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Accounting Policies (Tables) | 6 Months Ended
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Nov. 30, 2018
Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by geographic location:
|  | Three Months ended |  |  | Six Months Ended |
|  | November 30, |  |  | November 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (in thousands) |  |  | (in thousands) |
Revenues by Geographic Location |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 65,033 |  |  | $ | 62,452 |  |  | $ | 124,879 |  |  | $ | 122,588 |
International |  |  | 42,065 |  |  |  | 38,246 |  |  |  | 81,845 |  |  |  | 72,319 |
Total revenue |  |  | 107,098 |  |  |  | 100,698 |  |  |  | 206,724 |  |  |  | 194,907 |
Summary of Impact of Adoption of New Accounting Pronouncements on Unaudited Consolidated Statement of Income | The effects of the revisions on the line items within our unaudited consolidated statements of income for the three and six months ended November 30, 2017 are as follows:
|  | Three Months Ended November 30, 2017 |  |  | Six Months Ended November 30, 2017 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Revised |  |  | As Previously Reported |  |  | Adjustments |  |  | As Revised |
|  | (in thousands) |  |  | (in thousands) |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues |  | $ | 85,590 |  |  | $ | (1,119 | ) |  | $ | 84,471 |  |  | $ | 166,157 |  |  | $ | (2,141 | ) |  | $ | 164,016 |
Service revenues |  |  | 16,227 |  |  |  | — |  |  |  | 16,227 |  |  |  | 30,916 |  |  |  | (25 | ) |  |  | 30,891 |
Total revenues |  |  | 101,817 |  |  |  | (1,119 | ) |  |  | 100,698 |  |  |  | 197,073 |  |  |  | (2,166 | ) |  |  | 194,907 |
Cost of revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of product revenues |  |  | 43,349 |  |  |  | (97 | ) |  |  | 43,252 |  |  |  | 84,433 |  |  |  | (197 | ) |  |  | 84,236 |
Cost of service revenues |  |  | 9,197 |  |  |  | — |  |  |  | 9,197 |  |  |  | 17,498 |  |  |  | — |  |  |  | 17,498 |
Total cost of revenues |  |  | 52,546 |  |  |  | (97 | ) |  |  | 52,449 |  |  |  | 101,931 |  |  |  | (197 | ) |  |  | 101,734 |
Gross margin |  |  | 49,271 |  |  |  | (1,022 | ) |  |  | 48,249 |  |  |  | 95,142 |  |  |  | (1,969 | ) |  |  | 93,173 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 17,815 |  |  |  | (1,022 | ) |  |  | 16,793 |  |  |  | 34,838 |  |  |  | (1,969 | ) |  |  | 32,869 |
Total operating expenses |  |  | 31,273 |  |  |  | (1,022 | ) |  |  | 30,251 |  |  |  | 60,720 |  |  |  | (1,969 | ) |  |  | 58,751 |
Operating income |  |  | 17,998 |  |  |  | — |  |  |  | 17,998 |  |  |  | 34,422 |  |  |  | — |  |  |  | 34,422 |
Presented below are the effects of the revisions on the line items within the previously issued unaudited consolidated statements of income for the three and nine months ended February 28, 2018 and the consolidated statements of income for the years ended May 31, 2018 and 2017. Revised consolidated statements of income related to these periods will be presented in the Forms 10-Q and Form 10-K to be filed in the succeeding periods of this fiscal year.
|  | Three Months Ended February 28, 2018 |  |  | Nine Months Ended February 28, 2018 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Revised |  |  | As Previously Reported |  |  | Adjustments |  |  | As Revised |
|  | (in thousands) |  |  | (in thousands) |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues |  | $ | 78,142 |  |  | $ | (958 | ) |  | $ | 77,184 |  |  | $ | 244,298 |  |  | $ | (3,098 | ) |  | $ | 241,200 |
Service revenues |  |  | 17,750 |  |  |  | (31 | ) |  |  | 17,719 |  |  |  | 48,667 |  |  |  | (56 | ) |  |  | 48,611 |
Total revenues |  |  | 95,892 |  |  |  | (989 | ) |  |  | 94,903 |  |  |  | 292,965 |  |  |  | (3,154 | ) |  |  | 289,811 |
Cost of revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of product revenues |  |  | 40,352 |  |  |  | (69 | ) |  |  | 40,283 |  |  |  | 124,785 |  |  |  | (265 | ) |  |  | 124,520 |
Cost of service revenues |  |  | 10,019 |  |  |  | — |  |  |  | 10,019 |  |  |  | 27,517 |  |  |  | — |  |  |  | 27,517 |
Total cost of revenues |  |  | 50,371 |  |  |  | (69 | ) |  |  | 50,302 |  |  |  | 152,302 |  |  |  | (265 | ) |  |  | 152,037 |
Gross margin |  |  | 45,521 |  |  |  | (920 | ) |  |  | 44,601 |  |  |  | 140,663 |  |  |  | (2,889 | ) |  |  | 137,774 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 17,492 |  |  |  | (920 | ) |  |  | 16,572 |  |  |  | 52,331 |  |  |  | (2,889 | ) |  |  | 49,442 |
Total operating expenses |  |  | 29,608 |  |  |  | (920 | ) |  |  | 28,688 |  |  |  | 90,328 |  |  |  | (2,889 | ) |  |  | 87,439 |
Operating income |  |  | 15,913 |  |  |  | — |  |  |  | 15,913 |  |  |  | 50,335 |  |  |  | — |  |  |  | 50,335 |
|  | Year Ended |  |  | Year Ended |
|  | May 31, 2018 |  |  | May 31, 2017 |
|  | As Previously Reported |  |  | Adjustments |  |  | As Revised |  |  | As Previously Reported |  |  | Adjustments |  |  | As Revised |
|  | (in thousands) |  |  | (in thousands) |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product revenues |  | $ | 335,554 |  |  | $ | (4,266 | ) |  | $ | 331,288 |  |  | $ | 306,512 |  |  | $ | (3,390 | ) |  | $ | 303,122 |
Service revenues |  |  | 66,698 |  |  |  | (56 | ) |  |  | 66,642 |  |  |  | 55,082 |  |  |  | 73 |  |  |  | 55,155 |
Total revenues |  |  | 402,252 |  |  |  | (4,322 | ) |  |  | 397,930 |  |  |  | 361,594 |  |  |  | (3,317 | ) |  |  | 358,277 |
Cost of revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of product revenues |  |  | 174,067 |  |  |  | (342 | ) |  |  | 173,725 |  |  |  | 156,568 |  |  |  | (273 | ) |  |  | 156,295 |
Cost of service revenues |  |  | 37,933 |  |  |  | — |  |  |  | 37,933 |  |  |  | 33,058 |  |  |  | — |  |  |  | 33,058 |
Total cost of revenues |  |  | 212,000 |  |  |  | (342 | ) |  |  | 211,658 |  |  |  | 189,626 |  |  |  | (273 | ) |  |  | 189,353 |
Gross margin |  |  | 190,252 |  |  |  | (3,980 | ) |  |  | 186,272 |  |  |  | 171,968 |  |  |  | (3,044 | ) |  |  | 168,924 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 70,909 |  |  |  | (3,980 | ) |  |  | 66,929 |  |  |  | 62,424 |  |  |  | (3,044 | ) |  |  | 59,380 |
Total operating expenses |  |  | 120,058 |  |  |  | (3,980 | ) |  |  | 116,078 |  |  |  | 107,023 |  |  |  | (3,044 | ) |  |  | 103,979 |
Operating income |  |  | 70,194 |  |  |  | — |  |  |  | 70,194 |  |  |  | 64,945 |  |  |  | — |  |  |  | 64,945 |
Operating Segments |
Disaggregated Revenue | The following table presents disaggregated revenue by major product and service categories for the three and six months ended November 30, 2018 and 2017:
|  | Three Months Ended November 30, |  |  | Six Months Ended November 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
|  | (in thousands) |  |  | (in thousands) |
Food Safety |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural Toxins, Allergens & Drug Residues |  | $ | 20,571 |  |  | $ | 18,989 |  |  | $ | 39,409 |  |  | $ | 38,153 |
Bacterial & General Sanitation |  |  | 10,822 |  |  |  | 9,324 |  |  |  | 21,288 |  |  |  | 18,443 |
Culture Media & Other |  |  | 12,191 |  |  |  | 11,041 |  |  |  | 24,408 |  |  |  | 21,173 |
Rodenticides, Insecticides & Disinfectants |  |  | 5,943 |  |  |  | 6,126 |  |  |  | 12,569 |  |  |  | 10,817 |
Genomics Services |  |  | 4,223 |  |  |  | 3,726 |  |  |  | 8,259 |  |  |  | 6,911 |
Animal Safety |  | $ | 53,750 |  |  | $ | 49,206 |  |  | $ | 105,933 |  |  | $ | 95,497 |
Life Sciences |  | $ | 1,891 |  |  | $ | 2,394 |  |  | $ | 3,971 |  |  | $ | 4,820 |
Veterinary Instruments & Disposables |  |  | 11,683 |  |  |  | 11,687 |  |  |  | 22,087 |  |  |  | 22,174 |
Animal Care & Other |  |  | 9,064 |  |  |  | 8,237 |  |  |  | 15,617 |  |  |  | 15,649 |
Rodenticides, Insecticides & Disinfectants |  |  | 18,673 |  |  |  | 17,786 |  |  |  | 35,664 |  |  |  | 35,167 |
Genomics Services |  |  | 12,037 |  |  |  | 11,388 |  |  |  | 23,452 |  |  |  | 21,600 |
|  | $ | 53,348 |  |  | $ | 51,492 |  |  | $ | 100,791 |  |  | $ | 99,410 |
Total Revenues |  | $ | 107,098 |  |  | $ | 100,698 |  |  | $ | 206,724 |  |  | $ | 194,907 |

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