Neogen (NEOG) 10-Q 30 Dec 21 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Nov. 30, 2021shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Nov. 30, 2021
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
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 Small Business	false
Document Quarterly Report	true
Document Transition Report	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	107,768,342
Entity File Number	0-17988
Title of 12(b) Security	Common Stock, $0.16 par value per share
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

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Nov. 30, 2021	May 31, 2021
Current Assets
Cash and cash equivalents	$ 51,119,000	$ 75,602,000
Marketable securities	338,130,000	305,485,000
Accounts receivable, less allowance of $1,500 and $1,400 at November 30, 2021 and May 31, 2021, respectively	92,498,000	91,823,000
Inventories	107,086,000	100,701,000
Prepaid expenses and other current assets	22,371,000	17,840,000
Total Current Assets	611,204,000	591,451,000
Net Property and Equipment	100,863,000	100,453,000
Other assets
Right of use assets	2,171,000	2,477,000
Goodwill	142,613,000	131,476,000
Other non-amortizable intangible assets	15,359,000	15,545,000
Amortizable intangible and other assets, net of accumulated amortization of $51,012 and $53,462 at November 30, 2021 and May 31, 2021, respectively	93,706,000	76,771,000
Other non-current assets	2,018,000	2,019,000
Total Assets	967,934,000	920,192,000
Current Liabilities
Accounts payable	34,222,000	23,900,000
Accrued compensation	9,636,000	11,251,000
Income taxes	0	1,848,000
Other accruals	18,815,000	16,600,000
Total Current Liabilities	62,673,000	53,599,000
Deferred Income Taxes	21,829,000	21,917,000
Other Non-Current Liabilities	17,956,000	4,299,000
Total Liabilities	101,204,000	79,815,000
Commitments and Contingencies (note 10)
Equity
Preferred stock, $1.00 par value, 100,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.16 par value, 120,000,000 shares authorized, 107,768,342 and 107,468,304 shares issued and outstanding at November 30, 2021 and May 31, 2021, respectively	17,243,000	17,195,000
Additional paid-in capital	304,959,000	294,953,000
Accumulated other comprehensive loss	(24,235,000)	(11,375,000)
Retained earnings	567,509,000	539,604,000
Total Stockholders' Equity	865,476,000	840,377,000
Total Liabilities and Stockholders' Equity	$ 967,934,000	$ 920,192,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Nov. 30, 2021	May 31, 2021
Accounts receivable, allowance	$ 1,500	$ 1,400
Accumulated Amortization	$ 51,012	$ 53,462
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	107,768,342	107,468,304
Common stock, shares outstanding	107,768,342	107,468,304

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Revenues
Total Revenues	$ 130,517	$ 115,000	$ 258,822	$ 224,325
Cost of Revenues
Total Cost of Revenues	69,923	61,786	138,220	120,809
Gross Margin	60,594	53,214	120,602	103,516
Operating Expenses
Sales and marketing	21,188	17,729	41,743	34,245
General and administrative	22,605	12,184	35,988	23,197
Research and development	4,332	4,056	8,657	7,934
Total Operating Expenses	48,125	33,969	86,388	65,376
Operating Income	12,469	19,245	34,214	38,140
Other Income (expense)
Interest income	224	555	427	1,277
Other income (expense)	235	(465)	14	(272)
Total Other Income	459	90	441	1,005
Income Before Taxes	12,928	19,335	34,655	39,145
Provision for Income Taxes	2,100	3,450	6,750	7,400
Net Income	$ 10,828	$ 15,885	$ 27,905	$ 31,745
Net Income Per Share
Basic	$ 0.10	$ 0.15	$ 0.26	$ 0.30
Diluted	$ 0.10	$ 0.15	$ 0.26	$ 0.30
Weighted Average Shares Outstanding
Basic	107,641	106,258	107,565	106,044
Diluted	108,122	106,808	108,099	106,600
Product Revenues
Revenues
Total Revenues	$ 106,111	$ 92,537	$ 210,124	$ 180,472
Cost of Revenues
Total Cost of Revenues	56,374	49,275	111,100	95,870
Service Revenues
Revenues
Total Revenues	24,406	22,463	48,698	43,853
Cost of Revenues
Total Cost of Revenues	$ 13,549	$ 12,511	$ 27,120	$ 24,939

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Net income	$ 10,828	$ 15,885	$ 27,905	$ 31,745
Other comprehensive income (loss), net of tax: foreign currency translations	(7,649)	938	(12,272)	5,059
Other comprehensive loss, net of tax: unrealized loss on marketable securities	(382)	(317)	(588)	(436)
Total Comprehensive income	$ 2,797	$ 16,506	$ 15,045	$ 36,368

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning Balance at May. 31, 2020	$ 725,177	$ 16,943	$ 249,221	$ (19,709)	$ 478,722
Beginning Balance (in shares) at May. 31, 2020		105,892
Exercise of options and share-based compensation expense	5,839	$ 28	5,811
Exercise of options and share-based compensation expense (in shares)		172
Issuance of shares under employee stock purchase plan	668	$ 3	665
Issuance of shares under employee stock purchase plan (in shares)		18
Net income	15,860				15,860
Other comprehensive income(loss)	4,002			4,002
Ending Balance at Aug. 31, 2020	751,546	$ 16,974	255,697	(15,707)	494,582
Ending Balance (in shares) at Aug. 31, 2020		106,082
Beginning Balance at May. 31, 2020	725,177	$ 16,943	249,221	(19,709)	478,722
Beginning Balance (in shares) at May. 31, 2020		105,892
Net income	31,745
Ending Balance at Nov. 30, 2020	777,395	$ 17,038	264,976	(15,086)	510,467
Ending Balance (in shares) at Nov. 30, 2020		106,488
Beginning Balance at Aug. 31, 2020	751,546	$ 16,974	255,697	(15,707)	494,582
Beginning Balance (in shares) at Aug. 31, 2020		106,082
Exercise of options and share-based compensation expense	9,343	$ 64	9,279
Exercise of options and share-based compensation expense (in shares)		406
Net income	15,885				15,885
Other comprehensive income(loss)	621			621
Ending Balance at Nov. 30, 2020	777,395	$ 17,038	264,976	(15,086)	510,467
Ending Balance (in shares) at Nov. 30, 2020		106,488
Beginning Balance at May. 31, 2021	$ 840,377	$ 17,195	294,953	(11,375)	539,604
Beginning Balance (in shares) at May. 31, 2021	107,468,304	107,468
Exercise of options and share-based compensation expense	$ 1,839	$ 1	1,838
Exercise of options and share-based compensation expense (in shares)		6
Issuance of shares under employee stock purchase plan	899	$ 3	896
Issuance of shares under employee stock purchase plan (in shares)		19
Net income	17,077				17,077
Other comprehensive income(loss)	(4,829)			(4,829)
Ending Balance at Aug. 31, 2021	855,363	$ 17,199	297,687	(16,204)	556,681
Ending Balance (in shares) at Aug. 31, 2021		107,493
Beginning Balance at May. 31, 2021	$ 840,377	$ 17,195	294,953	(11,375)	539,604
Beginning Balance (in shares) at May. 31, 2021	107,468,304	107,468
Net income	$ 27,905
Ending Balance at Nov. 30, 2021	$ 865,476	$ 17,243	304,959	(24,235)	567,509
Ending Balance (in shares) at Nov. 30, 2021	107,768,342	107,768
Beginning Balance at Aug. 31, 2021	$ 855,363	$ 17,199	297,687	(16,204)	556,681
Beginning Balance (in shares) at Aug. 31, 2021		107,493
Exercise of options and share-based compensation expense	7,316	$ 44	7,272
Exercise of options and share-based compensation expense (in shares)		275
Net income	10,828				10,828
Other comprehensive income(loss)	(8,031)			(8,031)
Ending Balance at Nov. 30, 2021	$ 865,476	$ 17,243	$ 304,959	$ (24,235)	$ 567,509
Ending Balance (in shares) at Nov. 30, 2021	107,768,342	107,768

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020
Cash Flows From Operating Activities
Net Income	$ 27,905,000	$ 31,745,000
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	11,511,000	9,523,000
Share-based compensation	3,438,000	3,192,000
Changes in operating assets and liabilities, net of business acquisitions:
Accounts receivable	(1,500,000)	6,662,000
Inventories	(6,929,000)	4,063,000
Prepaid expenses and other current assets	(3,709,000)	(2,080,000)
Accounts payable, accruals and other changes	10,341,000	(5,581,000)
Net Cash From Operating Activities	41,057,000	47,524,000
Cash Flows Used for Investing Activities
Purchase of property, equipment and other non-current intangible assets	(5,235,000)	(11,092,000)
Proceeds from the sale of marketable securities	197,941,000	309,030,000
Purchase of marketable securities	(230,586,000)	(308,524,000)
Business acquisitions, net of cash acquired	(26,864,000)	(2,350,000)
Net Cash For Investing Activities	(64,744,000)	(12,936,000)
Cash Flows From Financing Activities
Exercise of stock options and issuance of employee stock purchase plan shares	6,619,000	12,658,000
Net Cash From Financing Activities	6,619,000	12,658,000
Effects of Foreign Exchange Rates on Cash	(7,415,000)	352,000
Net Increase (Decrease) in Cash and Cash Equivalents	(24,483,000)	47,598,000
Cash and Cash Equivalents, Beginning of period	75,602,000	66,269,000
Cash and Cash Equivalents, End of period	$ 51,119,000	$ 113,867,000

Accounting Policies

Accounting Policies	6 Months Ended
	Nov. 30, 2021
Summary of Significant Accounting Policies	1. ACCOUNTING POLICIES BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of Neogen Corporation (“Neogen” or the “Company”) and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles) for interim financial information and with the instructions to Form 10-Q S-X. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included in the accompanying unaudited consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six month periods ended November 30, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2022. For more complete financial information, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K Our functional currency is the U.S. dollar. We translate our non-U.S. Share and per share amounts reflect the June 4, 2021 2-for-1 Recently Adopted Accounting Standards Income Tax Simplification On June 1, 2021, the Company adopted ASU 740 Update 2019-12, Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued Update 2020-04, Comprehensive Income Comprehensive income represents net income and any revenues, expenses, gains and losses that, under U.S. generally accepted accounting principles, are excluded from net income and recognized directly as a component of equity. Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains or losses on our marketable securities. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments other than cash equivalents and marketable securities, which include accounts receivable and accounts payable, approximate fair value based on either their short maturity or current terms for similar instruments. Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Leases We lease various manufacturing, laboratory, warehousing and distribution facilities, administrative and sales offices, equipment and vehicles under operating leases. We evaluate our contracts to determine if an arrangement is a lease at inception and classify it as a finance or operating lease. Currently, all our leases are classified as operating leases. Topic 842 requires the Company to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use Right-of-use non-current non-current right-of-use non-current ESTIMATES AND ASSUMPTIONS The preparation of these financial statements requires that management make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates the estimates, including, but not limited to, variable consideration related to revenue recognition, allowances for doubtful accounts, the market value of, and demand for, inventories, stock-based compensation, provision for income taxes and related balance sheet accounts, accruals, goodwill and other intangible assets. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Accounts Receivable Allowance Management attempts to minimize credit risk by reviewing customers’ credit history before extending credit and by monitoring credit exposure on a regular basis. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, generally after all collection efforts have been exhausted, that amount is charged against the allowance for doubtful accounts. Inventory The reserve for obsolete and slow-moving inventory is reviewed at least quarterly based on an analysis of the inventory, considering the current condition of the asset as well as other known facts and future plans. The reserve required to record inventory at lower of cost or net realizable value is adjusted as conditions change. Product obsolescence may be caused by shelf-life expiration, discontinuance of a product line, replacement products in the marketplace or other competitive situations. Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete non-amortizable Long-Lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset indicate that the carrying amount of the asset may not be recoverable. In such an event, fair value is determined using discounted cash flows and, if lower than the carrying value, impairment is recognized through a charge to operations. Equity Compensation Plans Share options awarded to employees, restricted stock units (RSUs) and shares of stock awarded to employees under certain stock purchase plans are recognized as compensation expense based on their fair value at grant date. The fair market value of options granted under the Company stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for inputs such as interest rates, expected dividends, an estimate of award forfeitures, volatility measures and specific employee exercise behavior patterns based on statistical data. Some of the inputs used are not market-observable and have to be estimated or derived from available data. Use of different estimates would produce different option values, which in turn would result in higher or lower compensation expense recognized. For RSUs, we use the intrinsic value method to value the units. To value equity awards, several recognized valuation models exist; none of these models can be singled out as being the best or most correct. The model applied by us can accommodate 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.

Cash and Marketable Securities

Cash and Marketable Securities	6 Months Ended
	Nov. 30, 2021
Cash and Cash Equivalents [Abstract]
Cash and Marketable Securities	2. CASH AND MARKETABLE SECURITIES Cash and Cash Equivalents Cash and cash equivalents consist of bank demand accounts, savings deposits, certificates of deposit and commercial paper with original maturities of 90 days or less. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has not experienced losses related to these balances and believes it is not exposed to significant credit risk regarding its cash and cash equivalents. Cash and cash equivalents were $51,119,000 and $75,602,000 at November 30, 2021 and May 31, 2021, respectively. The carrying value of these assets approximates fair value due to the short maturity of these instruments and is classified as Level 1 in the fair value hierarchy. Marketable Securities The Company has marketable securities held by banks or broker-dealers at November 30, 2021. 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 securities investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable securities portfolio. These securities are classified as available for sale. The primary objective of management’s short-term investment activity is to preserve capital for the purpose of funding current operations, capital expenditures and business acquisitions; short-term investments are not entered into for trading or speculative purposes. These securities are recorded at fair value based on recent trades or pricing models and therefore meet the Level 2 criteria. Interest income on these investments is recorded within other income on the income statement. Adjustments in the fair value of these assets are recorded in other comprehensive income. Marketable Securities as of November 30, 2021 and May 31, 2021 are listed below by classification and remaining maturities. November 30, May 31, (in thousands) Maturity 2021 2021 Commercial Paper & Corporate Bonds 0 - 90 days 79,830 106,631 91 - 180 days 88,246 78,727 181 days - 1 year 64,526 87,590 1 - 2 years 104,275 26,752 Certificates of Deposit 0 - 90 days 1,002 3,262 91 - 180 days 251 1,260 181 days - 1 year — 1,263 1 - 2 years — — Total Marketable Securities $ 338,130 $ 305,485 The components of marketable securities at November 30, 2021 are as follows: Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Commercial Paper & Corporate Bonds 337,437 18 (578 ) 336,877 Certificates of Deposit 1,251 2 — 1,253 Total Marketable Securities $ 338,688 $ 20 $ (578 ) $ 338,130 The components of marketable securities at May 31, 2021 are as follows: Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value 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

Inventories

Inventories	6 Months Ended
	Nov. 30, 2021
Inventories	3. INVENTORIES Inventories are stated at the lower of cost, determined by the first-in, first-out November 30, May 31, (in thousands) 2021 2021 Raw materials $ 53,940 $ 47,588 Work-in-process 6,303 6,412 Finished and purchased goods 46,843 46,701 $ 107,086 $ 100,701

Revenue Recognition

Revenue Recognition	6 Months Ended
	Nov. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	4. REVENUE RECOGNITION The Company determines 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 recognize revenue at a point in time when all of our performance obligations under the terms of a contract are satisfied. Revenue is recognized upon transfer of control of promised products and services in an amount that reflects the consideration we expect to receive in exchange for those products or services. The collectability of consideration on the contract is reasonably assured before revenue is recognized. To the extent that customer payment has been received before all recognition criteria are met, these revenues are initially deferred in other accruals on the balance sheet and the revenue is recognized in the period that all recognition criteria have been met. Certain agreements with customers include discounts or rebates on the sale of products and services applied retrospectively, such as volume rebates achieved by purchasing a specified purchase threshold of goods and services. We account for these discounts as variable consideration and estimate the likelihood of a customer meeting the threshold in order to determine the transaction price using the most predictive approach. We typically use the most-likely-amount method for incentives that are offered to individual customers, and the expected-value method for programs that are offered to a broad group of customers. Variable consideration reduces the amount of revenue that is recognized. Rebate obligations related to customer incentive programs are recorded in accrued liabilities; the rebate estimates are adjusted at the end of each applicable measurement period based on information currently available. The performance obligations in Neogen’s contracts are generally satisfied well within one year of contract inception. In such cases, management has elected the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component. Management has elected to utilize the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred because the amortization period for the prepaid costs that would otherwise have been deferred and amortized is one year or less. We account for shipping and handling for products as a fulfillment activity when goods are shipped. Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenues, while the related expenses incurred by Neogen are recorded in sales and marketing expense. Revenue is recognized net of any tax collected from customers; the taxes are subsequently remitted to governmental authorities. Our terms and conditions of sale generally do not provide for returns of product or reperformance of service except in the case of quality or warranty issues. These situations are infrequent; due to immateriality of the amount, warranty claims are recorded in the period incurred. The Company derives revenue from two primary sources—product revenue and service revenue. Product revenue consists of shipments of: • Diagnostic test kits, dehydrated culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation; • Consumable products marketed to veterinarians, retailers, livestock producers and animal health product distributors; and • Rodenticides, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. Revenues for our products are recognized and invoiced when the product is shipped to the customer. Service revenue consists primarily of: • Genomic identification and related interpretive bioinformatic services; and • Other commercial laboratory services. Revenues for Neogen’s genomics and commercial laboratory services are recognized and invoiced when the applicable laboratory service is performed and the results are conveyed to the customer. Payment terms for products and services are generally 30 to 60 days. The following table presents disaggregated revenue by major product and service categories for the three and six month periods ended November 30, 2021 and 2020: Three Months ended Six Months ended (in thousands) 2021 2020 2021 2020 Food Safety Natural Toxins, Allergens & Drug Residues $ 21,028 $ 20,001 $ 41,432 $ 39,016 Bacterial & General Sanitation 12,252 11,235 23,421 21,166 Culture Media & Other 19,935 14,215 37,981 26,387 Rodenticides, Insecticides & Disinfectants 8,232 7,059 15,882 15,888 Genomics Services 5,685 5,024 11,138 9,262 $ 67,132 $ 57,534 $ 129,854 $ 111,719 Animal Safety Life Sciences $ 1,309 $ 1,398 $ 2,672 $ 2,723 Veterinary Instruments & Disposables 15,572 11,974 30,909 22,349 Animal Care & Other 10,849 9,371 20,068 17,029 Rodenticides, Insecticides & Disinfectants 18,269 18,471 40,418 38,385 Genomics Services 17,386 16,252 34,901 32,120 $ 63,385 $ 57,466 $ 128,968 $ 112,606 Total Revenues $ 130,517 $ 115,000 $ 258,822 $ 224,325

Net Income per Share

Net Income per Share	6 Months Ended
	Nov. 30, 2021
Net Income per Share	5. NET INCOME PER SHARE The calculation of net income per share follows: Three Months Ended Six Months Ended November 30, November 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 10,828 $ 15,885 $ 27,905 $ 31,745 Denominator for basic net income per share: Weighted average shares 107,641 106,258 107,565 106,044 Effect of dilutive stock options and RSUs 481 550 534 556 Denominator for diluted net income per share 108,122 106,808 108,099 106,600 Net income attributable to Neogen per share: Basic $ 0.10 $ 0.15 $ 0.26 $ 0.30 Diluted $ 0.10 $ 0.15 $ 0.26 $ 0.30

Segment Information and Geograp

Segment Information and Geographic Data	6 Months Ended
	Nov. 30, 2021
Segment Information and Geographic Data	6. SEGMENT INFORMATION AND GEOGRAPHIC DATA We have two reportable segments: Food Safety and Animal Safety. The Food Safety segment is primarily engaged in the development, production and marketing of diagnostic test kits, culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation. The Animal Safety segment is primarily engaged in the development, production and marketing of products dedicated to animal safety, including a complete line of consumable products marketed to veterinarians and animal health product distributors; this segment also provides genomic identification and related interpretive bioinformatic services. Additionally, the Animal Safety segment produces and markets rodenticides, disinfectants and insecticides to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. Our international operations in the United Kingdom, Mexico, Brazil, China and India originally focused on the Company’s food safety products, and each of these units reports through the Food Safety segment. In recent years, these operations have expanded to offer our complete line of products and services, including those usually associated with the Animal Safety segment such as cleaners, disinfectants, rodenticides, insecticides, veterinary instruments and genomics services. These additional products and services are managed and directed by existing management and are reported through the Food Safety segment. Neogen’s operation in Australia originally focused on providing genomics services and sales of animal safety products and reports through the Animal Safety segment. With the acquisition of Cell BioSciences in February 2020, this operation has expanded to offer our complete line of products and services, including those usually associated with the Food Safety segment. These additional products are managed and directed by existing management at Neogen Australasia and report through the Animal Safety segment. The accounting policies of each of the segments are the same as those described in Note 1. Segment information follows: Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the three months ended November 30, 2021 Product revenues to external customers $ 60,112 $ 45,999 $ — $ 106,111 Service revenues to external customers 7,020 17,386 — 24,406 Total revenues to external customers 67,132 63,385 — 130,517 Operating income (loss) 10,894 12,701 (11,126 ) 12,469 Total assets 298,437 278,994 390,503 967,934 As of and for the three months ended November 30, 2020 Product revenues to external customers $ 51,323 $ 41,214 $ — $ 92,537 Service revenues to external customers 6,211 16,252 — 22,463 Total revenues to external customers 57,534 57,466 — 115,000 Operating income (loss) 8,960 12,246 (1,961 ) 19,245 Total assets 226,735 228,126 390,765 845,626 (1) Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, current and deferred tax accounts and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions. Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the six months ended November 30, 2021 Product revenues to external customers $ 116,057 $ 94,067 $ — $ 210,124 Service revenues to external customers 13,797 34,901 — 48,698 Total revenues to external customers 129,854 128,968 — 258,822 Operating income (loss) 21,026 25,463 (12,275 ) 34,214 As of and for the six months ended November 30, 2020 Product revenues to external customers $ 99,986 $ 80,486 $ — $ 180,472 Service revenues to external customers 11,733 32,120 — 43,853 Total revenues to external customers 111,719 112,606 — 224,325 Operating income (loss) 16,923 24,411 (3,194 ) 38,140 (1) Includes elimination of intersegment transactions. The following table presents the Company’s revenue disaggregated by geographic location: Three months ended Six months ended November 30, November 30, (in thousands) 2021 2020 2021 2020 Domestic $ 76,378 $ 69,832 $ 154,156 $ 137,156 International 54,139 45,168 104,666 87,169 Total revenue 130,517 115,000 258,822 224,325

Equity Compensation Plans

Equity Compensation Plans	6 Months Ended
	Nov. 30, 2021
Equity Compensation Plans	7. EQUITY COMPENSATION PLANS Incentive and non-qualified three five Weighted- Average (Options in thousands) Shares Exercise Price Options outstanding June 1, 2021 2,957 $ 30.38 Granted 392 40.93 Exercised (262 ) 22.42 Forfeited (21 ) 31.11 Options outstanding November 30, 2021 3,066 $ 32.40 During the three and six month periods ended November 30, 2021 and 2020, the Company recorded $1,748,000 and $1,511,000 and $3,438,000 and $3,192,000, respectively, of compensation expense related to its share-based awards. The weighted-average fair value per share of stock options granted during the first six months of fiscal years 2022 and 2021, estimated on the date of grant using the Black-Scholes option pricing model, was $9.54 and $7.71, respectively. The fair value of stock options granted was estimated using the following weighted-average assumptions. FY 2022 FY 2021 Risk-free interest rate 0.4 % 0.2 % Expected dividend yield 0.0 % 0.0 % Expected stock price volatility 32.8 % 31.3 % Expected option life 3.12 years 3.25 years The company grants restricted stock units (RSUs) to directors, officers and employees under the terms of the 2018 Omnibus Incentive Plan, which vest ratably over three non-vested Weighted- Average (Options in thousands) Shares Fair Value RSUs outstanding June 1, 2021 121 $ 34.21 Granted 120 40.92 Released (25 ) 34.24 Forfeited (3 ) 34.49 RSUs outstanding November 30, 2021 213 $ 37.97 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 either the 2011 or the 2021 Employee Stock Purchase Plan; the discount is recorded in general and administrative expense. Total individual purchases in any year are limited to 10% of compensation.

Business Combinations

Business Combinations	6 Months Ended
	Nov. 30, 2021
Business Combinations	8. BUSINESS COMBINATIONS The Consolidated Statements of Income reflect the results of operations for business acquisitions since the respective dates of purchase. A l On July 31, 2020, the Company acquired the U.S. (including territories) rights to Elanco’s StandGuard Pour-on 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 has ed one final non-current non-current 15-20 (non-deductible On September 17, 2021, the Company acquired the stock of CAPInnoVet, Inc., a companion animal health business that provides pet medications to the veterinary market. This acquisition provides entry into the retail parasiticide market and enhances the Company’s presence in companion animal markets. Consideration for the purchase was net cash of $17.9 million paid at closing, including $150,000 of cash placed in escrow payable to the former owners in twelve months. There is also the potential for performance and future roya lty payment s non-current 15-20 (non-deductible is On November 30, 2021, the Company acquired the stock of Delf (UK) Ltd., a United Kingdom-based manufacturer and supplier of animal hygiene and industrial cleaning products, and Abbott Analytical Ltd., non-current 10-15 (non-deductible Subsequent to the end of the quarter, on December 9, 2021, the Company acquired the stock of Genetic Veterinary Services, Inc., a companion animal genetic testing business providing genetic information for dogs, cats and birds to animal owners, breeders and veterinarians. This acquisition will further expand the Company’s presence in the companion animal market. Consideration for the purchase was $11.8 million in cash. Due to the timing of the transaction, the preliminary purchase price allocation was not complete at the time of filing. The business will be operated from its current location in Spokane, Washington, reporting within the Animal Safety segment. Subsequent 8-K For each completed acquisition listed above, the revenues and net income were not considered material and were therefore not disclosed.

Long Term Debt

Long Term Debt	6 Months Ended
	Nov. 30, 2021
Long Term Debt	9. LONG TERM DEBT We have a financing agreement with a bank providing for a $15,000,000 unsecured revolving line of credit, which expires on November 30, 2023. There were no advances against the line of credit during fiscal 2021 and there have been none thus far in fiscal 2022; there was no balance outstanding at November 30, 2021. Interest on any borrowings is at LIBOR plus 100 basis points (rate under the terms of the agreement was 1.09% at November 30, 2021). Financial covenants include maintaining specified levels of tangible net worth, debt service coverage, and funded debt to EBITDA, each of which the Company was in compliance with at November 30, 2021.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Nov. 30, 2021
Commitments and Contingencies	10. 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 liability for these costs was $916,000 at both November 30, 2021 and May 31, 2021, measured on an undiscounted basis over an estimated period of 15 years. 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 non-current 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 is subject to certain legal and other proceedings in the normal course of business that, in the opinion of management, should not have a material effect on its future results of operations or financial position.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Nov. 30, 2021
Basis of Presentetion and Consolidation	BASIS OF PRESENTATION AND CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of Neogen Corporation (“Neogen” or the “Company”) and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (generally accepted accounting principles) for interim financial information and with the instructions to Form 10-Q S-X. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included in the accompanying unaudited consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six month periods ended November 30, 2021 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 2022. For more complete financial information, these consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K Our functional currency is the U.S. dollar. We translate our non-U.S. Share and per share amounts reflect the June 4, 2021 2-for-1
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Income Tax Simplification On June 1, 2021, the Company adopted ASU 740 Update 2019-12,
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued Update 2020-04,
Comprehensive Income	Comprehensive Income Comprehensive income represents net income and any revenues, expenses, gains and losses that, under U.S. generally accepted accounting principles, are excluded from net income and recognized directly as a component of equity. Accumulated other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains or losses on our marketable securities.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments other than cash equivalents and marketable securities, which include accounts receivable and accounts payable, approximate fair value based on either their short maturity or current terms for similar instruments. Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Leases	Leases We lease various manufacturing, laboratory, warehousing and distribution facilities, administrative and sales offices, equipment and vehicles under operating leases. We evaluate our contracts to determine if an arrangement is a lease at inception and classify it as a finance or operating lease. Currently, all our leases are classified as operating leases. Topic 842 requires the Company to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use Right-of-use non-current non-current right-of-use non-current
Estimates And Assumption	ESTIMATES AND ASSUMPTIONS The preparation of these financial statements requires that management make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates the estimates, including, but not limited to, variable consideration related to revenue recognition, allowances for doubtful accounts, the market value of, and demand for, inventories, stock-based compensation, provision for income taxes and related balance sheet accounts, accruals, goodwill and other intangible assets. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Accounts Receivable Allowance	Accounts Receivable Allowance Management attempts to minimize credit risk by reviewing customers’ credit history before extending credit and by monitoring credit exposure on a regular basis. An allowance for doubtful accounts is established based upon factors surrounding the credit risk of specific customers, historical trends and other information. Collateral or other security is generally not required for accounts receivable. Once a receivable balance has been determined to be uncollectible, generally after all collection efforts have been exhausted, that amount is charged against the allowance for doubtful accounts.
Inventory	Inventory The reserve for obsolete and slow-moving inventory is reviewed at least quarterly based on an analysis of the inventory, considering the current condition of the asset as well as other known facts and future plans. The reserve required to record inventory at lower of cost or net realizable value is adjusted as conditions change. Product obsolescence may be caused by shelf-life expiration, discontinuance of a product line, replacement products in the marketplace or other competitive situations.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses after amounts are allocated to other identifiable intangible assets. Other intangible assets include customer relationships, trademarks, licenses, trade names, covenants not-to-compete non-amortizable
Long-lived Assets	Long-Lived Assets Management reviews the carrying values of its long-lived assets to be held and used, including definite-lived intangible assets, for possible impairment whenever events or changes in business conditions warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated separately identifiable undiscounted cash flows over the remaining useful life of the asset indicate that the carrying amount of the asset may not be recoverable. In such an event, fair value is determined using discounted cash flows and, if lower than the carrying value, impairment is recognized through a charge to operations.
Equity Compensation Plans	Equity Compensation Plans Share options awarded to employees, restricted stock units (RSUs) and shares of stock awarded to employees under certain stock purchase plans are recognized as compensation expense based on their fair value at grant date. The fair market value of options granted under the Company stock option plans was estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for inputs such as interest rates, expected dividends, an estimate of award forfeitures, volatility measures and specific employee exercise behavior patterns based on statistical data. Some of the inputs used are not market-observable and have to be estimated or derived from available data. Use of different estimates would produce different option values, which in turn would result in higher or lower compensation expense recognized. For RSUs, we use the intrinsic value method to value the units. To value equity awards, several recognized valuation models exist; none of these models can be singled out as being the best or most correct. The model applied by us can accommodate
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.

Cash and Marketable Securities

Cash and Marketable Securities (Tables)	6 Months Ended
	Nov. 30, 2021
Cash and Cash Equivalents [Abstract]
Schedule Of Classification And Maturities Of Marketable Securities	Marketable Securities as of November 30, 2021 and May 31, 2021 are listed below by classification and remaining maturities. November 30, May 31, (in thousands) Maturity 2021 2021 Commercial Paper & Corporate Bonds 0 - 90 days 79,830 106,631 91 - 180 days 88,246 78,727 181 days - 1 year 64,526 87,590 1 - 2 years 104,275 26,752 Certificates of Deposit 0 - 90 days 1,002 3,262 91 - 180 days 251 1,260 181 days - 1 year — 1,263 1 - 2 years — — Total Marketable Securities $ 338,130 $ 305,485
Summary of components of marketable securities	The components of marketable securities at November 30, 2021 are as follows: Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value Commercial Paper & Corporate Bonds 337,437 18 (578 ) 336,877 Certificates of Deposit 1,251 2 — 1,253 Total Marketable Securities $ 338,688 $ 20 $ (578 ) $ 338,130 The components of marketable securities at May 31, 2021 are as follows: Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value 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

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Nov. 30, 2021
Inventories	Inventories are stated at the lower of cost, determined by the first-in, first-out November 30, May 31, (in thousands) 2021 2021 Raw materials $ 53,940 $ 47,588 Work-in-process 6,303 6,412 Finished and purchased goods 46,843 46,701 $ 107,086 $ 100,701

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Nov. 30, 2021
Disaggregated Revenue	The following table presents the Company’s revenue disaggregated by geographic location: Three months ended Six months ended November 30, November 30, (in thousands) 2021 2020 2021 2020 Domestic $ 76,378 $ 69,832 $ 154,156 $ 137,156 International 54,139 45,168 104,666 87,169 Total revenue 130,517 115,000 258,822 224,325
Operating Segments [Member]
Disaggregated Revenue	The following table presents disaggregated revenue by major product and service categories for the three and six month periods ended November 30, 2021 and 2020: Three Months ended Six Months ended (in thousands) 2021 2020 2021 2020 Food Safety Natural Toxins, Allergens & Drug Residues $ 21,028 $ 20,001 $ 41,432 $ 39,016 Bacterial & General Sanitation 12,252 11,235 23,421 21,166 Culture Media & Other 19,935 14,215 37,981 26,387 Rodenticides, Insecticides & Disinfectants 8,232 7,059 15,882 15,888 Genomics Services 5,685 5,024 11,138 9,262 $ 67,132 $ 57,534 $ 129,854 $ 111,719 Animal Safety Life Sciences $ 1,309 $ 1,398 $ 2,672 $ 2,723 Veterinary Instruments & Disposables 15,572 11,974 30,909 22,349 Animal Care & Other 10,849 9,371 20,068 17,029 Rodenticides, Insecticides & Disinfectants 18,269 18,471 40,418 38,385 Genomics Services 17,386 16,252 34,901 32,120 $ 63,385 $ 57,466 $ 128,968 $ 112,606 Total Revenues $ 130,517 $ 115,000 $ 258,822 $ 224,325

Net Income per Share (Tables)

Net Income per Share (Tables)	6 Months Ended
	Nov. 30, 2021
Calculation of Net Income Per Share	The calculation of net income per share follows: Three Months Ended Six Months Ended November 30, November 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator for basic and diluted net income per share: Net income attributable to Neogen $ 10,828 $ 15,885 $ 27,905 $ 31,745 Denominator for basic net income per share: Weighted average shares 107,641 106,258 107,565 106,044 Effect of dilutive stock options and RSUs 481 550 534 556 Denominator for diluted net income per share 108,122 106,808 108,099 106,600 Net income attributable to Neogen per share: Basic $ 0.10 $ 0.15 $ 0.26 $ 0.30 Diluted $ 0.10 $ 0.15 $ 0.26 $ 0.30

Segment Information and Geogr_2

Segment Information and Geographic Data (Tables)	6 Months Ended
	Nov. 30, 2021
Segment Information	Segment information follows: Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the three months ended November 30, 2021 Product revenues to external customers $ 60,112 $ 45,999 $ — $ 106,111 Service revenues to external customers 7,020 17,386 — 24,406 Total revenues to external customers 67,132 63,385 — 130,517 Operating income (loss) 10,894 12,701 (11,126 ) 12,469 Total assets 298,437 278,994 390,503 967,934 As of and for the three months ended November 30, 2020 Product revenues to external customers $ 51,323 $ 41,214 $ — $ 92,537 Service revenues to external customers 6,211 16,252 — 22,463 Total revenues to external customers 57,534 57,466 — 115,000 Operating income (loss) 8,960 12,246 (1,961 ) 19,245 Total assets 226,735 228,126 390,765 845,626 (1) Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, current and deferred tax accounts and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions. Corporate and Food Animal Eliminations (in thousands) Safety Safety (1) Total As of and for the six months ended November 30, 2021 Product revenues to external customers $ 116,057 $ 94,067 $ — $ 210,124 Service revenues to external customers 13,797 34,901 — 48,698 Total revenues to external customers 129,854 128,968 — 258,822 Operating income (loss) 21,026 25,463 (12,275 ) 34,214 As of and for the six months ended November 30, 2020 Product revenues to external customers $ 99,986 $ 80,486 $ — $ 180,472 Service revenues to external customers 11,733 32,120 — 43,853 Total revenues to external customers 111,719 112,606 — 224,325 Operating income (loss) 16,923 24,411 (3,194 ) 38,140 (1) Includes elimination of intersegment transactions.
Disaggregated Revenue	The following table presents the Company’s revenue disaggregated by geographic location: Three months ended Six months ended November 30, November 30, (in thousands) 2021 2020 2021 2020 Domestic $ 76,378 $ 69,832 $ 154,156 $ 137,156 International 54,139 45,168 104,666 87,169 Total revenue 130,517 115,000 258,822 224,325

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	6 Months Ended
	Nov. 30, 2021
Stock Option Activity	A summary of stock option activity during the six months ended November 30, 2021 follows: Weighted- Average (Options in thousands) Shares Exercise Price Options outstanding June 1, 2021 2,957 $ 30.38 Granted 392 40.93 Exercised (262 ) 22.42 Forfeited (21 ) 31.11 Options outstanding November 30, 2021 3,066 $ 32.40
Fair Value of Stock Options Granted Estimated Weighted-Average Assumptions	The fair value of stock options granted was estimated using the following weighted-average assumptions. FY 2022 FY 2021 Risk-free interest rate 0.4 % 0.2 % Expected dividend yield 0.0 % 0.0 % Expected stock price volatility 32.8 % 31.3 % Expected option life 3.12 years 3.25 years
Restricted Stock Units (RSUs) [Member]
Schedule of Nonvested Restricted Stock Units Activity	On November 30, 2021 there was $6,501,000 in unamortized compensation cost related to non-vested Weighted- Average (Options in thousands) Shares Fair Value RSUs outstanding June 1, 2021 121 $ 34.21 Granted 120 40.92 Released (25 ) 34.24 Forfeited (3 ) 34.49 RSUs outstanding November 30, 2021 213 $ 37.97

Summary of Significant Accounti

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Jun. 04, 2021	Nov. 30, 2021	May 31, 2021
Significant Accounting Policies [Line Items]
Right of use assets		$ 2,171,000	$ 2,477,000
Lease liabilities		$ 2,181,000	$ 2,492,000
Stockholders equity note stock split	2-for-1
Minimum
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life		5 years
Maximum
Significant Accounting Policies [Line Items]
Finite lived intangible assets, useful life		25 years

Cash and Marketable Securitie_2

Cash and Marketable Securities - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2021	May 31, 2021	Nov. 30, 2020	May 31, 2020
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 51,119,000	$ 75,602,000	$ 113,867,000	$ 66,269,000
Marketable securities, maturity period	90 days

Cash And Marketable Securitie_3

Cash And Marketable Securities - Marketable Securities (Detail) - USD ($) $ in Thousands	Nov. 30, 2021	May 31, 2021
Marketable Securities, Current	$ 338,130	$ 305,485
Commercial Paper | Maturing in 0 - 90 days
Marketable Securities, Current	79,830	106,631
Commercial Paper | Maturing in 91 - 180 days
Marketable Securities, Current	88,246	78,727
Commercial Paper | Maturing in 181 days - 1 year
Marketable Securities, Current	64,526	87,590
Commercial Paper | Maturing in 1 - 2 years
Marketable Securities, Current	104,275	26,752
Certificates of Deposit | Maturing in 0 - 90 days
Marketable Securities, Current	1,002	3,262
Certificates of Deposit | Maturing in 91 - 180 days
Marketable Securities, Current	251	1,260
Certificates of Deposit | Maturing in 181 days - 1 year
Marketable Securities, Current	0	1,263
Certificates of Deposit | Maturing in 1 - 2 years
Marketable Securities, Current	$ 0	$ 0

Cash and Marketable Securitie_4

Cash and Marketable Securities - Components of marketable securities (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Nov. 30, 2021	May 31, 2021
Marketable Securities [Line Items]
Amortized Cost	$ 338,688	$ 305,279
Unrealized gains	20	239
Unrealized Losses	(578)	(33)
Fair Value	338,130	305,485
Commercial Paper And Corporate Bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	337,437	299,524
Unrealized gains	18	209
Unrealized Losses	(578)	(33)
Fair Value	336,877	299,700
Certificates of Deposit [Member]
Marketable Securities [Line Items]
Amortized Cost	1,251	5,755
Unrealized gains	2	30
Unrealized Losses
Fair Value	$ 1,253	$ 5,785

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Nov. 30, 2021	May 31, 2021
Inventory [Line Items]
Raw Materials	$ 53,940	$ 47,588
Work-in-process	6,303	6,412
Finished and purchased goods	46,843	46,701
Inventories	$ 107,086	$ 100,701

Disaggregated Revenue (Detail)

Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Disaggregation of Revenue [Line Items]
Total Revenues	$ 130,517	$ 115,000	$ 258,822	$ 224,325
Food Safety
Disaggregation of Revenue [Line Items]
Total Revenues	67,132	57,534	129,854	111,719
Food Safety | Natural Toxins, Allergens & Drug Residues
Disaggregation of Revenue [Line Items]
Total Revenues	21,028	20,001	41,432	39,016
Food Safety | Bacterial & General Sanitation
Disaggregation of Revenue [Line Items]
Total Revenues	12,252	11,235	23,421	21,166
Food Safety | Culture Media & Other
Disaggregation of Revenue [Line Items]
Total Revenues	19,935	14,215	37,981	26,387
Food Safety | Rodenticides, Insecticides & Disinfectants
Disaggregation of Revenue [Line Items]
Total Revenues	8,232	7,059	15,882	15,888
Food Safety | Genomics Services
Disaggregation of Revenue [Line Items]
Total Revenues	5,685	5,024	11,138	9,262
Animal Safety
Disaggregation of Revenue [Line Items]
Total Revenues	63,385	57,466	128,968	112,606
Animal Safety | Life Sciences
Disaggregation of Revenue [Line Items]
Total Revenues	1,309	1,398	2,672	2,723
Animal Safety | Animal Care & Other
Disaggregation of Revenue [Line Items]
Total Revenues	10,849	9,371	20,068	17,029
Animal Safety | Veterinary Instruments & Disposables
Disaggregation of Revenue [Line Items]
Total Revenues	15,572	11,974	30,909	22,349
Animal Safety | Rodenticides, Insecticides & Disinfectants
Disaggregation of Revenue [Line Items]
Total Revenues	18,269	18,471	40,418	38,385
Animal Safety | Genomics Services
Disaggregation of Revenue [Line Items]
Total Revenues	$ 17,386	$ 16,252	$ 34,901	$ 32,120

Calculation of Net Income Per S

Calculation of Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Earnings Per Share [Line Items]
Numerator for basic and diluted net income per share - Net income attributable to Neogen	$ 10,828	$ 15,885	$ 27,905	$ 31,745
Denominator for basic net income per share - Weighted average shares	107,641	106,258	107,565	106,044
Effect of dilutive stock options and RSUs	481	550	534	556
Denominator for diluted net income per share	108,122	106,808	108,099	106,600
Net income attributable to Neogen per share:
Basic	$ 0.10	$ 0.15	$ 0.26	$ 0.30
Diluted	$ 0.10	$ 0.15	$ 0.26	$ 0.30

Segment Information and Geogr_3

Segment Information and Geographic Data (Detail) - USD ($) $ in Thousands		3 Months Ended					6 Months Ended
		Nov. 30, 2021		Nov. 30, 2020	Aug. 31, 2020	[1]	Nov. 30, 2021		Nov. 30, 2020		May 31, 2021
Segment Reporting Information [Line Items]
Product revenues to external customers		$ 130,517		$ 115,000			$ 258,822		$ 224,325
Operating income (loss)		12,469		19,245			34,214		38,140
Total Assets		967,934		845,626			967,934		845,626		$ 920,192
Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		67,132		57,534			129,854		111,719
Operating income (loss)		10,894		8,960			21,026		16,923
Total Assets		298,437		226,735			298,437		226,735
Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		63,385		57,466			128,968		112,606
Operating income (loss)		12,701		12,246			25,463		24,411
Total Assets		278,994		228,126			278,994		228,126
Product Revenues
Segment Reporting Information [Line Items]
Product revenues to external customers		106,111		92,537			210,124		180,472
Product Revenues | Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		60,112		51,323			116,057		99,986
Product Revenues | Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		45,999		41,214			94,067		80,486
Service Revenues
Segment Reporting Information [Line Items]
Product revenues to external customers		24,406		22,463			48,698		43,853
Service Revenues | Operating Segments | Food Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		7,020		6,211			13,797		11,733
Service Revenues | Operating Segments | Animal Safety
Segment Reporting Information [Line Items]
Product revenues to external customers		17,386		16,252			34,901		32,120
Corporate and Eliminations | Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)		(11,126)	[1]		$ (1,961)		(12,275)	[2]	(3,194)	[2]
Total Assets	[1]	$ 390,503		$ 390,765			$ 390,503		$ 390,765
[1]	Includes corporate assets, consisting principally of cash and cash equivalents, marketable securities, current and deferred tax accounts and overhead expenses not allocated to specific business segments. Also includes the elimination of intersegment transactions.
[2]	Includes elimination of intersegment transactions.

Disaggregated Revenue by Geogra

Disaggregated Revenue by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2021	Nov. 30, 2020
Revenues by Geographic Location [Line Items]
Total revenue	$ 130,517	$ 115,000	$ 258,822	$ 224,325
Domestic
Revenues by Geographic Location [Line Items]
Total revenue	76,378	69,832	154,156	137,156
International
Revenues by Geographic Location [Line Items]
Total revenue	$ 54,139	$ 45,168	$ 104,666	$ 87,169

Segment Information and Geogr_4

Segment Information and Geographic Data - Additional Information (Detail)	6 Months Ended
	Nov. 30, 2021Segment
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	2

Stock Option Activity (Detail)

Stock Option Activity (Detail) shares in Thousands	6 Months Ended
	Nov. 30, 2021$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Beginning Balance | shares	2,957
Options, Granted | shares	392
Options, Exercised | shares	(262)
Options, Forfeited | shares	(21)
Options Outstanding, Ending Balance | shares	3,066
Weighted-Average Exercise Price, Beginning Balance | $ / shares	$ 30.38
Weighted-Average Exercise Price, Granted | $ / shares	40.93
Weighted-Average Exercise Price, Exercised | $ / shares	22.42
Weighted-Average Exercise Price, Forfeited | $ / shares	31.11
Weighted-Average Exercise Price, Ending Balance | $ / shares	$ 32.40

Fair Value of Stock Options Gra

Fair Value of Stock Options Granted, Estimated using Weighted-Average Assumptions (Detail)	12 Months Ended
	May 31, 2022	May 31, 2021
Schedule of Weighted Average Assumptions for Fair Values of Stock Options [Line Items]
Risk-free interest rate	0.40%	0.20%
Expected dividend yield	0.00%	0.00%
Expected stock price volatility	32.80%	31.30%
Expected option life (in years)	3 years 1 month 13 days	3 years 3 months

Equity Compensation Plans - Sch

Equity Compensation Plans - Schedule Of Nonvested Restricted Stock Units Activity (Details) shares in Thousands	6 Months Ended
	Nov. 30, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs outstanding Beginning Share | shares	121
Granted (Share) | shares	120
Released (Share) | shares	(25)
Forfeited (Share) | shares	(3)
Ending balance (Share) | shares	213
RSUs outstanding Beginning (Weighted Average Fair Value) | $ / shares	$ 34.21
Granted (Weighted Average Fair Value) | $ / shares	40.92
Released (Weighted Average Fair Value) | $ / shares	34.24
Forfeited (Weighted Average Fair Value) | $ / shares	34.49
RSUs outstanding Ending (Weighted Average Fair Value) | $ / shares	$ 37.97

Equity Compensation Plans - Add

Equity Compensation Plans - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended			12 Months Ended
	Nov. 30, 2021	Nov. 30, 2020	Nov. 30, 2022	Nov. 30, 2021	Nov. 30, 2020	May 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share of stock options granted				$ 7.71
Compensation expense related to share based awards	$ 1,748,000	$ 1,511,000		$ 3,438,000	$ 3,192,000
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share of stock options granted			$ 9.54
2018 Omnibus Incentive Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition						4 years 3 months 25 days
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount	$ 6,501,000			$ 6,501,000
Employee Stock Purchase Plan | 2011 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual maximum limit percentage of compensation to purchase shares	5.00%
Employee stock purchase plan stock price percentage	10.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vesting period				3 years
Stock option contractual terms				5 years
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 | 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

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - USD ($)	Dec. 09, 2021	Nov. 30, 2021	Sep. 17, 2021	Feb. 01, 2021	Dec. 30, 2020	Jul. 31, 2020	Nov. 30, 2021	Nov. 30, 2021	Nov. 30, 2020
Business Acquisition [Line Items]
Cash payable to former owner for purchase of business					$ 8,600,000
Payments to Acquire Businesses, Net of Cash Acquired								$ 26,864,000	$ 2,350,000
Maximum potential Payments			$ 6,500,000
Royalty Expense			14,500,000
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				$ 1,229,000	39,800,000
Contingent consideration potential payment					2,500,000
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					$ 4,900,000
CAPInnoVet, Inc [Member]
Business Acquisition [Line Items]
Purchase price allocation for accounts receivable			308,000
Purchase price allocation for inventory			408,000
Purchase price allocation for intangible assets			21
Purchase price allocation for accounts payable			120,000
Purchase price allocation for other current liabilities			132,000
Purchase price allocation for long-term liabilities			13.9
Cash payable to former owner for purchase of business			150,000
Purchase price allocation for Prepaid Expenses			296,000
Payments to Acquire Businesses, Net of Cash Acquired			$ 17,900,000
Delf (UK) Ltd [Member]
Business Acquisition [Line Items]
Cash consideration for purchase of business		$ 8,800,000
Purchase price allocation for accounts receivable		806,000					$ 806,000	806,000
Purchase price allocation for inventory		659,000					659,000	659,000
Purchase price allocation for land, property and equipment		160,000					160,000	160,000
Purchase price allocation for intangible assets		2,600,000					2,600,000	2,600,000
Purchase price allocation for accounts payable		543,000					543,000	543,000
Purchase price allocation for deferred tax liability		533,000					533,000	533,000
Purchase price allocation for current liabilities		489,000					489,000	489,000
Cash payable to former owner for purchase of business		722,000					722,000	722,000
Purchase price allocation for Prepaid Expenses		$ 43,000					$ 43,000	$ 43,000
Genetic Veterinary Services, Inc [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Cash consideration for purchase of business	$ 11.8
Minimum
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 | CAPInnoVet, Inc [Member]
Business Acquisition [Line Items]
Finite lived intangible assets, useful life			15 years
Minimum | Delf (UK) Ltd [Member]
Business Acquisition [Line Items]
Finite lived intangible assets, useful life		10 years
Maximum
Business Acquisition [Line Items]
Finite lived intangible assets, useful life							25 years
Maximum | Megazyme Ltd And Subsidiary Megazyme Inc [Member]
Business Acquisition [Line Items]
Finite lived intangible assets, useful life					20 years
Maximum | CAPInnoVet, Inc [Member]
Business Acquisition [Line Items]
Finite lived intangible assets, useful life			20 years
Maximum | Delf (UK) Ltd [Member]
Business Acquisition [Line Items]
Finite lived intangible assets, useful life		15 years

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail) - USD ($)	6 Months Ended
	Nov. 30, 2021	May 31, 2021
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	1.09%
Unsecured revolving line of credit, balance outstanding	$ 0
Unsecured revolving line of credit, advances		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended
	Nov. 30, 2021	Aug. 31, 2021	May 31, 2021
Commitments and Contingencies Disclosure [Line Items]
Estimated liability costs of remediation	$ 916,000		$ 916,000
Estimated liability, measurement period, years		15 years
Estimated liability costs of remediation, current	300,000
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