

$ 784,000

Lab M Holdings | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

3 years

Lab M Holdings | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

SyrVet, Inc.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 10,012,000

Contingent consideration potential payment

1,500,000

Purchase price allocation for accounts receivable

747,000

Purchase price allocation for inventory

2,195,000

Purchase price allocation for land, property and equipment

556,000

Purchase price allocation for current liabilities

226,000

Allocation of purchase price for contingent consideration potential payment

930,000

Purchase price allocation for intangible assets

$ 4,810,000

Finite lived intangible assets, useful life

15 years

Cash paid for contingent consideration

$ 689,000

Reversed the remaining contingent consideration accrual to other income

$ 241,000

SyrVet, Inc. | Trademarks

Business Acquisition [Line Items]

Purchase price allocation for non-amortizable trademarks

$ 790,000

Prima Tech Incorporated

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 12,068,000

Contingent consideration potential payment

600,000

Purchase price allocation for accounts receivable

963,000

Purchase price allocation for inventory

2,796,000

Purchase price allocation for land, property and equipment

1,653,000

Purchase price allocation for current liabilities

1,840,000

Allocation of purchase price for contingent consideration potential payment

146,000

Purchase price allocation for intangible assets

4,400,000

Cash paid for contingent consideration

$ 600,000

Purchase price allocation for prepaid assets

8,000

Cash accrued for contingent consideration

$ 454,000

Prima Tech Incorporated | Trademarks

Business Acquisition [Line Items]

Purchase price allocation for non-amortizable trademarks

$ 1,500,000

Prima Tech Incorporated | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Prima Tech Incorporated | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Chem Tech Ltd

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 17,185,000

Contingent consideration potential payment

1,000,000

Purchase price allocation for accounts receivable

380,000

Purchase price allocation for inventory

4,184,000

Purchase price allocation for land, property and equipment

807,000

Purchase price allocation for current liabilities

184,000

Allocation of purchase price for contingent consideration potential payment

390,000

Purchase price allocation for intangible assets

8,327,000

Cash paid for contingent consideration

$ 474,000

Purchase price allocation for prepaid assets

$ 100,000

Cash accrued for contingent consideration

$ 84,000

Chem Tech Ltd | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Chem Tech Ltd | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

25 years

BioLumix, Inc.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 4,514,000

Purchase price allocation for accounts receivable

499,000

Purchase price allocation for inventory

421,000

Purchase price allocation for land, property and equipment

159,000

Purchase price allocation for current liabilities

155,000

Purchase price allocation for intangible assets

2,090,000

Purchase price allocation for prepaid assets

48,000

Purchase price allocation for other receivable

178,000

Purchase price allocation for long-term liabilities

$ 780,000

BioLumix, Inc. | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

BioLumix, Inc. | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Virbac Corporation

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 3,525,000

Contingent consideration potential payment

300,000

Purchase price allocation for inventory

317,000

Purchase price allocation for land, property and equipment

60,000

Purchase price allocation for intangible assets

$ 2,545,000

Virbac Corporation | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Virbac Corporation | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Deoxi Biotecnologia Ltd

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 1,560,000

Contingent consideration potential payment

2,552,000

Purchase price allocation for accounts receivable

150,000

Purchase price allocation for inventory

89,000

Purchase price allocation for land, property and equipment

229,000

Purchase price allocation for current liabilities

246,000

Allocation of purchase price for contingent consideration potential payment

741,000

Purchase price allocation for intangible assets

852,000

Purchase price allocation for other current assets

$ 6,000

Deoxi Biotecnologia Ltd | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Deoxi Biotecnologia Ltd | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Tetradyne LLC

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 24,086,000

Purchase price allocation for accounts receivable

1,588,000

Purchase price allocation for inventory

1,964,000

Purchase price allocation for land, property and equipment

1,625,000

Purchase price allocation for current liabilities

756,000

Purchase price allocation for intangible assets

10,590,000

Purchase price allocation for long-term liabilities

660,000

Purchase price allocation for other current assets

$ 338,000

Tetradyne LLC | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Tetradyne LLC | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Debt Instrument [Line Items]
Unsecured revolving line of credit, total amount available	$ 12,000,000
Unsecured revolving line of credit, maturity date	Sep. 1, 2017
Unsecured revolving line of credit, interest terms	LIBOR plus 100 basis points
Unsecured revolving line of credit, interest rate	1.58%
Unsecured revolving line of credit, balance outstanding	$ 0	$ 0
Unsecured revolving line of credit, advances	$ 0	$ 0	$ 0
Libor Plus | Unsecured Revolving Line of Credit
Debt Instrument [Line Items]
Unsecured revolving line of credit, spread	1.00%

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	2,457,000	306,000	805,000
Options Exercisable, Weighted Average Exercise Price	$ 29.69	$ 24.50
Compensation expense related to share based awards	$ 5,468,000	$ 4,450,000	$ 3,686,000
Remaining compensation cost to be expensed in future periods for non-vested options	$ 7,335,000
Weighted average expense recognition period	2 years 3 months 18 days
Aggregate intrinsic value of options outstanding	$ 26,344,000	31,204,000	22,751,000
Aggregate intrinsic value of options exercisable	12,912,000	14,201,000	10,984,000
Aggregate intrinsic value of options exercised	$ 12,980,000	$ 10,690,000	$ 17,669,000
Number of shares purchased by employees	18,277	19,592	18,466
Employee Stock Purchase Plan | 2011 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized	375,000
Annual maximum limit percentage of compensation to purchase shares	5.00%
Employee stock purchase plan stock price percentage	10.00%
Employee Stock Purchase Plan | 2002 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	27,440
Number of shares authorized for grant	337,500
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period	3 years
Stock option contractual terms	5 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period	5 years
Stock option contractual terms	10 years

Stock Option Activity (Detail)

Stock Option Activity (Detail) - $ / shares shares in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares Outstanding, Beginning Balance	1,988	1,869	2,092
Shares, Granted	549	536	512
Shares, Exercised	(427)	(380)	(643)
Shares, Forfeited	(29)	(37)	(92)
Shares Outstanding, Ending Balance	2,081	1,988	1,869
Weighted-Average Exercise Price, Beginning Balance	$ 31.04	$ 25.69	$ 19.21
Weighted-Average Exercise Price, Granted	46.98	39.79	36.44
Weighted-Average Exercise Price, Exercised	23.47	16.69	13.69
Weighted-Average Exercise Price, Forfeited	38.57	33.55	22.08
Weighted-Average Exercise Price, Ending Balance	36.71	31.04	25.69
Weighted-Average Grant Date Fair Value, Beginning Balance	9.20	7.62	6
Weighted-Average Grant Date Fair Value, Granted	13.11	11.91	9.87
Weighted-Average Grant Date Fair Value, Exercised	7.15	5.17	4.28
Weighted-Average Grant Date Fair Value, Forfeited	11.14	9.45	6.65
Weighted-Average Grant Date Fair Value, Ending Balance	$ 10.63	$ 9.20	$ 7.62

Stock Option Activity (Parenthe

Stock Option Activity (Parenthetical) (Detail) - shares shares in Thousands	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares Outstanding, Exercisable Beginning Balance	656	639	577	749

Summary of Stock Options Outsta

Summary of Stock Options Outstanding (Detail) - $ / shares shares in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number	2,081	1,988	1,869	2,092
Options Outstanding, Average Remaining Contractual Life	3 years 4 months 24 days
Options Outstanding, Weighted-Average Exercise Price	$ 36.71	$ 31.04	$ 25.69	$ 19.21
Options Exercisable, Number	656	639	577	749
Options Exercisable, Weighted Average Exercise Price	$ 29.69	$ 24.50
$ 6.01 - $28.26
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	6.01
Range of Exercise price, maximum	$ 28.26
Options Outstanding, Number	277
Options Outstanding, Average Remaining Contractual Life	1 year 9 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 20.67
Options Exercisable, Number	209
Options Exercisable, Weighted Average Exercise Price	$ 19.88
$ 28.27 - $ 32.37
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	28.27
Range of Exercise price, maximum	$ 32.37
Options Outstanding, Number	321
Options Outstanding, Average Remaining Contractual Life	2 years 1 month 6 days
Options Outstanding, Weighted-Average Exercise Price	$ 28.67
Options Exercisable, Number	173
Options Exercisable, Weighted Average Exercise Price	$ 28.67
$ 32.38 - $ 38.03
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	32.38
Range of Exercise price, maximum	$ 38.03
Options Outstanding, Number	408
Options Outstanding, Average Remaining Contractual Life	2 years 7 months 6 days
Options Outstanding, Weighted-Average Exercise Price	$ 36.07
Options Exercisable, Number	156
Options Exercisable, Weighted Average Exercise Price	$ 36.07
$ 38.04 -$ 43.75
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	38.04
Range of Exercise price, maximum	$ 43.75
Options Outstanding, Number	532
Options Outstanding, Average Remaining Contractual Life	4 years 1 month 6 days
Options Outstanding, Weighted-Average Exercise Price	$ 39.88
Options Exercisable, Number	118
Options Exercisable, Weighted Average Exercise Price	$ 40.10
$ 43.76 - $ 47.12
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	43.76
Range of Exercise price, maximum	$ 47.12
Options Outstanding, Number	543
Options Outstanding, Average Remaining Contractual Life	4 years 10 months 24 days
Options Outstanding, Weighted-Average Exercise Price	$ 46.99
Options Exercisable, Number	0

Income Before Income Taxes (Det

Income Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Income Before Income Taxes [Line Items]
Income Before Income Taxes	$ 55,513	$ 52,076	$ 43,031
U.S.
Income Before Income Taxes [Line Items]
Income Before Income Taxes	50,662	45,156	37,568
Foreign
Income Before Income Taxes [Line Items]
Income Before Income Taxes	$ 4,851	$ 6,920	$ 5,463

Provision for Income Taxes (Det

Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Current:
U.S. Taxes	$ 14,630	$ 15,269	$ 14,442
Foreign	1,756	1,364	1,100
Deferred	2,589	1,867	(542)
Provision for Income Taxes	$ 18,975	$ 18,500	$ 15,000

Reconciliation of Income Taxes

Reconciliation of Income Taxes Computed at the U.S. Federal Statutory Tax Rate to Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
Tax at U.S. statutory rates	$ 19,429	$ 18,227	$ 15,061
Section 199 domestic production deduction	(1,143)	(1,067)	(821)
Foreign rate differential	(699)	(949)	(726)
Subpart F income	1,049	1,396	1,143
Tax credits and other	337	39	(170)
Provisions for state income taxes, net of federal benefit	779	854	513
Amended U.S. Federal tax returns, FY12, FY13 & FY14	(777)	0	0
Provision for Income Taxes	$ 18,975	$ 18,500	$ 15,000

Significant Components of Defer

Significant Components of Deferred Income Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands	May 31, 2016	May 31, 2015
Deferred income tax liabilities
Indefinite and long-lived assets	$ (19,296)	$ (15,906)
Prepaid expenses	(824)	(431)
Brazil valuation allowance	(542)	(542)
Deferred Tax Liabilities, Gross	(20,662)	(16,879)
Deferred income tax assets
Stock options	2,786	2,234
Inventories and accounts receivable	2,076	1,809
Tax loss carryforwards	813	542
Accrued expenses and other	229	574
Deferred Tax Assets, Net of Valuation Allowance, Total	5,904	5,159
Net deferred income tax liabilities	$ (14,758)	$ (11,720)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense, period of remediation, years	5 years
Estimated liability costs of remediation	$ 916,000	$ 916,000
Estimated liability, measurement period, years	15 years
Estimated liability costs of remediation, current	$ 60,000	60,000
Royalty Expense	1,969,000	2,189,000	$ 2,278,000
Future minimum royalty payment for period, 2017	572,000
Future minimum royalty payment for period, 2018	597,000
Future minimum royalty payment for period, 2019	597,000
Future minimum royalty payment for period, 2020	593,000
Future minimum royalty payment for period, 2021	586,000
Office and Manufacturing facilities operating lease expense	662,000	$ 736,000	$ 856,000
Future minimum rental payments for 2017	541,000
Future minimum rental payments for 2018	290,000
Future minimum rental payments for 2019	195,000
Future minimum rental payments for 2020	96,000
Future minimum rental payments for 2021 and later	22,000
Minimum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	47,000
Maximum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	$ 57,000

Defined Contribution Benefit 46

Defined Contribution Benefit Plan - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2016	May 31, 2015	May 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined contribution 401(K) benefit expense	$ 1,188,000	$ 1,051,000	$ 954,000
First 3% employees deferred amount
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan employer matching contribution	100.00%
Next 2% employees deferred amount
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan employer matching contribution	50.00%

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended								12 Months Ended
	May 31, 2016USD ($)	Feb. 29, 2016USD ($)	Nov. 30, 2015USD ($)	Aug. 31, 2015USD ($)	May 31, 2015USD ($)	Feb. 28, 2015USD ($)	Nov. 30, 2014USD ($)	Aug. 31, 2014USD ($)	May 31, 2016USD ($)Segment	May 31, 2015USD ($)	May 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment									2
Net Sales	$ 90,080,000	$ 76,725,000	$ 79,610,000	$ 74,860,000	$ 78,611,000	$ 68,409,000	$ 68,455,000	$ 67,599,000	$ 321,275,000	$ 283,074,000	$ 247,405,000
Foreign Operations
Segment Reporting Information [Line Items]
Net Sales									$ 107,680,000	$ 103,867,000	$ 96,111,000
Net Sales, percentage									33.50%	36.70%	38.80%
United States
Segment Reporting Information [Line Items]
Long lived assets percentage	89.00%				95.00%				89.00%	95.00%

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2015	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2016	May 31, 2015	May 31, 2014
Segment Reporting Information [Line Items]
Product revenues to external customers										$ 273,570	$ 243,909	$ 216,148
Service revenues to external customers										47,705	39,165	31,257
Total revenues to external customers		$ 90,080	$ 76,725	$ 79,610	$ 74,860	$ 78,611	$ 68,409	$ 68,455	$ 67,599	321,275	283,074	247,405
Operating income (loss)										56,386	53,118	43,391
Depreciation and amortization										12,540	10,649	9,180
Total assets		451,715				392,181				451,715	392,181	345,301
Expenditures for long-lived assets										14,222	9,619	11,543
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers										133,685	119,990	107,959
Service revenues to external customers										12,156	11,489	8,331
Total revenues to external customers										145,841	131,479	116,290
Operating income (loss)										29,185	30,265	28,009
Depreciation and amortization										5,745	4,620	4,181
Total assets		142,078				110,655				142,078	110,655	105,607
Expenditures for long-lived assets										9,192	4,216	5,999
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers										139,885	123,919	108,189
Service revenues to external customers										35,549	27,676	22,926
Total revenues to external customers										175,434	151,595	131,115
Operating income (loss)										30,777	26,034	18,571
Depreciation and amortization										6,795	6,029	4,999
Total assets		216,599				179,082				216,599	179,082	173,643
Expenditures for long-lived assets										5,030	5,403	5,544
Corporate and Eliminations
Segment Reporting Information [Line Items]
Product revenues to external customers	[1]									0	0	0
Service revenues to external customers	[1]									0	0	0
Total revenues to external customers	[1]									0	0	0
Operating income (loss)	[1]									(3,576)	(3,181)	(3,189)
Depreciation and amortization	[1]									0	0	0
Total assets	[1]	$ 93,038				$ 102,444				93,038	102,444	66,051
Expenditures for long-lived assets	[1]									$ 0	$ 0	$ 0
[1]	Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and noncontrolling interests.

Stock Repurchase - Additional I

Stock Repurchase - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2016	May 31, 2015	Dec. 31, 2008
Stock Repurchase Program [Line Items]
Shares authorized to purchase			1,125,000
Cumulative number of shares repurchased	112,026
Cost of repurchased shares, including commissions	$ 923
Number of shares repurchased	0	0

Summary of Quarterly Data (Deta

Summary of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2015	Feb. 28, 2015	Nov. 30, 2014	Aug. 31, 2014	May 31, 2016	May 31, 2015	May 31, 2014
Quarterly Financial Information [Line Items]
Total revenues	$ 90,080	$ 76,725	$ 79,610	$ 74,860	$ 78,611	$ 68,409	$ 68,455	$ 67,599	$ 321,275	$ 283,074	$ 247,405
Gross margin	41,852	35,196	38,224	37,792	37,698	33,703	34,208	34,076	153,064	139,685	122,598
Net income	$ 9,818	$ 8,289	$ 9,142	$ 9,289	$ 9,432	$ 7,409	$ 7,826	$ 8,909	$ 36,564	$ 33,526	$ 28,158
Basic net income per share	$ 0.27	$ 0.22	$ 0.24	$ 0.25	$ 0.26	$ 0.20	$ 0.21	$ 0.24	$ 0.98	$ 0.91	$ 0.77
Diluted net income per share	$ 0.26	$ 0.22	$ 0.24	$ 0.25	$ 0.25	$ 0.20	$ 0.21	$ 0.24	$ 0.97	$ 0.90	$ 0.76
Neogen
Quarterly Financial Information [Line Items]
Net income	$ 9,857	$ 8,311	$ 9,073	$ 9,323	$ 9,384	$ 7,454	$ 7,806	$ 8,883