Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
May 31, 2021 | Jun. 30, 2021 | Nov. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Trading Symbol | NEOG | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 3,951,774,000 | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 107,477,445 | ||
Entity File Number | 0-17988 | ||
Title of 12(g) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 38-2367843 | ||
Entity Address, Address Line One | 620 Lesher Place | ||
Entity Address, State or Province | MI | ||
Local Phone Number | 372-9200 | ||
Entity Address, City or Town | Lansing | ||
City Area Code | 517 | ||
Entity Address, Postal Zip Code | 48912 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 75,602 | $ 66,269 |
Marketable securities | 305,485 | 277,404 |
Accounts receivable, net of allowance of $1,400 and $1,350 at May 31, 2021 and 2020, respectively | 91,823 | 84,681 |
Inventories | 100,701 | 95,053 |
Prepaid expenses and other current assets | 17,840 | 13,999 |
Total Current Assets | 591,451 | 537,406 |
Property and Equipment | ||
Land and improvements | 7,783 | 5,456 |
Building and improvements | 72,754 | 48,881 |
Machinery and equipment | 108,194 | 90,351 |
Furniture and fixtures | 6,270 | 4,324 |
Construction in progress | 3,261 | 4,968 |
Property, Plant and Equipment, Gross | 198,262 | 153,980 |
Less accumulated depreciation | (97,809) | (75,309) |
Net Property and Equipment | 100,453 | 78,671 |
Other Assets | ||
Right of use assets | 2,477 | 1,952 |
Goodwill | 131,476 | 110,340 |
Other non-amortizable intangible assets | 15,545 | 15,217 |
Amortizable intangible assets, net of accumulated amortization of $53,462 and $44,690 at May 31, 2021 and 2020, respectively | 76,771 | 51,364 |
Other non-current assets | 2,019 | 2,232 |
Total Other Assets | 228,288 | 181,105 |
Total Assets | 920,192 | 797,182 |
Current Liabilities | ||
Accounts payable | 23,900 | 25,650 |
Accrued compensation | 11,251 | 7,735 |
Income taxes | 1,848 | 1,456 |
Other accruals | 16,600 | 13,648 |
Total Current Liabilities | 53,599 | 48,489 |
Deferred Income Taxes | 21,917 | 18,125 |
Other Non-Current Liabilities | 4,299 | 5,391 |
Total Liabilities | 79,815 | 72,005 |
Commitments and Contingencies (note 7) | ||
Stockholders' Equity | ||
Preferred stock, $1.00 par value — shares authorized 100,000; none issued and outstanding | 0 | 0 |
Common stock, $0.16 par value — shares authorized 120,000,000; 107,468,304 and 105,891,682 shares issued and outstanding at May 31, 2021 and 2020, respectively | 17,195 | 16,943 |
Additional paid-in capital | 294,953 | 249,221 |
Accumulated other comprehensive loss | (11,375) | (19,709) |
Retained earnings | 539,604 | 478,722 |
Total Neogen Corporation and Subsidiaries Stockholders' Equity | 840,377 | 725,177 |
Total Liabilities and Stockholders' Equity | $ 920,192 | $ 797,182 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Accounts receivable, allowance | $ 1,400 | $ 1,350 |
Accumulated Amortization | $ 53,462 | $ 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 | 107,468,304 | 105,891,682 |
Common stock, shares outstanding | 107,468,304 | 105,891,682 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Revenues | |||
Total Revenues | $ 468,459 | $ 418,170 | $ 414,186 |
Cost of Revenues | |||
Total Cost of Revenues | 253,403 | 221,891 | 222,266 |
Gross Margin | 215,056 | 196,279 | 191,920 |
Operating Expenses | |||
Sales and marketing | 73,443 | 69,675 | 70,230 |
General and administrative | 51,197 | 44,331 | 40,791 |
Research and development | 16,247 | 14,750 | 12,805 |
Total Operating Expenses | 140,887 | 128,756 | 123,826 |
Operating Income | 74,169 | 67,523 | 68,094 |
Other Income | |||
Interest income, net | 1,614 | 5,992 | 4,683 |
Royalty income | 150 | ||
Other, net | (515) | (1,210) | 32 |
Total Other Income | 1,099 | 4,782 | 4,865 |
Income Before Income Taxes | 75,268 | 72,305 | 72,959 |
Provision for Income Taxes | 14,386 | 12,830 | 12,783 |
Net Income | $ 60,882 | $ 59,475 | $ 60,176 |
Net Income per Share | |||
Basic | $ 0.57 | $ 0.57 | $ 0.58 |
Diluted | $ 0.57 | $ 0.56 | $ 0.57 |
Weighted Average Shares Outstanding | |||
Basic | 106,499 | 105,100 | 103,776 |
Diluted | 107,120 | 105,720 | 104,850 |
Product Revenues | |||
Revenues | |||
Total Revenues | $ 376,302 | $ 335,539 | $ 339,439 |
Cost of Revenues | |||
Total Cost of Revenues | 201,348 | 173,566 | 179,660 |
Service Revenues | |||
Revenues | |||
Total Revenues | 92,157 | 82,631 | 74,747 |
Cost of Revenues | |||
Total Cost of Revenues | $ 52,055 | $ 48,325 | $ 42,606 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Net Income | $ 60,882 | $ 59,475 | $ 60,176 |
Other comprehensive income (loss), net of tax: foreign currency translations | 8,602 | (8,495) | (1,894) |
Other comprehensive income (loss), net of tax: unrealized gain on marketable securities | (268) | 426 | |
Comprehensive income | $ 69,216 | $ 51,406 | $ 58,282 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Megazyme Ltd And Subsidiary Megazyme Inc [Member] | Common Stock | Common StockMegazyme Ltd And Subsidiary Megazyme Inc [Member] | Additional Paid-in Capital | Additional Paid-in CapitalMegazyme Ltd And Subsidiary Megazyme Inc [Member] | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non - Controlling Interest |
Beginning Balance at May. 31, 2018 | $ 560,175 | $ 16,555 | $ 194,295 | $ 359,071 | $ 0 | ||||
Beginning Balance (in shares) at May. 31, 2018 | 103,471,464 | ||||||||
Exercise of options and share-based compensation expense | 21,417 | $ 164 | 21,253 | $ (9,746) | |||||
Exercise of options and share-based compensation expense (in shares) | 1,025,054 | ||||||||
Issuance of shares under employee stock purchase plan | $ 1,160 | $ 6 | 1,154 | ||||||
Issuance of shares under employee stock purchase plan (in shares) | 36,660 | 36,660 | |||||||
Shares repurchased | $ (3,135) | $ (16) | (3,119) | ||||||
Shares repurchased (in shares) | (100,000) | ||||||||
Net income | 60,176 | 60,176 | 0 | ||||||
Other comprehensive gain | (1,894) | (1,894) | |||||||
Ending Balance at May. 31, 2019 | 637,899 | $ 16,709 | 213,583 | (11,640) | 419,247 | $ 0 | |||
Ending Balance (in shares) at May. 31, 2019 | 104,433,178 | ||||||||
Exercise of options and share-based compensation expense | 34,679 | $ 227 | 34,452 | ||||||
Exercise of options and share-based compensation expense (in shares) | 1,415,348 | ||||||||
Issuance of shares under employee stock purchase plan | $ 1,193 | $ 7 | 1,186 | ||||||
Issuance of shares under employee stock purchase plan (in shares) | 43,156 | 43,156 | |||||||
Net income | $ 59,475 | 59,475 | |||||||
Other comprehensive gain | (8,069) | (8,069) | |||||||
Ending Balance at May. 31, 2020 | $ 725,177 | $ 16,943 | 249,221 | (19,709) | 478,722 | ||||
Ending Balance (in shares) at May. 31, 2020 | 105,891,682 | 105,891,682 | |||||||
Exercise of options and share-based compensation expense | $ 39,680 | $ 226 | 39,454 | ||||||
Exercise of options and share-based compensation expense (in shares) | 1,410,948 | ||||||||
Issuance of shares under employee stock purchase plan | $ 1,388 | $ 6 | 1,382 | ||||||
Issuance of shares under employee stock purchase plan (in shares) | 38,406 | 38,406 | |||||||
Issuance of shares for Megazyme acquisition | $ 4,916 | $ 20 | $ 4,896 | ||||||
Issuance of shares for Megazyme acquisition (in shares) | 127,268 | ||||||||
Net income | $ 60,882 | 0 | 60,882 | ||||||
Other comprehensive gain | 8,334 | 8,334 | |||||||
Ending Balance at May. 31, 2021 | $ 840,377 | $ 17,195 | $ 294,953 | $ (11,375) | $ 539,604 | ||||
Ending Balance (in shares) at May. 31, 2021 | 107,468,304 | 107,468,304 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Cash Flows From Operating Activities | |||
Net income | $ 60,882 | $ 59,475 | $ 60,176 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 21,041 | 18,396 | 17,624 |
Deferred income taxes | (640) | 1,601 | 1,197 |
Share-based compensation | 6,437 | 6,468 | 5,543 |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Accounts receivable | (2,595) | (2,881) | (4,025) |
Inventories | 2,450 | (10,011) | (10,437) |
Prepaid expenses and other assets | (3,386) | (1,017) | (3,569) |
Accounts payable | (3,206) | 6,745 | (1,461) |
Accruals and other changes | 106 | 7,102 | (1,206) |
Net Cash From Operating Activities | 81,089 | 85,878 | 63,842 |
Cash Flows Used for Investing Activities | |||
Purchase of property, equipment and other non-current intangible assets | (26,712) | (24,052) | (14,661) |
Proceeds from the maturities of marketable securities | 764,597 | 406,731 | 339,225 |
Purchase of marketable securities | (792,678) | (458,300) | (437,324) |
Business acquisitions, net of cash acquired | (50,771) | (13,164) | (6,388) |
Net Cash Used for Investing Activities | (105,564) | (88,785) | (119,148) |
Cash Flows From Financing Activities | |||
Exercise of stock options and other | 34,631 | 29,405 | 17,034 |
Payment of contingent consideration | (1,087) | ||
Repurchase of common stock | (3,135) | ||
Net Cash From Financing Activities | 33,544 | 29,405 | 13,899 |
Effects of Foreign Exchange Rate on Cash | 264 | (1,917) | 21 |
Net Increase (Decrease) in Cash and Cash Equivalents | 9,333 | 24,581 | (41,386) |
Cash and Cash Equivalents, Beginning of Year | 66,269 | 41,688 | 83,074 |
Cash and Cash Equivalents, End of Year | 75,602 | 66,269 | 41,688 |
Supplementary Cash Flow Information | |||
Income taxes paid, net of refunds | $ 14,966 | $ 7,364 | $ 13,027 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2021 | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations Neogen Corporation develops, manufactures and markets a diverse line of products and services dedicated to food and animal safety. Basis of Consolidation The consolidated financial statements include the accounts of Neogen Corporation and its subsidiaries, all of which are wholly-owned as of May 31, 2021. All intercompany accounts and transactions have been eliminated in consolidation. Share and per share amounts reflect the June 4 , 2021 2-for-1 stock split as if it took place at the beginning of the periods presented. Functional Currency 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): Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, FASB issued Update 2020-04, Income Tax Simplification In December 2019, the Financial Accounting Standards Board (“FASB”) issued Update 2019-12, 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 stockholders’ equity. Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on our marketable securities. Changes in our Accumulated Other Comprehensive Income (Loss) (“AOCI”) balances, net of tax, were as follows: (in thousands) Foreign Currency Unrealized Gain on Total AOCI Balance, May 31, 2019 $ (11,640 ) $ — $ (11,640 ) Other comprehensive income (loss) (8,495 ) 426 (8,069 ) Balance, May 31, 2020 $ (20,135 ) $ 426 $ (19,709 ) Other comprehensive income (loss) 8,602 (268 ) 8,334 Balance, May 31, 2021 $ (11,533 ) $ 158 $ (11,375 ) 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. 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 $75,602,000 and $66,269,000 at May 31, 2021 and 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. Cash held by foreign subsidiaries was $15,246,000 and $13,060,000 at May 31, 2021 and 2020, respectively. Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2021, consisting of short-term domestic certificates of deposit of $5,785,000 and commercial paper and corporate bonds rated at least A-1/P-1 (short-term) and A/A2 (long-term) with original maturities between in marketable securities outstanding at May 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. As these securities are highly rated and short-term in nature, they have very little credit risk; therefore, the Company does not believe a reserve for expected credit losses on marketable securities is material. 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 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 our consolidated statements of income. Adjustments in the fair value of these assets are recorded in other comprehensive income. Marketable Securities as of May 31, 2021 and 2020 are listed below by classification and remaining maturities . Year ended May 31 (in thousands) Maturity 2021 2020 US Treasuries 0 - 90 $ — $ — 91 -180 — — 181 days - 1 year — 2,532 1 - 2 years — — Commercial Paper & Corporate Bonds 0 - 90 days 106,631 133,130 91 - 180 days 78,727 73,824 181 days - 1 year 87,590 43,231 1 - 2 years 26,752 7,839 Certificates of Deposit 0 - 90 days 3,262 1,003 91 - 180 days 1,260 5,184 181 days - 1 year 1,263 6,069 1 - 2 years — 4,592 Total Marketable Securities $ 305,485 $ 277,404 The components of marketable securities as of (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value US Treasuries $ — $ — $ — $ — Commercial Paper & Corporate Bonds 299,524 209 (33 ) 299,700 Certificates of Deposit 5,755 30 — 5,785 Total Marketable Securities $ 305,279 $ 239 $ (33 ) $ 305,485 The components of marketable securities as of 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 Use of Estimates The preparation of these consolidated 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 COVID-19 Accounts Receivable and Concentrations of Credit Risk Financial instruments which potentially subject Neogen to concentrations of credit risk consist principally of accounts receivable. Management attempts to minimize credit risk by reviewing customers’ credit histories before extending credit and by monitoring credit exposure on a regular basis. Collateral or other security is generally not required for accounts receivable. We maintain an allowance for customer accounts that reduces receivables to amounts that are expected to be collected. In estimating the allowance for doubtful accounts, management considers relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets. 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. No customer accounted for more than of accounts receivable at May 31, 2021 or 2020, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in thousands) 2021 2020 2019 Beginning Balance $ 1,350 $ 1,700 $ 1,550 Provision 239 393 263 Recoveries 139 49 38 Write-offs (328 ) (792 ) (151 ) Ending Balance $ 1,400 $ 1,350 $ 1,700 Inventories Inventories are stated at the lower of cost or net realizable value, determined on the first-in, first-out Year ended May 31 (in thousands) 2021 2020 Raw Materials $ 47,588 $ 45,058 Work-in-process 6,412 6,887 Finished goods 46,701 43,108 $ 100,701 $ 95,053 The Company’s inventories are analyzed for slow moving, expired and obsolete items on a quarterly basis and the valuation allowance is adjusted as required within cost of sales expense. The valuation allowance for inventory was $3,100,000 and $2,850,000 at May 31, 2021 and 2020, respectively. Property and Equipment Property and equipment is stated at cost. Expenditures for major improvements are capitalized while repairs and maintenance are charged to expense as incurred. Depreciation is provided on the straight-line method over the estimated useful lives of the respective assets, which are generally seven three Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete non-amortizable 2021 If the carrying amounts of these assets are deemed to be less than fair value based upon a discounted cash flow analysis and comparison to comparable earnings multiples of peer companies, such assets are reduced to their estimated fair value and a charge is made to operations. No goodwill impairments were identified during the years ended May 31, 2021, 2020 and 2019, respectively. The remaining weighted-average amortization period for intangibles was 10 years and 9 years at May 31, 2021 and May 31, 2020, respectively. Long-lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset are less than the carrying value of the asset. In such an event, fair value is determined using discounted cash flows, and if lower than the carrying value, impairment is recognized through a charge to operations. No impairments of long-lived assets were identified during the years ended May 31, 2021, 2020 and 2019, respectively. Reclassifications Certain immaterial amounts in the fiscal 2020 and 2019 consolidated financial statements have been reclassified to conform with the fiscal 2021 presentation. Equity Compensation Plans At May 31, 2021, the Company had stock option plans which are described more fully in Note 5 to the consolidated financial statements. The weighted-average fair value per share of stock options granted during fiscal years 2021, 2020 and 2019, estimated on the date of grant using the Black-Scholes option pricing model, was $7.71, $7.78 and $7.46, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2021 2020 2019 Risk-free interest rate 0.2 % 1.9 % 2.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected stock volatility 31.3 % 29.4 % 27.0 % Expected option life 3.25 years 3.5 years 3.5 years The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on historical volatility of the Company’s stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. We include recent historical experience in estimating our forfeitures. As employees terminate, grant tranches expire or as forfeitures are known, estimated expense is adjusted to actual. For options granted in fiscal years 2021, 2020 and 2019, the Company recorded charges in general and administrative expense based on the fair value of stock options using the straight-line method over the vesting period, generally five years. The Company also issues restricted stock units (RSUs), which are described more fully in Note 5 to the consolidated financial statements. The RSUs generally vest over three Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit 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. Our wholly-owned foreign subsidiaries are comprised of Neogen Europe, Quat-Chem Ltd, Megazyme Ltd, Megazyme IP, Neogen Italia S.r.l., Neogen do Brasil, Rogama Industria e Comercio Ltda, Neogen Latinoamérica, Neogen Argentina, Neogen Uruguay, Neogen Chile SpA, Neogen Bio-Scientific re-invested re-evaluation re-invest Research and Development Costs Research and development costs, which consist primarily of compensation costs, administrative expenses and new product development, among other items, are expensed as incurred. Advertising Costs Advertising costs are expensed within sales and marketing as incurred and totaled $1,687,000, $1,454,000 and $1,471,000 in fiscal years 2021, 2020 and 2019, respectively. Net Income per Share Basic net income per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is based on the weighted average number of common shares and dilutive potential common shares outstanding. Our dilutive potential common shares outstanding during the years result entirely from dilutive stock options. The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2021 2020 2019 Numerator for basic and diluted net income per share — Net Income $ 60,882 $ 59,475 $ 60,176 Denominator for basic net income per share — Weighted average shares 106,499 105,100 103,776 Effect of dilutive stock options 621 620 1,074 Denominator for diluted net income per share 107,120 105,720 104,850 Net income attributable to Neogen per share Basic $ 0.57 $ 0.57 $ 0.58 Diluted $ 0.57 $ 0.56 $ 0.57 At May 31, 2021, no potential shares from option exercises were excluded from the computation of diluted net income per share, as the option exercise prices did not exceed the average market price of the common shares. Leases On June 1, 2019, we adopted Topic 842 using the prospective approach and did not retrospectively apply to prior periods. 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 lease liabilities Right-of-use non-current non-current 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 of 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. 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 : , • 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 our estimate of 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: Year ended May 31 (in thousands) 2021 2020 Rights of use—assets $ 2,477 $ 1,952 Lease liabilities—current 1,285 1,054 Lease liabilities—non-current 1,207 913 The weighted average remaining lease term and weighted average discount rate were as follows: Year ended May 31 2021 2020 Weighted average remaining lease term 2 years 2.5 years Weighted average discount rate 2.0% 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: Year ended May 31 (in thousands) 2021 2020 Operating leases $ 1,352 $ 1,207 Short term leases 134 166 Total lease expense $ 1,486 $ 1,373 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 was approximately $1,397,000, and $1,633,000 for the years ended May 31, 2021, 2020 and 2019, respectively. There were non-cash right-of-use Maturities of operating lease liabilities as of May 31, 2021 are as follows: (in thousands) Amount Years ending May 31, 202 2 $ 1,313 2023 874 2024 345 2025 42 2026 — Total lease payments $ 2,574 Less: imputed interest (82 ) Total lease liabilities $ 2,492 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 or 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; these expenses totaled $15,180,000, $13,514,000 and $13,503,000 in fiscal years 2021, 2020 and 2019, respectively. 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 primarily 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. Revenue for Neogen’s 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 years ended May 31, 2021, 2020 and 2019: Year Ended (dollars in thousands) May 31, 2021 Change May 31, 2020 Change May 31, 2019 Food Safety: Natural Toxins, Allergens & Drug Residues $ 76,614 1 % $ 76,207 (3 %) $ 78,373 Bacterial & General Sanitation 44,009 5 % 41,780 (0 %) 41,966 Culture Media & Other 56,922 19 % 47,847 (4 %) 49,857 Rodenticides, Insecticides & Disinfectants 36,542 26 % 28,890 13 % 25,584 Genomics Services 20,157 12 % 17,967 2 % 17,694 $ 234,244 10 % $ 212,691 (0 %) $ 213,474 Animal Safety: Life Sciences 5,715 (10 % ) 6,322 (20 %) 7,858 Veterinary Instruments & Disposables 48,128 12 % 42,941 (4 %) 44,582 Animal Care & Other 35,897 26 % 28,389 (5 %) 29,941 Rodenticides, Insecticides & Disinfectants 77,458 13 % 68,815 4 % 66,389 Genomics Services 67,017 14 % 59,012 14 % 51,942 $ 234,215 14 % $ 205,479 2 % $ 200,712 Total Revenue $ 468,459 12 % $ 418,170 1 % $ 414,186 See Note 9 to the consolidated financial statements for disaggregated revenues by geographical location. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 31, 2021 | |
Goodwill and Other Intangible Assets | 2. Goodwill and Other Intangible Assets Management completed the annual impairment analysis of goodwill and intangible assets with indefinite lives using a quantitative assessment as of the first day of the fourth quarter of fiscal years 2021, 2020 and 2019, respectively, and determined that recorded amounts were not impaired and that no write-down was necessary. The following table summarizes goodwill by reportable segment: (in thousands) Food Safety Animal Safety Total Balance, May 31, 2019 $ 42,553 $ 61,066 $ 103,619 Goodwill acquired 6,254 2,095 8,349 Goodwill and/or currency adjustments (1) (1,592 ) (36 ) (1,628 ) Balance, May 31, 2020 $ 47,215 $ 63,125 $ 110,340 Goodwill acquired 18,775 — 18,775 Goodwill and/or currency adjustments (1) 1,832 529 2,361 Balance, May 31, 2021 $ 67,822 $ 63,654 $ 131,476 (1) Includes final purchase price allocation adjustments and currency adjustments for goodwill recorded at international locations. At May 31, 2021, non-amortizable non-amortizable Amortizable intangible assets consisted of the following and are included in customer-based intangibles and other non-current (in thousands) Gross Less Net Licenses $ 16,913 $ 4,580 $ 12,333 Covenants not to compete 1,006 571 435 Patents 8,363 4,243 4,120 Customer-based intangibles 76,384 35,209 41,175 Other products and service-related intangibles 27,567 8,859 18,708 Balance, May 31, 2021 $ 130,233 $ 53,462 $ 76,771 Licenses $ 10,346 $ 3,330 $ 7,016 Covenants not to compete 706 407 299 Patents 8,509 4,118 4,391 Customer-based intangibles 59,847 29,898 29,949 Other products and service-related intangibles 16,646 6,937 9,709 Balance, May 31, 2020 $ 96,054 $ 44,690 $ 51,364 Amortization expense for intangibles totaled $7,753,000, $6,489,000 and $6,309,000 in fiscal years 2021, 2020, and 2019, respectively. The estimated amortization expense for each of the five succeeding fiscal years is as follows: $8,331,000 in 2022, $7,639,000 in 2023, $7,335,000 in 2024, $7,007,000 in 2025 and $6,943,000 in 2026. The amortizable intangible assets useful lives are 2 to 20 years for licenses, 2 to 13 years for covenants not to compete, 5 to 25 years for patents, 5 to 20 years for customer-based intangibles and 5 to 20 years for other product and service-related intangibles, which primarily consist of product formulations. All definite-lived intangibles are amortized on a straight-line basis with the exception of definite-lived customer-based intangibles and product and service-related intangibles, which are amortized on either a straight-line or an accelerated basis. |
Business Combinations
Business Combinations | 12 Months Ended |
May 31, 2021 | |
Business Combinations | 3. Business Combinations The Consolidated Statements of Income reflect the results of operations for business acquisitions since the respective dates of purchase. All are accounted for using the acquisition method. Goodwill recognized in the acquisitions described below relates primarily to enhancing the Company’s strategic platform for the expansion of available product offerings. Fiscal 2019 On August 1, 2018, the Company acquired all of the stock of Clarus Labs, Inc., a manufacturer of water testing products. Neogen has distributed Clarus’ Colitag water test to the food and beverage industries since 2004; this acquisition has given the Company the ability to sell this product to new markets. Consideration for the purchase was $4,204,000 in cash and $1,256,000 of contingent consideration, due semiannually for the first five 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 inventory of $32,000, machinery and equipment of $120,000, accounts payable of $53,000, contingent consideration accrual of $1,256,000, non-current non-amortizable 5-15 (non-deductible . On September 4, 2018, the Company acquired the assets of Livestock Genetic Services, LLC, a Virginia-based company that specializes in genetic evaluations and data management for cattle breeding organizations. Livestock Genetic Services had been a long-time strategic partner of Neogen and the acquisition enhanced the Company’s in-house 5-15 in contingent consideration based on the achievement of sales targets in the first year. In November 2020, the former owner was paid $100,000 in contingent consideration based on the achievement of sales targets in the second year; the accrual was adjusted to the expected payment for the final year and, as a result, $37,000 was recorded as a gain in Other Income. Services provided by this operation are now performed at the Company’s Lincoln, Nebraska location, reporting within the Animal Safety segment. On January 1, 2019, the Company acquired the assets of Edmonton, Alberta based Delta Genomics Centre, an animal genomics laboratory in Canada. Delta’s laboratory operations were renamed Neogen Canada and the acquisition was intended to accelerate growth of the Company’s animal genomics business in Canada. Consideration for the purchase was $1,485,000 in cash. The final purchase price allocation, based upon the fair value of these assets and liabilities determined using the income approach, included inventory of $38,000, machinery and equipment of $371,000, unearned revenue liability of $125,000, intangible assets of $532,000 (with an estimated life of 5 to 10 years) and the remainder to goodwill (deductible for tax purposes). These values are Level 3 fair value measurements. Services provided by this operation continue to be performed in Edmonton, reporting within the Animal Safety segment. Fiscal 2020 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 final purchase non-current 5-10 years) and the remainder to goodwill (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 final purchase non-current 5-10 On January 9, 2020, the Company acquired all of the stock of Diessechem Srl, a distributor of food and feed diagnostics for the past 27 years, located in Italy. This acquisition gives Neogen a direct sales presence in Italy. Consideration for the purchase was $3,455,000 in net cash. The final purchase 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 January 31, 2021. The final purchase non-current 5-10 (non-deductible The final $119,000 owed was paid to the former owner in January 2021. This manufacturing operation continues to operate from its current location in Liverpool, England, reporting within the Food Safety segment. It is managed through Neogen’s Scotland operation. On February 28, 2020, the Company acquired the assets of Cell BioSciences, an Australian distributor of food safety and industrial microbiology products. This acquisition gives The final purchase and the remainder to goodwill (non-deductible for tax purposes). These values are Level 3 fair value measurements. The final $172,000 owed was paid to the former owner in March 2021. The business operates in Gatton, Australia, reporting within the Australian operations in the Animal Safety segment. 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 final purchase 5-10 Fiscal 2021 On July 31, 2020, the Company acquired the U.S. (including territories) rights to Elanco’s StandGuard Pour-on The final purchase On December 30, 2020, the Company acquired all of the stock of Megazyme, Ltd, an Ireland-based company, and its wholly-owned subsidiaries, U.S.-based Megazyme, Inc. and Ireland-based Megazyme IP. Megazyme is a manufacturer and supplier of diagnostic assay kits and enzymes to measure dietary fiber, complex carbohydrates and enzymes in food and beverages as well as animal feeds. This acquisition will allow Neogen to expand its commercial relationships across food, feed and beverage companies, and provide additional food quality diagnostic products to commercial labs and food science research institutions. Consideration for the purchase was net cash of million of cash placed in escrow payable to the former owner in two installments in two and four years, non-current liabilities of $319,000, non-current 15-20 (non-deductible The Irish companies continue to operate from their current locations in Bray, Ireland, reporting within the Food Safety segment and are managed through Neogen’s Scotland operation. The U.S. company’s business is managed by our Lansing-based Food Safety team. 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 | 12 Months Ended |
May 31, 2021 | |
Long Term Debt | 4. Long-Term Debt The Company has a financing agreement with a bank providing for a unsecured revolving line of credit, which was amended in the second quarter to extend the expiration to at May 31, 2021). See Note 1, Recent Accounting Pronouncements Not Yet Adopted, for information on reference rate reform. Financial covenants include maintaining specified levels of tangible net worth, debt service coverage, and funded debt to EBITDA; the Company believes it was in compliance with these covenants at May 31, 2021. |
Equity Compensation Plans
Equity Compensation Plans | 12 Months Ended |
May 31, 2021 | |
Equity Compensation Plans | 5. Equity Compensation Plans Incentive and non-qualified three five five (options in thousands) Options Weighted-Average Weighted-Average Outstanding at May 31, 2018 (1,016 exercisable) 4,998 $ 21.32 $ 5.72 Granted 1,054 31.46 7.46 Exercised (1,026 ) 15.64 4.46 Forfeited (256 ) 23.54 6.21 Outstanding at May 31, 2019 (1,234 4,770 24.69 6.35 Granted 1,124 31.96 7.78 Exercised (1,438 ) 20.12 5.53 Forfeited (132 ) 28.72 7.10 Outstanding at May 31, 2020 (972 4,324 27.98 6.98 Granted 403 34.23 7.71 Exercised (1,389 ) 24.38 6.31 Forfeited (381 ) 28.99 7.20 Outstanding at May 31, 2021 (643 2,957 30.38 7.36 The following is a summary of stock options outstanding at May 31, 2021: Options Outstanding Options Exercisable Average (options in thousands) Contractual Life Weighted-Average Weighted-Average Range of Exercise Price Number (in years) Exercise Price Number Exercise Price $10.75 - $20.00 54 3.1 $ 15.65 51 $ 15.45 $20.01 - $30.00 376 1.8 22.55 150 23.07 $30.01 - $31.50 1,150 2.1 30.87 299 30.76 $31.51 - $32.00 898 3.4 31.95 101 31.95 $32.01 - $35.28 479 4.1 34.07 42 33.53 2,957 2.8 30.38 643 28.10 The weighted average exercise price of shares subject to options that were exercisable at May 31, 2020 and 2019 was Compensation expense related to share-based awards was $6,437,000, $6,468,000 and $5,543,000 in fiscal years 2021, 2020 and 2019, respectively. Remaining compensation cost to be expensed in future periods for non-vested Year Ended (in thousands) May 31, 2021 May 31, 2020 May 31, 2019 Aggregate intrinsic value of options outstanding $ 46,667 $ 32,988 $ 22,798 Aggregate intrinsic value of options exercisable $ 11,617 $ 10,814 $ 10,222 Aggregate intrinsic value of options exerised $ 22,349 $ 19,597 $ 21,382 The Company granted 118,250 restricted stock units (RSUs) to directors, officers and employees under the terms of the 2018 Omnibus Incentive Plan in October 2020, which vest ratably over three non-vested 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. Shares purchased by employees through this program were 38,406 in fiscal 2021 in fiscal 2020 and in fiscal 2019. As of May 31, 2021, common stock totaling authorized shares remained reserved for issuance under the plan. |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2021 | |
Income Taxes | 6. Income Taxes Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2021 2020 2019 U.S. $ 55,753 $ 62,329 $ 58,479 Foreign 19,515 9,976 14,480 $ 75,268 $ 72,305 $ 72,959 The provision for income taxes consists of the following: Year ended May 31 (in thousands) 2021 2020 2019 Current Domestic Federal $ 6,981 $ 6,886 $ 7,173 Change in tax-related uncertainties (75 ) 269 13 State 2,147 1,262 1,265 Foreign 4,875 2,475 3,758 Deferred Domestic Federal 479 1,964 1,031 State 44 195 98 Foreign (65 ) (221 ) (555 ) Provision for Income Taxes $ 14,386 $ 12,830 $ 12,783 The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows: Year ended May 31 (in thousands) 2021 2020 2019 Tax at U.S. statutory rate $ 15,806 $ 15,184 $ 15,321 Permanent differences 292 360 (56 ) Global intangible low-taxed 2,064 438 840 Foreign derived intangible income deduction (FDII) (1,210 ) (1,120 ) (1,531 ) Foreign rate differential 669 (182 ) 495 Subpart F income 628 634 842 Tax benefits on stock-based compensation (2,651 ) (1,998 ) (2,586 ) Changes in tax contingencies—Increase/(Release) (76 ) 269 13 Provision for state income taxes, net of federal benefit 1,601 1,412 1,251 Tax Credits (3,298 ) (1,417 ) (1,726 ) Other 561 (750 ) (80 ) Tax Expense $ 14,386 $ 12,830 $ 12,783 Foreign tax credits, primarily offsetting taxes associated with Subpart F and GILTI income, were $2,753,000, $945,000 and $1,296,000 in fiscal years 2021, 2020 and 2019, respectively. The Company’s research and development credits were $545,000, $472,000 and $430,000 in fiscal years 2021, 2020 and 2019, respectively. Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred income tax liabilities and assets are as follows: Year ended May 31 (in thousands) 2021 2020 Deferred income tax liabilities Indefinite and long-lived assets $ (25,072 ) $ (20,867 ) Prepaid expense s (721 ) (795 ) (25,793 ) (21,662 ) Deferred income tax assets Stock options 1,106 1,479 Inventories and accounts receivable 2,081 1,336 Tax loss carryforwards 662 484 Accrued expenses and other 568 657 Less: valuation allowances (541 ) (419 ) 3,876 3,537 Net deferred income tax liabilities $ (21,917 ) $ (18,125 ) The Company has the following net operating loss carryforwards: (in thousands) As of Jurisdiction 5/31/2021 Expiry U.S. $ 345 2037 to indefinite Foreign 1,938 2024 to 2039 $ 2,283 We are subject to income taxes in the U.S. (federal and state) and in numerous foreign jurisdictions. Significant judgment is required in evaluating our tax positions and determining our provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. We establish reserves for t a n The reconciliation of our tax-related uncertainties is as follows: Year ended May 31 (in thousands) 2021 2020 2019 Beginning balance $ 880 $ 611 $ 598 Increase/(decrease) related to prior periods (272 ) 56 (106 ) Increase related d 197 213 119 Ending balance $ 805 $ 880 $ 611 The Company is no longer subject to examination by the Internal Revenue Service for fiscal year 201 7 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 31, 2021 | |
Commitments and Contingencies | 7. Commitments and Contingencies The Company is involved in environmental remediation and monitoring activities at its Randolph, Wisconsin manufacturing facility and accrues for related costs when such costs are determined to be probable and estimable. The Company currently utilizes a pump and treat remediation strategy, which includes semi-annual monitoring and reporting, consulting, and maintenance of monitoring wells. We expense 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 remaining . In fiscal 2019, the Company performed an updated Corrective Measures Study on the site, per a request from the Wisconsin Department of Natural Resources (WDNR), and is currently in discussion with the WDNR regarding potential alternative remediation strategies going forward. The Company believes that the current pump and treat strategy is appropriate for the site. However, the Company has agreed to a pilot study in which chemical reagents are injected into the ground in an attempt to reduce on-site contamination, and is currently working with its consultant to design the system. At this time, the outcome of the pilot study is unknown, but a change in the current remediation strategy, depending on the alternative selected, could result in an increase in future costs and ultimately, an increase in the currently recorded liability, with an offsetting charge to operations in the period recorded. The Company has recorded $300,000 as a current liability, and the remaining $616,000 is recorded in other non-current liabilities in the consolidated balance sheet. On March 6, 2020, the Company received an administrative subpoena from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) regarding activities or transactions involving parties located in Iran. The Company subsequently conducted an internal investigation under the direction of outside legal counsel and disclosed information concerning certain genomic testing services provided to an unrelated U.S.-based party engaged in veterinary activities involving an Iranian party. The Company continues to cooperate with OFAC’s investigation and is currently examining whether certain of these activities may be eligible for OFAC General Licenses authorizing agricultural and veterinary activities. In addition to responding to the administrative subpoena, the Company is implementing additional compliance measures to prevent inadvertent dealings with restricted countries or parties. These measures will further enhance the Company’s international trade compliance program, which is designed to assure that the Company does not conduct business directly or indirectly with any countries or parties subject to U.S. economic sanctions and export control laws. Although it is too early to predict what action, if any, that OFAC will take, the Company does not currently have any reason to believe that OFAC’s pending investigation will have a material impact on its operations, the results of operations for any future period, or its overall financial condition. In fiscal 2020, the Company took a charge to expense and recorded a reserve of $600,000 to provide for potential fines or penalties on this matter. At this time, the Company believes that it is adequately reserved for this issue. The Company has agreements with unrelated third parties that provide for the payment of royalties on the sale of certain products. Royalty expense, recorded in sales and marketing, under the terms of these agreements was $2,129,000 , 4 5 and 6 . The Company is subject to certain legal and other proceedings in the normal course of business that, in the opinion of management, are not expected to have a material effect on its future results of operations or financial position. |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
May 31, 2021 | |
Defined Contribution Benefit Plan | 8. Defined Contribution Benefit Plan The Company maintains a defined contribution 401(k) benefit plan covering substantially all domestic employees. Employees are permitted to defer compensation up to IRS limits, with Neogen matching 100% of the first 3% of deferred compensation and 50% of the next 2% of deferred compensation. In the first quarter of fiscal 2021, the Company suspended the 401(k) match, while we assessed the potential financial impact of COVID-19 on the Company. The match was restored in September 2020. |
Segment Information
Segment Information | 12 Months Ended |
May 31, 2021 | |
Segment Information | 9. Segment Information The Company has two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants, and insecticides to assist in 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 sales and marketing of our food safety products, and each of these units reports through the Food Safety segment. In recent years, these operations have expanded to offer the Company’s complete line of products and services, including those usually associated with the Animal Safety segment such as cleaners, disinfectants, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing management and are reported through the Food Safety segment. 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 is as follows: (in thousands) Food Safety Animal Safety Corporate and Total Fiscal 2021 Product revenues to external customers $ 209,104 $ 167,198 $ — $ 376,302 Service revenues to external customers 25,140 67,017 — 92,157 Total revenues to external customers 234,244 234,215 — 468,459 Operating income (loss) 33,725 48,685 (8,241 ) 74,169 Depreciation and amortization 11,575 9,466 — 21,041 Total Assets 295,065 244,039 381,088 920,192 Expenditures for long-lived assets 13,730 12,982 — 26,712 Fiscal 2020 Product revenues to external customers $ 189,893 $ 145,646 $ — $ 335,539 Service revenues to external customers 22,798 59,833 — 82,631 Total revenues to external customers 212,691 205,479 — 418,170 Operating income (loss) 33,526 39,051 (5,054 ) 67,523 Depreciation and amortization 10,173 8,223 — 18,396 Total Assets 222,331 231,178 343,673 797,182 Expenditures for long-lived assets 15,867 8,185 — 24,052 Fiscal 2019 Product revenues to external customers $ 190,675 $ 148,764 $ — $ 339,439 Service revenues to external customers 22,799 51,948 — 74,747 Total revenues to external customers 213,474 200,712 — 414,186 Operating income (loss) 39,020 33,875 (4,801 ) 68,094 Depreciation and amortization 9,525 8,099 — 17,624 Total Assets 206,267 221,950 267,523 695,740 Expenditures for long-lived assets 8,916 5,745 — 14,661 (1) Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and non-controlling The following table presents the Company’s revenue disaggregated by geographical location: Year ended May 31 (in thousands) 2021 2020 Domestic $ 285,262 $ 253,458 International 183,197 164,712 Total revenue $ 468,459 $ 418,170 |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
May 31, 2021 | |
Stock Repurchases | 10. Stock Repurchases In October 2018, the Company’s Board of Directors passed a resolution terminating the Company’s prior stock buyback program, which had been approved in December 2008, and authorized a new program to purchase, subject to market conditions, up to 6,000,000 shares of the Company’s common stock. In December 2018, the Company purchased 100,000 shares under the new program in open market transactions for a total price, including commissions, of $3,134,727. Shares acquired under the program were retired. A total of 5,900,000 shares of common stock remained available for repurchase under this program as of May 31, 2021. |
Summary of Quarterly Data (Unau
Summary of Quarterly Data (Unaudited) | 12 Months Ended |
May 31, 2021 | |
Quarterly Financial Information [Text Block] | 11. Summary of Quarterly Data (Unaudited) Quarter Ended (in thousands, except per share) August November February May 2021 Total Revenue $ 109,325 $ 115,000 $ 116,709 $ 127,425 Gross Margin 50,302 53,214 53,849 57,691 Net income 15,860 15,885 13,377 15,760 Basic net income per share $ 0.15 $ 0.15 $ 0.13 $ 0.15 Diluted net income per share $ 0.15 $ 0.15 $ 0.12 $ 0.15 Quarter Ended (in thousands, except per share) August November February May 2020 Total Revenue $ 101,424 $ 107,803 $ 99,869 $ 109,074 Gross Margin 48,194 51,026 45,330 51,729 Net income 14,652 16,276 12,200 16,347 Basic net income per share $ 0.14 $ 0.15 $ 0.12 $ 0.15 Diluted net income per share $ 0.14 $ 0.15 $ 0.11 $ 0.15 Quarterly net income per share is based on weighted-average shares outstanding and potentially dilutive stock options for the specific period and as a result, will not necessarily aggregate to total net income per share as computed for the year as disclosed in the consolidated statements of income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2021 | |
Nature of Operations | Nature of Operations Neogen Corporation develops, manufactures and markets a diverse line of products and services dedicated to food and animal safety. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Neogen Corporation and its subsidiaries, all of which are wholly-owned as of May 31, 2021. All intercompany accounts and transactions have been eliminated in consolidation. Share and per share amounts reflect the June 4 , 2021 2-for-1 stock split as if it took place at the beginning of the periods presented. |
Functional Currency | Functional Currency 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): |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, FASB issued Update 2020-04, Income Tax Simplification In December 2019, the Financial Accounting Standards Board (“FASB”) issued Update 2019-12, |
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 stockholders’ equity. Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on our marketable securities. Changes in our Accumulated Other Comprehensive Income (Loss) (“AOCI”) balances, net of tax, were as follows: (in thousands) Foreign Currency Unrealized Gain on Total AOCI Balance, May 31, 2019 $ (11,640 ) $ — $ (11,640 ) Other comprehensive income (loss) (8,495 ) 426 (8,069 ) Balance, May 31, 2020 $ (20,135 ) $ 426 $ (19,709 ) Other comprehensive income (loss) 8,602 (268 ) 8,334 Balance, May 31, 2021 $ (11,533 ) $ 158 $ (11,375 ) |
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. Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents 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 $75,602,000 and $66,269,000 at May 31, 2021 and 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. Cash held by foreign subsidiaries was $15,246,000 and $13,060,000 at May 31, 2021 and 2020, respectively. |
Marketable Securities | Marketable Securities The Company has marketable securities held by banks or broker-dealers at May 31, 2021, consisting of short-term domestic certificates of deposit of $5,785,000 and commercial paper and corporate bonds rated at least A-1/P-1 (short-term) and A/A2 (long-term) with original maturities between in marketable securities outstanding at May 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. As these securities are highly rated and short-term in nature, they have very little credit risk; therefore, the Company does not believe a reserve for expected credit losses on marketable securities is material. 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 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 our consolidated statements of income. Adjustments in the fair value of these assets are recorded in other comprehensive income. Marketable Securities as of May 31, 2021 and 2020 are listed below by classification and remaining maturities . Year ended May 31 (in thousands) Maturity 2021 2020 US Treasuries 0 - 90 $ — $ — 91 -180 — — 181 days - 1 year — 2,532 1 - 2 years — — Commercial Paper & Corporate Bonds 0 - 90 days 106,631 133,130 91 - 180 days 78,727 73,824 181 days - 1 year 87,590 43,231 1 - 2 years 26,752 7,839 Certificates of Deposit 0 - 90 days 3,262 1,003 91 - 180 days 1,260 5,184 181 days - 1 year 1,263 6,069 1 - 2 years — 4,592 Total Marketable Securities $ 305,485 $ 277,404 The components of marketable securities as of (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value US Treasuries $ — $ — $ — $ — Commercial Paper & Corporate Bonds 299,524 209 (33 ) 299,700 Certificates of Deposit 5,755 30 — 5,785 Total Marketable Securities $ 305,279 $ 239 $ (33 ) $ 305,485 The components of marketable securities as of 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 |
Use of Estimates | Use of Estimates The preparation of these consolidated 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 COVID-19 |
Accounts Receivable and Concentrations of Credit Risk | Accounts Receivable and Concentrations of Credit Risk Financial instruments which potentially subject Neogen to concentrations of credit risk consist principally of accounts receivable. Management attempts to minimize credit risk by reviewing customers’ credit histories before extending credit and by monitoring credit exposure on a regular basis. Collateral or other security is generally not required for accounts receivable. We maintain an allowance for customer accounts that reduces receivables to amounts that are expected to be collected. In estimating the allowance for doubtful accounts, management considers relevant information about past events, current conditions and reasonable and supportable forecasts that affect the collectability of financial assets. 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. No customer accounted for more than of accounts receivable at May 31, 2021 or 2020, respectively. The activity in the allowance for doubtful accounts was as follows: Year ended May 31 (in thousands) 2021 2020 2019 Beginning Balance $ 1,350 $ 1,700 $ 1,550 Provision 239 393 263 Recoveries 139 49 38 Write-offs (328 ) (792 ) (151 ) Ending Balance $ 1,400 $ 1,350 $ 1,700 |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, determined on the first-in, first-out Year ended May 31 (in thousands) 2021 2020 Raw Materials $ 47,588 $ 45,058 Work-in-process 6,412 6,887 Finished goods 46,701 43,108 $ 100,701 $ 95,053 The Company’s inventories are analyzed for slow moving, expired and obsolete items on a quarterly basis and the valuation allowance is adjusted as required within cost of sales expense. The valuation allowance for inventory was $3,100,000 and $2,850,000 at May 31, 2021 and 2020, respectively. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost. Expenditures for major improvements are capitalized while repairs and maintenance are charged to expense as incurred. Depreciation is provided on the straight-line method over the estimated useful lives of the respective assets, which are generally seven three |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete non-amortizable 2021 If the carrying amounts of these assets are deemed to be less than fair value based upon a discounted cash flow analysis and comparison to comparable earnings multiples of peer companies, such assets are reduced to their estimated fair value and a charge is made to operations. No goodwill impairments were identified during the years ended May 31, 2021, 2020 and 2019, respectively. The remaining weighted-average amortization period for intangibles was 10 years and 9 years at May 31, 2021 and May 31, 2020, respectively. |
Long-lived Assets | Long-lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset are less than the carrying value of the asset. In such an event, fair value is determined using discounted cash flows, and if lower than the carrying value, impairment is recognized through a charge to operations. No impairments of long-lived assets were identified during the years ended May 31, 2021, 2020 and 2019, respectively. |
Reclassifications | Reclassifications Certain immaterial amounts in the fiscal 2020 and 2019 consolidated financial statements have been reclassified to conform with the fiscal 2021 presentation. |
Equity Compensation Plans | Equity Compensation Plans At May 31, 2021, the Company had stock option plans which are described more fully in Note 5 to the consolidated financial statements. The weighted-average fair value per share of stock options granted during fiscal years 2021, 2020 and 2019, estimated on the date of grant using the Black-Scholes option pricing model, was $7.71, $7.78 and $7.46, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2021 2020 2019 Risk-free interest rate 0.2 % 1.9 % 2.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected stock volatility 31.3 % 29.4 % 27.0 % Expected option life 3.25 years 3.5 years 3.5 years The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on historical volatility of the Company’s stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. We include recent historical experience in estimating our forfeitures. As employees terminate, grant tranches expire or as forfeitures are known, estimated expense is adjusted to actual. For options granted in fiscal years 2021, 2020 and 2019, the Company recorded charges in general and administrative expense based on the fair value of stock options using the straight-line method over the vesting period, generally five years. The Company also issues restricted stock units (RSUs), which are described more fully in Note 5 to the consolidated financial statements. The RSUs generally vest over three |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and for tax credit 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. Our wholly-owned foreign subsidiaries are comprised of Neogen Europe, Quat-Chem Ltd, Megazyme Ltd, Megazyme IP, Neogen Italia S.r.l., Neogen do Brasil, Rogama Industria e Comercio Ltda, Neogen Latinoamérica, Neogen Argentina, Neogen Uruguay, Neogen Chile SpA, Neogen Bio-Scientific re-invested re-evaluation re-invest |
Research and Development Costs | Research and Development Costs Research and development costs, which consist primarily of compensation costs, administrative expenses and new product development, among other items, are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed within sales and marketing as incurred and totaled $1,687,000, $1,454,000 and $1,471,000 in fiscal years 2021, 2020 and 2019, respectively. |
Net Income per Share | Net Income per Share Basic net income per share is based on the weighted average number of common shares outstanding during each year. Diluted earnings per share is based on the weighted average number of common shares and dilutive potential common shares outstanding. Our dilutive potential common shares outstanding during the years result entirely from dilutive stock options. The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2021 2020 2019 Numerator for basic and diluted net income per share — Net Income $ 60,882 $ 59,475 $ 60,176 Denominator for basic net income per share — Weighted average shares 106,499 105,100 103,776 Effect of dilutive stock options 621 620 1,074 Denominator for diluted net income per share 107,120 105,720 104,850 Net income attributable to Neogen per share Basic $ 0.57 $ 0.57 $ 0.58 Diluted $ 0.57 $ 0.56 $ 0.57 At May 31, 2021, no potential shares from option exercises were excluded from the computation of diluted net income per share, as the option exercise prices did not exceed the average market price of the common shares. |
Leases | Leases On June 1, 2019, we adopted Topic 842 using the prospective approach and did not retrospectively apply to prior periods. 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 lease liabilities Right-of-use non-current non-current 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 of 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. 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 : , • 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 our estimate of 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: Year ended May 31 (in thousands) 2021 2020 Rights of use—assets $ 2,477 $ 1,952 Lease liabilities—current 1,285 1,054 Lease liabilities—non-current 1,207 913 The weighted average remaining lease term and weighted average discount rate were as follows: Year ended May 31 2021 2020 Weighted average remaining lease term 2 years 2.5 years Weighted average discount rate 2.0% 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: Year ended May 31 (in thousands) 2021 2020 Operating leases $ 1,352 $ 1,207 Short term leases 134 166 Total lease expense $ 1,486 $ 1,373 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 was approximately $1,397,000, and $1,633,000 for the years ended May 31, 2021, 2020 and 2019, respectively. There were non-cash right-of-use Maturities of operating lease liabilities as of May 31, 2021 are as follows: (in thousands) Amount Years ending May 31, 202 2 $ 1,313 2023 874 2024 345 2025 42 2026 — Total lease payments $ 2,574 Less: imputed interest (82 ) Total lease liabilities $ 2,492 |
Revenue Recognition | 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 or 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; these expenses totaled $15,180,000, $13,514,000 and $13,503,000 in fiscal years 2021, 2020 and 2019, respectively. 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 primarily 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. Revenue for Neogen’s 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 years ended May 31, 2021, 2020 and 2019: Year Ended (dollars in thousands) May 31, 2021 Change May 31, 2020 Change May 31, 2019 Food Safety: Natural Toxins, Allergens & Drug Residues $ 76,614 1 % $ 76,207 (3 %) $ 78,373 Bacterial & General Sanitation 44,009 5 % 41,780 (0 %) 41,966 Culture Media & Other 56,922 19 % 47,847 (4 %) 49,857 Rodenticides, Insecticides & Disinfectants 36,542 26 % 28,890 13 % 25,584 Genomics Services 20,157 12 % 17,967 2 % 17,694 $ 234,244 10 % $ 212,691 (0 %) $ 213,474 Animal Safety: Life Sciences 5,715 (10 % ) 6,322 (20 %) 7,858 Veterinary Instruments & Disposables 48,128 12 % 42,941 (4 %) 44,582 Animal Care & Other 35,897 26 % 28,389 (5 %) 29,941 Rodenticides, Insecticides & Disinfectants 77,458 13 % 68,815 4 % 66,389 Genomics Services 67,017 14 % 59,012 14 % 51,942 $ 234,215 14 % $ 205,479 2 % $ 200,712 Total Revenue $ 468,459 12 % $ 418,170 1 % $ 414,186 See Note 9 to the consolidated financial statements for disaggregated revenues by geographical location. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2021 | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) net of tax | Changes in our Accumulated Other Comprehensive Income (Loss) (“AOCI”) balances, net of tax, were as follows: (in thousands) Foreign Currency Unrealized Gain on Total AOCI Balance, May 31, 2019 $ (11,640 ) $ — $ (11,640 ) Other comprehensive income (loss) (8,495 ) 426 (8,069 ) Balance, May 31, 2020 $ (20,135 ) $ 426 $ (19,709 ) Other comprehensive income (loss) 8,602 (268 ) 8,334 Balance, May 31, 2021 $ (11,533 ) $ 158 $ (11,375 ) |
Schedule Of Classification And Maturities Of Marketable Securities | Marketable Securities as of May 31, 2021 and 2020 are listed below by classification and remaining maturities . Year ended May 31 (in thousands) Maturity 2021 2020 US Treasuries 0 - 90 $ — $ — 91 -180 — — 181 days - 1 year — 2,532 1 - 2 years — — Commercial Paper & Corporate Bonds 0 - 90 days 106,631 133,130 91 - 180 days 78,727 73,824 181 days - 1 year 87,590 43,231 1 - 2 years 26,752 7,839 Certificates of Deposit 0 - 90 days 3,262 1,003 91 - 180 days 1,260 5,184 181 days - 1 year 1,263 6,069 1 - 2 years — 4,592 Total Marketable Securities $ 305,485 $ 277,404 |
Summary of components of marketable securities | The components of marketable securities as of (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value US Treasuries $ — $ — $ — $ — Commercial Paper & Corporate Bonds 299,524 209 (33 ) 299,700 Certificates of Deposit 5,755 30 — 5,785 Total Marketable Securities $ 305,279 $ 239 $ (33 ) $ 305,485 The components of marketable securities as of 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 |
Allowance for Doubtful Accounts | Year ended May 31 (in thousands) 2021 2020 2019 Beginning Balance $ 1,350 $ 1,700 $ 1,550 Provision 239 393 263 Recoveries 139 49 38 Write-offs (328 ) (792 ) (151 ) Ending Balance $ 1,400 $ 1,350 $ 1,700 |
Inventories | Inventories are stated at the lower of cost or net realizable value, determined on the first-in, first-out Year ended May 31 (in thousands) 2021 2020 Raw Materials $ 47,588 $ 45,058 Work-in-process 6,412 6,887 Finished goods 46,701 43,108 $ 100,701 $ 95,053 |
Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions | The fair value of stock options granted was estimated using the following weighted-average assumptions: Year ended May 31 2021 2020 2019 Risk-free interest rate 0.2 % 1.9 % 2.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected stock volatility 31.3 % 29.4 % 27.0 % Expected option life 3.25 years 3.5 years 3.5 years |
Calculation of Net Income Per Share | The following table presents the net income per share calculations: Year ended May 31 (in thousands, except per share) 2021 2020 2019 Numerator for basic and diluted net income per share — Net Income $ 60,882 $ 59,475 $ 60,176 Denominator for basic net income per share — Weighted average shares 106,499 105,100 103,776 Effect of dilutive stock options 621 620 1,074 Denominator for diluted net income per share 107,120 105,720 104,850 Net income attributable to Neogen per share Basic $ 0.57 $ 0.57 $ 0.58 Diluted $ 0.57 $ 0.56 $ 0.57 |
Supplemental balance sheet information related to operating leases | Supplemental balance sheet information related to operating leases was as follows: Year ended May 31 (in thousands) 2021 2020 Rights of use—assets $ 2,477 $ 1,952 Lease liabilities—current 1,285 1,054 Lease liabilities—non-current 1,207 913 |
Weighted average remaining lease term and weighted average discount rate | The weighted average remaining lease term and weighted average discount rate were as follows: Year ended May 31 2021 2020 Weighted average remaining lease term 2 years 2.5 years Weighted average discount rate 2.0% 3.2% |
Components of lease expense | The components of lease expense were as follows: Year ended May 31 (in thousands) 2021 2020 Operating leases $ 1,352 $ 1,207 Short term leases 134 166 Total lease expense $ 1,486 $ 1,373 |
Undiscounted minimum lease payments | Maturities of operating lease liabilities as of May 31, 2021 are as follows: (in thousands) Amount Years ending May 31, 202 2 $ 1,313 2023 874 2024 345 2025 42 2026 — Total lease payments $ 2,574 Less: imputed interest (82 ) Total lease liabilities $ 2,492 |
Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by geographical location: Year ended May 31 (in thousands) 2021 2020 Domestic $ 285,262 $ 253,458 International 183,197 164,712 Total revenue $ 468,459 $ 418,170 |
Operating Segments | |
Disaggregated Revenue | The following table presents disaggregated revenue by major product and service categories for the years ended May 31, 2021, 2020 and 2019: Year Ended (dollars in thousands) May 31, 2021 Change May 31, 2020 Change May 31, 2019 Food Safety: Natural Toxins, Allergens & Drug Residues $ 76,614 1 % $ 76,207 (3 %) $ 78,373 Bacterial & General Sanitation 44,009 5 % 41,780 (0 %) 41,966 Culture Media & Other 56,922 19 % 47,847 (4 %) 49,857 Rodenticides, Insecticides & Disinfectants 36,542 26 % 28,890 13 % 25,584 Genomics Services 20,157 12 % 17,967 2 % 17,694 $ 234,244 10 % $ 212,691 (0 %) $ 213,474 Animal Safety: Life Sciences 5,715 (10 % ) 6,322 (20 %) 7,858 Veterinary Instruments & Disposables 48,128 12 % 42,941 (4 %) 44,582 Animal Care & Other 35,897 26 % 28,389 (5 %) 29,941 Rodenticides, Insecticides & Disinfectants 77,458 13 % 68,815 4 % 66,389 Genomics Services 67,017 14 % 59,012 14 % 51,942 $ 234,215 14 % $ 205,479 2 % $ 200,712 Total Revenue $ 468,459 12 % $ 418,170 1 % $ 414,186 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 31, 2021 | |
Goodwill by Business Segment | The following table summarizes goodwill by reportable segment: (in thousands) Food Safety Animal Safety Total Balance, May 31, 2019 $ 42,553 $ 61,066 $ 103,619 Goodwill acquired 6,254 2,095 8,349 Goodwill and/or currency adjustments (1) (1,592 ) (36 ) (1,628 ) Balance, May 31, 2020 $ 47,215 $ 63,125 $ 110,340 Goodwill acquired 18,775 — 18,775 Goodwill and/or currency adjustments (1) 1,832 529 2,361 Balance, May 31, 2021 $ 67,822 $ 63,654 $ 131,476 (1) Includes final purchase price allocation adjustments and currency adjustments for goodwill recorded at international locations. |
Amortizable of Intangible Assets | Amortizable intangible assets consisted of the following and are included in customer-based intangibles and other non-current (in thousands) Gross Less Net Licenses $ 16,913 $ 4,580 $ 12,333 Covenants not to compete 1,006 571 435 Patents 8,363 4,243 4,120 Customer-based intangibles 76,384 35,209 41,175 Other products and service-related intangibles 27,567 8,859 18,708 Balance, May 31, 2021 $ 130,233 $ 53,462 $ 76,771 Licenses $ 10,346 $ 3,330 $ 7,016 Covenants not to compete 706 407 299 Patents 8,509 4,118 4,391 Customer-based intangibles 59,847 29,898 29,949 Other products and service-related intangibles 16,646 6,937 9,709 Balance, May 31, 2020 $ 96,054 $ 44,690 $ 51,364 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 12 Months Ended |
May 31, 2021 | |
Stock Option Activity | (options in thousands) Options Weighted-Average Weighted-Average Outstanding at May 31, 2018 (1,016 exercisable) 4,998 $ 21.32 $ 5.72 Granted 1,054 31.46 7.46 Exercised (1,026 ) 15.64 4.46 Forfeited (256 ) 23.54 6.21 Outstanding at May 31, 2019 (1,234 4,770 24.69 6.35 Granted 1,124 31.96 7.78 Exercised (1,438 ) 20.12 5.53 Forfeited (132 ) 28.72 7.10 Outstanding at May 31, 2020 (972 4,324 27.98 6.98 Granted 403 34.23 7.71 Exercised (1,389 ) 24.38 6.31 Forfeited (381 ) 28.99 7.20 Outstanding at May 31, 2021 (643 2,957 30.38 7.36 |
Summary of Stock Options Outstanding | The following is a summary of stock options outstanding at May 31, 2021: Options Outstanding Options Exercisable Average (options in thousands) Contractual Life Weighted-Average Weighted-Average Range of Exercise Price Number (in years) Exercise Price Number Exercise Price $10.75 - $20.00 54 3.1 $ 15.65 51 $ 15.45 $20.01 - $30.00 376 1.8 22.55 150 23.07 $30.01 - $31.50 1,150 2.1 30.87 299 30.76 $31.51 - $32.00 898 3.4 31.95 101 31.95 $32.01 - $35.28 479 4.1 34.07 42 33.53 2,957 2.8 30.38 643 28.10 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options Intrinsic Value | Year Ended (in thousands) May 31, 2021 May 31, 2020 May 31, 2019 Aggregate intrinsic value of options outstanding $ 46,667 $ 32,988 $ 22,798 Aggregate intrinsic value of options exercisable $ 11,617 $ 10,814 $ 10,222 Aggregate intrinsic value of options exerised $ 22,349 $ 19,597 $ 21,382 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2021 | |
Disclosure Text Block [Abstract] | |
Income Before Income Taxes | Income before income taxes by source consists of the following amounts: Year ended May 31 (in thousands) 2021 2020 2019 U.S. $ 55,753 $ 62,329 $ 58,479 Foreign 19,515 9,976 14,480 $ 75,268 $ 72,305 $ 72,959 |
Provision for Income Taxes | The provision for income taxes consists of the following: Year ended May 31 (in thousands) 2021 2020 2019 Current Domestic Federal $ 6,981 $ 6,886 $ 7,173 Change in tax-related uncertainties (75 ) 269 13 State 2,147 1,262 1,265 Foreign 4,875 2,475 3,758 Deferred Domestic Federal 479 1,964 1,031 State 44 195 98 Foreign (65 ) (221 ) (555 ) Provision for Income Taxes $ 14,386 $ 12,830 $ 12,783 |
Reconciliation of Income Taxes Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense | The reconciliation of income taxes computed at the U.S. federal statutory tax rate to income tax expense is as follows: Year ended May 31 (in thousands) 2021 2020 2019 Tax at U.S. statutory rate $ 15,806 $ 15,184 $ 15,321 Permanent differences 292 360 (56 ) Global intangible low-taxed 2,064 438 840 Foreign derived intangible income deduction (FDII) (1,210 ) (1,120 ) (1,531 ) Foreign rate differential 669 (182 ) 495 Subpart F income 628 634 842 Tax benefits on stock-based compensation (2,651 ) (1,998 ) (2,586 ) Changes in tax contingencies—Increase/(Release) (76 ) 269 13 Provision for state income taxes, net of federal benefit 1,601 1,412 1,251 Tax Credits (3,298 ) (1,417 ) (1,726 ) Other 561 (750 ) (80 ) Tax Expense $ 14,386 $ 12,830 $ 12,783 |
Significant Components of Deferred Income Tax Liabilities and Assets | Significant components of our deferred income tax liabilities and assets are as follows: Year ended May 31 (in thousands) 2021 2020 Deferred income tax liabilities Indefinite and long-lived assets $ (25,072 ) $ (20,867 ) Prepaid expense s (721 ) (795 ) (25,793 ) (21,662 ) Deferred income tax assets Stock options 1,106 1,479 Inventories and accounts receivable 2,081 1,336 Tax loss carryforwards 662 484 Accrued expenses and other 568 657 Less: valuation allowances (541 ) (419 ) 3,876 3,537 Net deferred income tax liabilities $ (21,917 ) $ (18,125 ) |
Summary of net operating loss carryforwards | The Company has the following net operating loss carryforwards: (in thousands) As of Jurisdiction 5/31/2021 Expiry U.S. $ 345 2037 to indefinite Foreign 1,938 2024 to 2039 $ 2,283 |
Sumary of reconciliation of our tax contingencies | The reconciliation of our tax-related uncertainties is as follows: Year ended May 31 (in thousands) 2021 2020 2019 Beginning balance $ 880 $ 611 $ 598 Increase/(decrease) related to prior periods (272 ) 56 (106 ) Increase related d 197 213 119 Ending balance $ 805 $ 880 $ 611 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
May 31, 2021 | |
Segment Information | Segment information is as follows: (in thousands) Food Safety Animal Safety Corporate and Total Fiscal 2021 Product revenues to external customers $ 209,104 $ 167,198 $ — $ 376,302 Service revenues to external customers 25,140 67,017 — 92,157 Total revenues to external customers 234,244 234,215 — 468,459 Operating income (loss) 33,725 48,685 (8,241 ) 74,169 Depreciation and amortization 11,575 9,466 — 21,041 Total Assets 295,065 244,039 381,088 920,192 Expenditures for long-lived assets 13,730 12,982 — 26,712 Fiscal 2020 Product revenues to external customers $ 189,893 $ 145,646 $ — $ 335,539 Service revenues to external customers 22,798 59,833 — 82,631 Total revenues to external customers 212,691 205,479 — 418,170 Operating income (loss) 33,526 39,051 (5,054 ) 67,523 Depreciation and amortization 10,173 8,223 — 18,396 Total Assets 222,331 231,178 343,673 797,182 Expenditures for long-lived assets 15,867 8,185 — 24,052 Fiscal 2019 Product revenues to external customers $ 190,675 $ 148,764 $ — $ 339,439 Service revenues to external customers 22,799 51,948 — 74,747 Total revenues to external customers 213,474 200,712 — 414,186 Operating income (loss) 39,020 33,875 (4,801 ) 68,094 Depreciation and amortization 9,525 8,099 — 17,624 Total Assets 206,267 221,950 267,523 695,740 Expenditures for long-lived assets 8,916 5,745 — 14,661 (1) Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and non-controlling |
Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by geographical location: Year ended May 31 (in thousands) 2021 2020 Domestic $ 285,262 $ 253,458 International 183,197 164,712 Total revenue $ 468,459 $ 418,170 |
Summary of Quarterly Data (Un_2
Summary of Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
May 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | Quarter Ended (in thousands, except per share) August November February May 2021 Total Revenue $ 109,325 $ 115,000 $ 116,709 $ 127,425 Gross Margin 50,302 53,214 53,849 57,691 Net income 15,860 15,885 13,377 15,760 Basic net income per share $ 0.15 $ 0.15 $ 0.13 $ 0.15 Diluted net income per share $ 0.15 $ 0.15 $ 0.12 $ 0.15 Quarter Ended (in thousands, except per share) August November February May 2020 Total Revenue $ 101,424 $ 107,803 $ 99,869 $ 109,074 Gross Margin 48,194 51,026 45,330 51,729 Net income 14,652 16,276 12,200 16,347 Basic net income per share $ 0.14 $ 0.15 $ 0.12 $ 0.15 Diluted net income per share $ 0.14 $ 0.15 $ 0.11 $ 0.15 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Dec. 29, 2017 | May 31, 2021USD ($)$ / sharesshares | May 31, 2020USD ($)$ / sharesshares | May 31, 2019USD ($)$ / sharesshares | Jun. 01, 2019USD ($) | May 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||||||
Stock split ratio | 1.33 | |||||
Finite lived intangible assets, useful life | 10 years | 9 years | ||||
Products and services, payment terms | 30 to 60 days | |||||
Commercial Paper | $ 299,700,000 | |||||
Short-term domestic certificates of deposit | 5,785,000 | |||||
Marketable securities | 305,485,000 | $ 277,404,000 | ||||
Valuation allowance for inventory | 3,100,000 | 2,850,000 | ||||
Depreciation expense | 13,288,000 | 11,907,000 | $ 11,315,000 | |||
Cost of goods and services sold | $ 253,403,000 | $ 221,891,000 | $ 222,266,000 | |||
Weighted-average fair value per share of stock options granted | $ / shares | $ 7.71 | $ 7.78 | $ 7.46 | |||
Cash held at foreign subsidiaries | $ 15,246,000 | $ 13,060,000 | ||||
Cash and cash equivalents | $ 75,602,000 | $ 66,269,000 | $ 41,688,000 | $ 83,074,000 | ||
Shares excluded from computations of diluted net income per share | shares | 0 | 56,000 | 10,000 | |||
Operating lease right of use asset | $ 2,477,000 | $ 1,952,000 | $ 2,000,000 | |||
Operating lease liability | 2,492,000 | $ 2,000,000 | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent | |||||
Operating lease payments | 1,397,000 | 1,178,000 | $ 1,633,000 | |||
Right of use assets in exchange of lease liability | 0 | |||||
Goodwill, Impairment Loss | 0 | 0 | 0 | |||
Impairments of long-lived assets | $ 0 | $ 0 | $ 0 | |||
Weighted-Average Exercise Price, Exercised | $ / shares | $ 24.38 | $ 20.12 | $ 15.64 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Weighted-Average Exercise Price, Exercised | $ / shares | $ 34.21 | |||||
Shipping and Handling | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cost of goods and services sold | $ 15,180,000 | $ 13,514,000 | $ 13,503,000 | |||
Advertising Cost | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cost of goods and services sold | $ 1,687,000 | $ 1,454,000 | $ 1,471,000 | |||
Customer One | ||||||
Significant Accounting Policies [Line Items] | ||||||
Account receivable percentage from major customer | 10.00% | 10.00% | ||||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Marketable securities, maturity period | 91 days | |||||
Finite lived intangible assets, useful life | 5 years | |||||
Stock option vesting period | 3 years | |||||
Minimum | Restricted Stock Units (RSUs) [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Stock option vesting period | 3 years | |||||
Minimum | Buildings And Improvements | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 7 years | |||||
Minimum | Furniture, fixtures, machinery and equipment | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Marketable securities, maturity period | 2 years | |||||
Finite lived intangible assets, useful life | 25 years | |||||
Stock option vesting period | 5 years | |||||
Maximum | Restricted Stock Units (RSUs) [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Stock option vesting period | 5 years | |||||
Maximum | Buildings And Improvements | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 39 years | |||||
Maximum | Furniture, fixtures, machinery and equipment | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Changes in Accumulated Other Comprehensive Income (Loss) net of tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 725,177 | $ 637,899 | $ 560,175 |
Other comprehensive income (loss) | 8,334 | (8,069) | (1,894) |
Ending Balance | 840,377 | 725,177 | 637,899 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (20,135) | (11,640) | |
Other comprehensive income (loss) | 8,602 | (8,495) | |
Ending Balance | (11,533) | (20,135) | (11,640) |
Unrealized Gain on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 426 | ||
Other comprehensive income (loss) | (268) | 426 | |
Ending Balance | 158 | 426 | |
Total AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (19,709) | (11,640) | |
Other comprehensive income (loss) | 8,334 | (8,069) | (1,894) |
Ending Balance | $ (11,375) | $ (19,709) | $ (11,640) |
Marketable Securities (Detail)
Marketable Securities (Detail) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Marketable Securities, Current | $ 305,485 | $ 277,404 |
US Treasury Securities | Maturing in 0 - 90 days | ||
Marketable Securities, Current | 0 | |
US Treasury Securities | Maturing in 91 - 180 days | ||
Marketable Securities, Current | 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 | |
Commercial Paper | Maturing in 0 - 90 days | ||
Marketable Securities, Current | 106,631 | 133,130 |
Commercial Paper | Maturing in 91 - 180 days | ||
Marketable Securities, Current | 78,727 | 73,824 |
Commercial Paper | Maturing in 181 days - 1 year | ||
Marketable Securities, Current | 87,590 | 43,231 |
Commercial Paper | Maturing in 1 - 2 years | ||
Marketable Securities, Current | 26,752 | 7,839 |
Certificates of Deposit | Maturing in 0 - 90 days | ||
Marketable Securities, Current | 3,262 | 1,003 |
Certificates of Deposit | Maturing in 91 - 180 days | ||
Marketable Securities, Current | 1,260 | 5,184 |
Certificates of Deposit | Maturing in 181 days - 1 year | ||
Marketable Securities, Current | 1,263 | 6,069 |
Certificates of Deposit | Maturing in 1 - 2 years | ||
Marketable Securities, Current | $ 0 | $ 4,592 |
Components of marketable securi
Components of marketable securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 305,279 | $ 276,850 |
Unrealized gains | 239 | 577 |
Unrealized Losses | (33) | (23) |
Fair Value | 305,485 | 277,404 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 0 | 2,502 |
Unrealized gains | 0 | 30 |
Unrealized Losses | 0 | 0 |
Fair Value | 0 | 2,532 |
Commercial PaperAnd Corporate Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 299,524 | 257,700 |
Unrealized gains | 209 | 347 |
Unrealized Losses | (33) | (23) |
Fair Value | 299,700 | 258,024 |
Certificates of Deposit [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 5,755 | 16,648 |
Unrealized gains | 30 | 200 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 5,785 | $ 16,848 |
Activity in Allowance for Doubt
Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | $ 1,350 | $ 1,700 | $ 1,550 |
Provision | 239 | 393 | 263 |
Recoveries | 139 | 49 | 38 |
Write-offs | (328) | (792) | (151) |
Ending Balance | $ 1,400 | $ 1,350 | $ 1,700 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Inventory [Line Items] | ||
Raw Materials | $ 47,588 | $ 45,058 |
Work-in-process | 6,412 | 6,887 |
Finished goods | 46,701 | 43,108 |
Inventories | $ 100,701 | $ 95,053 |
Fair Value of Stock Options Gra
Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items] | |||
Risk-free interest rate | 0.20% | 1.90% | 2.60% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected stock volatility | 31.30% | 29.40% | 27.00% |
Expected option life (in years) | 3 years 3 months | 3 years 6 months | 3 years 6 months |
Calculation of Net Income Per S
Calculation of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Earnings Per Share [Line Items] | |||||||||||
Numerator for basic and diluted net income per share — Net Income attributable to Neogen | $ 60,882 | $ 59,475 | $ 60,176 | ||||||||
Denominator for basic net income per share — Weighted average shares | 106,499 | 105,100 | 103,776 | ||||||||
Effect of dilutive stock options | 621 | 620 | 1,074 | ||||||||
Denominator for diluted net income per share | 107,120 | 105,720 | 104,850 | ||||||||
Net income attributable to Neogen per share: | |||||||||||
Basic | $ 0.15 | $ 0.13 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.57 | $ 0.57 | $ 0.58 |
Diluted | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.57 | $ 0.56 | $ 0.57 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | Jun. 01, 2019 |
Rights of use – assets | $ 2,477 | $ 1,952 | $ 2,000 |
Lease liabilities – current | 1,285 | 1,054 | |
Lease liabilities – non-current | $ 1,207 | $ 913 |
Weighted Average Remaining Leas
Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Detail) | May 31, 2021 | May 31, 2020 |
Weighted average remaining lease term | 2 years | 2 years 6 months |
Weighted average discount rate | 2.00% | 3.20% |
Components of Lease Expense (De
Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Operating leases | $ 1,352 | $ 1,207 |
Short term leases | 134 | 166 |
Total lease expense | $ 1,486 | $ 1,373 |
Undiscounted Minimum Lease Paym
Undiscounted Minimum Lease Payments (Detail) - USD ($) $ in Thousands | May 31, 2021 | Jun. 01, 2019 |
Years ending May 31, 2022 | $ 1,313 | |
2023 | 874 | |
2024 | 345 | |
2025 | 42 | |
2026 and thereafter | 0 | |
Total lease payments | 2,574 | |
Less: imputed interest | (82) | |
Total lease liabilities | $ 2,492 | $ 2,000 |
Disaggregated Revenue (Detail)
Disaggregated Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 468,459 | $ 418,170 | $ 414,186 |
Percentage Increase Decrease In Revenue From Previous Period | 12.00% | 1.00% | |
Food Safety | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 234,244 | $ 212,691 | 213,474 |
Percentage Increase Decrease In Revenue From Previous Period | 10.00% | 0.00% | |
Food Safety | Natural Toxins, Allergens & Drug Residues | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 76,614 | $ 76,207 | 78,373 |
Percentage Increase Decrease In Revenue From Previous Period | 1.00% | (3.00%) | |
Food Safety | Bacterial & General Sanitation | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 44,009 | $ 41,780 | 41,966 |
Percentage Increase Decrease In Revenue From Previous Period | 5.00% | 0.00% | |
Food Safety | Culture Media & Other | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 56,922 | $ 47,847 | 49,857 |
Percentage Increase Decrease In Revenue From Previous Period | 19.00% | (4.00%) | |
Food Safety | Rodenticides, Insecticides & Disinfectants | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 36,542 | $ 28,890 | 25,584 |
Percentage Increase Decrease In Revenue From Previous Period | 26.00% | 13.00% | |
Food Safety | Genomics Services | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 20,157 | $ 17,967 | 17,694 |
Percentage Increase Decrease In Revenue From Previous Period | 12.00% | 2.00% | |
Animal Safety | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 234,215 | $ 205,479 | 200,712 |
Percentage Increase Decrease In Revenue From Previous Period | 14.00% | 2.00% | |
Animal Safety | Life Sciences | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 5,715 | $ 6,322 | 7,858 |
Percentage Increase Decrease In Revenue From Previous Period | (10.00%) | (20.00%) | |
Animal Safety | Animal Care & Other | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 35,897 | $ 28,389 | 29,941 |
Percentage Increase Decrease In Revenue From Previous Period | 26.00% | (5.00%) | |
Animal Safety | Veterinary Instruments & Disposables | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 48,128 | $ 42,941 | 44,582 |
Percentage Increase Decrease In Revenue From Previous Period | 12.00% | (4.00%) | |
Animal Safety | Rodenticides, Insecticides & Disinfectants | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 77,458 | $ 68,815 | 66,389 |
Percentage Increase Decrease In Revenue From Previous Period | 13.00% | 4.00% | |
Animal Safety | Genomics Services | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenues | $ 67,017 | $ 59,012 | $ 51,942 |
Percentage Increase Decrease In Revenue From Previous Period | 14.00% | 14.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Other non-amortizable intangible assets | $ 15,545,000 | $ 15,217,000 | |
Amortization expense for intangible assets | 7,753,000 | $ 6,489,000 | $ 6,309,000 |
Estimated amortization expense for period, 2022 | 8,331,000 | ||
Estimated amortization expense for period, 2023 | 7,639,000 | ||
Estimated amortization expense for period, 2024 | 7,335,000 | ||
Estimated amortization expense for period, 2025 | 7,007,000 | ||
Estimated amortization expense for period, 2026 | $ 6,943,000 | ||
Finite lived intangible assets, useful life | 10 years | 9 years | |
Maximum | |||
Finite lived intangible assets, useful life | 25 years | ||
Minimum | |||
Finite lived intangible assets, useful life | 5 years | ||
Licenses | |||
Other non-amortizable intangible assets | $ 569,000 | $ 569,000 | |
Licenses | Maximum | |||
Finite lived intangible assets, useful life | 20 years | ||
Licenses | Minimum | |||
Finite lived intangible assets, useful life | 2 years | ||
Trademarks | |||
Other non-amortizable intangible assets | $ 13,752,000 | 13,424,000 | |
Other Intangible Assets | |||
Other non-amortizable intangible assets | $ 1,224,000 | $ 1,224,000 | |
Noncompete Agreements | Maximum | |||
Finite lived intangible assets, useful life | 13 years | ||
Noncompete Agreements | Minimum | |||
Finite lived intangible assets, useful life | 2 years | ||
Patents | Maximum | |||
Finite lived intangible assets, useful life | 25 years | ||
Patents | Minimum | |||
Finite lived intangible assets, useful life | 5 years | ||
Customer-based intangibles | Maximum | |||
Finite lived intangible assets, useful life | 20 years | ||
Customer-based intangibles | Minimum | |||
Finite lived intangible assets, useful life | 5 years | ||
Other products and service-related intangibles | Maximum | |||
Finite lived intangible assets, useful life | 20 years | ||
Other products and service-related intangibles | Minimum | |||
Finite lived intangible assets, useful life | 5 years |
Goodwill by Business Segment (D
Goodwill by Business Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | ||
Goodwill [Line Items] | |||
Beginning Balance | $ 110,340 | $ 103,619 | |
Goodwill acquired | 18,775 | 8,349 | |
Goodwill and/or currency adjustments | [1] | 2,361 | (1,628) |
Ending Balance | 131,476 | 110,340 | |
Food Safety | |||
Goodwill [Line Items] | |||
Beginning Balance | 47,215 | 42,553 | |
Goodwill acquired | 18,775 | 6,254 | |
Goodwill and/or currency adjustments | [1] | 1,832 | (1,592) |
Ending Balance | 67,822 | 47,215 | |
Animal Safety | |||
Goodwill [Line Items] | |||
Beginning Balance | 63,125 | 61,066 | |
Goodwill acquired | 0 | 2,095 | |
Goodwill and/or currency adjustments | [1] | 529 | (36) |
Ending Balance | $ 63,654 | $ 63,125 | |
[1] | Includes final purchase price allocation adjustments and currency adjustments for goodwill recorded at international locations. |
Amortizable of Intangible Asset
Amortizable of Intangible Assets (Detail) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 130,233 | $ 96,054 |
Less Accumulated Amortization | 53,462 | 44,690 |
Net Carrying Amount | 76,771 | 51,364 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,913 | 10,346 |
Less Accumulated Amortization | 4,580 | 3,330 |
Net Carrying Amount | 12,333 | 7,016 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,006 | 706 |
Less Accumulated Amortization | 571 | 407 |
Net Carrying Amount | 435 | 299 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,363 | 8,509 |
Less Accumulated Amortization | 4,243 | 4,118 |
Net Carrying Amount | 4,120 | 4,391 |
Customer-based intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 76,384 | 59,847 |
Less Accumulated Amortization | 35,209 | 29,898 |
Net Carrying Amount | 41,175 | 29,949 |
Other products and service-related intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,567 | 16,646 |
Less Accumulated Amortization | 8,859 | 6,937 |
Net Carrying Amount | $ 18,708 | $ 9,709 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Dec. 30, 2020 | Nov. 30, 2020 | Jul. 31, 2020 | Mar. 26, 2020 | Feb. 28, 2020 | Jan. 31, 2020 | Jan. 09, 2020 | Jan. 01, 2020 | Sep. 01, 2019 | Jan. 01, 2019 | Sep. 04, 2018 | Aug. 01, 2018 | Feb. 28, 2021 | May 31, 2021 | May 31, 2020 | Feb. 28, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||||||||||||
Cash consideration for purchase of business | $ 172,000 | ||||||||||||||||
Purchase price allocation for inventory | $ 164,000 | ||||||||||||||||
Purchase price allocation for other current liabilities | $ 11,000 | ||||||||||||||||
Finite lived intangible assets, useful life | 10 years | 9 years | |||||||||||||||
Cash payable to former owner for purchase of business | $ 8.6 | ||||||||||||||||
Clarus Labs Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash consideration for purchase of business | $ 4,204,000 | ||||||||||||||||
Contingent consideration potential payment | 1,256,000 | $ 450,000 | |||||||||||||||
Purchase price allocation for inventory | 32,000 | ||||||||||||||||
Purchase price allocation for land, property and equipment | 120,000 | ||||||||||||||||
Allocation of purchase price for contingent consideration potential payment | 1,256,000 | ||||||||||||||||
Purchase price allocation for intangible assets | 1,487,000 | ||||||||||||||||
Purchase price allocation for non-amortizable intangible assets | 878,000 | ||||||||||||||||
Purchase price allocation for accounts payable | 53,000 | ||||||||||||||||
Purchase price allocation for deferred tax liability | $ 544,000 | ||||||||||||||||
Livestock Genetic Services LLC | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash consideration for purchase of business | $ 1,100,000 | ||||||||||||||||
Contingent consideration potential payment | 585,000 | ||||||||||||||||
Purchase price allocation for land, property and equipment | 15,000 | ||||||||||||||||
Purchase price allocation for intangible assets | 942,000 | ||||||||||||||||
Purchase price allocation for non-amortizable intangible assets | 385,000 | ||||||||||||||||
Cash payable to former owner for purchase of business | 400,000 | ||||||||||||||||
Cash paid for purchase of business | $ 700,000 | ||||||||||||||||
Second installment paid | $ 400,000 | ||||||||||||||||
Contingent consideration paid | $ 100,000 | $ 107,000 | |||||||||||||||
Gain on contingent consideration | $ 37,000 | ||||||||||||||||
Edmonton Albertabased Delta Genomics Centre [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash consideration for purchase of business | $ 1,485,000 | ||||||||||||||||
Purchase price allocation for inventory | 38,000 | ||||||||||||||||
Purchase price allocation for land, property and equipment | $ 371,000 | ||||||||||||||||
Purchase price allocation for intangible assets | 532,000 | ||||||||||||||||
Unearned revenue liability | $ 125,000 | ||||||||||||||||
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 | ||||||||||||||||
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 | ||||||||||||||||
Megazyme Ltd And Subsidiary Megazyme Inc [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash consideration for purchase of business | $ 39,800,000 | $ 1,229,000 | |||||||||||||||
Contingent consideration potential payment | 2.5 | ||||||||||||||||
Purchase price allocation for accounts receivable | 1,376,000 | ||||||||||||||||
Purchase price allocation for inventory | 5,595,000 | ||||||||||||||||
Purchase price allocation for land, property and equipment | 12,599,000 | ||||||||||||||||
Allocation of purchase price for contingent consideration potential payment | 2,458,000 | ||||||||||||||||
Purchase price allocation for intangible assets | 22,945,000 | ||||||||||||||||
Purchase price allocation for accounts payable | 4,000 | ||||||||||||||||
Purchase price allocation for deferred tax liability | 3,306,000 | ||||||||||||||||
Purchase price allocation for other current liabilities | 1,815,000 | ||||||||||||||||
Purchase price allocation for long-term liabilities | 319,000 | ||||||||||||||||
Purchase price allocation for Prepaid Expenses | 69,000 | ||||||||||||||||
Business acquisition Value of equity interest issued | $ 4.9 | ||||||||||||||||
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 | Clarus Labs Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 5 years | ||||||||||||||||
Minimum | Livestock Genetic Services LLC | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 5 years | ||||||||||||||||
Minimum | Edmonton Albertabased Delta Genomics Centre [Member] | |||||||||||||||||
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 | Megazyme Ltd And Subsidiary Megazyme Inc [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 15 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 | Clarus Labs Inc | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 15 years | ||||||||||||||||
Maximum | Livestock Genetic Services LLC | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 15 years | ||||||||||||||||
Maximum | Edmonton Albertabased Delta Genomics Centre [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 10 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 | Megazyme Ltd And Subsidiary Megazyme Inc [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived intangible assets, useful life | 20 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 ($) | 12 Months Ended | |
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 | Nov. 30, 2023 | |
Unsecured revolving line of credit, interest terms | LIBOR plus 100 basis points | |
Unsecured revolving line of credit, interest rate | 1.06% | |
Unsecured revolving line of credit, balance outstanding | $ 0 | |
Unsecured revolving line of credit, advances | $ 0 | $ 0 |
Libor Plus | Unsecured Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Unsecured revolving line of credit, spread | 1.00% |
Equity Compensation Plans - Add
Equity Compensation Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 6,355,000 | 7,002,000 | 7,994,000 |
Options Exercisable, Weighted Average Exercise Price | $ 28.10 | $ 24.47 | $ 20.34 |
Compensation expense related to share based awards | $ 6,437,000 | $ 6,468,000 | $ 5,543,000 |
Remaining compensation cost to be expensed in future periods for non-vested options | $ 15,131,000 | ||
Weighted average expense recognition period | 3 years 1 month 6 days | ||
Number of shares purchased by employees | 38,406 | 43,156 | 36,660 |
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average expense recognition period | 4 years 2 months 26 days | ||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 3,064,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 118,250 | ||
Weighted-average fair value per share of RSUs | $ 34.21 | ||
Employee Stock Purchase Plan | 2011 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 649,228 | ||
Number of shares authorized for grant | 1,425,000 | ||
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 | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting period | 3 years | ||
Minimum | 2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting period | 3 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 | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting period | 5 years | ||
Maximum | 2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting period | 5 years |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Beginning Balance | 4,324,000 | 4,770,000 | 4,998,000 |
Options, Granted | 403,000 | 1,124,000 | 1,054,000 |
Options, Exercised | (1,389,000) | (1,438,000) | (1,026,000) |
Options, Forfeited | (381,000) | (132,000) | (256,000) |
Options Outstanding, Ending Balance | 2,957,000 | 4,324,000 | 4,770,000 |
Weighted-Average Exercise Price, Beginning Balance | $ 27.98 | $ 24.69 | $ 21.32 |
Weighted-Average Exercise Price, Granted | 34.23 | 31.96 | 31.46 |
Weighted-Average Exercise Price, Exercised | 24.38 | 20.12 | 15.64 |
Weighted-Average Exercise Price, Forfeited | 28.99 | 28.72 | 23.54 |
Weighted-Average Exercise Price, Ending Balance | 30.38 | 27.98 | 24.69 |
Weighted-Average Grant Date Fair Value, Beginning Balance | 6.98 | 6.35 | 5.72 |
Weighted-Average Grant Date Fair Value, Granted | 7.71 | 7.78 | 7.46 |
Weighted-Average Grant Date Fair Value, Exercised | 6.31 | 5.53 | 4.46 |
Weighted-Average Grant Date Fair Value, Forfeited | 7.20 | 7.10 | 6.21 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ 7.36 | $ 6.98 | $ 6.35 |
Stock Option Activity (Parenthe
Stock Option Activity (Parenthetical) (Detail) - shares shares in Thousands | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Exercisable Beginning Balance | 643 | 972 | 1,234 | 1,016 |
Summary of Stock Options Outsta
Summary of Stock Options Outstanding (Detail) - $ / shares | 12 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number | 2,957,000 | 4,324,000 | 4,770,000 | 4,998,000 |
Options Outstanding, Average Contractual Life | 2 years 9 months 18 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 30.38 | $ 27.98 | $ 24.69 | $ 21.32 |
Options Exercisable, Number | 643,000 | 972,000 | 1,234,000 | 1,016,000 |
Options Exercisable, Weighted Average Exercise Price | $ 28.10 | $ 24.47 | $ 20.34 | |
$16.82 - $40.91 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise price, minimum | 10.75 | |||
Range of Exercise price, maximum | $ 20 | |||
Options Outstanding, Number | 54,000 | |||
Options Outstanding, Average Contractual Life | 3 years 1 month 6 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 15.65 | |||
Options Exercisable, Number | 51,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 15.45 | |||
$40.92 - $61.56 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise price, minimum | 20.01 | |||
Range of Exercise price, maximum | $ 30 | |||
Options Outstanding, Number | 376,000 | |||
Options Outstanding, Average Contractual Life | 1 year 9 months 18 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 22.55 | |||
Options Exercisable, Number | 150,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 23.07 | |||
$61.57 - $62.88 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise price, minimum | 30.01 | |||
Range of Exercise price, maximum | $ 31.50 | |||
Options Outstanding, Number | 1,150,000 | |||
Options Outstanding, Average Contractual Life | 2 years 1 month 6 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 30.87 | |||
Options Exercisable, Number | 299,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 30.76 | |||
$62.89 - $64.05 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise price, minimum | 31.51 | |||
Range of Exercise price, maximum | $ 32 | |||
Options Outstanding, Number | 898,000 | |||
Options Outstanding, Average Contractual Life | 3 years 4 months 24 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 31.95 | |||
Options Exercisable, Number | 101,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 31.95 | |||
$64.06 - $68.96 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise price, minimum | 32.01 | |||
Range of Exercise price, maximum | $ 35.28 | |||
Options Outstanding, Number | 479,000 | |||
Options Outstanding, Average Contractual Life | 4 years 1 month 6 days | |||
Options Outstanding, Weighted-Average Exercise Price | $ 34.07 | |||
Options Exercisable, Number | 42,000 | |||
Options Exercisable, Weighted Average Exercise Price | $ 33.53 |
Schedule of Share-based Compens
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options Intrinsic Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Aggregate intrinsic value of options outstanding | $ 46,667 | $ 32,988 | $ 22,798 |
Aggregate intrinsic value of options exercisable | 11,617 | 10,814 | 10,222 |
Aggregate intrinsic value of options exerised | $ 22,349 | $ 19,597 | $ 21,382 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Income Before Income Taxes [Line Items] | |||
Income Before Income Taxes | $ 75,268 | $ 72,305 | $ 72,959 |
U.S. | |||
Income Before Income Taxes [Line Items] | |||
Income Before Income Taxes | 55,753 | 62,329 | 58,479 |
Foreign | |||
Income Before Income Taxes [Line Items] | |||
Income Before Income Taxes | $ 19,515 | $ 9,976 | $ 14,480 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Current: | |||
Federal | $ 6,981 | $ 6,886 | $ 7,173 |
Change in tax-related uncertainties | (75) | 269 | 13 |
State | 2,147 | 1,262 | 1,265 |
Foreign | 4,875 | 2,475 | 3,758 |
Deferred: | |||
Federal | 479 | 1,964 | 1,031 |
State | 44 | 195 | 98 |
Foreign | (65) | (221) | (555) |
Provision for Income Taxes | $ 14,386 | $ 12,830 | $ 12,783 |
Reconciliation of Income Taxes
Reconciliation of Income Taxes Computed at the U.S. Federal Statutory Tax Rate to Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | |||
Tax at U.S. statutory rate | $ 15,806 | $ 15,184 | $ 15,321 |
Permanent differences | 292 | 360 | (56) |
Global intangible low-taxed income (GILTI) | 2,064 | 438 | 840 |
Foreign derived intangible income deduction (FDII) | (1,210) | (1,120) | (1,531) |
Foreign rate differential | 669 | (182) | 495 |
Subpart F income | 628 | 634 | 842 |
Tax benefits on stock-based compensation | (2,651) | (1,998) | (2,586) |
Changes in tax contingencies—Increase/(Release) | (76) | 269 | 13 |
Provision for state income taxes, net of federal benefit | 1,601 | 1,412 | 1,251 |
Tax Credits | (3,298) | (1,417) | (1,726) |
Other | 561 | (750) | (80) |
Provision for Income Taxes | $ 14,386 | $ 12,830 | $ 12,783 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Income Taxes [Line Items] | |||
Foreign tax credits | $ 2,753,000 | $ 945,000 | $ 1,296,000 |
Research and development credit | $ 545,000 | $ 472,000 | $ 430,000 |
Significant Components of Defer
Significant Components of Deferred Income Tax Liabilities and Assets (Detail) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Deferred income tax liabilities | ||
Indefinite and long-lived assets | $ (25,072) | $ (20,867) |
Prepaid expenses | (721) | (795) |
Deferred Tax Liabilities, Gross | (25,793) | (21,662) |
Deferred income tax assets | ||
Stock options | 1,106 | 1,479 |
Inventories and accounts receivable | 2,081 | 1,336 |
Tax loss carryforwards | 662 | 484 |
Accrued expenses and other | 568 | 657 |
Less: valuation allowances | (541) | (419) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 3,876 | 3,537 |
Net deferred income tax liabilities | $ (21,917) | $ (18,125) |
Operating Loss Carry forwards (
Operating Loss Carry forwards (Detail) $ in Thousands | 12 Months Ended |
May 31, 2021USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 2,283 |
U.S. | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 345 |
Operating Loss Carryforwards Expiration Description | 2037 to indefinite |
Foreign | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 1,938 |
Operating Loss Carryforwards Expiration Description | 2024 to 2039 |
Reconciliation of Our Tax Conti
Reconciliation of Our Tax Contingencies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Income Tax Contingency [Line Items] | |||
Beginning balance | $ 880 | $ 611 | $ 598 |
Increase/(decrease) related to prior periods | (272) | 56 | (106) |
Increase related to current period | 197 | 213 | 119 |
Ending balance | $ 805 | $ 880 | $ 611 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | 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 | $ 300,000 | ||
Royalty Expense | 2,129,000 | $ 2,524,000 | $ 2,795,000 |
Future minimum royalty payment for period, 2022 | 115,000 | ||
Future minimum royalty payment for period, 2023 | 110,000 | ||
Future minimum royalty payment for period, 2024 | 110,000 | ||
Future minimum royalty payment for period, 2025 | 110,000 | ||
Future minimum royalty payment for period, 2026 | 85,000 | ||
Estimated liability costs of remediation, non current | 616,000 | ||
Environmental loss contingencies, charges to expense for potential fines or penalties | 600,000 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation expense | 38,000 | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation expense | $ 131,000 |
Defined Contribution Benefit _2
Defined Contribution Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution 401(K) benefit expense | $ 1,204,000 | $ 1,535,000 | $ 1,361,000 |
First 3% employees deferred amount | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan employer matching contribution | 100.00% | ||
Next 2% employees deferred amount | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan employer matching contribution | 50.00% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
May 31, 2021Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 2 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | $ 127,425 | $ 116,709 | $ 115,000 | $ 109,325 | $ 109,074 | $ 99,869 | $ 107,803 | $ 101,424 | $ 468,459 | $ 418,170 | $ 414,186 | |
Operating income (loss) | 74,169 | 67,523 | 68,094 | |||||||||
Depreciation and amortization | 21,041 | 18,396 | 17,624 | |||||||||
Total Assets | 920,192 | 797,182 | 920,192 | 797,182 | 695,740 | |||||||
Expenditures for long-lived assets | 26,712 | 24,052 | 14,661 | |||||||||
Operating Segments | Food Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 234,244 | 212,691 | 213,474 | |||||||||
Operating income (loss) | 33,725 | 33,526 | 39,020 | |||||||||
Depreciation and amortization | 11,575 | 10,173 | 9,525 | |||||||||
Total Assets | 295,065 | 222,331 | 295,065 | 222,331 | 206,267 | |||||||
Expenditures for long-lived assets | 13,730 | 15,867 | 8,916 | |||||||||
Operating Segments | Animal Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 234,215 | 205,479 | 200,712 | |||||||||
Operating income (loss) | 48,685 | 39,051 | 33,875 | |||||||||
Depreciation and amortization | 9,466 | 8,223 | 8,099 | |||||||||
Total Assets | 244,039 | 231,178 | 244,039 | 231,178 | 221,950 | |||||||
Expenditures for long-lived assets | 12,982 | 8,185 | 5,745 | |||||||||
Product Revenues | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 376,302 | 335,539 | 339,439 | |||||||||
Product Revenues | Operating Segments | Food Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 209,104 | 189,893 | 190,675 | |||||||||
Product Revenues | Operating Segments | Animal Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 167,198 | 145,646 | 148,764 | |||||||||
Service Revenues | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 92,157 | 82,631 | 74,747 | |||||||||
Service Revenues | Operating Segments | Food Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 25,140 | 22,798 | 22,799 | |||||||||
Service Revenues | Operating Segments | Animal Safety | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Product revenues to external customers | 67,017 | 59,833 | 51,948 | |||||||||
Corporate and Eliminations | Operating Segments | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income (loss) | [1] | (8,241) | (5,054) | (4,801) | ||||||||
Total Assets | [1] | $ 381,088 | $ 343,673 | $ 381,088 | $ 343,673 | $ 267,523 | ||||||
[1] | Includes corporate assets, including cash and cash equivalents, marketable securities, current and deferred tax accounts, and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions and non-controlling interests. |
Disaggregated Revenue by Geogra
Disaggregated Revenue by Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Revenues by Geographic Location [Line Items] | |||
Total revenue | $ 468,459 | $ 418,170 | $ 414,186 |
Domestic | |||
Revenues by Geographic Location [Line Items] | |||
Total revenue | 285,262 | 253,458 | |
International | |||
Revenues by Geographic Location [Line Items] | |||
Total revenue | $ 183,197 | $ 164,712 |
Stock Repurchases - Additional
Stock Repurchases - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Dec. 31, 2018 | May 31, 2021 | Oct. 31, 2018 | |
Stock Repurchase Program [Line Items] | |||
Shares authorized to purchase | 6,000,000 | ||
Cost of repurchased shares, including commissions | $ 3,134,727 | ||
Number of shares repurchased | 100,000 | ||
Stock remained available for repurchase | 5,900,000 |
Summary of Quarterly Data (Deta
Summary of Quarterly Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Total Revenue | $ 127,425 | $ 116,709 | $ 115,000 | $ 109,325 | $ 109,074 | $ 99,869 | $ 107,803 | $ 101,424 | $ 468,459 | $ 418,170 | $ 414,186 |
Gross Margin | 57,691 | 53,849 | 53,214 | 50,302 | 51,729 | 45,330 | 51,026 | 48,194 | 215,056 | 196,279 | 191,920 |
Net Income | $ 15,760 | $ 13,377 | $ 15,885 | $ 15,860 | $ 16,347 | $ 12,200 | $ 16,276 | $ 14,652 | $ 60,882 | $ 59,475 | $ 60,176 |
Basic net income per share | $ 0.15 | $ 0.13 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.14 | $ 0.57 | $ 0.57 | $ 0.58 |
Diluted net income per share | $ 0.15 | $ 0.12 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.11 | $ 0.15 | $ 0.14 | $ 0.57 | $ 0.56 | $ 0.57 |