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Summary of Significant Accounting Policies (Tables)
12 Months Ended
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