Neogen (NEOG) 10-Q 30 Sep 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page	3 Months Ended
	Aug. 31, 2020shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--05-31
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Registrant Name	NEOGEN CORP
Entity Central Index Key	0000711377
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Document Quarterly Report	true
Document Transition Report	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	53,041,102
Entity File Number	0-17988
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-2367843
Entity Address, Address Line One	620 Lesher Place
Local Phone Number	372-9200
Entity Address, State or Province	MI
Entity Address, City or Town	Lansing
City Area Code	517
Entity Address, Postal Zip Code	48912

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2020	May 31, 2020
Current Assets
Cash and cash equivalents	$ 60,947	$ 66,269
Marketable securities	306,539	277,404
Accounts receivable, less allowance of $1,350 and $1,350 at August 31, 2020 and May 31, 2020, respectively	77,685	84,681
Inventories	97,573	95,053
Prepaid expenses and other current assets	13,955	13,999
Total Current Assets	556,699	537,406
Net Property and Equipment	80,593	78,671
Other Assets
Right of use assets	1,756	1,952
Goodwill	111,675	110,340
Other non-amortizable intangible assets	15,366	15,217
Amortizable intangible and other assets, net of accumulated amortization of $46,773 and $44,690 at August 31, 2020 and May 31, 2020, respectively	55,503	53,596
Total Assets	821,592	797,182
Current Liabilities
Accounts payable	22,537	25,650
Accrued compensation	5,501	7,735
Income taxes	4,597	1,456
Other accruals	13,807	13,648
Total Current Liabilities	46,442	48,489
Deferred Income Taxes	18,306	18,125
Other Non-Current Liabilities	5,298	5,391
Total Liabilities	70,046	72,005
Commitments and Contingencies (note 8)
Equity
Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.16 par value, 120,000,000 shares authorized, 53,041,102 and 52,945,841 shares issued and outstanding at August 31, 2020 and May 31, 2020, respectively	8,487	8,471
Additional paid-in capital	264,184	257,693
Accumulated other comprehensive loss	(15,707)	(19,709)
Retained earnings	494,582	478,722
Total Stockholders' Equity	751,546	725,177
Total Liabilities and Stockholders' Equity	$ 821,592	$ 797,182

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 31, 2020	May 31, 2020
Accounts receivable, allowance	$ 1,350	$ 1,350
Accumulated Amortization	$ 46,773	$ 44,690
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	120,000,000	120,000,000
Common stock, shares issued	53,041,102	52,945,841
Common stock, shares outstanding	53,041,102	52,945,841

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Revenues
Total Revenues	$ 109,325	$ 101,424
Cost of Revenues
Total Cost of Revenues	59,023	53,230
Gross Margin	50,302	48,194
Operating Expenses
Sales and marketing	16,516	17,543
General and administrative	11,013	10,699
Research and development	3,878	3,688
Total Operating Expenses	31,407	31,930
Operating Income	18,895	16,264
Other Income (Expense)
Interest income, net	722	1,510
Other expense	193	(122)
Total Other Income	915	1,388
Income Before Taxes	19,810	17,652
Provision for Income Taxes	3,950	3,000
Net Income	$ 15,860	$ 14,652
Net Income Per Share
Basic	$ 0.30	$ 0.28
Diluted	$ 0.30	$ 0.28
Weighted Average Shares Outstanding
Basic	52,992	52,292
Diluted	53,285	52,684
Product Revenues
Revenues
Total Revenues	$ 87,935	$ 81,948
Cost of Revenues
Total Cost of Revenues	46,595	42,031
Service Revenues
Revenues
Total Revenues	21,390	19,476
Cost of Revenues
Total Cost of Revenues	$ 12,428	$ 11,199

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Net income	$ 15,860	$ 14,652
Other comprehensive income (loss), net of tax: foreign currency translations	4,121	(3,058)
Other comprehensive income (loss), net of tax: unrealized gain (loss) on marketable securities	(119)	562
Total comprehensive income	$ 19,862	$ 12,156

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
Beginning Balance at May. 31, 2019	$ 637,899	$ 8,355	$ 221,937	$ (11,640)	$ 419,247
Beginning Balance (in shares) at May. 31, 2019		52,217
Exercise of options and share-based compensation expense	9,713	$ 30	9,683
Exercise of options and share-based compensation expense (in shares)		196
Issuance of shares under employee stock purchase plan	538	$ 2	536
Issuance of shares under employee stock purchase plan (in shares)		10
Net income	14,652				14,652
Other comprehensive loss	(2,496)			(2,496)
Ending Balance at Aug. 31, 2019	660,306	$ 8,387	232,156	(14,136)	433,899
Ending Balance (in shares) at Aug. 31, 2019		52,423
Beginning Balance at May. 31, 2020	$ 725,177	$ 8,471	257,693	(19,709)	478,722
Beginning Balance (in shares) at May. 31, 2020	52,945,841	52,946
Exercise of options and share-based compensation expense	$ 5,839	$ 14	5,825
Exercise of options and share-based compensation expense (in shares)		86
Issuance of shares under employee stock purchase plan	668	$ 2	666
Issuance of shares under employee stock purchase plan (in shares)		9
Net income	15,860				15,860
Other comprehensive loss	4,002			4,002
Ending Balance at Aug. 31, 2020	$ 751,546	$ 8,487	$ 264,184	$ (15,707)	$ 494,582
Ending Balance (in shares) at Aug. 31, 2020	53,041,102	53,041

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Cash Flows From Operating Activities
Net income	$ 15,860	$ 14,652
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	4,720	4,435
Share-based compensation	1,681	1,543
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	8,350	3,390
Inventories	(1,319)	(2,132)
Prepaid expenses and other assets	(1,045)	(1,929)
Accruals and other changes	(3,113)	3,760
Net Cash From Operating Activities	25,134	23,719
Cash Flows For Investing Activities
Purchases of property, equipment and other non-current intangible assets	(4,248)	(6,469)
Proceeds from the sales of marketable securities	139,184	94,540
Purchase of marketable securities	(168,318)	(103,432)
Business acquisitions, net of cash acquired	(2,350)
Net Cash For Investing Activities	(35,732)	(15,361)
Cash Flows From Financing Activities
Exercise of stock options and other	5,095	8,708
Net Cash From Financing Activities	5,095	8,708
Effect of Foreign Exchange Rate on Cash	181	(2,465)
Net Increase (Decrease) in Cash and Cash Equivalents	(5,322)	14,601
Cash and Cash Equivalents, Beginning of Year	66,269	41,688
Cash and Cash Equivalents, End of Year	$ 60,947	$ 56,289

Accounting Policies

Accounting Policies	3 Months Ended
	Aug. 31, 2020
Accounting Policies	1. ACCOUNTING POLICIES BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of Neogen Corporation (“Neogen” or the “Company”) and its wholly owned subsidiaries and 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. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included in the accompanying unaudited consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three-month period ended August 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2021. For more complete financial information, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K Our functional currency is the U.S. dollar. We translate our non-U.S. Recently Adopted Accounting Standards Financial Instruments—Credit Losses On June 1, 2020, the Company adopted ASU No. 2016-13—Measurement held-to-maturity Fair Value Measurements On June 1, 2020, the Company adopted ASU 2018-13, Cloud Computing Implementation Cost On June 1, 2020, the Company adopted ASU 2018-15, Internal-Use 350-40): 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 of foreign currency translation adjustments and unrealized gains and losses on our marketable securities. 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 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. ESTIMATES AND ASSUMPTIONS The preparation of these financial statements requires that management make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates the estimates, including, but not limited to, variable consideration related to revenue recognition, allowances for doubtful accounts, the market value of, and demand for, inventories, stock-based compensation, provision for income taxes and related balance sheet accounts, accruals, goodwill and other intangible assets. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Accounts Receivable Allowance 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 is established based upon factors surrounding the credit risk of specific customers, historical trends, current economic conditions and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, generally after all collection efforts have been exhausted, that amount is charged against the allowance for doubtful accounts. Inventory The reserve for obsolete and slow-moving inventory is reviewed at least quarterly based on an analysis of the inventory, considering the current condition of the asset as well as other known facts and future plans. The reserve required to record inventory at lower of cost or net realizable value is adjusted as conditions change. Product obsolescence may be caused by shelf-life expiration, discontinuance of a product line, replacement products in the marketplace or other competitive situations. Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names , covenants not-to-compete and patents. Customer-based intangibles are amortized on either an accelerated or straight-line basis, reflecting the pattern in which the economic benefits are consumed, while all other amortizable intangibles are amortized on a straight-line basis; intangibles are generally amortized over 5 to 25 years. We review the carrying amounts of goodwill and other 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 indicate that the carrying amount of the asset may not be recoverable. 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. Equity Compensation Plans Share options awarded to employees and shares of stock awarded to employees under certain stock purchase plans are recognized as compensation expense based on their fair value at grant date. The fair market value of options granted under the Company stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for inputs such as interest rates, expected dividends, volatility measures and specific employee exercise behavior patterns based on statistical data. Some of the inputs used are not market-observable and have to be estimated or derived from available data. Use of different estimates would produce different option values, which in turn would result in higher or lower compensation expense recognized. To value options, several recognized valuation models exist. None of these models can be singled out as being the best or most correct. The model applied by us can handle most of the specific features included in the options granted, which is the reason for its use. If a different model were used, the option values could differ despite using the same inputs. Accordingly, using different assumptions coupled with using a different valuation model could have a significant impact on the fair value of employee stock options. Fair value could be either higher or lower than the number provided by the model applied and the inputs used. Further information on our equity compensation plans, including inputs used to determine the fair value of options, is disclosed in Note 5. Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred income tax ssets determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit carryforwards 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.

Cash and Marketable Securities

Cash and Marketable Securities	3 Months Ended
	Aug. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash and marketable securities	2. CASH AND MARKETABLE SECURITIES 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 are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has not experienced losses related to these balances and believes it is not exposed to significant credit risk regarding its cash and cash equivalents. Cash and cash equivalents were $60,947,000 and $66,269,000 at August 31, 2020 and May 31, 2020, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and is classified as Level 1 in the fair value hierarchy. Marketable Securities The Company has marketable securities held by banks or broker-dealers at August 31, 2020. Changes in market value are monitored and recorded on a monthly basis; in the event of a downgrade in credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security portfolio. These securities are classified as available for sale. The primary objective of management’s short-term investment activity is to preserve capital for the purpose of funding current operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities are recorded at fair value based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within other income on the income statement. Adjustments in the fair value of these assets are recorded in other comprehensive income. Marketable Securities as of August 31, 2020 and May 31, 2020 are listed below by classification and remaining maturities. (in thousands) Maturity August 31, May 31, US Treasuries 0—90 days $ — $ — 91—180 days 2,516 — 181 days—1 year — 2,532 1—2 years — — Commercial Paper & Corporate Bonds 0—90 days 120,055 133,130 91—180 days 93,239 73,824 181 days—1 year 63,668 43,231 1—2 years 10,012 7,839 Certificates of Deposit 0—90 days 4,908 1,003 91—180 days 1,257 5,184 181 days—1 year 8,338 6,069 1—2 years 2,546 4,592 Total Marketable Securities $ 306,539 $ 277,404 The components of marketable securities at August 31, 2020 are as follows: (in thousands) Amortized Unrealized Unrealized Fair Value US Treasuries $ 2,502 $ 14 $ — $ 2,516 Commercial Paper & Corporate Bonds 286,211 820 (57 ) 286,974 Certificates of Deposit 16,911 138 — 17,049 Total Marketable Securities $ 305,624 $ 972 $ (57 ) $ 306,539 The components of marketable securities at May 31, 2020 are as follows: (in thousands) Amortized Unrealized Unrealized Fair Value US Treasuries $ 2,502 $ 30 $ — $ 2,532 Commercial Paper & Corporate Bonds 257,700 347 (23 ) 258,024 Certificates of Deposit 16,648 200 — 16,848 Total Marketable Securities $ 276,850 $ 577 $ (23 ) $ 277,404

Inventories

Inventories	3 Months Ended
	Aug. 31, 2020
Inventories	3. INVENTORIES Inventories are stated at the lower of cost, determined by the first-in, first-out (in thousands) August 31, May 31, Raw materials $ 47,589 $ 45,058 Work-in-process 6,323 6,887 Finished and purchased goods 43,661 43,108 $97,573 $95,053

Leases

Leases	3 Months Ended
	Aug. 31, 2020
Leases [Abstract]
Leases	4. LEASES We lease various manufacturing, laboratory, warehousing and distribution facilities, administrative and sales offices, equipment and vehicles under operating leases. We evaluate our contracts to determine if an arrangement is a lease at inception and classify it as a finance or operating lease. Currently, all our leases are classified as operating leases. Leased assets and corresponding liabilities are recognized based on the present value of the lease payments over the lease term. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Topic 842 requires the Company to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use Right-of-use non-current non-current We have made certain assumptions and judgments when applying ASC 842, the most significant of which are: • We elected the package of practical expedients available for transition that allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. • We did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. • For all asset classes, we elected to not recognize a right-of-use • For all asset classes, we elected to not separate non-lease non-lease • The determination of the discount rate used in a lease is our incremental borrowing rate that is based on what we would normally pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments. Supplemental balance sheet information related to operating leases was as follows: (in thousands) August 31, May 31, Right of use—assets $ 1,756 $ 1,952 Lease liabilities—current 803 1,054 Lease liabilities—non-current 966 913 The weighted average remaining lease term and weighted average discount rate were as follows: (in thousands) August 31, May 31, Weighted average remaining lease term 2.4 years 2.5 years Weighted average discount rate 3.2 % 3.2 % Operating lease expenses are classified as cost of revenues or operating expenses on the consolidated statements of income. The components of lease expense were as follows: August 31, (in thousands) 2020 2019 Operating leases $ 205 $ 240 Short term leases 44 48 Total lease expense $ 249 $ 288 Cash paid for amounts included in the measurement of lease liabilities for operating leases included in cash flows from operations on the statement of cash flows were approximately and $247,000 for the three months ended August 31, 2020 and 2019, respectively. There were non-cash additions to right-of-use assets obtained from new operating lease liabilities for either period. Undiscounted future minimum lease payments as of August 31, 2020 were as follows (in thousands): Years ending May 31, Amount 2021 (1) $ 789 2022 553 2023 292 2024 145 2025 43 2026 and thereafter — Total lease payments 1,822 Less: imputed interest (97 ) Total lease liabilities $ 1,725 (1) Excluding the three months ended August 31, 2020 .

Revenue Recognition

Revenue Recognition	3 Months Ended
	Aug. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	5. REVENUE RECOGNITION We determine the amount of revenue to be recognized through application of the following steps: • Identification of the contract with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies the performance obligations. Essentially all of Neogen’s revenue is generated through contracts with its customers. A performance obligation is a promise in a contract to transfer a product or service to a customer. We generally recognized revenue at a point in time when all of our performance obligations under the terms of a contract are satisfied. Revenue is recognized upon transfer of control of promised products and services in an amount that reflects the consideration we expect to receive in exchange for those products or services. The collectability of consideration on the contract is reasonably assured before revenue is recognized. To the extent that customer payment has been received before all recognition criteria are met, these revenues are initially deferred in other accruals on the balance sheet and the revenue is recognized in the period that all recognition criteria have been met. Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified purchase threshold of goods and services. We account for these discounts as variable consideration and estimate the likelihood of a customer meeting the threshold in order to determine the transaction price using the most predictive approach. We typically use the most-likely-amount method, for incentives that are offered to individual customers, and the expected-value method, for programs that are offered to a broad group of customers. Variable consideration reduces the amount of revenue that is recognized. Rebate obligations related to customer incentive programs are recorded in accrued liabilities; the rebate estimates are adjusted at the end of each applicable measurement period based on information currently available. The performance obligations in Neogen’s contracts are generally satisfied well within one year of contract inception. In such cases, management has elected the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component. Management has elected to utilize the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred because the amortization period for the prepaid costs that would otherwise have been deferred and amortized is one year or less. We account for shipping and handling for products as a fulfillment activity when goods are shipped. Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenues, while the related expenses incurred by Neogen are recorded in sales and marketing expense. Revenue is recognized net of any tax collected from customers; the taxes are subsequently remitted to governmental authorities. Our terms and conditions of sale generally do not provide for returns of product or reperformance of service except in the case of quality or warranty issues. These situations are infrequent; due to immateriality of the amount, warranty claims are recorded in the period incurred. The Company derives revenue from two primary sources—product revenue and service revenue. Product revenue consists of shipments 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; • Consumable products marketed to veterinarians, retailers, livestock producers and animal health product distributors; and • Rodenticides, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. Revenues for our products are recognized and invoiced when the product is shipped to the customer. Service revenue consists primarily of: • Genomic identification and related interpretive bioinformatic services; and • Other commercial laboratory services. Revenues for Neogen’s genomics and commercial laboratory services are recognized and invoiced when the applicable laboratory service is performed and the results are conveyed to the customer. Payment terms for products and services are generally 30 to 60 days. The following table presents disaggregated revenue by major product and service categories for the three month periods ended August 31, 2020 and 2019: Three Months ended August 31, (in thousands) 2020 2019 Food Safety Natural Toxins, Allergens & Drug Residues $ 19,015 $ 20,115 Bacterial & General Sanitation 9,931 10,316 Culture Media & Other 11,393 11,279 Rodenticides, Insecticides & Disinfectants 9,608 5,449 Genomics Services 4,238 3,862 $ 54,185 $ 51,021 Animal Safety Life Sciences $ 1,325 $ 1,723 Veterinary Instruments & Disposables 10,375 11,336 Animal Care & Other 7,658 6,405 Rodenticides, Insecticides & Disinfectants 19,914 16,718 Genomics Services 15,868 14,221 $ 55,140 $ 50,403 Total Revenues $ 109,325 $ 101,424

Net Income per Share

Net Income per Share	3 Months Ended
	Aug. 31, 2020
Net Income per Share	6. NET INCOME PER SHARE The calculation of net income per share follows: Three Months Ended August 31, (in thousands, except 2020 2019 Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 15,860 $ 14,652 Denominator for basic net income per share: Weighted average shares 52,992 52,292 Effect of dilutive stock options 293 392 Denominator for diluted net income per share 53,285 52,684 Net income attributable to Neogen per share: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28

Segment Information and Geograp

Segment Information and Geographic Data	3 Months Ended
	Aug. 31, 2020
Segment Information and Geographic Data	7. SEGMENT INFORMATION AND GEOGRAPHIC DATA We have 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, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. Our 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 our 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. Neogen’s operation in Australia originally focused on providing genomics services and sales of animal safety products and reports through the Animal Safety segment. With the acquisition of Cell BioSciences in February 2020, this operation has expanded to offer our complete line of products and services, including those usually associated with the Food Safety segment. These additional products are managed and directed by existing management at Neogen Australasia and report through the Animal Safety segment. The accounting policies of each of the segments are the same as those described in Note 1. Segment information follows: Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the three months ended August 31, 2020 Product revenues to external customers $ 48,663 $ 39,272 $ — $ 87,935 Service revenues to external customers 5,522 15,868 — 21,390 Total revenues to external customers 54,185 55,140 — 109,325 Operating income (loss) 7,963 12,165 (1,233 ) 18,895 Total assets 225,716 228,390 367,486 821,592 As of and for the three months ended August 31, 2019 Product revenues to external customers $ 45,877 $ 36,071 $ — $ 81,948 Service revenues to external customers 5,144 14,332 — 19,476 Total revenues to external customers 51,021 50,403 — 101,424 Operating income (loss) 9,134 8,300 (1,170 ) 16,264 Total assets 207,725 222,403 291,016 721,144 (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. The following table presents the Company’s revenue disaggregated by geographic location: Three months ended August 31, (in thousands) 2020 2019 Domestic $ 67,324 $ 63,340 International 42,001 38,084 Total revenue 109,325 101,424

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Aug. 31, 2020
Equity Compensation Plans	8. EQUITY COMPENSATION PLANS Incentive and non-qualified options to purchase shares of common stock have been granted to directors, officers and employees of Neogen 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 five Weighted- Average (Options in thousands) Shares Exercise Price Options outstanding June 1, 2020 2,162 $ 55.96 Granted — — Exercised (86 ) 48.39 Forfeited (7 ) 57.81 Options outstanding August 31, 2020 2,069 $ 56.27 During the three month periods ended August 31, 2020 and 2019, the Company recorded $1,681,000 and $1,543,000, respectively, of compensation expense related to its share-based awards. The weighted-average fair value per share of stock options granted during fiscal year 2020, estimated on the date of grant using the Black-Scholes option pricing model, was $15.56. The fair value of stock options granted was estimated using the following weighted-average assumptions. No options were granted in the first quarter of fiscal year 2021. FY 2020 Risk-free interest rate 1.9 % Expected dividend yield 0.0 % Expected stock price volatility 29.4 % Expected option life 3.5 The Company offers 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 under the terms of the 2011 Employee Stock Purchase Plan; the discount is recorded in general and administrative expense. Total individual purchases in any year are limited to 10% of compensation.

Business and Product Line Acqui

Business and Product Line Acquisitions	3 Months Ended
	Aug. 31, 2020
Business and Product Line Acquisitions	9. 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 January 1, 2020, the Company acquired all of the stock of Productos Quimicos Magiar, a distributor of Neogen’s Food Safety products for the past 20 years, located in Argentina. This acquisition gives Neogen a direct sales presence in Argentina. Consideration for the purchase was $3,776,000 in net cash, with $3,237,000 paid at closing and $540,000 payable to the former owner on January 1, 2022, and up to $979,000 of contingent consideration, payable in one year, based upon an excess net sales formula. The preliminary purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included accounts receivable of $603,000, inventory of $446,000, machinery and equipment of $36,000, other current assets of $221,000, accounts payable of $383,000, other current liabilities of $312,000, contingent consideration accrual of $640,000, non-current 5-10 (non-deductible On January 1, 2020, the Company acquired all of the stock of Productos Quimicos Magiar, a distributor of Neogen’s Food Safety products for the past 20 years, located in Uruguay. This acquisition gives Neogen a direct sales presence in Uruguay. Consideration for the purchase was $1,488,000 in net cash, with $1,278,000 paid at closing and $210,000 payable to the former owner on January 1, 2022, and up to $241,000 in contingent consideration, payable in one year, based upon an excess net sales formula. The preliminary purchase price allocation, non-current 5-10 (non-deductible On January 9, 2020, the Company acquired all of non-current 5-10 (non-deductible On January 31, 2020, the Company acquired all of the stock of Abtek Biologicals Limited, a manufacturer and supplier of culture media supplements and microbiology technologies. This acquisition enhances the Company’s culture media product line offering for the worldwide industrial microbiology markets. Consideration for the purchase was $1,401,000 in net cash, with $1,282,000 paid at closing and $119,000 payable to the former owner on non-current 5-10 (non-deductible On February 28, 2020, the Company acquired the assets of Cell BioSciences, an Australian distributor of food safety and industrial microbiology products. This acquisition gave Neogen a direct sales presence across Australasia for its entire product portfolio. Consideration for the purchase was $3,768,000 in cash, with $3,596,000 paid at closing and $172,000 payable in one year. The preliminary purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included inventory of $420,000, unearned revenue liability of $13,000, intangible assets of $1,338,000 (with an estimated life of 3 to 10 years) and the remainder to goodwill (non-deductible On March 26, 2020, the Company acquired the assets of Chile-based Magiar Chilena, a distributor of food, animal and plant diagnostics, including Neogen products. This acquisition gives Neogen a direct sales presence in Chile. Consideration for the purchase was $400,000 in cash, with $350,000 paid at closing and $50,000 payable to the former owner on March 26, 2021. The preliminary purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included inventory of $164,000, machinery and equipment of $53,000, and intangible assets of $183,000 (with an estimated life of 5-10 On July 31, 2020, the Company acquired the U.S. (including territories) rights to Elanco’s StandGuard Pour-on eventually , For each acquisition listed above, the revenues and net income were not considered material and were therefore not disclosed.

Long Term Debt

Long Term Debt	3 Months Ended
	Aug. 31, 2020
Long Term Debt	10. LONG TERM DEBT We have a financing agreement with a bank providing for a $15,000,000 unsecured revolving line of credit, which expires 100

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Aug. 31, 2020
Commitments and Contingencies	11. 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 currently utilizes a pump and treat remediation strategy, which includes semi-annual monitoring and reporting, consulting, and maintenance of monitoring wells. Neogen expenses these annual costs of remediation, which have ranged from $38,000 to $131,000 per year over the past five years. The Company’s estimated liability for these costs was $916,000 at both August 31, 2020 and May 31, 2020, measured on an undiscounted basis over an estimated period of 15 years; $100,000 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.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Aug. 31, 2020
Basis of presentation and consolidation	BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of Neogen Corporation (“Neogen” or the “Company”) and its wholly owned subsidiaries and 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. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included in the accompanying unaudited consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three-month period ended August 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2021. For more complete financial information, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K Our functional currency is the U.S. dollar. We translate our non-U.S.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Financial Instruments—Credit Losses On June 1, 2020, the Company adopted ASU No. 2016-13—Measurement held-to-maturity Fair Value Measurements On June 1, 2020, the Company adopted ASU 2018-13, Cloud Computing Implementation Cost On June 1, 2020, the Company adopted ASU 2018-15, Internal-Use 350-40):
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 of foreign currency translation adjustments and unrealized gains and losses on our marketable securities.
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 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.
Estimates and assumptions	ESTIMATES AND ASSUMPTIONS The preparation of these financial statements requires that management make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates the estimates, including, but not limited to, variable consideration related to revenue recognition, allowances for doubtful accounts, the market value of, and demand for, inventories, stock-based compensation, provision for income taxes and related balance sheet accounts, accruals, goodwill and other intangible assets. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Accounts Receivable Allowance	Accounts Receivable Allowance 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 is established based upon factors surrounding the credit risk of specific customers, historical trends, current economic conditions and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, generally after all collection efforts have been exhausted, that amount is charged against the allowance for doubtful accounts.
Inventory	Inventory The reserve for obsolete and slow-moving inventory is reviewed at least quarterly based on an analysis of the inventory, considering the current condition of the asset as well as other known facts and future plans. The reserve required to record inventory at lower of cost or net realizable value is adjusted as conditions change. Product obsolescence may be caused by shelf-life expiration, discontinuance of a product line, replacement products in the marketplace or other competitive situations.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names , covenants not-to-compete and patents. Customer-based intangibles are amortized on either an accelerated or straight-line basis, reflecting the pattern in which the economic benefits are consumed, while all other amortizable intangibles are amortized on a straight-line basis; intangibles are generally amortized over 5 to 25 years. We review the carrying amounts of goodwill and other 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 indicate that the carrying amount of the asset may not be recoverable. 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.
Equity Compensation Plans	Equity Compensation Plans Share options awarded to employees and shares of stock awarded to employees under certain stock purchase plans are recognized as compensation expense based on their fair value at grant date. The fair market value of options granted under the Company stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for inputs such as interest rates, expected dividends, volatility measures and specific employee exercise behavior patterns based on statistical data. Some of the inputs used are not market-observable and have to be estimated or derived from available data. Use of different estimates would produce different option values, which in turn would result in higher or lower compensation expense recognized. To value options, several recognized valuation models exist. None of these models can be singled out as being the best or most correct. The model applied by us can handle most of the specific features included in the options granted, which is the reason for its use. If a different model were used, the option values could differ despite using the same inputs. Accordingly, using different assumptions coupled with using a different valuation model could have a significant impact on the fair value of employee stock options. Fair value could be either higher or lower than the number provided by the model applied and the inputs used. Further information on our equity compensation plans, including inputs used to determine the fair value of options, is disclosed in Note 5.
Income Taxes	Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred income tax ssets determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit carryforwards 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.

Cash and Marketable Securities

Cash and Marketable Securities (Tables)	3 Months Ended
	Aug. 31, 2020
Cash and Cash Equivalents [Abstract]
Schedule Of Classification And Maturities Of Marketable Securities	Marketable Securities as of August 31, 2020 and May 31, 2020 are listed below by classification and remaining maturities. (in thousands) Maturity August 31, May 31, US Treasuries 0—90 days $ — $ — 91—180 days 2,516 — 181 days—1 year — 2,532 1—2 years — — Commercial Paper & Corporate Bonds 0—90 days 120,055 133,130 91—180 days 93,239 73,824 181 days—1 year 63,668 43,231 1—2 years 10,012 7,839 Certificates of Deposit 0—90 days 4,908 1,003 91—180 days 1,257 5,184 181 days—1 year 8,338 6,069 1—2 years 2,546 4,592 Total Marketable Securities $ 306,539 $ 277,404
Summary of components of marketable securities	The components of marketable securities at August 31, 2020 are as follows: (in thousands) Amortized Unrealized Unrealized Fair Value US Treasuries $ 2,502 $ 14 $ — $ 2,516 Commercial Paper & Corporate Bonds 286,211 820 (57 ) 286,974 Certificates of Deposit 16,911 138 — 17,049 Total Marketable Securities $ 305,624 $ 972 $ (57 ) $ 306,539 The components of marketable securities at May 31, 2020 are as follows: (in thousands) Amortized Unrealized Unrealized Fair Value US Treasuries $ 2,502 $ 30 $ — $ 2,532 Commercial Paper & Corporate Bonds 257,700 347 (23 ) 258,024 Certificates of Deposit 16,648 200 — 16,848 Total Marketable Securities $ 276,850 $ 577 $ (23 ) $ 277,404

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Aug. 31, 2020
Inventories	Inventories are stated at the lower of cost, determined by the first-in, first-out (in thousands) August 31, May 31, Raw materials $ 47,589 $ 45,058 Work-in-process 6,323 6,887 Finished and purchased goods 43,661 43,108 $97,573 $95,053

Leases (Tables)

Leases (Tables)	3 Months Ended
	Aug. 31, 2020
Supplemental balance sheet information related to operating leases	Supplemental balance sheet information related to operating leases was as follows: (in thousands) August 31, May 31, Right of use—assets $ 1,756 $ 1,952 Lease liabilities—current 803 1,054 Lease liabilities—non-current 966 913
Weighted average remaining lease term and weighted average discount rate	The weighted average remaining lease term and weighted average discount rate were as follows: (in thousands) August 31, May 31, Weighted average remaining lease term 2.4 years 2.5 years Weighted average discount rate 3.2 % 3.2 %
Components of lease expense	Operating lease expenses are classified as cost of revenues or operating expenses on the consolidated statements of income. The components of lease expense were as follows: August 31, (in thousands) 2020 2019 Operating leases $ 205 $ 240 Short term leases 44 48 Total lease expense $ 249 $ 288
Undiscounted minimum lease payments	Undiscounted future minimum lease payments as of August 31, 2020 were as follows (in thousands): Years ending May 31, Amount 2021 (1) $ 789 2022 553 2023 292 2024 145 2025 43 2026 and thereafter — Total lease payments 1,822 Less: imputed interest (97 ) Total lease liabilities $ 1,725 (1) Excluding the three months ended August 31, 2020 .

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Aug. 31, 2020
Disaggregated Revenue	The following table presents the Company’s revenue disaggregated by geographic location: Three months ended August 31, (in thousands) 2020 2019 Domestic $ 67,324 $ 63,340 International 42,001 38,084 Total revenue 109,325 101,424
Operating Segments [Member]
Disaggregated Revenue	The following table presents disaggregated revenue by major product and service categories for the three month periods ended August 31, 2020 and 2019: Three Months ended August 31, (in thousands) 2020 2019 Food Safety Natural Toxins, Allergens & Drug Residues $ 19,015 $ 20,115 Bacterial & General Sanitation 9,931 10,316 Culture Media & Other 11,393 11,279 Rodenticides, Insecticides & Disinfectants 9,608 5,449 Genomics Services 4,238 3,862 $ 54,185 $ 51,021 Animal Safety Life Sciences $ 1,325 $ 1,723 Veterinary Instruments & Disposables 10,375 11,336 Animal Care & Other 7,658 6,405 Rodenticides, Insecticides & Disinfectants 19,914 16,718 Genomics Services 15,868 14,221 $ 55,140 $ 50,403 Total Revenues $ 109,325 $ 101,424

Net Income per Share (Tables)

Net Income per Share (Tables)	3 Months Ended
	Aug. 31, 2020
Calculation of Net Income Per Share	The calculation of net income per share follows: Three Months Ended August 31, (in thousands, except 2020 2019 Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 15,860 $ 14,652 Denominator for basic net income per share: Weighted average shares 52,992 52,292 Effect of dilutive stock options 293 392 Denominator for diluted net income per share 53,285 52,684 Net income attributable to Neogen per share: Basic $ 0.30 $ 0.28 Diluted $ 0.30 $ 0.28

Segment Information and Geogr_2

Segment Information and Geographic Data (Tables)	3 Months Ended
	Aug. 31, 2020
Segment Information	Segment information follows: Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the three months ended August 31, 2020 Product revenues to external customers $ 48,663 $ 39,272 $ — $ 87,935 Service revenues to external customers 5,522 15,868 — 21,390 Total revenues to external customers 54,185 55,140 — 109,325 Operating income (loss) 7,963 12,165 (1,233 ) 18,895 Total assets 225,716 228,390 367,486 821,592 As of and for the three months ended August 31, 2019 Product revenues to external customers $ 45,877 $ 36,071 $ — $ 81,948 Service revenues to external customers 5,144 14,332 — 19,476 Total revenues to external customers 51,021 50,403 — 101,424 Operating income (loss) 9,134 8,300 (1,170 ) 16,264 Total assets 207,725 222,403 291,016 721,144 (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.
Disaggregated Revenue	The following table presents the Company’s revenue disaggregated by geographic location: Three months ended August 31, (in thousands) 2020 2019 Domestic $ 67,324 $ 63,340 International 42,001 38,084 Total revenue 109,325 101,424

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Aug. 31, 2020
Stock Option Activity	A summary of stock option activity during the three months ended August 31, 2020 follows: Weighted- Average (Options in thousands) Shares Exercise Price Options outstanding June 1, 2020 2,162 $ 55.96 Granted — — Exercised (86 ) 48.39 Forfeited (7 ) 57.81 Options outstanding August 31, 2020 2,069 $ 56.27
Fair Value of Stock Options Granted Estimated Weighted-Average Assumptions	The fair value of stock options granted was estimated using the following weighted-average assumptions. FY 2020 Risk-free interest rate 1.9 % Expected dividend yield 0.0 % Expected stock price volatility 29.4 % Expected option life 3.5

Accounting Policies - Additiona

Accounting Policies - Additional Information (Detail)	3 Months Ended
	Aug. 31, 2020
Minimum
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life	5 years
Maximum
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life	25 years

Cash and Marketable Securitie_2

Cash and Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	May 31, 2020	Aug. 31, 2019	May 31, 2019
Cash and Cash Equivalents [Line Items]
Marketable securities, maturity period	90 days
Cash and cash equivalents	$ 60,947	$ 66,269	$ 56,289	$ 41,688

Marketable Securities (Detail)

Marketable Securities (Detail) - USD ($) $ in Thousands	Aug. 31, 2020	May 31, 2020
Marketable Securities, Current	$ 306,539	$ 277,404
US Treasury Securities | Maturing in 0 - 90 days
Marketable Securities, Current	0	0
US Treasury Securities | Maturing in 91 - 180 days
Marketable Securities, Current	2,516	0
US Treasury Securities | Maturing in 181 days - 1 year
Marketable Securities, Current	0	2,532
US Treasury Securities | Maturing in 1 - 2 years
Marketable Securities, Current	0	0
Commercial Paper | Maturing in 0 - 90 days
Marketable Securities, Current	120,055	133,130
Commercial Paper | Maturing in 91 - 180 days
Marketable Securities, Current	93,239	73,824
Commercial Paper | Maturing in 181 days - 1 year
Marketable Securities, Current	63,668	43,231
Commercial Paper | Maturing in 1 - 2 years
Marketable Securities, Current	10,012	7,839
Certificates of Deposit | Maturing in 0 - 90 days
Marketable Securities, Current	4,908	1,003
Certificates of Deposit | Maturing in 91 - 180 days
Marketable Securities, Current	1,257	5,184
Certificates of Deposit | Maturing in 181 days - 1 year
Marketable Securities, Current	8,338	6,069
Certificates of Deposit | Maturing in 1 - 2 years
Marketable Securities, Current	$ 2,546	$ 4,592

Components of marketable securi

Components of marketable securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Aug. 31, 2020	May 31, 2020
Marketable Securities [Line Items]
Amortized Cost	$ 305,624	$ 276,850
Unrealized gains	972	577
Unrealized Losses	(57)	(23)
Fair Value	306,539	277,404
US Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	2,502	2,502
Unrealized gains	14	30
Fair Value	2,516	2,532
Commercial PaperAnd Corporate Bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	286,211	257,700
Unrealized gains	820	347
Unrealized Losses	(57)	(23)
Fair Value	286,974	258,024
Certificates of Deposit [Member]
Marketable Securities [Line Items]
Amortized Cost	16,911	16,648
Unrealized gains	138	200
Fair Value	$ 17,049	$ 16,848

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Aug. 31, 2020	May 31, 2020
Inventory [Line Items]
Raw Materials	$ 47,589	$ 45,058
Work-in-process	6,323	6,887
Finished and purchased goods	43,661	43,108
Inventories	$ 97,573	$ 95,053

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands	Aug. 31, 2020	May 31, 2020
Right of use—assets	$ 1,756	$ 1,952
Lease liabilities—current	803	1,054
Lease liabilities—non-current	$ 966	$ 913

Weighted Average Remaining Leas

Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Detail)	Aug. 31, 2020	May 31, 2020
Weighted average remaining lease term	2 years 4 months 24 days	2 years 6 months
Weighted average discount rate	3.20%	3.20%

Components of Lease Expense (De

Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Operating leases	$ 205	$ 240
Short term leases	44	48
Total lease expense	$ 249	$ 288

Undiscounted Minimum Lease Paym

Undiscounted Minimum Lease Payments (Detail) $ in Thousands	Aug. 31, 2020USD ($)
2021	$ 789	[1]
2022	553
2023	292
2024	145
2025	43
2026 and thereafter	0
Total lease payments	1,822
Less: imputed interest	(97)
Total lease liabilities	$ 1,725
[1]	Excluding the three months ended August 31, 2020.

Revenue Recognition- Additional

Revenue Recognition- Additional Information (Detail)	3 Months Ended
	Aug. 31, 2020
Products and Services, Payment Terms	30 to 60 days

Disaggregated Revenue (Detail)

Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Disaggregation of Revenue [Line Items]
Total Revenues	$ 109,325	$ 101,424
Food Safety
Disaggregation of Revenue [Line Items]
Total Revenues	54,185	51,021
Food Safety | Natural Toxins, Allergens & Drug Residues
Disaggregation of Revenue [Line Items]
Total Revenues	19,015	20,115
Food Safety | Bacterial & General Sanitation
Disaggregation of Revenue [Line Items]
Total Revenues	9,931	10,316
Food Safety | Culture Media & Other
Disaggregation of Revenue [Line Items]
Total Revenues	11,393	11,279
Food Safety | Rodenticides, Insecticides & Disinfectants
Disaggregation of Revenue [Line Items]
Total Revenues	9,608	5,449
Food Safety | Genomics Services
Disaggregation of Revenue [Line Items]
Total Revenues	4,238	3,862
Animal Safety
Disaggregation of Revenue [Line Items]
Total Revenues	55,140	50,403
Animal Safety | Life Sciences
Disaggregation of Revenue [Line Items]
Total Revenues	1,325	1,723
Animal Safety | Animal Care & Other
Disaggregation of Revenue [Line Items]
Total Revenues	7,658	6,405
Animal Safety | Veterinary Instruments & Disposables
Disaggregation of Revenue [Line Items]
Total Revenues	10,375	11,336
Animal Safety | Rodenticides, Insecticides & Disinfectants
Disaggregation of Revenue [Line Items]
Total Revenues	19,914	16,718
Animal Safety | Genomics Services
Disaggregation of Revenue [Line Items]
Total Revenues	$ 15,868	$ 14,221

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
	Aug. 31, 2020	Aug. 31, 2019
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net income attributable to Neogen	$ 15,860	$ 14,652
Denominator for basic net income per share - Weighted average shares	52,992	52,292
Effect of dilutive stock options	293	392
Denominator for diluted net income per share	53,285	52,684
Net income attributable to Neogen per share:
Basic	$ 0.30	$ 0.28
Diluted	$ 0.30	$ 0.28

Segment Information and Geogr_3

Segment Information and Geographic Data (Detail) - USD ($) $ in Thousands		3 Months Ended
		Aug. 31, 2020	Aug. 31, 2019	May 31, 2020
Segment Reporting Information [Line Items]
Product revenues to external customers		$ 109,325	$ 101,424
Operating income (loss)		18,895	16,264
Total Assets		821,592	721,144	$ 797,182
Operating Segments | Corporate and Eliminations
Segment Reporting Information [Line Items]
Operating income (loss)	[1]	(1,233)	(1,170)
Total Assets	[1]	367,486	291,016
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		54,185	51,021
Operating income (loss)		7,963	9,134
Total Assets		225,716	207,725
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		55,140	50,403
Operating income (loss)		12,165	8,300
Total Assets		228,390	222,403
Product Revenues
Segment Reporting Information [Line Items]
Product revenues to external customers		87,935	81,948
Product Revenues | Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		48,663	45,877
Product Revenues | Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		39,272	36,071
Service Revenues
Segment Reporting Information [Line Items]
Product revenues to external customers		21,390	19,476
Service Revenues | Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		5,522	5,144
Service Revenues | Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		$ 15,868	$ 14,332
[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.

Segment Information and Geogr_4

Segment Information and Geographic Data - Additional Information (Detail)	3 Months Ended
	Aug. 31, 2020Segment
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	2

Disaggregated Revenue by Geogra

Disaggregated Revenue by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Revenues by Geographic Location [Line Items]
Total revenue	$ 109,325	$ 101,424
Domestic
Revenues by Geographic Location [Line Items]
Total revenue	67,324	63,340
International
Revenues by Geographic Location [Line Items]
Total revenue	$ 42,001	$ 38,084

Stock Option Activity (Detail)

Stock Option Activity (Detail)	3 Months Ended
	Aug. 31, 2020$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Beginning Balance | shares	2,162,000
Options, Granted | shares	0
Options, Exercised | shares	(86,000)
Options, Forfeited | shares	(7,000)
Options Outstanding, Ending Balance | shares	2,069,000
Weighted-Average Exercise Price, Beginning Balance | $ / shares	$ 55.96
Weighted-Average Exercise Price, Granted | $ / shares	0
Weighted-Average Exercise Price, Exercised | $ / shares	48.39
Weighted-Average Exercise Price, Forfeited | $ / shares	57.81
Weighted-Average Exercise Price, Ending Balance | $ / shares	$ 56.27

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail)	3 Months Ended
	Aug. 31, 2020
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate	1.90%
Expected dividend yield	0.00%
Expected stock price volatility	29.40%
Expected option life (in years)	3 years 6 months

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Aug. 31, 2020	Aug. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share of stock options granted	$ 15.56
Compensation expense related to share based awards	$ 1,681,000	$ 1,543,000
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%
Employee stock purchase plan stock price percentage	10.00%
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

Business and Product Line Acq_2

Business and Product Line Acquisitions - Additional Information (Detail) - USD ($)	Jul. 31, 2020	Mar. 26, 2020	Feb. 28, 2020	Jan. 31, 2020	Jan. 09, 2020	Jan. 01, 2020	Aug. 31, 2020
Business Acquisition [Line Items]
Purchase price allocation for inventory		$ 164,000
Purchase price allocation for other current liabilities						$ 11,000
Abtek Biologicals Limited
Business Acquisition [Line Items]
Cash consideration for purchase of business				$ 1,401,000
Purchase price allocation for accounts receivable				135,000
Purchase price allocation for inventory				207,000
Purchase price allocation for land, property and equipment				105,000
Purchase price allocation for intangible assets				484,000
Purchase price allocation for accounts payable				118,000
Purchase price allocation for deferred tax liability				92,000
Purchase price allocation for other current liabilities				34,000
Cash payable to former owner for purchase of business				119,000
Cash paid for purchase of business				$ 1,282,000
Cash payable to former owner for purchase of business, due date				Jan. 31, 2021
Purchase price allocation for Prepaid Expenses				$ 6,000
Chile-based Magiar Chilena
Business Acquisition [Line Items]
Cash consideration for purchase of business		400,000
Purchase price allocation for land, property and equipment		53,000
Purchase price allocation for intangible assets		183,000
Cash payable to former owner for purchase of business		50,000
Cash paid for purchase of business		$ 350,000
Cash payable to former owner for purchase of business, due date		Mar. 26, 2021
Beef Cattle And Related Assets [Member]
Business Acquisition [Line Items]
Cash consideration for purchase of business	$ 2,351,000
Purchase price allocation for inventory	51,000
Purchase price allocation for intangible assets	$ 2,300,000
Finite lived intangible assets, useful life	15 years
ARGENTINA | Productos Quimicos Magiar
Business Acquisition [Line Items]
Cash consideration for purchase of business						3,776,000
Contingent consideration potential payment						979,000
Purchase price allocation for accounts receivable						603,000
Purchase price allocation for inventory						446,000
Purchase price allocation for land, property and equipment						36,000
Allocation of purchase price for contingent consideration potential payment						640,000
Purchase price allocation for intangible assets						1,471,000
Purchase price allocation for accounts payable						383,000
Purchase price allocation for deferred tax liability						441,000
Purchase price allocation for other current liabilities						312,000
Cash payable to former owner for purchase of business						540,000
Cash paid for purchase of business						$ 3,237,000
Cash payable to former owner for purchase of business, due date						Jan. 1, 2022
Purchase price allocation for other current assets						$ 221,000
URUGUAY | Productos Quimicos Magiar
Business Acquisition [Line Items]
Cash consideration for purchase of business						1,488,000
Contingent consideration potential payment						241,000
Purchase price allocation for accounts receivable						280,000
Purchase price allocation for inventory						174,000
Purchase price allocation for land, property and equipment						16,000
Allocation of purchase price for contingent consideration potential payment						159,000
Purchase price allocation for intangible assets						398,000
Purchase price allocation for accounts payable						204,000
Purchase price allocation for deferred tax liability						99,000
Cash payable to former owner for purchase of business						210,000
Cash paid for purchase of business						$ 1,278,000
Cash payable to former owner for purchase of business, due date						Jan. 1, 2022
Purchase price allocation for other current assets						$ 68,000
ITALY | Diessechem Srl
Business Acquisition [Line Items]
Cash consideration for purchase of business					$ 3,455,000
Purchase price allocation for accounts receivable					780,000
Purchase price allocation for inventory					5,000
Purchase price allocation for intangible assets					1,225,000
Purchase price allocation for accounts payable					140,000
Purchase price allocation for deferred tax liability					294,000
Purchase price allocation for other current liabilities					305,000
Purchase price allocation for other current assets					$ 160,000
AUSTRALIA | Cell BioSciences
Business Acquisition [Line Items]
Cash consideration for purchase of business			$ 3,768,000
Purchase price allocation for inventory			420,000
Allocation of purchase price for contingent consideration potential payment			13,000
Purchase price allocation for intangible assets			1,338,000
Cash payable to former owner for purchase of business			172,000
Cash paid for purchase of business			$ 3,596,000
Minimum
Business Acquisition [Line Items]
Finite lived intangible assets, useful life							5 years
Minimum | Abtek Biologicals Limited
Business Acquisition [Line Items]
Finite lived intangible assets, useful life				5 years
Minimum | Chile-based Magiar Chilena
Business Acquisition [Line Items]
Finite lived intangible assets, useful life		5 years
Minimum | ARGENTINA | Productos Quimicos Magiar
Business Acquisition [Line Items]
Finite lived intangible assets, useful life						5 years
Minimum | URUGUAY | Productos Quimicos Magiar
Business Acquisition [Line Items]
Finite lived intangible assets, useful life						5 years
Minimum | ITALY | Diessechem Srl
Business Acquisition [Line Items]
Finite lived intangible assets, useful life					5 years
Minimum | AUSTRALIA | Cell BioSciences
Business Acquisition [Line Items]
Finite lived intangible assets, useful life			3 years
Maximum
Business Acquisition [Line Items]
Finite lived intangible assets, useful life							25 years
Maximum | Abtek Biologicals Limited
Business Acquisition [Line Items]
Finite lived intangible assets, useful life				10 years
Maximum | Chile-based Magiar Chilena
Business Acquisition [Line Items]
Finite lived intangible assets, useful life		10 years
Maximum | ARGENTINA | Productos Quimicos Magiar
Business Acquisition [Line Items]
Finite lived intangible assets, useful life						10 years
Maximum | URUGUAY | Productos Quimicos Magiar
Business Acquisition [Line Items]
Finite lived intangible assets, useful life						10 years
Maximum | ITALY | Diessechem Srl
Business Acquisition [Line Items]
Finite lived intangible assets, useful life					10 years
Maximum | AUSTRALIA | Cell BioSciences
Business Acquisition [Line Items]
Finite lived intangible assets, useful life			10 years

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2020	May 31, 2021	May 31, 2020
Debt Instrument [Line Items]
Unsecured revolving line of credit, total amount available	$ 15,000,000
Unsecured revolving line of credit, maturity date	Sep. 30, 2021
Unsecured revolving line of credit, interest terms	LIBOR plus 100 basis points
Unsecured revolving line of credit, interest rate	1.20%
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%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Aug. 31, 2020	May 31, 2020	Aug. 31, 2019	May 31, 2019
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		$ 100,000
Minimum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	$ 38,000
Maximum
Commitments and Contingencies Disclosure [Line Items]
Environmental remediation expense	$ 131,000