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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2021
Summary of Changes in Accumulated Other Comprehensive Income (Loss) net of tax
Changes in our Accumulated Other Comprehensive Income (Loss) (“AOCI”) balances, net of tax, were as follows:
 
(in thousands)
  
Foreign Currency
Translation Adjustments
 
 
Unrealized Gain on
Marketable Securities
 
 
        Total AOCI        
 
Balance, May 31, 2019
  
$
(11,640
) 
 
$
—  
 
 
$
(11,640
) 
Other comprehensive income (loss)
  
 
(8,495
) 
 
 
426
 
 
  
(8,069
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
Balance, May 31, 2020
  
$
(20,135
) 
 
$
426
 
 
$
(19,709
) 
Other comprehensive income (loss)
  
 
8,602
 
 
 
(268
) 
 
 
8,334
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Balance, May 31, 2021
  
$
(11,533
) 
 
$
158
 
 
$
(11,375
) 
 
  
 
 
 
 
 
 
 
 
 
 
Schedule Of Classification And Maturities Of Marketable Securities
Marketable Securities as of May 31, 2021 and 2020 are listed below by classification and remaining maturities
.
 
         
Year ended May 31
  
(in thousands)
   
Maturity
   
2021
     
2020
  
US Treasuries
   
0 - 90
days		   
$
 —        $ —    
    
91 -180
 days		      —          —    
    
181 days - 1 year
      —          2,532  
     1 - 2 years      —          —    
 
 
 
 
 
 
 
 
 
 
 
Commercial Paper & Corporate Bonds
    0 - 90 days      106,631        133,130  
    
91 - 180 days
      78,727        73,824  
    
181 days - 1 year
      87,590        43,231  
    
 1 - 2 years 
      26,752        7,839  
 
 
 
 
 
 
 
 
 
 
 
Certificates of Deposit
   
0 - 90 days
      3,262        1,003  
    
91 - 180 days
      1,260        5,184  
    
181 days - 1 year
      1,263        6,069  
    
1 - 2 years
      —          4,592  
         
 
 
     
 
 
  
Total Marketable Securities
   
$
305,485
 
   
$
277,404
 
    
 
 
     
 
 
  
Summary of components of marketable securities
The components of marketable securities
as of
May 31, 2021 are as follows:
 
(in thousands)
   
Amortized

Cost
     
Unrealized

Gains
     
Unrealized

Losses
     
Fair Value
  
US Treasuries
    $ —        $ —        $ —        $ —    
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  
    
 
 
     
 
 
     
 
 
     
 
 
  
The components of marketable securities as of May 31, 2020 are as follows:
 
(in thousands)
  
Amortized
Cost
 
  
Unrealized
Gains
 
  
Unrealized
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
    
Year ended May 31
  
(in thousands)
   
2021
     
2020
     
2019
  
Beginning Balance
    $ 1,350      $ 1,700      $ 1,550  
Provision
      239        393        263  
Recoveries
      139        49        38  
Write-offs
      (328 )        (792 )      (151 ) 
    
 
 
     
 
 
     
 
 
  
Ending Balance
    $ 1,400      $ 1,350      $ 1,700  
    
 
 
     
 
 
     
 
 
  
Inventories
Inventories are stated at the lower of cost or net realizable value, determined on the
first-in,
first-out
method. The components of inventories were as follows:
 
    
Year ended May 31
  
(in thousands)
   
2021
     
2020
  
Raw Materials
    $ 47,588      $ 45,058  
Work-in-process
      6,412        6,887  
Finished goods
      46,701        43,108  
    
 
 
     
 
 
  
     $ 100,701      $ 95,053  
    
 
 
     
 
 
  
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
  
    
2021
    
2020
    
2019
  
Risk-free interest rate
      0.2 %     1.9 %      2.6 % 
Expected dividend yield
      0.0 %     0.0 %      0.0 % 
Expected stock volatility
      31.3 %     29.4 %      27.0 % 
Expected option life
      3.25 years       3.5 years       3.5 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)
   
2021
     
2020
     
2019
  
Numerator for basic and diluted net income per share — Net Income
    $ 60,882      $  59,475      $  60,176  
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for basic net income per share — Weighted average shares
      106,499        105,100        103,776  
Effect of dilutive stock options
      621        620        1,074  
    
 
 
     
 
 
     
 
 
  
Denominator for diluted net income per share
      107,120        105,720        104,850  
Net income attributable to Neogen per share
                           
Basic
    $ 0.57      $ 0.57      $ 0.58  
Diluted
    $ 0.57      $ 0.56      $ 0.57  
Supplemental balance sheet information related to operating leases
Supplemental balance sheet information related to operating leases was as follows:
 
    
Year ended May 31
  
(in thousands)
   
2021
     
2020
  
Rights of use—assets
    $ 2,477      $  1,952  
Lease liabilities—current
      1,285        1,054  
Lease liabilities—non-current
      1,207        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:
 
    
Year ended May 31
  
    
2021
    
2020
  
Weighted average remaining lease term
      2 years       2.5 years  
Weighted average discount rate
      2.0%       3.2%  
Components of lease expense The components of lease expense were as follows:
    
Year ended May 31
  
(in thousands)
   
2021
     
2020
  
Operating leases
    $ 1,352      $  1,207  
Short term leases
      134        166  
Total lease expense
    $ 1,486      $ 1,373  
 
 
 
 
 
 
 
 
 
Undiscounted minimum lease payments
Maturities of operating lease liabilities as of May 31, 2021 are as follows:
 
(in thousands)
   
Amount
  
Years ending May 31, 202
2
    $  1,313  
2023
      874  
2024
      345  
2025
      42  
2026
and thereafter
      —  
    
 
 
  
Total lease payments
   
$
 2,574  
Less: imputed interest
      (82 )
    
 
 
  
Total lease liabilities
    $ 2,492  
    
 
 
  
Disaggregated Revenue
The following table presents the Company’s revenue disaggregated by geographical location:
 
    
Year ended May 31
  
(in thousands)
   
2021
     
2020
  
Domestic
    $ 285,262      $ 253,458  
International
      183,197        164,712  
    
 
 
     
 
 
  
Total revenue
   
$
 468,459     
$
 418,170  
    
 
 
     
 
 
  
Operating Segments  
Disaggregated Revenue
The following table presents disaggregated revenue by major product and service categories for the years ended May 31, 2021, 2020 and 2019:
 
    
Year Ended
  
(dollars in thousands)
   
May 31, 2021
     
Change
    
May 31, 2020
     
Change
    
May 31, 2019
  
Food Safety:
                                           
           
Natural Toxins, Allergens & Drug Residues
    $ 76,614        1 %    $ 76,207        (3 %)   $ 78,373  
Bacterial & General Sanitation
      44,009        5 %      41,780        (0 %)     41,966  
Culture Media & Other
      56,922        19 %      47,847        (4 %)     49,857  
Rodenticides, Insecticides & Disinfectants
      36,542        26 %      28,890        13 %      25,584  
Genomics Services
      20,157        12 %      17,967        2 %      17,694  
    
 
 
             
 
 
             
 
 
  
    
$
 234,244        10 %   
$
 212,691        (0
%)
  
$
 213,474  
Animal Safety:
                                           
           
Life Sciences
      5,715        (10 %
)
 		     6,322        (20
%)
 		     7,858  
Veterinary Instruments & Disposables
      48,128        12 %      42,941        (4
%)
 		     44,582  
Animal Care & Other
      35,897        26 %      28,389        (5
%)
 		     29,941  
Rodenticides, Insecticides & Disinfectants
      77,458        13 %      68,815        4 %      66,389  
Genomics Services
      67,017        14 %      59,012        14 %      51,942  
    
 
 
             
 
 
             
 
 
  
    
$
 234,215        14 %   
$
 205,479        2 %   
$
 200,712  
    
 
 
             
 
 
             
 
 
  
Total Revenue
    $ 468,459        12 %    $ 418,170        1 %    $ 414,186