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v3.19.2

Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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May 31, 2019
Schedule Of Classification And Maturities Of Marketable Securities | Marketable Securities as of May 31, 2019 and 2018 are listed below by classification and remaining maturities.
|  |  |  | Year ended May 31 |
|  | Maturity |  | 2019 |  |  | 2018 |
US Treasuries |  | 0 – 90 days |  |  | 2,470,000 |  |  |  | 19,910,000 |
|  | 91 – 180 days |  |  | — |  |  |  | — |
|  | 181 days – 1 year |  |  | 2,435,000 |  |  |  | — |
|  | 1 – 2 years |  |  | 2,505,000 |  |  |  | — |
Commercial Paper |  | 0 – 90 days |  |  | 84,338,000 |  |  |  | 47,740,000 |
|  | 91 – 180 days |  |  | 47,960,000 |  |  |  | 32,673,000 |
|  | 181 days – 1 year |  |  | 34,369,000 |  |  |  | — |
|  | 1 – 2 years |  |  | 34,078,000 |  |  |  | — |
Certificates of Deposit |  | 0 – 90 days |  |  | 7,732,000 |  |  |  | 5,446,000 |
|  | 91 – 180 days |  |  | 5,000,000 |  |  |  | 8,747,000 |
|  | 181 days – 1 year |  |  | 750,000 |  |  |  | 13,220,000 |
|  | 1 – 2 years |  |  | 4,199,000 |  |  |  | — |
Total Marketable Securities |  |  |  |  | 225,836,000 |  |  |  | 127,736,000 |
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 |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Risk-free interest rate |  |  | 2.6 | % |  |  | 1.6 | % |  |  | 1.2 | %
Expected dividend yield |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
Expected stock volatility |  |  | 27.0 | % |  |  | 27.7 | % |  |  | 35.2 | %
Expected option life |  |  | 3.5 years |  |  |  | 4.0 years |  |  |  | 4.0 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) |  | 2019 |  |  | 2018 |  |  | 2017 |
Numerator for basic and diluted net income per share - Net Income attributable to Neogen |  | $ | 60,176 |  |  | $ | 63,145 |  |  | $ | 43,793 |
Denominator for basic net income per share - Weighted average shares |  |  | 51,888 |  |  |  | 51,358 |  |  |  | 50,544 |
Effect of dilutive stock options |  |  | 537 |  |  |  | 791 |  |  |  | 621 |
Denominator for diluted net income per share |  |  | 52,425 |  |  |  | 52,149 |  |  |  | 51,165 |
Net income attributable to Neogen per share |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.16 |  |  | $ | 1.23 |  |  | $ | 0.87 |
Diluted |  | $ | 1.15 |  |  | $ | 1.21 |  |  | $ | 0.86 |
Disaggregated Revenue | The following table presents the Company’s revenue disaggregated by geographical location:
|  | Year ended May 31 |
|  | 2019 |  |  | 2018 |
|  | (in thousands) |
Revenues by Geographic Location |  |  |  |  |  |  |  |
Domestic |  | $ | 248,304 |  |  | $ | 248,236 |
International |  |  | 165,882 |  |  |  | 149,694 |
Total revenue |  |  | 414,186 |  |  |  | 397,930 |
Summary of Impact of Adoption of New Accounting Pronouncements on Unaudited Consolidated Statement of Income | Presented below are the effects of the revisions on the line items within our previously issued consolidated statements of income for the years ended May 31, 2018 and 2017. Revised consolidated statements of income related to these periods are presented in this Form 10-K.
|  | 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 | ) |  | $ | 303,148 |
Service revenues |  |  | 66,698 |  |  |  | (56 | ) |  |  | 66,642 |  |  |  | 55,082 |  |  |  | 73 |  |  |  | 55,129 |
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 years ended May 31, 2019 and 2018:
|  | Year Ended |
|  |  |  |  | Increase/ |  |  |  |  |  | Increase/ |  |  |  |
|  | May 31, 2019 |  |  | (Decrease) |  |  | May 31, 2018 |  |  | (Decrease) |  |  | May 31, 2017 |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Food Safety: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural Toxins, Allergens & Drug Residues |  | $ | 78,373 |  |  |  | 7 | % |  | $ | 72,962 |  |  |  | 3 | % |  | $ | 70,926 |
Bacterial & General Sanitation |  |  | 41,966 |  |  |  | 10 | % |  |  | 38,156 |  |  |  | 10 | % |  |  | 34,706 |
Culture Media & Other |  |  | 49,857 |  |  |  | 13 | % |  |  | 44,271 |  |  |  | 12 | % |  |  | 39,367 |
Rodenticides, Insecticides & Disinfectants |  |  | 25,584 |  |  |  | 7 | % |  |  | 23,821 |  |  |  | 75 | % |  |  | 13,620 |
Genomics Services |  |  | 17,694 |  |  |  | 16 | % |  |  | 15,267 |  |  |  | 34 | % |  |  | 11,415 |
|  |  | 213,474 |  |  |  | 10 | % |  |  | 194,477 |  |  |  | 14 | % |  |  | 170,034 |
Animal Safety: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Life Sciences |  |  | 7,858 |  |  |  | (25 | )% |  |  | 10,411 |  |  |  | 7 | % |  |  | 9,704 |
Veterinary Instruments & Disposables |  |  | 44,582 |  |  |  | (7 | )% |  |  | 47,749 |  |  |  | 15 | % |  |  | 41,693 |
Animal Care & Other |  |  | 29,941 |  |  |  | (3 | )% |  |  | 30,930 |  |  |  | 11 | % |  |  | 27,891 |
Rodenticides, Insecticides & Disinfectants |  |  | 66,389 |  |  |  | (2 | )% |  |  | 67,646 |  |  |  | (3 | )% |  |  | 69,429 |
Genomics Services |  |  | 51,942 |  |  |  | 11 | % |  |  | 46,717 |  |  |  | 18 | % |  |  | 39,526 |
|  |  | 200,712 |  |  |  | (1 | )% |  |  | 203,453 |  |  |  | 8 | % |  |  | 188,243 |
Total Revenue |  | $ | 414,186 |  |  |  | 4 | % |  | $ | 397,930 |  |  |  | 11 | % |  | $ | 358,277 |

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