XML 38 R20.htm IDEA: XBRL DOCUMENT v3.20.2

Summary of Significant Accounting Policies (Tables)

12 Months Ended

May 31, 2020

Schedule Of Classification And Maturities Of Marketable Securities

Marketable Securities as of May 31, 2020 and 2019 are listed below by classification and remaining maturities.

						Year ended May 31
(in thousands)		Maturity				2020				2019
US Treasuries		0 – 90 days				$	—			$	2,470
		91 –180 days					—				—
		181 days –1 year					2,532				2,435
		1 – 2 years					—				2,505
Commercial Paper & Corporate Bonds		0 – 90 days					133,130				84,338
		91 – 180 days					73,824				47,960
		181 days –1 year					43,231				34,369
		1 – 2 years					7,839				34,078
Certificates of Deposit		0 – 90 days					1,003				7,732
		91 – 180 days					5,184				5,000
		181 days –1 year					6,069				750
		1 – 2 years					4,592				4,199
Total Marketable Securities						$	277,404			$	225,836

Summary of components of marketable securities

The components of marketable securities at May 31, 2020 are as follows:

		Amortized				Unrealized				Unrealized
(in thousands)		Cost				Gains				Losses				Fair Value
US Treasuries		$	2,502			$	30			$	—			$	2,532
Commercial Paper & Corporate Bonds			257,700				347				(23	)			258,024
Certificates of Deposit			16,648				200				—				16,848
Total Marketable Securities		$	276,850			$	577			$	(23	)		$	277,404

Allowance for Doubtful Accounts

The activity in the allowance for doubtful accounts was as follows:

		Year ended May 31
(in thousands)		2020				2019				2018
Beginning Balance		$	1,700			$	1,550			$	2,000
Provision			393				263				152
Recoveries			49				38				40
Write-offs			(792	)			(151	)			(642	)
Ending Balance		$	1,350			$	1,700			$	1,550

Inventories

		Year ended May 31
(in thousands)		2020				2019
Raw Materials		$	45,058			$	41,594
Work-in-process			6,887				5,581
Finished goods			43,108				38,817
		$	95,053			$	85,992

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
		2020				2019				2018
Risk-free interest rate			1.9%				2.6%				1.6%
Expected dividend yield			0.0%				0.0%				0.0%
Expected stock volatility			29.4%				27.0%				27.7%
Expected option life			3.5 years				3.5 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)		2020				2019				2018
Numerator for basic and diluted net income per share - Net Income attributable to Neogen		$	59,475			$	60,176			$	63,145
Denominator for basic net income per share - Weighted average shares			52,550				51,888				51,358
Effect of dilutive stock options			310				537				791
Denominator for diluted net income per share			52,860				52,425				52,149
Net income attributable to Neogen per share
Basic		$	1.13			$	1.16			$	1.23
Diluted		$	1.13			$	1.15			$	1.21

Supplemental balance sheet information related to operating leases

Supplemental balance sheet information related to operating leases was as follows:

(in thousands)		May 31, 2020
Right of use – assets		$	1,952
Lease liabilities – current			1,054
Lease liabilities – non-current			913

Weighted average remaining lease term and weighted average discount rate

The weighted average remaining lease term and weighted average discount rate were as follows:

		May 31, 2020
Weighted average remaining lease term			2.5 years
Weighted average discount rate			3.2	%

Components of lease expense

The components of lease expense were as follows:

(in thousands)		Year Ended May 31, 2020
Operating leases		$	1,207
Short term leases			166
Total lease expense		$	1,373

Undiscounted minimum lease payments

Undiscounted future minimum lease payments as of May 31, 2020 were as follows:

(in thousands)		Amount
Years ending May 31, 2021		$	1,080
2022			546
2023			286
2024			141
2025 and thereafter			41
Total lease payments			2,094
Less: imputed interest			(112	)
Total lease liabilities		$	1,982

Disaggregated Revenue

The following table presents the Company’s revenue disaggregated by geographical location:

		Year ended May 31
(in thousands)		2020				2019
Domestic		$	253,458			$	248,304
International			164,712				165,882
Total revenue			418,170				414,186

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 year ended May 31, 2018. Revised consolidated statements of income related to these periods are presented in this Form 10-K.​​​​​​​

		Year Ended May 31, 2018
		As Previously Reported				Adjustments				As Revised
(in thousands)
Revenues
Product revenues		$	335,554			$	(4,266	)		$	331,288
Service revenues			66,698				(56	)			66,642
Total revenues			402,252				(4,322	)			397,930
Cost of revenues
Cost of product revenues			174,067				(342	)			173,725
Cost of service revenues			37,933				—				37,933
Total cost of revenues			212,000				(342	)			211,658
Gross margin			190,252				(3,980	)			186,272
Operating expenses
Sales and marketing			70,909				(3,980	)			66,929
Total operating expenses			120,058				(3,980	)			116,078
Operating income			70,194				—				70,194

The revisions had no impact our audited consolidated statement of equity or audited consolidated statement of cash flows for the year ended May 31, 2018.

Operating Segments

Disaggregated Revenue

The following table presents disaggregated revenue by major product and service categories for the years ended May 31, 2020, 2019 and 2018:

		Year Ended
						Increase/								Increase/
(dollars in thousands)		May 31, 2020				(Decrease)				May 31, 2019				(Decrease)				May 31, 2018
Food Safety:
Natural Toxins, Allergens & Drug Residues		$	76,207				(3	)%		$	78,373				7	%		$	72,962
Bacterial & General Sanitation			41,780				(0	)%			41,966				10	%			38,156
Culture Media & Other			47,847				(4	)%			49,857				13	%			44,271
Rodenticides, Insecticides & Disinfectants			28,890				13	%			25,584				7	%			23,821
Genomics Services			17,967				2	%			17,694				16	%			15,267
			212,691				(0	)%			213,474				10	%			194,477
Animal Safety:
Life Sciences			6,322				(20	)%			7,858				(25	)%			10,411
Veterinary Instruments & Disposables			42,941				(4	)%			44,582				(7	)%			47,749
Animal Care & Other			28,389				(5	)%			29,941				(3	)%			30,930
Rodenticides, Insecticides & Disinfectants			68,815				4	%			66,389				(2	)%			67,646
Genomics Services			59,012				14	%			51,942				11	%			46,717
			205,479				2	%			200,712				(1	)%			203,453
Total Revenue		$	418,170				1	%		$	414,186				4	%		$	397,930

X

- Definition

Allowance for Doubtful Accounts, Table

+ References

No definition available.

+ Details

Name:	neog_AllowanceForDoubtfulAccountsTableTextBlock
Namespace Prefix:	neog_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule of classification and maturities of marketable securities.

+ References

No definition available.

+ Details

Name:	neog_ScheduleOfClassificationAndMaturitiesOfMarketableSecuritiesTableTextBlock
Namespace Prefix:	neog_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule of weighted average remaining lease term and weighted average discount rate

+ References

No definition available.

+ Details

Name:	neog_ScheduleOfWeightedAverageRemainingLeaseTermAndWeightedAverageDiscountRateTableTextBlock
Namespace Prefix:	neog_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule Of Supplemental balance sheet information related to operating leases

+ References

No definition available.

+ Details

Name:	neog_ScheduleofsupplementalbalancesheetinformationrelatedtooperatingleasesTableTextBlock
Namespace Prefix:	neog_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

+ Details

Name:	us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=121609121&loc=SL77918686-209980

+ Details

Name:	us-gaap_LeaseCostTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=121609121&loc=SL77918701-209980

+ Details

Name:	us-gaap_LesseeOperatingLeaseLiabilityMaturityTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References

No definition available.

+ Details

Name:	us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of financial statement line items and the effect of the guidance on the financial statement line items if the entity elects early adoption of accounting guidance.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

+ Details

Name:	us-gaap_NewAccountingPronouncementEarlyAdoptionTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

+ Details

Name:	us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the carrying amount as of the balance sheet date of merchandise, goods, commodities, or supplies held for future sale or to be used in manufacturing, servicing or production process.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(c))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(b))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(6)(a))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6361739&loc=d3e7789-107766

+ Details

Name:	us-gaap_ScheduleOfInventoryCurrentTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901

+ Details

Name:	us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	srt_ConsolidationItemsAxis=us-gaap_OperatingSegmentsMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: