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Revenue Recognition | 6 Months Ended
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Nov. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | 4. REVENUE RECOGNITION The Company derives revenue from two primary sources—product revenue and service revenue. Product revenue consists of shipments of: • Diagnostic test kits, dehydrated culture media and related products used by food producers and processors to detect harmful natural toxins, foodborne bacteria, allergens and levels of general sanitation; • Consumable products marketed to veterinarians, retailers, livestock producers and animal health product distributors; and • Rodent control products, disinfectants and insect control products to assist in the control of rodents, insects and disease in and around agricultural, food production and other facilities. Revenues for our products are recognized and invoiced when the product is shipped to the customer. Service revenue consists primarily of: • Genomic identification and related interpretive bioinformatic services; and • Other commercial laboratory services. Revenues for Neogen’s genomics and commercial laboratory services are recognized and invoiced when the applicable laboratory service is performed and the results are conveyed to the customer. Payment terms for products and services are generally 30 to 60 days. The Company has no contract assets. Contract liabilities represent deposits made by customers before the satisfaction of performance obligation(s) and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer, the liability for the customer deposit is relieved and revenue is recognized. These customer deposits are recorded within Deferred revenue on the condensed consolidated balance sheets. During the three and six months ended November 30, 2023, the Company recorded additions of $4,121 and $5,978 to deferred revenue, respectively. During the three and six months ended November 30, 2022, the Company recorded additions of $2,479 and $4,671 to deferred revenue, respectively. During the three and six months ended November 30, 2023, the Company recognized $3,231 and $5,915, respectively, of deferred revenue amounts into revenue. During the three and six months ended November 30, 2022, the Company recognized $2,860 and $5,048, respectively, of deferred revenue amounts into revenue. Changes in the balances relate primarily to sales of the Company's genomics services. On September 1, 2022, Neogen closed on a Reverse Morris Trust transaction to combine with 3M Company's ("3M") Food Safety Division (“3M FSD”, “FSD”). Similar to Neogen, 3M’s former FSD sells diagnostic test kits, dehydrated culture media, and related products used by food producers and processors to detect foodborne bacteria, allergens and levels of general sanitation. Revenues for these products are recognized and invoiced when the product is shipped to the customer. Many of these products are currently manufactured, invoiced, and distributed by 3M on behalf of Neogen under a number of transition service contracts. However, the Company is currently in the process of exiting the distribution-related service contracts. This will be complete on a global basis by the end of the third quarter in fiscal 2024. The following table presents disaggregated revenue by major product and service categories during the three and six months ended November 30, 2023 and 2022:
|  | Three Months Ended November 30, |  |  | Six Months Ended November 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Food Safety |  |  |  |  |  |  |  |  |  |  |  |
Natural Toxins & Allergens |  |  | 21,110 |  |  | $ | 22,251 |  |  | $ | 43,378 |  |  | $ | 42,038 |
Bacterial & General Sanitation |  |  | 42,774 |  |  |  | 41,121 |  |  |  | 87,998 |  |  |  | 51,849 |
Indicator Testing, Culture Media & Other |  |  | 83,758 |  |  |  | 82,084 |  |  |  | 165,644 |  |  |  | 101,338 |
Rodent Control, Insect Control & Disinfectants |  |  | 10,954 |  |  |  | 10,377 |  |  |  | 22,044 |  |  |  | 19,952 |
Genomics Services |  |  | 5,807 |  |  |  | 5,510 |  |  |  | 11,617 |  |  |  | 10,809 |
|  | $ | 164,403 |  |  | $ | 161,343 |  |  | $ | 330,681 |  |  | $ | 225,986 |
Animal Safety |  |  |  |  |  |  |  |  |  |  |  |
Life Sciences |  | $ | 1,677 |  |  | $ | 1,427 |  |  | $ | 3,338 |  |  | $ | 3,016 |
Veterinary Instruments & Disposables |  |  | 16,937 |  |  |  | 16,433 |  |  |  | 29,869 |  |  |  | 31,106 |
Animal Care & Other |  |  | 8,985 |  |  |  | 10,569 |  |  |  | 17,160 |  |  |  | 21,095 |
Rodent Control, Insect Control & Disinfectants |  |  | 19,953 |  |  |  | 20,665 |  |  |  | 42,639 |  |  |  | 42,879 |
Genomics Services |  |  | 17,674 |  |  |  | 19,596 |  |  |  | 34,929 |  |  |  | 38,300 |
|  |  | 65,226 |  |  |  | 68,690 |  |  |  | 127,935 |  |  |  | 136,396 |
Total Revenues |  | $ | 229,629 |  |  | $ | 230,033 |  |  | $ | 458,616 |  |  | $ | 362,382 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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