Equity Compensation Plans

12 Months Ended

May 31, 2019

5.	Equity Compensation Plans

Incentive

and non-qualified options to purchase shares of common stock may be granted to directors, officers and employees of Neogen under the terms of the

Company’s

stock option plans. These options are granted at an exercise price of not less than the fair market value of the stock on the date of grant. Remaining shares available for grant under stock option plans were 3,997,000, 1,913,000 and 2,525,000 at May 31, 2019, 2018 and 2017, respectively. Options vest ratably over

three

and

five

-year periods and the contractual terms are generally

five

ten

years.

(options in thousands)	Options			Weighted-Average Exercise Price		Weighted-Average Grant Date Fair Value
Outstanding at May 31, 2016 ( 875 exercisable)		2,775		$	27.53	$	7.97
Granted		828			40.68		11.89
Exercised		(827	)		22.82		6.77
Forfeited		(77	)		32.04		9.17
Outstanding at May 31, 2017 ( 661 exercisable)		2,699			32.88		9.51
Granted		829			59.37		14.47
Exercised		(821	)		28.18		8.20
Forfeited		(208	)		39.57		11.12
Outstanding at May 31, 2018 ( 508 exercisable)		2,499			42.63		11.44
Granted		527			62.92		14.91
Exercised		(513	)		31.28		8.92
Forfeited		(128	)		47.08		12.42
Outstanding at May 31, 2019 ( 617 exercisable)		2,385			49.37		12.70

The following is a summary of stock options outstanding at May 31, 2019:

Range of Exercise Price	Number		(in years)		Exercise Price		Number		Exercise Price
$ 10.17 - $ 37.26		575		1.7	$	32.07		290	$	30.62
$ 37.27 - $ 40.91		492		2.8		40.45		147		40.44
$ 40.92 - $ 59.78		172		4.0		51.03		54		49.19
$ 59.79 - $ 61.56		614		3.5		60.43		124		60.43
$ 61.57 - $ 68.96		532		4.5		63.03		2		68.36
		2,385		3.2		49.37		617		40.68

The weighted average exercise price of shares that were exercisable at May 31, 2019 and 2018 was $40.68 and $31.23, respectively.

Compensation expense related to share-based awards was $5,543,000, $4,909,000 and $5,261,000 in fiscal years 2019, 2018 and 2017, respectively. Remaining compensation cost to be expensed in future periods for non-vested options was $15,880,000 at May 31, 2019, with a weighted average expense recognition period of 3.4 years.


	Year Ended
(in thousands)	May 31, 2019		May 31, 2018		May 31, 2017
Aggregate intrinsic value of options outstanding	$	22,798	$	82,649	$	39,388
Aggregate intrinsic value of options exercisable	$	10,222	$	22,572	$	13,929
Aggregate intrinsic value of options exercised	$	21,382	$	25,844	$	18,067

Common stock totaling 365,395 of the 712,500 authorized shares are reserved for issuance under the terms of the 2011 Employee Stock Purchase Plan. The plan gives 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; 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 were 18,330 in fiscal 2019, 22,127 in fiscal 2018 and 24,953 in fiscal 2017.