Neogen (NEOG) 10-Q 29 Mar 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Feb. 28, 2018shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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	51,583,085

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Feb. 28, 2018	May 31, 2017
Current Assets
Cash and cash equivalents	$ 82,066	$ 77,567
Marketable securities (at fair value, which approximates cost)	110,089	66,068
Accounts receivable, less allowance of $1,750 and $2,000	73,209	68,576
Inventories, net	77,506	73,144
Prepaid expenses and other current assets	9,334	7,606
Total Current Assets	352,204	292,961
Property and Equipment, net	72,514	61,748
Other Assets
Goodwill	99,478	104,759
Other non-amortizable intangible assets	15,011	14,323
Total Assets	595,601	528,409
Current Liabilities
Accounts payable	19,654	16,244
Accrued compensation	5,469	5,002
Income taxes	960	936
Other accruals	11,210	13,820
Total Current Liabilities	37,293	36,002
Deferred Income Taxes	11,400	17,048
Non-Current Liabilities	4,973	3,602
Total Liabilities	53,666	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, 51,583,085 and 50,932,489 shares issued and outstanding at February 28, 2018 and May 31, 2017, respectively	8,253	8,149
Additional paid-in capital	197,246	174,742
Accumulated other comprehensive loss	(5,303)	(7,203)
Retained earnings	341,459	295,926
Total Neogen Corporation Stockholders' Equity	541,655	471,614
Non-controlling interest	280	143
Total Equity	541,935	471,757
Total Liabilities and Equity	595,601	528,409
Customer-based intangibles
Other Assets
Intangible assets, net of accumulated amortization	33,518	35,983
Other Intangible Assets
Other Assets
Intangible assets, net of accumulated amortization	$ 22,876	$ 18,635

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2018	May 31, 2017
Accounts receivable, allowance	$ 1,750	$ 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	51,583,085	50,932,489
Common stock, shares outstanding	51,583,085	50,932,489
Customer-based intangibles
Accumulated Amortization	$ 23,846	$ 20,846
Other Intangible Assets
Accumulated Amortization	$ 11,893	$ 9,931

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Revenues
Product revenues	$ 78,142	$ 73,964	$ 244,298	$ 223,170
Service revenues	17,750	14,421	48,667	39,577
Total Revenues	95,892	88,385	292,965	262,747
Cost of Revenues
Cost of product revenues	40,352	38,816	124,785	113,241
Cost of service revenues	10,019	8,689	27,517	24,556
Total Cost of Revenues	50,371	47,505	152,302	137,797
Gross Margin	45,521	40,880	140,663	124,950
Operating Expenses
Sales and marketing	17,492	15,340	52,331	45,824
General and administrative	9,280	8,548	29,096	25,094
Research and development	2,836	2,641	8,901	8,087
Total Operating Expenses	29,608	26,529	90,328	79,005
Operating Income	15,913	14,351	50,335	45,945
Other Income
Interest income	524	271	1,322	690
Other income	844	1,105	1,913	1,098
Total Other Income	1,368	1,376	3,235	1,788
Income Before Taxes	17,281	15,727	53,570	47,733
Provision for Income Taxes	700	5,350	7,900	16,250
Net Income	16,581	10,377	45,670	31,483
Net (Income)/Loss Attributable to Non-Controlling Interest	5	(90)	(70)	(163)
Net Income Attributable to Neogen	$ 16,586	$ 10,287	$ 45,600	$ 31,320
Net Income Attributable to Neogen Per Share
Basic	$ 0.32	$ 0.20	$ 0.89	$ 0.62
Diluted	$ 0.32	$ 0.20	$ 0.88	$ 0.61

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Net Income	$ 16,581	$ 10,377	$ 45,670	$ 31,483
Other comprehensive income (loss), net of tax: currency translation adjustments	1,163	441	1,900	(3,743)
Comprehensive income	17,744	10,818	47,570	27,740
Comprehensive loss (income) attributable to non-controlling interest	5	(90)	(70)	(163)
Comprehensive income attributable to Neogen	$ 17,749	$ 10,728	$ 47,500	$ 27,577

Consolidated Statement of Equit

Consolidated Statement of Equity - 9 months ended Feb. 28, 2018 - 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	$ 21,557	$ 101	21,456
Issuance of shares under share-based compensation plan (in shares)		631,000
Issuance of shares under employee stock purchase plan	1,051	$ 3	1,048
Issuance of shares under employee stock purchase plan (in shares)		20,000
Conversion of minority interest to retained earnings					(67)	67
Net Income	45,670				45,600	70
Other comprehensive income	1,900			1,900
Ending Balance at Feb. 28, 2018	$ 541,935	$ 8,253	$ 197,246	$ (5,303)	$ 341,459	$ 280
Ending Balance (in shares) at Feb. 28, 2018	51,583,085	51,583,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Cash Flows From Operating Activities
Net Income	$ 45,670	$ 31,483
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization	12,682	10,691
Share-based compensation	3,692	3,932
Excess income tax benefit from the exercise of stock options (see note 5)		(3,671)
Change in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(4,013)	5,916
Inventories	(3,859)	(9,460)
Prepaid expenses and other current assets	(7,316)	717
Accounts payable, accruals and other changes	(280)	5,580
Net Cash Provided By Operating Activities	46,576	45,188
Cash Flows Used In Investing Activities
Purchases of property, equipment and other non-current intangible assets	(16,297)	(13,002)
Proceeds from the sale of marketable securities	211,327	102,957
Purchases of marketable securities	(255,348)	(115,117)
Business acquisitions, net of cash acquired	(468)	(34,027)
Net Cash Used In Investing Activities	(60,786)	(59,189)
Cash Flows From Financing Activities
Exercise of stock options	18,916	15,844
Excess income tax benefit from the exercise of stock options		3,671
Net Cash Provided By Financing Activities	18,916	19,515
Effect of Exchange Rates on Cash	(207)	(888)
Net Increase In Cash and Cash Equivalents	4,499	4,626
Cash And Cash Equivalents At Beginning Of Period	77,567	55,257
Cash And Cash Equivalents At End Of Period	$ 82,066	$ 59,883

Basis of Presentation

Basis of Presentation	9 Months Ended
	Feb. 28, 2018
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. 10-K

Inventories

Inventories	9 Months Ended
	Feb. 28, 2018
Inventories	2. INVENTORIES Inventories are stated at the lower of cost, determined on the first-in, first-out February 28, May 31, (in thousands) Raw materials $ 35,774 $ 33,190 Work-in-process 6,231 4,831 Finished and purchased goods 35,501 35,123 $ 77,506 $ 73,144

Net Income per Share

Net Income per Share	9 Months Ended
	Feb. 28, 2018
Net Income per Share	3. NET INCOME PER SHARE The calculation of net income per share attributable to Neogen Corporation follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 16,586 $ 10,287 $ 45,600 $ 31,320 Denominator for basic net income per share: Weighted average shares 51,537 50,746 51,253 50,438 Effect of dilutive stock options 700 633 761 723 Denominator for diluted net income per share 52,237 51,379 52,014 51,161 Net income attributable to Neogen per share: Basic $ 0.32 $ 0.20 $ 0.89 $ 0.62 Diluted $ 0.32 $ 0.20 $ 0.88 $ 0.61 The Board of Directors declared a 4 for 3 stock split effective December 29, 2017. All share and per share amounts in this Form 10-Q

Segment Information

Segment Information	9 Months Ended
	Feb. 28, 2018
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, 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, cleaners, 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 February 28, 2018 Product revenues to external customers $ 42,618 $ 35,524 $ — $ 78,142 Service revenues to external customers 5,027 12,723 — 17,750 Total revenues to external customers 47,645 48,247 — 95,892 Operating income (loss) 8,258 8,493 (838 ) 15,913 Total assets 188,075 215,371 192,155 595,601 As of and for the three months ended February 28, 2017 Product revenues to external customers $ 39,318 $ 34,646 $ — $ 73,964 Service revenues to external customers 3,631 10,790 — 14,421 Total revenues to external customers 42,949 45,436 — 88,385 Operating income (loss) 7,403 7,743 (795 ) 14,351 Total assets 183,419 215,243 108,636 507,298 Food Animal Corporate and Total (in thousands) For the nine months ended February 28, 2018 Product revenues to external customers $ 129,621 $ 114,677 $ — $ 244,298 Service revenues to external customers 14,319 34,348 — 48,667 Total revenues to external customers 143,940 149,025 — 292,965 Operating income (loss) 25,704 27,691 (3,060 ) 50,335 For the nine months ended February 28, 2017 Product revenues to external customers $ 112,592 $ 110,578 $ — $ 223,170 Service revenues to external customers 10,475 29,102 — 39,577 Total revenues to external customers 123,067 139,680 — 262,747 Operating income (loss) 24,286 24,616 (2,957 ) 45,945 (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	9 Months Ended
	Feb. 28, 2018
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 nine months ended February 28, 2018 follows: Weighted- Average Shares Exercise Price (in thousands) Options outstanding June 1, 2017 2,708 $ 32.88 Granted 819 59.26 Exercised (668 ) 28.23 Forfeited (144 ) 37.31 Options outstanding February 28, 2018 2,715 41.75 During the three and nine month periods ended February 28, 2018 and 2017, the Company recorded $1,026,000 and $1,198,000 and $3,692,000 and $3,932,000, 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 $14.44 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	9 Months Ended
	Feb. 28, 2018
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 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	9 Months Ended
	Feb. 28, 2018
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 $12,428,000 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 final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $1,866,000, other non-current non-current non-amortizable 5-15 (non-deductible 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, non-current 5-15 (non-deductible

Long Term Debt

Long Term Debt	9 Months Ended
	Feb. 28, 2018
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 year 2017 and there have been none thus far in fiscal year 2018; there was no balance outstanding at February 28, 2018. Interest on any borrowings remained at LIBOR plus 100 basis points (rate under the terms of the agreement was 2.82% at February 28, 2018). 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 February 28, 2018.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Feb. 28, 2018
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 February 28, 2018 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	9 Months Ended
	Feb. 28, 2018
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 February 28, 2018, 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 year 2018.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Feb. 28, 2018
Inventories	The components of inventories follow: February 28, May 31, (in thousands) Raw materials $ 35,774 $ 33,190 Work-in-process 6,231 4,831 Finished and purchased goods 35,501 35,123 $ 77,506 $ 73,144

Net Income per Share (Tables)

Net Income per Share (Tables)	9 Months Ended
	Feb. 28, 2018
Calculation of Net Income Per Share	The calculation of net income per share attributable to Neogen Corporation follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands, except per share amounts) Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 16,586 $ 10,287 $ 45,600 $ 31,320 Denominator for basic net income per share: Weighted average shares 51,537 50,746 51,253 50,438 Effect of dilutive stock options 700 633 761 723 Denominator for diluted net income per share 52,237 51,379 52,014 51,161 Net income attributable to Neogen per share: Basic $ 0.32 $ 0.20 $ 0.89 $ 0.62 Diluted $ 0.32 $ 0.20 $ 0.88 $ 0.61

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Feb. 28, 2018
Segment Information	Segment information follows: Food Animal Corporate and Total (in thousands) As of and for the three months ended February 28, 2018 Product revenues to external customers $ 42,618 $ 35,524 $ — $ 78,142 Service revenues to external customers 5,027 12,723 — 17,750 Total revenues to external customers 47,645 48,247 — 95,892 Operating income (loss) 8,258 8,493 (838 ) 15,913 Total assets 188,075 215,371 192,155 595,601 As of and for the three months ended February 28, 2017 Product revenues to external customers $ 39,318 $ 34,646 $ — $ 73,964 Service revenues to external customers 3,631 10,790 — 14,421 Total revenues to external customers 42,949 45,436 — 88,385 Operating income (loss) 7,403 7,743 (795 ) 14,351 Total assets 183,419 215,243 108,636 507,298 Food Animal Corporate and Total (in thousands) For the nine months ended February 28, 2018 Product revenues to external customers $ 129,621 $ 114,677 $ — $ 244,298 Service revenues to external customers 14,319 34,348 — 48,667 Total revenues to external customers 143,940 149,025 — 292,965 Operating income (loss) 25,704 27,691 (3,060 ) 50,335 For the nine months ended February 28, 2017 Product revenues to external customers $ 112,592 $ 110,578 $ — $ 223,170 Service revenues to external customers 10,475 29,102 — 39,577 Total revenues to external customers 123,067 139,680 — 262,747 Operating income (loss) 24,286 24,616 (2,957 ) 45,945 (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)	9 Months Ended
	Feb. 28, 2018
Stock Option Activity	A summary of stock option activity during the nine months ended February 28, 2018 follows: Weighted- Average Shares Exercise Price (in thousands) Options outstanding June 1, 2017 2,708 $ 32.88 Granted 819 59.26 Exercised (668 ) 28.23 Forfeited (144 ) 37.31 Options outstanding February 28, 2018 2,715 41.75
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	Feb. 28, 2018	May 31, 2017
Inventory [Line Items]
Raw materials	$ 35,774	$ 33,190
Work-in-process	6,231	4,831
Finished and purchased goods	35,501	35,123
Inventories	$ 77,506	$ 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		9 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net income attributable to Neogen	$ 16,586	$ 10,287	$ 45,600	$ 31,320
Denominator for basic net income per share - Weighted average shares	51,537	50,746	51,253	50,438
Effect of dilutive stock options	700	633	761	723
Denominator for diluted net income per share	52,237	51,379	52,014	51,161
Net income attributable to Neogen per share:
Basic	$ 0.32	$ 0.20	$ 0.89	$ 0.62
Diluted	$ 0.32	$ 0.20	$ 0.88	$ 0.61

Net Income per Share - Addition

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

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Feb. 28, 2018Segment
Segment Reporting Information [Line Items]
Number of reportable segments	2

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017	May 31, 2017
Segment Reporting Information [Line Items]
Product revenues to external customers		$ 78,142	$ 73,964	$ 244,298	$ 223,170
Service revenues to external customers		17,750	14,421	48,667	39,577
Total revenues to external customers		95,892	88,385	292,965	262,747
Operating income (loss)		15,913	14,351	50,335	45,945
Total assets		595,601	507,298	595,601	507,298	$ 528,409
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		42,618	39,318	129,621	112,592
Service revenues to external customers		5,027	3,631	14,319	10,475
Total revenues to external customers		47,645	42,949	143,940	123,067
Operating income (loss)		8,258	7,403	25,704	24,286
Total assets		188,075	183,419	188,075	183,419
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		35,524	34,646	114,677	110,578
Service revenues to external customers		12,723	10,790	34,348	29,102
Total revenues to external customers		48,247	45,436	149,025	139,680
Operating income (loss)		8,493	7,743	27,691	24,616
Total assets		215,371	215,243	215,371	215,243
Corporate and Eliminations
Segment Reporting Information [Line Items]
Operating income (loss)	[1]	(838)	(795)	(3,060)	(2,957)
Total assets	[1]	$ 192,155	$ 108,636	$ 192,155	$ 108,636
[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		9 Months Ended		12 Months Ended
	Feb. 28, 2018	Feb. 28, 2017	Feb. 28, 2018	Feb. 28, 2017	May 31, 2018	May 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense related to share based awards	$ 1,026,000	$ 1,198,000	$ 3,692,000	$ 3,932,000
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					$ 14.44
U.S. | ASU No. 2016-09
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase (decrease) in income tax expense	$ 331,000		$ (3,463,000)
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	9 Months Ended
	Feb. 28, 2018$ / 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	(668)
Shares, Forfeited | shares	(144)
Shares Outstanding, Ending Balance | shares	2,715
Weighted-Average Exercise Price, Beginning Balance | $ / shares	$ 32.88
Weighted-Average Exercise Price, Granted | $ / shares	59.26
Weighted-Average Exercise Price, Exercised | $ / shares	28.23
Weighted-Average Exercise Price, Forfeited | $ / shares	37.31
Weighted-Average Exercise Price, Ending Balance | $ / shares	$ 41.75

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	9 Months Ended
	Feb. 28, 2018	Feb. 28, 2018
ASU No. 2016-09 | U.S.
Increase (decrease) in income tax expense	$ 331,000	$ (3,463,000)

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	Jan. 31, 2018
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
Cash paid for contingent consideration				$ 249
Contingent consideration payable				554
Quat-Chem Ltd. | Other Income
Business Acquisition [Line Items]
Change in contingent consideration payable				$ 255
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		$ 12,428
Contingent consideration potential payment		2,069
Purchase price allocation for accounts receivable		1,866
Purchase price allocation for inventory		960
Purchase price allocation for land, property and equipment		4,734
Allocation of purchase price for contingent consideration potential payment		213
Purchase price allocation for non-amortizable intangible assets		870
Purchase price allocation for intangible assets		5,112
Purchase price allocation for current liabilities		2,562
Purchase price allocation for Non-current deferred tax liability		1,307
Purchase price allocation for other non-current assets		$ 26
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 non-current 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 ($)	9 Months Ended
	Feb. 28, 2018	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	2.82%
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 ($)	9 Months Ended
	Feb. 28, 2018	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	Feb. 28, 2018	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