Neogen (NEOG) 10-Q 5 Jan 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Nov. 30, 2017	Dec. 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	NEOG
Entity Registrant Name	NEOGEN CORP
Entity Central Index Key	711,377
Current Fiscal Year End Date	--05-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		51,522,587

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Nov. 30, 2017	May 31, 2017
Current Assets
Cash and cash equivalents	$ 64,425	$ 77,567
Marketable securities (at fair value, which approximates cost)	111,410	66,068
Accounts receivable, less allowance of $1,800 and $2,000	74,859	68,576
Inventories, net	73,713	73,144
Prepaid expenses and other current assets	15,533	7,606
Total Current Assets	339,940	292,961
Net Property and Equipment	66,874	61,748
Other Assets
Goodwill	104,290	104,759
Other non-amortizable intangible assets	14,667	14,323
Total Assets	581,028	528,409
Current Liabilities
Accounts payable	17,427	16,244
Accrued compensation	5,619	5,002
Income taxes	1,959	936
Other accruals	12,940	13,820
Total Current Liabilities	37,945	36,002
Deferred Income Taxes	16,943	17,048
Non-Current Liabilities	5,496	3,602
Total Liabilities	60,384	56,652
Commitments and Contingencies (note 9)
Equity
Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding
Common stock, $0.16 par value, 60,000,000 shares authorized, 51,508,548 and 50,932,489 shares issued and outstanding at November 30, 2017 and May 31, 2017, respectively	8,241	8,149
Additional paid-in capital	193,711	174,742
Accumulated other comprehensive loss	(6,466)	(7,203)
Retained earnings	324,873	295,926
Total Neogen Corporation Stockholders' Equity	520,359	471,614
Non-controlling interest	285	143
Total Equity	520,644	471,757
Total Liabilities and Equity	581,028	528,409
Customer-based intangibles
Other Assets
Amortizable intangible assets, net of accumulated amortization	33,512	35,983
Other Intangible Assets
Other Assets
Amortizable intangible assets, net of accumulated amortization	$ 21,745	$ 18,635

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2017	May 31, 2017
Accounts receivable, allowance	$ 1,800	$ 2,000
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	51,508,548	50,932,489
Common stock, shares outstanding	51,508,548	50,932,489
Customer-based intangibles
Accumulated Amortization	$ 22,808	$ 20,846
Other Intangible Assets
Accumulated Amortization	$ 11,089	$ 9,931

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Revenues
Product revenues	$ 85,590	$ 76,961	$ 166,157	$ 149,206
Service revenues	16,227	13,756	30,916	25,156
Total Revenues	101,817	90,717	197,073	174,362
Cost of Revenues
Cost of product revenues	43,349	38,890	84,433	74,425
Cost of service revenues	9,197	8,236	17,498	15,867
Total Cost of Revenues	52,546	47,126	101,931	90,292
Gross Margin	49,271	43,591	95,142	84,070
Operating Expenses
Sales and marketing	17,815	15,687	34,838	30,484
General and administrative	10,491	8,284	19,817	16,546
Research and development	2,967	2,768	6,065	5,446
Total Operating Expenses	31,273	26,739	60,720	52,476
Operating Income	17,998	16,852	34,422	31,594
Other Income (Expense)
Interest income	429	296	798	419
Other income (expense)	626	(377)	1,069	(8)
Total Other Income (Expense)	1,055	(81)	1,867	411
Income Before Taxes	19,053	16,771	36,289	32,005
Provision for Income Taxes	1,900	5,600	7,200	10,900
Net Income	17,153	11,171	29,089	21,105
Net (Income) Attributable to Non-Controlling Interest	(53)	(20)	(75)	(73)
Net Income Attributable to Neogen	$ 17,100	$ 11,151	$ 29,014	$ 21,032
Net Income Attributable to Neogen Per Share
Basic	$ 0.33	$ 0.22	$ 0.57	$ 0.42
Diluted	$ 0.33	$ 0.22	$ 0.56	$ 0.41

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Net income	$ 17,153	$ 11,171	$ 29,089	$ 21,105
Other comprehensive income (loss), net of tax: currency translation adjustments	534	(1,606)	737	(4,184)
Comprehensive income	17,687	9,565	29,826	16,921
Comprehensive (income) attributable to non-controlling interest	(53)	(20)	(75)	(73)
Comprehensive income attributable to Neogen Corporation	$ 17,634	$ 9,545	$ 29,751	$ 16,848

Consolidated Statement of Equit

Consolidated Statement of Equity - 6 months ended Nov. 30, 2017 - 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, 2017	$ 471,757	$ 8,149	$ 174,742	$ (7,203)	$ 295,926	$ 143
Beginning Balance (in shares) at May. 31, 2017	50,932,489	50,932,000
Issuance of shares under share-based compensation plan	$ 18,576	$ 90	18,486
Issuance of shares under share-based compensation plan (in shares)		566,000
Issuance of shares under employee stock purchase plan	485	$ 2	483
Issuance of shares under employee stock purchase plan (in shares)		11,000
Conversion of minority interest to retained earnings					(67)	67
Net income	29,089				29,014	75
Other comprehensive loss	737			737
Ending Balance at Nov. 30, 2017	$ 520,644	$ 8,241	$ 193,711	$ (6,466)	$ 324,873	$ 285
Ending Balance (in shares) at Nov. 30, 2017	51,508,548	51,509,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Cash Flows From Operating Activities
Net income	$ 29,089	$ 21,105
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization	8,268	7,038
Share-based compensation	2,666	2,734
Excess income tax benefit from the exercise of stock options (see note 5)		(2,476)
Change in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(5,859)	1,847
Inventories	(218)	(7,963)
Prepaid expenses and other current assets	(7,916)	428
Accounts payable, accruals and other changes	1,377	6,836
Net Cash Provided By Operating Activities	27,407	29,549
Cash Flows Used In Investing Activities
Purchases of property, equipment and other non-current intangible assets	(10,409)	(6,238)
Proceeds from the sale of marketable securities	123,601	64,522
Purchases of marketable securities	(168,943)	(67,792)
Business acquisitions, net of cash acquired	(468)	(437)
Net Cash Used In Investing Activities	(56,219)	(9,945)
Cash Flows From Financing Activities
Exercise of stock options	16,395	10,345
Excess income tax benefit from the exercise of stock options		2,476
Net Cash Provided By Financing Activities	16,395	12,821
Effect of Exchange Rates on Cash	(725)	(1,385)
Net Increase (Decrease) In Cash and Cash Equivalents	(13,142)	31,040
Cash And Cash Equivalents At Beginning Of Period	77,567	55,257
Cash And Cash Equivalents At End Of Period	$ 64,425	$ 86,297

Basis of Presentation

Basis of Presentation	6 Months Ended
	Nov. 30, 2017
Basis of Presentation	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles) for interim financial information and with the instructions to Form 10-Q S-X. six-month 10-K

Inventories

Inventories	6 Months Ended
	Nov. 30, 2017
Inventories	2. INVENTORIES Inventories are stated at the lower of cost, determined on the first-in, first-out November 30, May 31, (in thousands) Raw materials $ 35,909 $ 33,190 Work-in-process 4,955 4,831 Finished and purchased goods 32,849 35,123 $ 73,713 $ 73,144

Net Income per Share

Net Income per Share	6 Months Ended
	Nov. 30, 2017
Net Income per Share	3. NET INCOME PER SHARE The calculation of net income per share attributable to Neogen Corporation follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 17,100 $ 11,151 $ 29,014 $ 21,032 Denominator for basic net income per share: Weighted average shares 51,264 50,421 51,109 50,287 Effect of dilutive stock options 697 595 669 624 Denominator for diluted net income per share 51,961 51,016 51,778 50,911 Net income attributable to Neogen per share: Basic $ 0.33 $ 0.22 $ 0.57 $ 0.42 Diluted $ 0.33 $ 0.22 $ 0.56 $ 0.41 The Board of Directors declared a 4 for 3 stock split effective December 29, 2017. All share and per share amounts in the form 10-Q

Segment Information

Segment Information	6 Months Ended
	Nov. 30, 2017
Segment Information	4. 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, dehydrated culture media 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 the 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 genomic 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 follows: Food Animal Corporate and Total (in thousands) As of and for the three months ended November 30, 2017 Product revenues to external customers $ 44,721 $ 40,869 $ — $ 85,590 Service revenues to external customers 4,839 11,388 — 16,227 Total revenues to external customers 49,560 52,257 — 101,817 Operating income (loss) 8,668 10,529 (1,199 ) 17,998 Total assets 175,836 215,099 190,093 581,028 As of and for the three months ended November 30, 2016 Product revenues to external customers $ 37,366 $ 39,595 $ — $ 76,961 Service revenues to external customers 3,595 10,161 — 13,756 Total revenues to external customers 40,961 49,756 — 90,717 Operating income (loss) 8,883 9,094 (1,125 ) 16,852 Total assets 143,901 215,974 127,436 487,311 Food Animal Corporate and Total (in thousands) For the six months ended November 30, 2017 Product revenues to external customers $ 87,004 $ 79,153 $ — $ 166,157 Service revenues to external customers 9,291 21,625 — 30,916 Total revenues to external customers 96,295 100,778 — 197,073 Operating income (loss) 17,446 19,198 (2,222 ) 34,422 For the six months ended November 30, 2016 Product revenues to external customers $ 73,059 $ 76,147 $ — $ 149,206 Service revenues to external customers 7,059 18,097 — 25,156 Total revenues to external customers 80,118 94,244 — 174,362 Operating income (loss) 16,882 16,874 (2,162 ) 31,594 (1) Includes corporate assets, consisting principally of 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.

Equity Compensation Plans

Equity Compensation Plans	6 Months Ended
	Nov. 30, 2017
Equity Compensation Plans	5. EQUITY COMPENSATION PLANS Qualified and non-qualified Company under the terms of the Company’s stock option plans. These options are granted at an exercise price of not less than the fair market value of the stock on the date of grant. Options vest ratably over three and five year periods and the contractual terms are generally five or ten years. A summary of stock option activity during the six months ended November 30, 2017 follows: Shares Weighted- (in thousands) Options outstanding June 1, 2017 2,708 $ 32.88 Granted 819 59.26 Exercised (603 ) 27.50 Forfeited (59 ) 39.87 Options outstanding November 30, 2017 2,865 41.41 During the three and six month periods ended November 30, 2017 and 2016, the Company recorded $1,264,000 and $1,218,000 and $2,666,000 and $2,734,000, respectively, of compensation expense related to its share-based awards. On June 1, 2017, the Company adopted ASU No. 2016-09, paid-in The weighted-average fair value per share of stock options granted during fiscal 2018 and fiscal 2017, estimated on the date of grant using the Black-Scholes option pricing model was $14.69 and $11.84, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions. FY 2018 FY 2017 Risk-free interest rate 1.6 % 1.2 % Expected dividend yield 0.0 % 0.0 % Expected stock price volatility 27.7 % 35.2 % Expected option life 4.0 years 4.0 years The Company has an employee stock purchase plan that provides for employee stock purchases at a 5% discount to market price. The discount is recorded in administrative expense as of the date of purchase.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Nov. 30, 2017
New Accounting Pronouncements	6. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09—Revenue No. 2016-10— 2014-09 In February 2016, the FASB issued ASU No. 2016-02—Leases right-of-use In March 2016, the FASB issued ASU No. 2016-09 Share-Based Payment Accounting to provide guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in In June 2016, the FASB issued ASU No. 2016-13—Measurement to-maturity 2016-13 In August 2016, the FASB issued ASU No. 2016-15— 2016-15 2016-15 No. 2016-15

Business and Product Line Acqui

Business and Product Line Acquisitions	6 Months Ended
	Nov. 30, 2017
Business and Product Line Acquisitions	7. BUSINESS AND PRODUCT LINE ACQUISITIONS 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 discussed below relates primarily to enhancing the Company’s strategic platform for the expansion of available product offerings. 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 final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $4,684,000, inventory of $1,243,000, land, property and equipment of $2,526,000, accounts payable of $2,197,000, deferred tax liability of $1,133,000, contingent consideration accrual of $1,058,000, 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 On September 1, 2017 the Company acquired the assets of The University of Queensland Animal Genetics Laboratory, an animal genomics laboratory located near Brisbane, Australia. This acquisition is intended to accelerate the growth of the Company’s animal genomics business in Australia and New Zealand. Consideration for the purchase was $2,063,000; $468,000 has been paid in cash with the remainder due in annual installments over the next five years. The preliminary purchase price allocation included inventory of $19,000, equipment of $419,000, long-term liabilities of $1,629,000, intangible assets of $850,000 (with an estimated life of 5-15 (non-deductible

Long Term Debt

Long Term Debt	6 Months Ended
	Nov. 30, 2017
Long Term Debt	8. LONG TERM DEBT The Company has a financing agreement with a bank providing for an unsecured revolving line of credit of $15,000,000, which expires on September 30, 2019. There were no advances against the line of credit during fiscal 2017 and there have been none thus far in fiscal 2018; there was no balance outstanding at November 30, 2017. Interest on any borrowings remained at LIBOR plus 100 basis points (rate under the terms of the agreement was 2.35% at November 30, 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 November 30, 2017.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Nov. 30, 2017
Commitments and Contingencies	9. 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 was $916,000 at November 30, 2017 and May 31, 2017, 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 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.

Stock Purchase

Stock Purchase	6 Months Ended
	Nov. 30, 2017
Stock Purchase	10. STOCK PURCHASE The Company has a stock repurchase program, authorized by the Board of Directors in calendar year 2008, to purchase, subject to market conditions, up to 1,500,000 shares of the Company’s common stock. As of November 30, 2017, 1,350,632 shares were available to be repurchased under the program. There were no purchases in fiscal year 2017 and there have been none thus far in fiscal 2018.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Nov. 30, 2017
Inventories	The components of inventories follow: November 30, May 31, (in thousands) Raw materials $ 35,909 $ 33,190 Work-in-process 4,955 4,831 Finished and purchased goods 32,849 35,123 $ 73,713 $ 73,144

Net Income per Share (Tables)

Net Income per Share (Tables)	6 Months Ended
	Nov. 30, 2017
Calculation of Net Income Per Share	The calculation of net income per share attributable to Neogen Corporation follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands, except per share amounts) Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 17,100 $ 11,151 $ 29,014 $ 21,032 Denominator for basic net income per share: Weighted average shares 51,264 50,421 51,109 50,287 Effect of dilutive stock options 697 595 669 624 Denominator for diluted net income per share 51,961 51,016 51,778 50,911 Net income attributable to Neogen per share: Basic $ 0.33 $ 0.22 $ 0.57 $ 0.42 Diluted $ 0.33 $ 0.22 $ 0.56 $ 0.41

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Nov. 30, 2017
Segment Information	Segment information follows: Food Animal Corporate and Total (in thousands) As of and for the three months ended November 30, 2017 Product revenues to external customers $ 44,721 $ 40,869 $ — $ 85,590 Service revenues to external customers 4,839 11,388 — 16,227 Total revenues to external customers 49,560 52,257 — 101,817 Operating income (loss) 8,668 10,529 (1,199 ) 17,998 Total assets 175,836 215,099 190,093 581,028 As of and for the three months ended November 30, 2016 Product revenues to external customers $ 37,366 $ 39,595 $ — $ 76,961 Service revenues to external customers 3,595 10,161 — 13,756 Total revenues to external customers 40,961 49,756 — 90,717 Operating income (loss) 8,883 9,094 (1,125 ) 16,852 Total assets 143,901 215,974 127,436 487,311 Food Animal Corporate and Total (in thousands) For the six months ended November 30, 2017 Product revenues to external customers $ 87,004 $ 79,153 $ — $ 166,157 Service revenues to external customers 9,291 21,625 — 30,916 Total revenues to external customers 96,295 100,778 — 197,073 Operating income (loss) 17,446 19,198 (2,222 ) 34,422 For the six months ended November 30, 2016 Product revenues to external customers $ 73,059 $ 76,147 $ — $ 149,206 Service revenues to external customers 7,059 18,097 — 25,156 Total revenues to external customers 80,118 94,244 — 174,362 Operating income (loss) 16,882 16,874 (2,162 ) 31,594 (1) Includes corporate assets, consisting principally of 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.

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	6 Months Ended
	Nov. 30, 2017
Stock Option Activity	A summary of stock option activity during the six months ended November 30, 2017 follows: Shares Weighted- (in thousands) Options outstanding June 1, 2017 2,708 $ 32.88 Granted 819 59.26 Exercised (603 ) 27.50 Forfeited (59 ) 39.87 Options outstanding November 30, 2017 2,865 41.41
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. FY 2018 FY 2017 Risk-free interest rate 1.6 % 1.2 % Expected dividend yield 0.0 % 0.0 % Expected stock price volatility 27.7 % 35.2 % Expected option life 4.0 years 4.0 years

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Nov. 30, 2017	May 31, 2017
Inventory [Line Items]
Raw materials	$ 35,909	$ 33,190
Work-in-process	4,955	4,831
Finished and purchased goods	32,849	35,123
Inventories	$ 73,713	$ 73,144

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		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net income attributable to Neogen	$ 17,100	$ 11,151	$ 29,014	$ 21,032
Denominator for basic net income per share - Weighted average shares	51,264	50,421	51,109	50,287
Effect of dilutive stock options	697	595	669	624
Denominator for diluted net income per share	51,961	51,016	51,778	50,911
Net income attributable to Neogen per share:
Basic	$ 0.33	$ 0.22	$ 0.57	$ 0.42
Diluted	$ 0.33	$ 0.22	$ 0.56	$ 0.41

Net Income per Share - Addition

Net Income per Share - Additional Information (Detail)	Dec. 29, 2017
Subsequent Event
Stock split ratio	1.33

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Nov. 30, 2017Segment
Segment Reporting Information [Line Items]
Number of reportable segments	2

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016	May 31, 2017
Segment Reporting Information [Line Items]
Product revenues to external customers		$ 85,590	$ 76,961	$ 166,157	$ 149,206
Service revenues to external customers		16,227	13,756	30,916	25,156
Total revenues to external customers		101,817	90,717	197,073	174,362
Operating income (loss)		17,998	16,852	34,422	31,594
Total assets		581,028	487,311	581,028	487,311	$ 528,409
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		44,721	37,366	87,004	73,059
Service revenues to external customers		4,839	3,595	9,291	7,059
Total revenues to external customers		49,560	40,961	96,295	80,118
Operating income (loss)		8,668	8,883	17,446	16,882
Total assets		175,836	143,901	175,836	143,901
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		40,869	39,595	79,153	76,147
Service revenues to external customers		11,388	10,161	21,625	18,097
Total revenues to external customers		52,257	49,756	100,778	94,244
Operating income (loss)		10,529	9,094	19,198	16,874
Total assets		215,099	215,974	215,099	215,974
Corporate and Eliminations
Segment Reporting Information [Line Items]
Operating income (loss)	[1]	(1,199)	(1,125)	(2,222)	(2,162)
Total assets	[1]	$ 190,093	$ 127,436	$ 190,093	$ 127,436
[1]	Includes corporate assets, consisting principally of 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.

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016	May 31, 2018	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense related to share based awards	$ 1,264,000	$ 1,218,000	$ 2,666,000	$ 2,734,000
Weighted-average fair value per share of stock options granted						$ 11.84
During fiscal 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share of stock options granted					$ 14.69
U.S. | ASU No. 2016-09
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease in income tax expense	$ 3,418,000		$ 3,794,000
Employee Stock Purchase Plan | 2011 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual maximum limit percentage of compensation to purchase shares			5.00%
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 in Thousands	6 Months Ended
	Nov. 30, 2017$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares Outstanding, Beginning Balance | shares	2,708
Shares, Granted | shares	819
Shares, Exercised | shares	(603)
Shares, Forfeited | shares	(59)
Shares Outstanding, Ending Balance | shares	2,865
Weighted-Average Exercise Price, Beginning Balance | $ / shares	$ 32.88
Weighted-Average Exercise Price, Granted | $ / shares	59.26
Weighted-Average Exercise Price, Exercised | $ / shares	27.50
Weighted-Average Exercise Price, Forfeited | $ / shares	39.87
Weighted-Average Exercise Price, Ending Balance | $ / shares	$ 41.41

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail)	12 Months Ended
	May 31, 2018	May 31, 2017
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate		1.20%
Expected dividend yield		0.00%
Expected stock price volatility		35.20%
Expected option life (in years)		4 years
During fiscal 2018
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate	1.60%
Expected dividend yield	0.00%
Expected stock price volatility	27.70%
Expected option life (in years)	4 years

New Accounting Pronouncements -

New Accounting Pronouncements - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended
	Nov. 30, 2017	Nov. 30, 2017
ASU No. 2016-09 | U.S.
Decrease in income tax expense	$ 3,418,000	$ 3,794,000

Business and Product Line Acq31

Business and Product Line Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 01, 2017	Dec. 27, 2016	Dec. 01, 2016
Quat-Chem Ltd.
Business Acquisition [Line Items]
Cash consideration for purchase of business			$ 21,606
Contingent consideration potential payment			3,778
Purchase price allocation for accounts receivable			4,684
Purchase price allocation for inventory			1,243
Purchase price allocation for land, property and equipment			2,526
Purchase price allocation for accounts payable			2,197
Purchase price allocation for deferred tax liability			1,133
Allocation of purchase price for contingent consideration potential payment			1,058
Purchase price allocation for other current liabilities			604
Purchase price allocation for non-amortizable intangible assets			1,889
Purchase price allocation for intangible assets			$ 6,900
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
Contingent consideration potential payment		2,069
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
Allocation of purchase price for contingent consideration potential payment		430
Purchase price allocation for non-amortizable intangible assets		591
Purchase price allocation for intangible assets		3,252
Purchase price allocation for current liabilities		2,177
Purchase price allocation for Non-current deferred tax liability		$ 1,307
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
The University of Queensland Animal Genetics Laboratory
Business Acquisition [Line Items]
Cash consideration for purchase of business	$ 468
Purchase price allocation for inventory	19
Purchase price allocation for land, property and equipment	419
Purchase price allocation for intangible assets	850
Consideration for purchase of business	2,063
Purchase price allocation for long-term liabilities	$ 1,629
The University of Queensland Animal Genetics Laboratory | Minimum
Business Acquisition [Line Items]
Finite lived intangible assets, useful life	5 years
The University of Queensland Animal Genetics Laboratory | Maximum
Business Acquisition [Line Items]
Finite lived intangible assets, useful life	15 years

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2017	May 31, 2018	May 31, 2017
Debt Instrument [Line Items]
Unsecured revolving line of credit, total amount available	$ 15,000,000
Unsecured revolving line of credit, maturity date	Sep. 30, 2019
Unsecured revolving line of credit, interest terms	LIBOR plus 100 basis points
Unsecured revolving line of credit, interest rate	2.35%
Unsecured revolving line of credit, balance outstanding	$ 0
Unsecured revolving line of credit, advances			$ 0
During fiscal 2018
Debt Instrument [Line Items]
Unsecured revolving line of credit, advances		$ 0
Libor Plus | Unsecured Revolving Line of Credit
Debt Instrument [Line Items]
Unsecured revolving line of credit, spread	1.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2017	May 31, 2017
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
Minimum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	38,000
Maximum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	$ 57,000

Stock Purchase - Additional Inf

Stock Purchase - Additional Information (Detail) - shares	12 Months Ended
	May 31, 2018	May 31, 2017	Nov. 30, 2017	Dec. 31, 2008
Stock Repurchase Program [Line Items]
Shares authorized to purchase				1,500,000
Number of shares available to be repurchased			1,350,632
Number of shares repurchased		0
During fiscal 2018
Stock Repurchase Program [Line Items]
Number of shares repurchased	0