Neogen (NEOG) 10-K 28 Jul 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	May 31, 2017	Jun. 30, 2017	Nov. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	May 31, 2017
Document Fiscal Year Focus	2,017
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		38,211,873
Entity Public Float			$ 2,403,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Current Assets
Cash and cash equivalents	$ 77,567	$ 55,257
Marketable securities	66,068	52,539
Accounts receivable, less allowance of $2,000 and $1,500 at May 31, 2017 and 2016, respectively	68,576	67,652
Inventories	73,144	64,371
Prepaid expenses and other current assets	7,606	8,407
Total Current Assets	292,961	248,226
Property and Equipment
Land and improvements	3,094	2,659
Building and improvements	37,917	33,417
Machinery and equipment	64,867	56,470
Furniture and fixtures	3,333	3,068
Construction in progress	2,290	1,057
Property, Plant and Equipment, Gross, Total	111,501	96,671
Less accumulated depreciation	49,753	41,988
Net Property and Equipment	61,748	54,683
Other Assets
Goodwill	104,759	88,506
Other non-amortizable intangible assets	14,323	9,170
Amortizable intangible assets, net of accumulated amortization	54,618	49,355
Total Other Assets	173,700	147,031
Total Assets	528,409	449,940
Current Liabilities
Accounts payable	16,244	15,800
Accruals
Accrued compensation	5,002	4,986
Income taxes	936
Other accruals	13,820	7,812
Total Current Liabilities	36,002	28,598
Deferred Income Taxes	17,048	14,758
Other Non-Current Liabilities	3,602	2,423
Total Liabilities	56,652	45,779
Commitments and Contingencies (note 7)
Equity
Preferred stock, $1.00 par value - shares authorized 100,000; none issued and outstanding
Common stock, $0.16 par value - shares authorized 60,000,000; 38,199,367 and 37,567,689 shares issued and outstanding at May 31, 2017 and 2016, respectively	6,112	6,011
Additional paid-in capital	176,779	150,000
Accumulated other comprehensive loss	(7,203)	(3,946)
Retained earnings	295,926	252,133
Total Neogen Corporation and Subsidiaries Stockholder's Equity	471,614	404,198
Non-controlling interest	143	(37)
Total Equity	471,757	404,161
Total Liabilities and Equity	528,409	449,940
Customer-based intangibles
Other Assets
Amortizable intangible assets, net of accumulated amortization	35,983	30,909
Other Intangible Assets
Other Assets
Other non-amortizable intangible assets	1,224	1,224
Amortizable intangible assets, net of accumulated amortization	$ 18,635	$ 18,446

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Accounts receivable, allowance	$ 2,000	$ 1,500
Accumulated Amortization	$ 30,777	$ 24,807
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	38,199,367	37,567,689
Common stock, shares outstanding	38,199,367	37,567,689
Customer-based intangibles
Accumulated Amortization	$ 20,846	$ 17,277
Other Intangible Assets
Accumulated Amortization	$ 9,931	$ 7,530

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Revenues
Product revenues	$ 306,512	$ 273,570	$ 243,909
Service revenues	55,082	47,705	39,165
Total Revenues	361,594	321,275	283,074
Cost of Revenues
Cost of product revenues	156,568	137,766	120,377
Cost of service revenues	33,058	30,445	23,012
Total Cost of Revenues	189,626	168,211	143,389
Gross Margin	171,968	153,064	139,685
Operating Expenses
Sales and marketing	62,424	57,599	51,757
General and administrative	34,214	29,189	25,233
Research and development	10,385	9,890	9,577
Total Operating Expenses	107,023	96,678	86,567
Operating Income	64,945	56,386	53,118
Other Income (Expense)
Interest income	838	322	228
Royalty income	171	217	150
Change in purchase consideration	18		(297)
Other, net	701	(1,412)	(1,123)
Nonoperating Income (Expense), Total	1,728	(873)	(1,042)
Income Before Income Taxes	66,673	55,513	52,076
Provision for Income Taxes	22,700	18,975	18,500
Net Income	43,973	36,538	33,576
Net (Income) Loss Attributable to Non-controlling Interest	(180)	26	(50)
Net Income Attributable to Neogen	$ 43,793	$ 36,564	$ 33,526
Net Income Attributable to Neogen per Share
Basic	$ 1.16	$ 0.98	$ 0.91
Diluted	$ 1.14	$ 0.97	$ 0.90

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Net Income	$ 43,973	$ 36,538	$ 33,576
Other comprehensive income (loss), net of tax: currency translation	(3,257)	(1,504)	(2,813)
Comprehensive income	40,716	35,034	30,763
Comprehensive (income) loss attributable to non-controlling interest	(180)	26	(50)
Comprehensive income attributable to Neogen	$ 40,536	$ 35,060	$ 30,713

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, 2014	$ 306,300	$ 5,877	$ 118,070	$ 371	$ 182,043	$ (61)
Beginning 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
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
Exercise of options, share-based compensation and income tax benefit (in shares)		612,963
Exercise of options, share-based compensation and income tax benefit	$ 26,719	$ 98	26,621
Issuance of shares under employee stock purchase plan (in shares)	18,715	18,715
Issuance of shares under employee stock purchase plan	$ 925	$ 3	922
Purchase of minority interest	(764)		(764)
Net income (loss)	43,973				43,793	180
Other comprehensive income (loss)	(3,257)			(3,257)
Ending Balance at May. 31, 2017	$ 471,757	$ 6,112	$ 176,779	$ (7,203)	$ 295,926	$ 143
Ending Balance (in shares) at May. 31, 2017	38,199,367	38,199,367

Consolidated Statements of Equ7

Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Exercise of options, share-based compensation, income tax benefit	$ 3,922	$ 2,945	$ 2,475

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Cash Flows From Operating Activities
Net Income	$ 43,973	$ 36,538	$ 33,576
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization	14,691	12,181	10,649
Deferred income taxes	(292)	1,906	496
Share-based compensation	5,261	5,468	4,450
Excess income tax benefit from exercise of stock options	(3,922)	(2,945)	(2,475)
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	5,035	(6,002)	(7,252)
Inventories	(6,970)	(9,427)	319
Prepaid expenses and other assets	812	(3,836)	3,264
Accounts payable	(1,691)	704	412
Accruals and other changes	3,377	744	353
Net Cash From Operating Activities	60,274	35,331	43,792
Cash Flows Used in Investing Activities
Purchase of property, equipment and other non-current intangible assets	(14,578)	(14,222)	(9,619)
Proceeds from the sales of marketable securities	149,226	147,189	93,662
Purchase of marketable securities	(162,755)	(151,625)	(105,944)
Business acquisitions, net of cash acquired	(34,029)	(42,491)	(6,554)
Net Cash Used in Investing Activities	(62,136)	(61,149)	(28,455)
Cash Flows From Financing Activities
Exercise of stock options	21,148	12,363	8,558
Excess income tax benefit from the exercise of stock options	3,922	2,945	2,475
Net Cash From Financing Activities	25,070	15,308	11,033
Effect of Exchange Rate on Cash	(898)	(294)	(984)
Net Increase (Decrease) in Cash and Cash Equivalents	22,310	(10,804)	25,386
Cash and Cash Equivalents, Beginning of Year	55,257	66,061	40,675
Cash and Cash Equivalents, End of Year	77,567	55,257	66,061
Supplementary Cash Flow Information
Income taxes paid, net of refunds	$ 13,865	$ 13,413	$ 10,454

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	May 31, 2017
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 as of May 31, 2017, with the exception of Neogen Latinoamerica. Neogen Latinoamerica was 90% owned as of May 31, 2017 and 2016. The Company made an additional capital contribution on December 31, 2013 which increased its ownership interest in Neogen Latinoamerica from 60% to 90%. Neogen do Brasil was 100% and 90% owned as of May 31, 2017 and 2016, respectively. The Company purchased all shares owned by the two minority interest owners on February 28, 2017, which increased its ownership interest in Neogen do Brasil to 100%. Non-controlling non-controlling non-controlling All intercompany accounts and transactions have been eliminated in consolidation. 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, 2017 or 2016, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in thousands) 2017 2016 2015 Beginning Balance $ 1,500 $ 1,300 $ 1,200 Provision 645 305 337 Recoveries 25 90 92 Write-offs (170 ) (195 ) (329 ) Ending Balance $ 2,000 $ 1,500 $ 1,300 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 $77,567,000 and $55,257,000 at May 31, 2017 and 2016, 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 $8,132,000 and $5,320,000 at May 31, 2017 and 2016, respectively. Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2017, consisting of short-term domestic certificates of deposit of $25,355,000 and commercial paper rated at least A-2/P-2 Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out Year ended May 31 (in thousands) 2017 2016 Raw Materials $ 33,190 $ 29,501 Work-in-process 4,831 4,498 Finished goods 35,123 30,372 $ 73,144 $ 64,371 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 $2,000,000 and $1,550,000 at May 31, 2017 and 2016, 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 $8,783,000, $7,452,000 and $6,318,000 in fiscal years 2017, 2016 and 2015, 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 non-amortizable 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 2016 and 2015 financial statements have been reclassified to conform to the fiscal 2017 presentation. See the Company’s discussion on Accounting Standards Update 2015-17, Stock Options At May 31, 2017, 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 2017, 2016 and 2015, estimated on the date of grant using the Black-Scholes option pricing model, was $15.86, $13.11 and $11.91, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2017 2016 2015 Risk-free interest rate 1.2% 1.2% 1.2% Expected dividend yield 0.0% 0.0% 0.0% Expected stock volatility 35.2% 33.3% 36.2% 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 2017, 2016 and 2015. 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 $10,185,000, $9,734,000 and $8,648,000 in fiscal years 2017, 2016 and 2015, 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 wholly-owned foreign subsidiaries are comprised of Neogen Europe, Lab M Holdings, Quat-Chem, Neogen do Brasil, Neogen Bio-Scientific re-invested re-evaluation re-invest 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 $1,643,000, $1,463,000 and $1,371,000 in fiscal years 2017, 2016 and 2015, 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) 2017 2016 2015 Numerator for basic and diluted net income per share - Net Income attributable to Neogen $ 43,793 $ 36,564 $ 33,526 Denominator for basic net income per share - Weighted average shares 37,908 37,402 36,953 Effect of dilutive stock options 466 473 491 Denominator for diluted net income per share 38,374 37,875 37,444 Net income attributable to Neogen per share Basic $ 1.16 $ 0.98 $ 0.91 Diluted $ 1.14 $ 0.97 $ 0.90 At May 31, 2017, 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. New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09—Revenue No. 2016-10— 2014-09 In July 2015, the FASB issued ASU No. 2015-11—Inventory: In September 2015, the FASB issued ASU 2015-16—Simplifying The FASB issued ASU No. 2015-17—Income non-current non-current 2015-17 Non-current In February 2016, the FASB issued ASU No. 2016-02—Leases right-of-use In March 2016, the FASB issued ASU No. 2016-09—Compensation-Stock paid-in In June 2016, the FASB issued ASU No. 2016-13—Measurement held-to-maturity 2016-13 In August 2016, the FASB issued ASU No. 2016-15—Classification 2016-15 2016-15 No. 2016-15 In January 2017, the FASB issued ASU 2017-04—Intangibles—Goodwill 2017-04 two-step 2017-04

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	May 31, 2017
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 2017, 2016 and 2015, 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, 2015 $ 18,806 $ 51,313 $ 70,119 Goodwill acquired and/or adjusted 8,083 10,304 18,387 Balance, May 31, 2016 $ 26,889 $ 61,617 $ 88,506 Goodwill acquired and/or adjusted (1) 19,031 (2,778 ) 16,253 Balance, May 31, 2017 $ 45,920 $ 58,839 $ 104,759 (1) Represents final purchase price allocation adjustment At May 31, 2017, non-amortizable non-amortizable Amortizable intangible assets consisted of the following and are included in customer-based intangible and other non-current (in thousands) Gross Less Net Licenses $ 5,989 $ 2,011 $ 3,978 Covenants not to compete 1,208 309 899 Patents 9,304 4,601 4,703 Customer-based intangibles 56,829 20,846 35,983 Other products and service-related intangibles 12,065 3,010 9,055 Balance, May 31, 2017 $ 85,395 $ 30,777 $ 54,618 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 products and service-related intangibles 12,256 1,924 10,332 Balance, May 31, 2016 $ 74,162 $ 24,807 $ 49,355 Amortization expense for intangibles totaled $5,908,000, $4,730,000 and $4,331,000 in fiscal years 2017, 2016, and 2015, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $5,951,000 in 2018, $5,558,000 in 2019, $5,253,000 in 2020, $4,977,000 in 2021 and $4,646,000 in 2022. The amortizable intangible assets useful lives are 2 to 20 years for licenses, 5 to 13 years for covenants not to compete, 5 to 25 years for patents, 5 to 20 years for customer-based intangibles and 2 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, 2017
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. Fiscal 2015 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, inventory of $421,000 prepaid assets of $48,000, property and equipment of $159,000, current liabilities of $155,000, non-current 5-15 (non-deductible 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 Fiscal 2016 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 $102,000 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 accrual of $102,000, intangible assets of $345,000 (with an estimated life of 5-15 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 final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, 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 $309,000, current liabilities of $948,000, non-current 5-15 (non-deductible 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 final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included inventory of $317,000, property and equipment of $60,000, current liabilities of $300,000, intangible assets of $1,759,000 (with an estimated life of 5-15 non-amortizable On April 26, 2016, the Company acquired the stock of Deoxi Biotecnologia Ltda., an animal genomics laboratory located in Aracatuba, Brazil. This acquisition is intended to help accelerate the growth of Neogen’s animal genomics services in Brazil. Consideration for the purchase was $1,549,000 in cash and up to $2,552,000 of contingent consideration, due at the end of each of the first two years, based on an excess net 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 $132,000, inventory of $89,000, other current assets of $9,000, property and equipment of $232,000, current liabilities of $266,000, contingent consideration accrual of $453,000, non-current 5-10 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 $24,245,000 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 $1,629,000, inventory of $1,964,000, other current assets of $269,000, land, property and equipment of $1,625,000, current liabilities of $987,000, non-current 5-15 non-amortizable Fiscal 2017 On December 1, 2016, the Company acquired the stock of Quat-Chem Ltd., a chemical company that manufactures biosecurity products, based in Rochdale, England. Consideration for the purchase was $21,606,000 in cash and up to $3,778,000 of contingent consideration, due at the end of each of the first two years, based on an excess net sales formula. The preliminary purchase price allocation included accounts receivable of $4,684,000, inventory of $1,243,000, land, property and equipment of $2,715,000, accounts payable of $2,197,000, deferred tax liability of $1,133,000, contingent consideration accrual of $1,105,000, other current liabilities of $604,000, non-amortizable 5-15 (non-deductible On December 27, 2016, the Company acquired the stock of Rogama Industria e Comercio, Ltda., a company that develops and manufactures rodenticides and insecticides, based near Sao Paulo, Brazil. Consideration for the purchase was $12,423,000 in cash and up to $2,069,000 of contingent consideration, due at the end of each of the first two years, based on an excess net sales formula. The preliminary purchase price allocation included accounts receivable of $1,863,000, inventory of $1,026,000, property and equipment of $1,840,000, current liabilities of $2,177,000, contingent consideration accrual of $430,000, non-current non-amortizable 5-15

Long-Term Debt

Long-Term Debt	12 Months Ended
	May 31, 2017
Long-Term Debt	4. Long-Term Debt The Company has a financing agreement with a bank providing for an unsecured revolving line of credit, which was amended on November 30, 2016 to increase the line from $12,000,000 to $15,000,000, and extend the maturity from September 1, 2017 to September 30, 2019. There were no advances against the line of credit during fiscal years 2016 and 2017; there was no balance outstanding at May 31, 2017. Interest on any borrowings is at LIBOR plus 100 basis points (rate under the terms of the agreement was 2.04% at May 31, 2017). 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, 2017.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	May 31, 2017
Equity Compensation Plans	5. Equity Compensation Plans Qualified and non-qualified (options in thousands) Options Weighted-Average Weighted-Average 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 Granted 621 54.24 15.86 Exercised (620 ) 30.42 9.03 Forfeited (58 ) 42.72 12.22 Outstanding at May 31, 2017 (496 exercisable) 2,024 43.84 12.68 The following is a summary of stock options outstanding at May 31, 2017: (options in thousands) Options Outstanding Options Exercisable Range of Exercise Price Number Average Weighted-Average Number Weighted-Average $ 11.02 - $36.26 491 1.8 $ 31.22 268 $ 29.16 $ 36.27 - $40.87 382 2.8 39.57 113 39.54 $ 40.88 - $49.68 536 4.1 46.52 115 45.12 $ 49.69 - $54.55 576 4.7 53.94 — — $ 54.56 - $65.71 39 7.7 58.74 — — 2,024 3.5 43.84 496 35.23 The weighted average exercise price of shares that were exercisable at May 31, 2017 and 2016 was $35.23 and $29.69, respectively. Compensation expense related to share-based awards was $5,261,000, $5,468,000 and $4,450,000 in fiscal years 2017, 2016 and 2015, respectively. Remaining compensation cost to be expensed in future periods for non-vested The aggregate intrinsic value of options outstanding and options exercisable was $39,388,000 and $13,929,000, respectively, at May 31, 2017, $26,344,000 and $12,912,000 respectively, at May 31, 2016 and $31,204,000 and $14,201,000 respectively, at May 31, 2015. The aggregate intrinsic value of options exercised during the year was $18,067,000 in fiscal 2017, $12,980,000 in fiscal 2016 and $10,690,000 in fiscal 2015. Common stock totaling 8,725 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; the discount is recorded in general and administrative expense. Total individual purchases in any year are limited to 10% of compensation. Shares purchased by employees were 18,715, 18,277 and 19,592 in fiscal years 2017, 2016 and 2015, respectively.

Income Taxes

Income Taxes	12 Months Ended
	May 31, 2017
Income Taxes	6. Income Taxes Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2017 2016 2015 U.S. $ 55,171 $ 50,662 $ 45,156 Foreign 11,502 4,851 6,920 $ 66,673 $ 55,513 $ 52,076 The provision for income taxes consisted of the following: Year ended May 31 (in thousands) 2017 2016 2015 Current: U.S. Taxes $ 20,259 $ 14,630 $ 15,269 Foreign 2,514 1,756 1,364 Deferred (73 ) 2,589 1,867 $ 22,700 $ 18,975 $ 18,500 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) 2017 2016 2015 Tax at U.S. statutory rate $ 23,336 $ 19,429 $ 18,227 Section 199 domestic production deduction (1,057 ) (1,143 ) (1,067 ) Foreign rate differential (1,247 ) (699 ) (949 ) Subpart F income 996 1,049 1,396 Tax credits and other (300 ) 337 39 Provision for state income taxes, net of federal benefit 972 779 854 Amended U.S. Federal tax returns FY12, FY13 & FY14 — (777 ) — $ 22,700 $ 18,975 $ 18,500 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: Year ended May 31 (in thousands) 2017 2016 Deferred income tax liabilities Indefinite and long-lived assets $ (23,177 ) $ (19,296 ) Prepaid expenses (640 ) (824 ) Brazil valuation allowance — (542 ) (23,817 ) (20,662 ) Deferred income tax assets Stock Options 2,604 2,786 Inventories and accounts receivable 2,603 2,076 Tax loss carryforwards 436 813 Accrued expenses and other 1,126 229 6,769 5,904 Net deferred income tax liabilities $ (17,048 ) $ (14,758 ) The Company had no accrual for unrecognized tax benefits at both May 31, 2017 and 2016. 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 under audit by the Internal Revenue Service for tax years 2014-2016.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	May 31, 2017
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 $38,000 to $57,000 per year over the past five years. The Company’s estimated liability for these costs is $916,000 at both May 31, 2017 and 2016, measured on an undiscounted basis over an estimated period of 15 years; $54,000 of the liability is recorded within current liabilities and the remainder is recorded within other non-current 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, recorded in sales and marketing, under the terms of these agreements was $2,659,000, $1,969,000 and $2,189,000 for fiscal years 2017, 2016 and 2015, 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: 2018—$625,000, 2019—$659,000, 2020—$666,000, 2021—$674,000 and 2022—$597,000. The Company leases office and manufacturing facilities under non-cancelable 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, 2017
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 $1,259,000, $1,188,000, and $1,051,000 in fiscal years 2017, 2016 and 2015, respectively.

Segment Information

Segment Information	12 Months Ended
	May 31, 2017
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. Neogen’s international operations in the United Kingdom, Mexico, Brazil, China and India originally focused on the Company’s Food Safety products, and each of these units reports through the Food Safety segment. In recent years, these operations have expanded to offer the Company’s complete line of products and services, including those usually associated with the Animal Safety segment such as cleaners, disinfectants, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing management, and are reported through the Food Safety segment. 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 2017 Product revenues to external customers $ 155,795 $ 150,717 $ — $ 306,512 Service revenues to external customers 15,530 39,552 — 55,082 Total revenues to external customers 171,325 190,269 — 361,594 Operating income (loss) 33,971 34,841 (3,867 ) 64,945 Depreciation and amortization 7,088 7,603 — 14,691 Total Assets 190,895 210,927 126,587 528,409 Expenditures for long-lived assets 10,332 4,246 — 14,578 Fiscal 2016 Product revenues to external customers $ 133,743 $ 139,827 $ — $ 273,570 Service revenues to external customers 12,678 35,027 — 47,705 Total revenues to external customers 146,421 174,854 — 321,275 Operating income (loss) 28,984 30,978 (3,576 ) 56,386 Depreciation and amortization 5,609 6,572 — 12,181 Total Assets 143,303 215,374 91,263 449,940 Expenditures for long-lived assets 9,192 5,030 — 14,222 Fiscal 2015 Product revenues to external customers $ 119,990 $ 123,919 $ — $ 243,909 Service revenues to external customers 11,489 27,676 — 39,165 Total revenues to external customers 131,479 151,595 — 283,074 Operating income (loss) 30,265 26,034 (3,181 ) 53,118 Depreciation and amortization 4,620 6,029 — 10,649 Total Assets 110,655 179,082 102,444 392,181 Expenditures for long-lived assets 4,216 5,403 — 9,619 (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 non-controlling Revenues to customers located outside the United States amounted to $129,322,000 or 35.8% of consolidated revenues in fiscal 2017, $107,680,000 or 33.5% in fiscal 2016 and $103,867,000 or 36.7% in fiscal 2015 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 76% of the Company’s long-lived assets as of May 31, 2017 and 89% as May 31, 2016.

Stock Repurchase

Stock Repurchase	12 Months Ended
	May 31, 2017
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, 2017, 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 2017, 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, 2017
Summary of Quarterly Data (Unaudited)	11. Summary of Quarterly Data (Unaudited) Quarter Ended (in thousands, except per share) August November February May Total Revenue $ 83,645 $ 90,717 $ 88,385 $ 98,847 Gross Margin 40,479 43,591 40,880 47,018 Net income 9,934 11,171 10,377 12,491 Net income attributable to Neogen 9,881 11,151 10,287 12,474 Basic net income per share 0.26 0.29 0.27 0.34 Diluted net income per share 0.26 0.29 0.27 0.32 Quarter Ended (in thousands, except per share) August November February May Total Revenue $ 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 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, 2017
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 as of May 31, 2017, with the exception of Neogen Latinoamerica. Neogen Latinoamerica was 90% owned as of May 31, 2017 and 2016. The Company made an additional capital contribution on December 31, 2013 which increased its ownership interest in Neogen Latinoamerica from 60% to 90%. Neogen do Brasil was 100% and 90% owned as of May 31, 2017 and 2016, respectively. The Company purchased all shares owned by the two minority interest owners on February 28, 2017, which increased its ownership interest in Neogen do Brasil to 100%. Non-controlling non-controlling non-controlling All intercompany accounts and transactions have been eliminated in consolidation.
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, 2017 or 2016, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in thousands) 2017 2016 2015 Beginning Balance $ 1,500 $ 1,300 $ 1,200 Provision 645 305 337 Recoveries 25 90 92 Write-offs (170 ) (195 ) (329 ) Ending Balance $ 2,000 $ 1,500 $ 1,300
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 $77,567,000 and $55,257,000 at May 31, 2017 and 2016, 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 $8,132,000 and $5,320,000 at May 31, 2017 and 2016, respectively.
Marketable Securities	Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2017, consisting of short-term domestic certificates of deposit of $25,355,000 and commercial paper rated at least A-2/P-2
Inventories	Inventories Inventories are stated at the lower of cost, determined on the first-in, first-out Year ended May 31 (in thousands) 2017 2016 Raw Materials $ 33,190 $ 29,501 Work-in-process 4,831 4,498 Finished goods 35,123 30,372 $ 73,144 $ 64,371 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 $2,000,000 and $1,550,000 at May 31, 2017 and 2016, 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 $8,783,000, $7,452,000 and $6,318,000 in fiscal years 2017, 2016 and 2015, 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 non-amortizable
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 2016 and 2015 financial statements have been reclassified to conform to the fiscal 2017 presentation. See the Company’s discussion on Accounting Standards Update 2015-17,
Stock Options	Stock Options At May 31, 2017, 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 2017, 2016 and 2015, estimated on the date of grant using the Black-Scholes option pricing model, was $15.86, $13.11 and $11.91, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2017 2016 2015 Risk-free interest rate 1.2% 1.2% 1.2% Expected dividend yield 0.0% 0.0% 0.0% Expected stock volatility 35.2% 33.3% 36.2% 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 2017, 2016 and 2015.
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 $10,185,000, $9,734,000 and $8,648,000 in fiscal years 2017, 2016 and 2015, 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 wholly-owned foreign subsidiaries are comprised of Neogen Europe, Lab M Holdings, Quat-Chem, Neogen do Brasil, Neogen Bio-Scientific re-invested re-evaluation re-invest
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 $1,643,000, $1,463,000 and $1,371,000 in fiscal years 2017, 2016 and 2015, 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) 2017 2016 2015 Numerator for basic and diluted net income per share - Net Income attributable to Neogen $ 43,793 $ 36,564 $ 33,526 Denominator for basic net income per share - Weighted average shares 37,908 37,402 36,953 Effect of dilutive stock options 466 473 491 Denominator for diluted net income per share 38,374 37,875 37,444 Net income attributable to Neogen per share Basic $ 1.16 $ 0.98 $ 0.91 Diluted $ 1.14 $ 0.97 $ 0.90 At May 31, 2017, 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.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09—Revenue No. 2016-10— 2014-09 In July 2015, the FASB issued ASU No. 2015-11—Inventory: In September 2015, the FASB issued ASU 2015-16—Simplifying The FASB issued ASU No. 2015-17—Income non-current non-current 2015-17 Non-current In February 2016, the FASB issued ASU No. 2016-02—Leases right-of-use In March 2016, the FASB issued ASU No. 2016-09—Compensation-Stock paid-in In June 2016, the FASB issued ASU No. 2016-13—Measurement held-to-maturity 2016-13 In August 2016, the FASB issued ASU No. 2016-15—Classification 2016-15 2016-15 No. 2016-15 In January 2017, the FASB issued ASU 2017-04—Intangibles—Goodwill 2017-04 two-step 2017-04

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	May 31, 2017
Allowance for Doubtful Accounts	The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in thousands) 2017 2016 2015 Beginning Balance $ 1,500 $ 1,300 $ 1,200 Provision 645 305 337 Recoveries 25 90 92 Write-offs (170 ) (195 ) (329 ) Ending Balance $ 2,000 $ 1,500 $ 1,300
Inventories	The components of inventories were as follows: Year ended May 31 (in thousands) 2017 2016 Raw Materials $ 33,190 $ 29,501 Work-in-process 4,831 4,498 Finished goods 35,123 30,372 $ 73,144 $ 64,371
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 2017 2016 2015 Risk-free interest rate 1.2% 1.2% 1.2% Expected dividend yield 0.0% 0.0% 0.0% Expected stock volatility 35.2% 33.3% 36.2% 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) 2017 2016 2015 Numerator for basic and diluted net income per share - Net Income attributable to Neogen $ 43,793 $ 36,564 $ 33,526 Denominator for basic net income per share - Weighted average shares 37,908 37,402 36,953 Effect of dilutive stock options 466 473 491 Denominator for diluted net income per share 38,374 37,875 37,444 Net income attributable to Neogen per share Basic $ 1.16 $ 0.98 $ 0.91 Diluted $ 1.14 $ 0.97 $ 0.90

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	May 31, 2017
Goodwill by Business Segment	The following table summarizes goodwill by reportable segment: (in thousands) Food Safety Animal Safety Total Balance, May 31, 2015 $ 18,806 $ 51,313 $ 70,119 Goodwill acquired and/or adjusted 8,083 10,304 18,387 Balance, May 31, 2016 $ 26,889 $ 61,617 $ 88,506 Goodwill acquired and/or adjusted (1) 19,031 (2,778 ) 16,253 Balance, May 31, 2017 $ 45,920 $ 58,839 $ 104,759 (1) Represents final purchase price allocation adjustment
Amortizable of Intangible Assets	Amortizable intangible assets consisted of the following and are included in customer-based intangible and other non-current (in thousands) Gross Less Net Licenses $ 5,989 $ 2,011 $ 3,978 Covenants not to compete 1,208 309 899 Patents 9,304 4,601 4,703 Customer-based intangibles 56,829 20,846 35,983 Other products and service-related intangibles 12,065 3,010 9,055 Balance, May 31, 2017 $ 85,395 $ 30,777 $ 54,618 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 products and service-related intangibles 12,256 1,924 10,332 Balance, May 31, 2016 $ 74,162 $ 24,807 $ 49,355

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	May 31, 2017
Stock Option Activity	Qualified and non-qualified (options in thousands) Options Weighted-Average Weighted-Average 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 Granted 621 54.24 15.86 Exercised (620 ) 30.42 9.03 Forfeited (58 ) 42.72 12.22 Outstanding at May 31, 2017 (496 exercisable) 2,024 43.84 12.68
Summary of Stock Options Outstanding	The following is a summary of stock options outstanding at May 31, 2017: (options in thousands) Options Outstanding Options Exercisable Range of Exercise Price Number Average Weighted-Average Number Weighted-Average $ 11.02 - $36.26 491 1.8 $ 31.22 268 $ 29.16 $ 36.27 - $40.87 382 2.8 39.57 113 39.54 $ 40.88 - $49.68 536 4.1 46.52 115 45.12 $ 49.69 - $54.55 576 4.7 53.94 — — $ 54.56 - $65.71 39 7.7 58.74 — — 2,024 3.5 43.84 496 35.23

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	May 31, 2017
Income Before Income Taxes	Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2017 2016 2015 U.S. $ 55,171 $ 50,662 $ 45,156 Foreign 11,502 4,851 6,920 $ 66,673 $ 55,513 $ 52,076
Provision for Income Taxes	The provision for income taxes consisted of the following: Year ended May 31 (in thousands) 2017 2016 2015 Current: U.S. Taxes $ 20,259 $ 14,630 $ 15,269 Foreign 2,514 1,756 1,364 Deferred (73 ) 2,589 1,867 $ 22,700 $ 18,975 $ 18,500
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) 2017 2016 2015 Tax at U.S. statutory rate $ 23,336 $ 19,429 $ 18,227 Section 199 domestic production deduction (1,057 ) (1,143 ) (1,067 ) Foreign rate differential (1,247 ) (699 ) (949 ) Subpart F income 996 1,049 1,396 Tax credits and other (300 ) 337 39 Provision for state income taxes, net of federal benefit 972 779 854 Amended U.S. Federal tax returns FY12, FY13 & FY14 — (777 ) — $ 22,700 $ 18,975 $ 18,500
Significant Components of Deferred Income Tax Liabilities and Assets	Significant components of the Company’s deferred income tax liabilities and assets are as follows: Year ended May 31 (in thousands) 2017 2016 Deferred income tax liabilities Indefinite and long-lived assets $ (23,177 ) $ (19,296 ) Prepaid expenses (640 ) (824 ) Brazil valuation allowance — (542 ) (23,817 ) (20,662 ) Deferred income tax assets Stock Options 2,604 2,786 Inventories and accounts receivable 2,603 2,076 Tax loss carryforwards 436 813 Accrued expenses and other 1,126 229 6,769 5,904 Net deferred income tax liabilities $ (17,048 ) $ (14,758 )

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	May 31, 2017
Segment Information	Segment information is as follows: (in thousands) Food Safety Animal Safety Corporate and Total Fiscal 2017 Product revenues to external customers $ 155,795 $ 150,717 $ — $ 306,512 Service revenues to external customers 15,530 39,552 — 55,082 Total revenues to external customers 171,325 190,269 — 361,594 Operating income (loss) 33,971 34,841 (3,867 ) 64,945 Depreciation and amortization 7,088 7,603 — 14,691 Total Assets 190,895 210,927 126,587 528,409 Expenditures for long-lived assets 10,332 4,246 — 14,578 Fiscal 2016 Product revenues to external customers $ 133,743 $ 139,827 $ — $ 273,570 Service revenues to external customers 12,678 35,027 — 47,705 Total revenues to external customers 146,421 174,854 — 321,275 Operating income (loss) 28,984 30,978 (3,576 ) 56,386 Depreciation and amortization 5,609 6,572 — 12,181 Total Assets 143,303 215,374 91,263 449,940 Expenditures for long-lived assets 9,192 5,030 — 14,222 Fiscal 2015 Product revenues to external customers $ 119,990 $ 123,919 $ — $ 243,909 Service revenues to external customers 11,489 27,676 — 39,165 Total revenues to external customers 131,479 151,595 — 283,074 Operating income (loss) 30,265 26,034 (3,181 ) 53,118 Depreciation and amortization 4,620 6,029 — 10,649 Total Assets 110,655 179,082 102,444 392,181 Expenditures for long-lived assets 4,216 5,403 — 9,619 (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 non-controlling

Summary of Quarterly Data (Un26

Summary of Quarterly Data (Unaudited) (Tables)	12 Months Ended
	May 31, 2017
Summary of Quarterly Data	Quarter Ended (in thousands, except per share) August November February May Total Revenue $ 83,645 $ 90,717 $ 88,385 $ 98,847 Gross Margin 40,479 43,591 40,880 47,018 Net income 9,934 11,171 10,377 12,491 Net income attributable to Neogen 9,881 11,151 10,287 12,474 Basic net income per share 0.26 0.29 0.27 0.34 Diluted net income per share 0.26 0.29 0.27 0.32 Quarter Ended (in thousands, except per share) August November February May Total Revenue $ 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

Summary of Significant Accoun27

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Feb. 28, 2017	May 31, 2016	Dec. 31, 2013	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Significant Accounting Policies [Line Items]
Cash and cash equivalents		$ 55,257,000		$ 77,567,000	$ 55,257,000	$ 66,061,000	$ 40,675,000
Cash held at foreign subsidiaries		5,320,000		8,132,000	5,320,000
Short-term domestic certificates of deposit				25,355,000
Commercial Paper				40,713,000
Marketable securities		52,539,000		66,068,000	52,539,000
Valuation allowance for inventory		1,550,000		2,000,000	1,550,000
Depreciation expense				$ 8,783,000	$ 7,452,000	$ 6,318,000
Weighted-average fair value per share of stock options granted				$ 15.86	$ 13.11	$ 11.91
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				$ 10,185,000	$ 9,734,000	$ 8,648,000
Unremitted earnings of foreign subsidiaries				35,281,000
Advertising costs				$ 1,643,000	$ 1,463,000	$ 1,371,000
Shares excluded from computations of diluted net income per share				0	0	0
Deferred tax assets, Current		1,775,000			$ 1,775,000
Total assets and total liabilities decreased due to early adoption of ASU 2015-17		$ 1,775,000
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				11 years	12 years
Other Intangible Assets
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life				11 years	12 years
Neogen Latin America
Significant Accounting Policies [Line Items]
Percentage of ownership in subsidiaries		90.00%		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%		100.00%	90.00%
Percentage of ownership in subsidiaries after capital contribution	100.00%
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, 2017	May 31, 2016	May 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 1,500	$ 1,300	$ 1,200
Provision	645	305	337
Recoveries	25	90	92
Write-offs	(170)	(195)	(329)
Ending Balance	$ 2,000	$ 1,500	$ 1,300

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Inventory [Line Items]
Raw Materials	$ 33,190	$ 29,501
Work-in-process	4,831	4,498
Finished goods	35,123	30,372
Inventories	$ 73,144	$ 64,371

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate	1.20%	1.20%	1.20%
Expected dividend yield	0.00%	0.00%	0.00%
Expected stock volatility	35.20%	33.30%	36.20%
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, 2017	Feb. 28, 2017	Nov. 30, 2016	Aug. 31, 2016	May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2017	May 31, 2016	May 31, 2015
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net Income attributable to Neogen	$ 12,491	$ 10,377	$ 11,171	$ 9,934	$ 9,818	$ 8,289	$ 9,142	$ 9,289	$ 43,793	$ 36,564	$ 33,526
Denominator for basic net income per share - Weighted average shares									37,908	37,402	36,953
Effect of dilutive stock options									466	473	491
Denominator for diluted net income per share									38,374	37,875	37,444
Net Income Attributable to Neogen per Share
Basic	$ 0.34	$ 0.27	$ 0.29	$ 0.26	$ 0.27	$ 0.22	$ 0.24	$ 0.25	$ 1.16	$ 0.98	$ 0.91
Diluted	$ 0.32	$ 0.27	$ 0.29	$ 0.26	$ 0.26	$ 0.22	$ 0.24	$ 0.25	$ 1.14	$ 0.97	$ 0.90

Goodwill by Business Segment (D

Goodwill by Business Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017		May 31, 2016
Goodwill [Line Items]
Beginning Balance	$ 88,506		$ 70,119
Goodwill acquired and/or adjusted	16,253	[1]	18,387
Ending Balance	104,759		88,506
Food Safety
Goodwill [Line Items]
Beginning Balance	26,889		18,806
Goodwill acquired and/or adjusted	19,031	[1]	8,083
Ending Balance	45,920		26,889
Animal Safety
Goodwill [Line Items]
Beginning Balance	61,617		51,313
Goodwill acquired and/or adjusted	(2,778)	[1]	10,304
Ending Balance	$ 58,839		$ 61,617
[1]	Represents final purchase price allocation adjustment

Goodwill and Other Intangible33

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Goodwill And Other Intangible Asset [Line Items]
Other non-amortizable intangible assets	$ 14,323,000	$ 9,170,000
Amortization expense for intangible assets	5,908,000	4,730,000	$ 4,331,000
Estimated amortization expense for period, 2018	5,951,000
Estimated amortization expense for period, 2019	5,558,000
Estimated amortization expense for period, 2020	5,253,000
Estimated amortization expense for period, 2021	4,977,000
Estimated amortization expense for period, 2022	$ 4,646,000
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	2 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	$ 12,530,000	7,377,000
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	11 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	5 years
Customer-based intangibles | Maximum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	20 years
Other products and service-related intangibles | Minimum
Goodwill And Other Intangible Asset [Line Items]
Finite lived intangible assets, useful life	2 years
Other products 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, 2017	May 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 85,395	$ 74,162
Less Accumulated Amortization	30,777	24,807
Net Carrying Amount	54,618	49,355
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,989	5,189
Less Accumulated Amortization	2,011	1,782
Net Carrying Amount	3,978	3,407
Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,208	491
Less Accumulated Amortization	309	193
Net Carrying Amount	899	298
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,304	8,040
Less Accumulated Amortization	4,601	3,631
Net Carrying Amount	4,703	4,409
Customer-based intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	56,829	48,186
Less Accumulated Amortization	20,846	17,277
Net Carrying Amount	35,983	30,909
Other products and service-related intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,065	12,256
Less Accumulated Amortization	3,010	1,924
Net Carrying Amount	$ 9,055	$ 10,332

Business Combinations - Additio

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

Dec. 27, 2016

Dec. 01, 2016

May 01, 2016

Apr. 26, 2016

Dec. 22, 2015

Aug. 26, 2015

Jun. 01, 2015

Dec. 08, 2014

Oct. 01, 2014

Jun. 30, 2017

Jul. 31, 2016

May 31, 2017

May 31, 2016

May 31, 2015

May 31, 2019

Business Acquisition [Line Items]

Reverse the remaining contingent consideration accrual to other income

$ 18

$ (297)

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

BioLumix, Inc.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 4,514

Purchase price allocation for accounts receivable

499

Purchase price allocation for other receivable

178

Purchase price allocation for inventory

421

Purchase price allocation for prepaid assets

48

Purchase price allocation for land, property and equipment

159

Purchase price allocation for current liabilities

155

Purchase price allocation for long-term liabilities

780

Purchase price allocation for intangible assets

$ 2,090

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

Beijing Anapure BioScientific Co., Ltd.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 2,040

Purchase price allocation for inventory

525

Purchase price allocation for land, property and equipment

64

Purchase price allocation for intangible assets

$ 422

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

Purchase price allocation for accounts receivable

43

Purchase price allocation for inventory

14

Purchase price allocation for land, property and equipment

141

Purchase price allocation for intangible assets

345

Contingent consideration potential payment

102

Allocation of purchase price for contingent consideration potential payment

$ 102

Cash paid for contingent consideration

$ 70

Sterling Test House | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Sterling Test House | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Lab M Holdings

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 12,436

Purchase price allocation for accounts receivable

975

Purchase price allocation for inventory

1,169

Purchase price allocation for land, property and equipment

3,337

Purchase price allocation for current liabilities

948

Purchase price allocation for intangible assets

3,611

Purchase price allocation for cash

285

Purchase price allocation for other current assets

309

Purchase price allocation for deferred tax liability

$ 784

Lab M Holdings | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Lab M Holdings | 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

Purchase price allocation for inventory

317

Purchase price allocation for land, property and equipment

60

Purchase price allocation for current liabilities

300

Purchase price allocation for intangible assets

1,759

Contingent consideration potential payment

$ 300

Purchase price allocation for contingent consideration

$ 300

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

$ 1,549

Purchase price allocation for accounts receivable

132

Purchase price allocation for inventory

89

Purchase price allocation for land, property and equipment

232

Purchase price allocation for current liabilities

266

Purchase price allocation for intangible assets

350

Contingent consideration potential payment

2,552

Allocation of purchase price for contingent consideration potential payment

453

Purchase price allocation for other current assets

9

Purchase price allocation for deferred tax liability

$ 184

Deoxi Biotecnologia Ltd | During fiscal 2017

Business Acquisition [Line Items]

Allocation of purchase price for contingent consideration potential payment

$ 60

Deoxi Biotecnologia Ltd | Subsequent Event

Business Acquisition [Line Items]

Contingent consideration potential payment

$ 393

Reverse the remaining contingent consideration accrual to other income

$ 14

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

10 years

Tetradyne LLC

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 24,245

Purchase price allocation for accounts receivable

1,629

Purchase price allocation for inventory

1,964

Purchase price allocation for land, property and equipment

1,625

Purchase price allocation for current liabilities

987

Purchase price allocation for long-term liabilities

660

Purchase price allocation for intangible assets

11,950

Purchase price allocation for other current assets

$ 269

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

Quat-Chem Ltd.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 21,606

Purchase price allocation for accounts receivable

4,684

Purchase price allocation for inventory

1,243

Purchase price allocation for land, property and equipment

2,715

Purchase price allocation for intangible assets

5,682

Contingent consideration potential payment

3,778

Allocation of purchase price for contingent consideration potential payment

1,105

Purchase price allocation for non-amortizable intangible assets

1,637

Purchase price allocation for accounts payable

2,197

Purchase price allocation for deferred tax liability

1,133

Purchase price allocation for other current liabilities

$ 604

Quat-Chem Ltd. | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Quat-Chem Ltd. | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Rogama Industria e Comercio, Ltda.

Business Acquisition [Line Items]

Cash consideration for purchase of business

$ 12,423

Purchase price allocation for accounts receivable

1,863

Purchase price allocation for inventory

1,026

Purchase price allocation for land, property and equipment

1,840

Purchase price allocation for current liabilities

2,177

Purchase price allocation for intangible assets

3,252

Contingent consideration potential payment

2,069

Allocation of purchase price for contingent consideration potential payment

430

Purchase price allocation for deferred tax liability

1,307

Purchase price allocation for non-amortizable intangible assets

$ 591

Rogama Industria e Comercio, Ltda. | Minimum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

5 years

Rogama Industria e Comercio, Ltda. | Maximum

Business Acquisition [Line Items]

Finite lived intangible assets, useful life

15 years

Trademarks | Virbac Corporation

Business Acquisition [Line Items]

Purchase price allocation for non-amortizable intangible assets

$ 200

Trademarks | Deoxi Biotecnologia Ltd

Business Acquisition [Line Items]

Purchase price allocation for non-amortizable intangible assets

$ 193

Trademarks | Tetradyne LLC

Business Acquisition [Line Items]

Purchase price allocation for non-amortizable intangible assets

$ 2,600

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)	Nov. 29, 2016	May 31, 2017	May 31, 2016
Debt Instrument [Line Items]
Unsecured revolving line of credit, total amount available	$ 12,000,000	$ 15,000,000
Unsecured revolving line of credit, maturity date	Sep. 1, 2017	Sep. 30, 2019
Unsecured revolving line of credit, interest terms		LIBOR plus 100 basis points
Unsecured revolving line of credit, interest rate		2.04%
Unsecured revolving line of credit, balance outstanding		$ 0
Unsecured revolving line of credit, advances		$ 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, 2017	May 31, 2016	May 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	1,894,000	2,457,000	306,000
Options Exercisable, Weighted Average Exercise Price	$ 35.23	$ 29.69
Compensation expense related to share based awards	$ 5,261,000	$ 5,468,000	$ 4,450,000
Remaining compensation cost to be expensed in future periods for non-vested options	$ 10,999,000
Weighted average expense recognition period	3 years 3 months 19 days
Aggregate intrinsic value of options outstanding	$ 39,388,000	26,344,000	31,204,000
Aggregate intrinsic value of options exercisable	13,929,000	12,912,000	14,201,000
Aggregate intrinsic value of options exercised	$ 18,067,000	$ 12,980,000	$ 10,690,000
Number of shares purchased by employees	18,715	18,277	19,592
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	8,725
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, 2017	May 31, 2016	May 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Beginning Balance	2,081	1,988	1,869
Options, Granted	621	549	536
Options, Exercised	(620)	(427)	(380)
Options, Forfeited	(58)	(29)	(37)
Options Outstanding, Ending Balance	2,024	2,081	1,988
Weighted-Average Exercise Price, Beginning Balance	$ 36.71	$ 31.04	$ 25.69
Weighted-Average Exercise Price, Granted	54.24	46.98	39.79
Weighted-Average Exercise Price, Exercised	30.42	23.47	16.69
Weighted-Average Exercise Price, Forfeited	42.72	38.57	33.55
Weighted-Average Exercise Price, Ending Balance	43.84	36.71	31.04
Weighted-Average Grant Date Fair Value, Beginning Balance	10.63	9.20	7.62
Weighted-Average Grant Date Fair Value, Granted	15.86	13.11	11.91
Weighted-Average Grant Date Fair Value, Exercised	9.03	7.15	5.17
Weighted-Average Grant Date Fair Value, Forfeited	12.22	11.14	9.45
Weighted-Average Grant Date Fair Value, Ending Balance	$ 12.68	$ 10.63	$ 9.20

Stock Option Activity (Parenthe

Stock Option Activity (Parenthetical) (Detail) - shares shares in Thousands	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercisable Beginning Balance	496	656	639	577

Summary of Stock Options Outsta

Summary of Stock Options Outstanding (Detail) - $ / shares shares in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number	2,024	2,081	1,988	1,869
Options Outstanding, Average Contractual Life	3 years 6 months
Options Outstanding, Weighted-Average Exercise Price	$ 43.84	$ 36.71	$ 31.04	$ 25.69
Options Exercisable, Number	496	656	639	577
Options Exercisable, Weighted Average Exercise Price	$ 35.23	$ 29.69
$ 11.02 - $36.26
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	11.02
Range of Exercise price, maximum	$ 36.26
Options Outstanding, Number	491
Options Outstanding, Average Contractual Life	1 year 9 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 31.22
Options Exercisable, Number	268
Options Exercisable, Weighted Average Exercise Price	$ 29.16
$ 36.27 - $40.87
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	36.27
Range of Exercise price, maximum	$ 40.87
Options Outstanding, Number	382
Options Outstanding, Average Contractual Life	2 years 9 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 39.57
Options Exercisable, Number	113
Options Exercisable, Weighted Average Exercise Price	$ 39.54
$ 40.88 - $49.68
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	40.88
Range of Exercise price, maximum	$ 49.68
Options Outstanding, Number	536
Options Outstanding, Average Contractual Life	4 years 1 month 6 days
Options Outstanding, Weighted-Average Exercise Price	$ 46.52
Options Exercisable, Number	115
Options Exercisable, Weighted Average Exercise Price	$ 45.12
$ 49.69 - $54.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	49.69
Range of Exercise price, maximum	$ 54.55
Options Outstanding, Number	576
Options Outstanding, Average Contractual Life	4 years 8 months 12 days
Options Outstanding, Weighted-Average Exercise Price	$ 53.94
$ 54.56 - $65.71
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise price, minimum	54.56
Range of Exercise price, maximum	$ 65.71
Options Outstanding, Number	39
Options Outstanding, Average Contractual Life	7 years 8 months 12 days
Options Outstanding, Weighted-Average Exercise Price	$ 58.74

Income Before Income Taxes (Det

Income Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Income Before Income Taxes [Line Items]
Income Before Income Taxes	$ 66,673	$ 55,513	$ 52,076
U.S.
Income Before Income Taxes [Line Items]
Income Before Income Taxes	55,171	50,662	45,156
Foreign
Income Before Income Taxes [Line Items]
Income Before Income Taxes	$ 11,502	$ 4,851	$ 6,920

Provision for Income Taxes (Det

Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
Current:
U.S. Taxes	$ 20,259	$ 14,630	$ 15,269
Foreign	2,514	1,756	1,364
Deferred	(73)	2,589	1,867
Provision for Income Taxes	$ 22,700	$ 18,975	$ 18,500

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, 2017	May 31, 2016	May 31, 2015
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
Tax at U.S. statutory rate	$ 23,336	$ 19,429	$ 18,227
Section 199 domestic production deduction	(1,057)	(1,143)	(1,067)
Foreign rate differential	(1,247)	(699)	(949)
Subpart F income	996	1,049	1,396
Tax credits and other	(300)	337	39
Provision for state income taxes, net of federal benefit	972	779	854
Amended U.S. Federal tax returns, FY12, FY13 & FY14		(777)
Provision for Income Taxes	$ 22,700	$ 18,975	$ 18,500

Significant Components of Defer

Significant Components of Deferred Income Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands	May 31, 2017	May 31, 2016
Deferred income tax liabilities
Indefinite and long-lived assets	$ (23,177)	$ (19,296)
Prepaid expenses	(640)	(824)
Brazil valuation allowance		(542)
Deferred Tax Liabilities, Gross	(23,817)	(20,662)
Deferred income tax assets
Stock Options	2,604	2,786
Inventories and accounts receivable	2,603	2,076
Tax loss carryforwards	436	813
Accrued expenses and other	1,126	229
Deferred Tax Assets, Net of Valuation Allowance, Total	6,769	5,904
Net deferred income tax liabilities	$ (17,048)	$ (14,758)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	12 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2015
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	$ 54,000	54,000
Royalty Expense	2,659,000	1,969,000	$ 2,189,000
Future minimum royalty payment for period, 2018	625,000
Future minimum royalty payment for period, 2019	659,000
Future minimum royalty payment for period, 2020	666,000
Future minimum royalty payment for period, 2021	674,000
Future minimum royalty payment for period, 2022	597,000
Office and Manufacturing facilities operating lease expense	729,000	$ 662,000	$ 736,000
Future minimum rental payments for 2018	591,000
Future minimum rental payments for 2019	292,000
Future minimum rental payments for 2020	88,000
Future minimum rental payments for 2021	87,000
Future minimum rental payments for 2022 and later	91,000
Minimum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	38,000
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, 2017	May 31, 2016	May 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined contribution 401(K) benefit expense	$ 1,259,000	$ 1,188,000	$ 1,051,000
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, 2017USD ($)	Feb. 28, 2017USD ($)	Nov. 30, 2016USD ($)	Aug. 31, 2016USD ($)	May 31, 2016USD ($)	Feb. 29, 2016USD ($)	Nov. 30, 2015USD ($)	Aug. 31, 2015USD ($)	May 31, 2017USD ($)Segment	May 31, 2016USD ($)	May 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment									2
Net Sales	$ 98,847,000	$ 88,385,000	$ 90,717,000	$ 83,645,000	$ 90,080,000	$ 76,725,000	$ 79,610,000	$ 74,860,000	$ 361,594,000	$ 321,275,000	$ 283,074,000
Foreign Operations
Segment Reporting Information [Line Items]
Net Sales									$ 129,322,000	$ 107,680,000	$ 103,867,000
Net Sales, percentage									35.80%	33.50%	36.70%
United States
Segment Reporting Information [Line Items]
Long lived assets percentage	76.00%				89.00%				76.00%	89.00%

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		May 31, 2017	Feb. 28, 2017	Nov. 30, 2016	Aug. 31, 2016	May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2017	May 31, 2016	May 31, 2015
Segment Reporting Information [Line Items]
Product revenues to external customers										$ 306,512	$ 273,570	$ 243,909
Service revenues to external customers										55,082	47,705	39,165
Total revenues to external customers		$ 98,847	$ 88,385	$ 90,717	$ 83,645	$ 90,080	$ 76,725	$ 79,610	$ 74,860	361,594	321,275	283,074
Operating income (loss)										64,945	56,386	53,118
Depreciation and amortization										14,691	12,181	10,649
Total Assets		528,409				449,940				528,409	449,940	392,181
Expenditures for long-lived assets										14,578	14,222	9,619
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers										155,795	133,743	119,990
Service revenues to external customers										15,530	12,678	11,489
Total revenues to external customers										171,325	146,421	131,479
Operating income (loss)										33,971	28,984	30,265
Depreciation and amortization										7,088	5,609	4,620
Total Assets		190,895				143,303				190,895	143,303	110,655
Expenditures for long-lived assets										10,332	9,192	4,216
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers										150,717	139,827	123,919
Service revenues to external customers										39,552	35,027	27,676
Total revenues to external customers										190,269	174,854	151,595
Operating income (loss)										34,841	30,978	26,034
Depreciation and amortization										7,603	6,572	6,029
Total Assets		210,927				215,374				210,927	215,374	179,082
Expenditures for long-lived assets										4,246	5,030	5,403
Corporate and Eliminations
Segment Reporting Information [Line Items]
Operating income (loss)	[1]									(3,867)	(3,576)	(3,181)
Total Assets	[1]	$ 126,587				$ 91,263				$ 126,587	$ 91,263	$ 102,444
[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 non-controlling interests.

Stock Repurchase - Additional I

Stock Repurchase - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2017	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	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, 2017	Feb. 28, 2017	Nov. 30, 2016	Aug. 31, 2016	May 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	May 31, 2017	May 31, 2016	May 31, 2015
Quarterly Financial Information [Line Items]
Total Revenue	$ 98,847	$ 88,385	$ 90,717	$ 83,645	$ 90,080	$ 76,725	$ 79,610	$ 74,860	$ 361,594	$ 321,275	$ 283,074
Gross Margin	47,018	40,880	43,591	40,479	41,852	35,196	38,224	37,792	171,968	153,064	139,685
Net income	$ 12,491	$ 10,377	$ 11,171	$ 9,934	$ 9,818	$ 8,289	$ 9,142	$ 9,289	$ 43,793	$ 36,564	$ 33,526
Basic net income per share	$ 0.34	$ 0.27	$ 0.29	$ 0.26	$ 0.27	$ 0.22	$ 0.24	$ 0.25	$ 1.16	$ 0.98	$ 0.91
Diluted net income per share	$ 0.32	$ 0.27	$ 0.29	$ 0.26	$ 0.26	$ 0.22	$ 0.24	$ 0.25	$ 1.14	$ 0.97	$ 0.90
Neogen
Quarterly Financial Information [Line Items]
Net income	$ 12,474	$ 10,287	$ 11,151	$ 9,881	$ 9,857	$ 8,311	$ 9,073	$ 9,323