DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Jan. 26, 2019 | Mar. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | METHODE ELECTRONICS INC | |
Entity Central Index Key | 65,270 | |
Current Fiscal Year End Date | --04-27 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 26, 2019 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 36,986,952 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Income Statement [Abstract] | ||||
Net Sales | $ 246.9 | $ 228 | $ 734.3 | $ 659.3 |
Cost of Products Sold | 182.6 | 167.9 | 539.1 | 481.6 |
Gross Profit | 64.3 | 60.1 | 195.2 | 177.7 |
Selling and Administrative Expenses | 32.8 | 22.5 | 110.3 | 83.3 |
Amortization of Intangible Assets | 5.5 | 2 | 11.1 | 3.7 |
Income from Operations | 26 | 35.6 | 73.8 | 90.7 |
Interest Expense, Net | 3.2 | 0.3 | 5 | 0.3 |
Other Income, Net | (4.9) | (3.8) | (4.7) | (2.6) |
Income before Income Taxes | 27.7 | 39.1 | 73.5 | 93 |
Income Tax Expense (Benefit) | (3) | 63.4 | 4.5 | 72.6 |
Net Income (Loss) | $ 30.7 | $ (24.3) | $ 69 | $ 20.4 |
Basic and Diluted Income (Loss) per Common Share: | ||||
Basic (in dollars per share) | $ 0.82 | $ (0.65) | $ 1.84 | $ 0.54 |
Diluted (in dollars per share) | 0.82 | (0.65) | 1.83 | 0.54 |
Cash Dividends per Common Share (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.29 |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in shares) | 37,405,550 | 37,292,934 | 37,387,181 | 37,275,041 |
Diluted (in shares) | 37,654,250 | 37,292,934 | 37,637,470 | 37,661,020 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 30.7 | $ (24.3) | $ 69 | $ 20.4 |
Foreign Currency Translation Adjustment | 3.2 | 32.2 | (22.4) | 50.3 |
Comprehensive Income | $ 33.9 | $ 7.9 | $ 46.6 | $ 70.7 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 26, 2019 | Apr. 28, 2018 |
Current Assets: | ||
Cash and Cash Equivalents | $ 73.7 | $ 246.1 |
Accounts Receivable, Net | 211.5 | 202.6 |
Inventories: | ||
Finished Products | 33.9 | 15.4 |
Work in Process | 9.3 | 14.6 |
Materials | 80.8 | 54.1 |
Total Inventories | 124 | 84.1 |
Prepaid and Refundable Income Taxes | 14.7 | 2.4 |
Prepaid Expenses and Other Current Assets | 22.5 | 14.8 |
Total Current Assets | 446.4 | 550 |
Property Plan and Equipment: | ||
Land | 3.6 | 0.8 |
Buildings and Building Improvements | 74.7 | 69.2 |
Machinery and Equipment | 390.3 | 364.7 |
Property, Plant and Equipment, Gross | 468.6 | 434.7 |
Less: Allowances for Depreciation | 279.5 | 272.5 |
Property, Plant and Equipment, Net | 189.1 | 162.2 |
Other Assets: | ||
Goodwill | 236.8 | 59.2 |
Other Intangible Assets, Net | 267.6 | 61 |
Cash Surrender Value of Life Insurance | 8.6 | 8.2 |
Deferred Income Taxes | 32.8 | 42.3 |
Pre-production Costs | 32.5 | 20.5 |
Other | 12.4 | 12.5 |
Total Other Assets | 590.7 | 203.7 |
Total Assets | 1,226.2 | 915.9 |
Current Liabilities: | ||
Accounts Payable | 88.6 | 89.5 |
Salaries, Wages and Payroll Taxes | 21.4 | 22.8 |
Other Accrued Expenses | 34.4 | 21.6 |
Short-term Debt | 15.2 | 4.4 |
Income Tax Payable | 16.8 | 18.7 |
Total Current Liabilities | 176.4 | 157 |
Long-term Debt | 287.7 | 53.4 |
Long-term Income Tax Payable | 33 | 42.6 |
Other Liabilities | 6.7 | 4.6 |
Deferred Income Taxes | 38.9 | 18.3 |
Deferred Compensation | 9.4 | 10 |
Total Liabilities | 552.1 | 285.9 |
Shareholders' Equity: | ||
Common Stock, $0.50 par value, 100,000,000 shares authorized, 38,333,576 and 38,198,353 shares issued as of January 26, 2019 and April 28, 2018, respectively | 19.2 | 19.1 |
Additional Paid-in Capital | 148.2 | 136.5 |
Accumulated Other Comprehensive Income (Loss) | (8.5) | 13.9 |
Treasury Stock, 1,346,624 shares as of January 26, 2019 and April 28, 2018 | (11.5) | (11.5) |
Retained Earnings | 526.7 | 472 |
Total Shareholders' Equity | 674.1 | 630 |
Total Liabilities and Shareholders' Equity | $ 1,226.2 | $ 915.9 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 26, 2019 | Apr. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,333,576 | 38,198,353 |
Treasury stock (in shares) | 1,346,624 | 1,346,624 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Jan. 26, 2019 | Jan. 27, 2018 | |
Operating Activities: | ||
Net Income | $ 69 | $ 20.4 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Gain on Sale of Fixed Assets | (0.6) | 0 |
Gain on Sale of Licensing Agreement | 0 | (1.6) |
Depreciation of Property, Plant and Equipment | 19.5 | 16.3 |
Amortization of Intangible Assets | 11.1 | 3.7 |
Stock-based Compensation | 11.7 | 3.3 |
Provision for Bad Debt | 0.1 | 0.1 |
Change in Deferred Income Taxes | (0.5) | (12.2) |
Changes in Operating Assets and Liabilities, Net of Acquisitions: | ||
Accounts Receivable | 12.2 | 5.9 |
Inventories | (10.9) | (5.8) |
Prepaid Expenses and Other Assets | (16.4) | 14.6 |
Accounts Payable and Other Expenses | (30.9) | 42.4 |
Net Cash Provided by Operating Activities | 64.3 | 87.1 |
Investing Activities: | ||
Purchases of Property, Plant and Equipment | (37) | (34.7) |
Acquisitions of Businesses, Net of Cash Acquired | (421.6) | (129.9) |
Purchases of Technology Licenses, Net | 0 | (0.7) |
Sale of Business/Investment/Property | 0.3 | 0.3 |
Net Cash Used in Investing Activities | (458.3) | (165) |
Financing Activities: | ||
Taxes Paid Related to Net Share Settlement of Equity Awards | (1.7) | (0.3) |
Proceeds from Exercise of Stock Options | 0 | 0.2 |
Cash Dividends | (12.7) | (10.6) |
Proceeds from Borrowings | 350 | 71.3 |
Repayment of Borrowings | (103.3) | (3) |
Net Cash Provided by Financing Activities | 232.3 | 57.6 |
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents | (10.7) | 30.3 |
Increase (Decrease) in Cash and Cash Equivalents | (172.4) | 10 |
Cash and Cash Equivalents at Beginning of Year | 246.1 | 294 |
Cash and Cash Equivalents at End of Period | $ 73.7 | $ 304 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Apr. 29, 2017 | 38,133,925 | |||||
Beginning balance at Apr. 29, 2017 | $ 541.1 | $ 19.1 | $ 132.2 | $ (25.7) | $ (11.5) | $ 427 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Earned Portion of Restricted Stock Awards (in shares) | 23,552 | |||||
Earned Portion of Restricted Stock Awards | (0.2) | $ 0 | 0 | (0.2) | ||
Stock-based Compensation Expense | 4.1 | 4.1 | ||||
Foreign Currency Translation Adjustments | 24.6 | 24.6 | ||||
Net Income (Loss) | 20.5 | 20.5 | ||||
Cash Dividends on Common Stock | (3.4) | (3.4) | ||||
Ending balance (in shares) at Jul. 29, 2017 | 38,157,477 | |||||
Ending balance at Jul. 29, 2017 | 589.4 | $ 19.1 | 136.3 | (1.1) | (11.5) | 446.6 |
Beginning balance (in shares) at Apr. 29, 2017 | 38,133,925 | |||||
Beginning balance at Apr. 29, 2017 | 541.1 | $ 19.1 | 132.2 | (25.7) | (11.5) | 427 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign Currency Translation Adjustments | 50.3 | |||||
Net Income (Loss) | 20.4 | |||||
Ending balance (in shares) at Jan. 27, 2018 | 38,193,353 | |||||
Ending balance at Jan. 27, 2018 | 607.2 | $ 19.1 | 135.8 | 24.6 | (11.5) | 439.2 |
Beginning balance (in shares) at Jul. 29, 2017 | 38,157,477 | |||||
Beginning balance at Jul. 29, 2017 | 589.4 | $ 19.1 | 136.3 | (1.1) | (11.5) | 446.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Earned Portion of Restricted Stock Awards (in shares) | 24,000 | |||||
Earned Portion of Restricted Stock Awards | 0 | $ 0 | 0 | 0 | ||
Stock-based Compensation Expense | 3.1 | 3.1 | ||||
Foreign Currency Translation Adjustments | (6.5) | (6.5) | ||||
Net Income (Loss) | 24.2 | 24.2 | ||||
Cash Dividends on Common Stock | (3.4) | (3.4) | ||||
Ending balance (in shares) at Oct. 28, 2017 | 38,181,477 | |||||
Ending balance at Oct. 28, 2017 | 606.8 | $ 19.1 | 139.4 | (7.6) | (11.5) | 467.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Earned Portion of Restricted Stock Awards (in shares) | 3,543 | |||||
Earned Portion of Restricted Stock Awards | 0 | $ 0 | 0 | 0 | ||
Stock-based Compensation Expense | (3.8) | (3.8) | ||||
Exercise of Options (in shares) | 8,333 | |||||
Exercise of Options | 0.2 | $ 0 | 0.2 | 0 | ||
Foreign Currency Translation Adjustments | 32.2 | 32.2 | ||||
Net Income (Loss) | (24.3) | (24.3) | ||||
Cash Dividends on Common Stock | (3.9) | (3.9) | ||||
Ending balance (in shares) at Jan. 27, 2018 | 38,193,353 | |||||
Ending balance at Jan. 27, 2018 | 607.2 | $ 19.1 | 135.8 | 24.6 | (11.5) | 439.2 |
Beginning balance (in shares) at Apr. 28, 2018 | 38,198,353 | |||||
Beginning balance at Apr. 28, 2018 | 630 | $ 19.1 | 136.5 | 13.9 | (11.5) | 472 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Earned Portion of Restricted Stock Awards (in shares) | 135,223 | |||||
Earned Portion of Restricted Stock Awards | (1.7) | $ 0.1 | (0.1) | (1.7) | ||
Stock-based Compensation Expense | 1.9 | 1.9 | ||||
Foreign Currency Translation Adjustments | (17.9) | (17.9) | ||||
Net Income (Loss) | 23.7 | 23.7 | ||||
Cash Dividends on Common Stock | (4.1) | (4.1) | ||||
Ending balance (in shares) at Jul. 28, 2018 | 38,333,576 | |||||
Ending balance at Jul. 28, 2018 | 632 | $ 19.2 | 138.3 | (4) | (11.5) | 490 |
Beginning balance (in shares) at Apr. 28, 2018 | 38,198,353 | |||||
Beginning balance at Apr. 28, 2018 | 630 | $ 19.1 | 136.5 | 13.9 | (11.5) | 472 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Foreign Currency Translation Adjustments | (22.4) | |||||
Net Income (Loss) | 69 | |||||
Ending balance (in shares) at Jan. 26, 2019 | 38,333,576 | |||||
Ending balance at Jan. 26, 2019 | 674.1 | $ 19.2 | 148.2 | (8.5) | (11.5) | 526.7 |
Beginning balance (in shares) at Jul. 28, 2018 | 38,333,576 | |||||
Beginning balance at Jul. 28, 2018 | 632 | $ 19.2 | 138.3 | (4) | (11.5) | 490 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based Compensation Expense | 9 | 9 | ||||
Foreign Currency Translation Adjustments | (7.7) | (7.7) | ||||
Net Income (Loss) | 14.6 | 14.6 | ||||
Cash Dividends on Common Stock | (4.6) | (4.6) | ||||
Ending balance (in shares) at Oct. 27, 2018 | 38,333,576 | |||||
Ending balance at Oct. 27, 2018 | 643.3 | $ 19.2 | 147.3 | (11.7) | (11.5) | 500 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based Compensation Expense | 0.9 | 0.9 | ||||
Foreign Currency Translation Adjustments | 3.2 | 3.2 | ||||
Net Income (Loss) | 30.7 | 30.7 | ||||
Cash Dividends on Common Stock | (4) | (4) | ||||
Ending balance (in shares) at Jan. 26, 2019 | 38,333,576 | |||||
Ending balance at Jan. 26, 2019 | $ 674.1 | $ 19.2 | $ 148.2 | $ (8.5) | $ (11.5) | $ 526.7 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jan. 26, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Methode Electronics, Inc. was incorporated in 1946 as an Illinois corporation and reincorporated in Delaware in 1966. As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries. Our business is managed, and our financial results are reported, on a segment basis. Effective October 27, 2018, the Company reorganized the reportable segments to align to our new structure resulting from the acquisition of Grakon Parent, Inc. ("Grakon"). Prior to this reorganization, the Company's four reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's four reportable segments are now Automotive, Industrial, Interface and Medical. Historical information has been revised to reflect the new reportable segments. Refer to Note 5, "Goodwill and Intangible Assets," and Note 9, "Segment Information," for further information. The condensed consolidated financial statements and related disclosures as of January 26, 2019 and results of operations for the three and nine months ended January 26, 2019 and January 27, 2018 are unaudited, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The April 28, 2018 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Form 10-K for the year ended April 28, 2018 , filed with the SEC on June 21, 2018 . Results may vary from quarter-to-quarter for reasons other than seasonality. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jan. 26, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." The amendments in this update are intended to address a specific consequence of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) by allowing a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. Tax Reform’s reduction of the U.S. federal corporate income tax rate. The ASU is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate is recognized. For Methode, the amendments in this update will be effective for our fiscal 2020, beginning on April 28, 2019. Management does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (ASC 842)," which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. Accounting Standards Codification ("ASC") 842 supersedes the previous leases standard, ASC 840 Leases. The amendments in this update are effective for fiscal years beginning after December 15, 2018, which is our fiscal 2020, beginning on April 28, 2019. Prior to the issuance of ASU No. 2018-11, this ASU was required to be applied with a modified retrospective approach and required application of the new standard at the beginning of the earliest comparative period presented. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements." In issuing ASU No. 2018-11, the FASB decided to provide another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will elect this optional transition method to recognize a cumulative effect adjustment to the opening balance of retained earnings on April 27, 2019. We are continuing to assess the accounting and disclosure impact of ASU 2016-02 and refine our processes for adoption on April 27, 2019. As part of our adoption of this standard, we have selected, and are currently in the process of implementing, a software solution to assist in managing our inventory of leases and in complying with the disclosure requirements of this standard. We expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our minimum commitments under non-cancelable operating leases are not significantly different than those disclosed in our fiscal 2018 Form 10-K. Management does not expect the new standard will have a material impact on the Company’s consolidated results of operations or cash flows. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which created ASC 606 “Revenue from Contracts with Customers” (“ASC 606”) and supersedes the revenue recognition requirements in ASC 605 “Revenue Recognition” (“ASC 605”). The guidance in ASU No. 2014-09 and subsequently issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with customers as well as required disclosures. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers including significant judgments and changes in judgments. We adopted the new standard effective April 29, 2018 using the modified retrospective transition method with the cumulative effect recorded to the opening balance of retained earnings as of the date of adoption. See Note 3, "Revenue" for further details. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” The amendments in this update provide guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims. The amendments in this ASU, where practicable, are to be applied retrospectively. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting." The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. |
REVENUE
REVENUE | 9 Months Ended |
Jan. 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company is a global manufacturer of component and subsystem devices whose components are found in the primary end-markets of the aerospace, appliance, automotive, construction, consumer and industrial equipment, communications (including information processing and storage, networking equipment and wireless and terrestrial voice/data systems), medical, rail and other transportation industries. On April 29, 2018, we adopted ASC 606 along with the related amendments using a modified retrospective approach to all contracts open as of that date. Upon adoption, we recognized a $0.1 million increase to opening retained earnings. This adjustment was a result of modifying our revenue recognition pattern for highly customized goods with no alternative use to over time recognition instead of point in time and for deferring revenue related to material rights that we provide to our customers. The overall impact to our financial statements was immaterial. We have modified our controls to address the risks present under ASC 606. As we have adopted ASC 606 using the modified retrospective approach, our prior periods have not been restated, and as such they are presented under ASC 605. The impact of the changes in accounting policy on our fiscal 2019 is provided below. Impact of Changes in Accounting Policy Three Months Ended January 26, 2019 Nine Months Ended January 26, 2019 As Reported Adjustments Balance Under ASC 605 As Reported Adjustments Balance Under ASC 605 Net Sales $ 246.9 $ (0.5 ) $ 247.4 $ 734.3 $ (16.5 ) $ 750.8 Cost of Products Sold $ 182.6 $ (0.5 ) $ 183.1 $ 539.1 $ (16.5 ) $ 555.6 Total Inventories $ 124.0 $ (0.6 ) $ 124.6 Contract Assets $ 0.9 $ 0.9 $ — Contract Liabilities $ 0.2 $ 0.2 $ — Retained Earnings $ 526.7 $ 0.1 $ 526.6 Revenue Accounting Policy: In May 2014, the FASB issued ASC 606, which supersedes the revenue recognition requirements in ASC 605, and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of April 29, 2018 using the modified retrospective transition method. The cumulative effect of initially applying the new standard was recorded as an adjustment to the opening balance of retained earnings within our condensed consolidated balance sheets. In accordance with the modified retrospective transition method, the historical information within the financial statements has not been restated and continues to be reported under the accounting standard in effect for those periods. As a result, the Company has disclosed the accounting policies in effect prior to April 29, 2018, as well as the policies it has applied starting April 29, 2018. Periods prior to April 29, 2018 Revenue was recognized in accordance with ASC 605. Revenue was recognized upon either shipment or delivery (depending on shipping terms) of product to customers and is recorded net of returns, allowances, customer discounts, and incentives. Sales taxes collected from customers and remitted to governmental authorities were accounted for on a net (excluded from revenues) basis. Periods commencing on or after April 29, 2018 The majority of our revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, with the exception of consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage. Revenues associated with products which we believe have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. In transition to ASC 606, the Company noted some customers ordered highly customized parts in which the Company was entitled to payment throughout the manufacturing process. In accordance with ASC 606, the Company has begun recognizing revenue over time for these customers as the performance obligation is satisfied. The Company believes the most faithful depiction of the transfer of goods to the customer is based on progress to date, which is typically smooth throughout the production process. As such, the Company recognizes revenue evenly over the production process through transfer of control to the customer. In addition, customers typically negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract. Our warranties are standard, assurance-type warranties only. We do not offer any additional service or extended term warranties to our customers. As such, we continue to recognize warranty as an expense with accounting outside of the scope of ASC 606. The Company has elected to treat shipping and handling costs as an activity necessary to fulfill the performance obligation to transfer product to the customer and not as a separate performance obligation. Shipping and handling costs are estimated at quarter end in proportion to revenue recognized for transactions where actual costs are not yet known. Across all products, the amount of revenue recognized corresponds to the related purchase order. Revenue is adjusted for variable consideration (such as discounts) as described further below. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption from the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. Costs to Fulfill/Obtain a Contract: We incur pre-production tooling costs related to products produced for our customers under long-term supply agreements. We had $32.5 million and $20.5 million as of January 26, 2019 and April 28, 2018 , respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the customer has provided a non-cancelable right to use the tooling. These costs are capitalized and recognized into income upon acceptance. The Company concluded that pre-production tooling and engineering costs do not represent a promised good or service under ASC 606, and as such, reimbursements received are accounted for as a reimbursement of the expense, not revenue. This change resulted in tooling reimbursements of $0.5 million and $16.6 million being recorded into cost of products sold during the three and nine months ended January 26, 2019 , respectively. The Company has not historically incurred material costs to obtain a contract. In the instances that costs to obtain contracts are incurred, the Company will capitalize and amortize those over the life of the contract. Contract Estimates: Due to the nature of the work performed in completing certain performance obligations, the estimation of both total revenue and cost at completion includes a number of variables and requires significant judgment. Estimating total contract revenue may require judgment as certain contracts contain pricing discount structures, early payment discounts or other provisions that can impact the transaction price. The Company generally estimates variable consideration utilizing the most likely amount to which we expect to be entitled. When the contract provides the customer with the right to return eligible products, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. The Company has elected the practical expedient for significant financing components, allowing the Company to not adjust the promised amount of consideration for the effects of a financing component when payment terms are within one year from the time a performance obligation is satisfied. Our customers' payment terms are typically 30- 45 days from the time control transfers. Certain of the Company's contracts contain annual contractually-guaranteed price reductions that grant the customer the right to purchase products at decreased prices throughout the life of the contract. Most of these contractual price reductions are merely the result of efficiencies in the production process being passed down to our customers. For certain of these price reductions, however, the amount of the reduction cannot be attributed entirely to production efficiencies gained. In these cases, the annual price-downs are considered to be material rights as the customer, as part of their current contract, is purchasing an option that they would not have received without the contract to purchase future product. When a contract contains a material right, a portion of the transaction price is allocated to the material right for which revenue recognition is deferred until the customer exercises its option. The standalone selling price for a material right used to allocate the transaction price is determined at contract inception by calculating the portion of the option purchased relative to the estimated total amount of incremental value the customer will likely earn, based on historical data, customer forecast communications, current economic information and industry trends. The standalone selling price of a material right is not adjusted prior to customer exercise or option expiration. Estimating the total expected costs related to contracts also requires significant judgment. In cases where the Company is recognizing revenue over time, the requirement is to record a proportionate amount of the costs of production as well. As part of this process, management considers the progress towards completion of the performance obligation, the length of time necessary to complete the performance obligation and the historical costs incurred in the manufacture of similar products, among other variables. The Company has elected the portfolio approach practical expedient to estimate the amount of revenue to recognize for certain contracts which require over time revenue recognition. Such contracts are grouped together either by revenue stream, customer or product. Each portfolio of contracts is grouped together based on having similar characteristics. The portfolio approach is utilized only when the result of the accounting is not expected to be materially different than if applied to individual contracts. For each portfolio of contracts, the respective work in process and/or finished goods inventory balances are identified and the portfolio-specific margin is applied to estimate the pro-rata portion of revenue earned in relation to the costs incurred. Adjustments due to any of the factors above to net sales, cost of sales and the related impact to operating income are recognized as necessary in the period they become known. The resultant impacts from these changes in estimates are recognized on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on both current and prior periods. Contract Balances: The Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. A contract liability exists when the Company has received consideration or the amount is due from the customer in advance of revenue recognition. Contract assets and contract liabilities are recognized in other current assets and other liabilities, respectively, in the Company's condensed consolidated balance sheets. Unbilled Receivables (Contract Assets) - Pursuant to the over time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized over time. The Company has determined that unbilled receivables were $0.8 million and $0.9 million as of April 29, 2018 and January 26, 2019 , respectively. During the nine months ended January 26, 2019 , $0.8 million of previously unbilled receivables were recorded into accounts receivable. There were no impairments of contract assets as of January 26, 2019 . Deferred Revenue (Contract Liabilities) - For certain of the price reductions offered by the Company, the amount of the reduction cannot be attributed entirely to production efficiencies gained. In these cases, the annual price-downs are considered to be material rights as the customer, as part of their current contract, are purchasing an option that they would not have received without the contract to purchase future product. When a contract contains a material right, a portion of the transaction price is allocated to the material right for which revenue recognition is deferred until the customer exercises its option. Deferred revenue was $0.2 million at both April 29, 2018 and January 26, 2019 . No previously deferred revenue was recorded into revenue during the nine months ended January 26, 2019 . Disaggregated Revenue Information: The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods. Geographic net sales are determined based on our sales from our various operational locations. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors. Three Months Ended January 26, 2019 Auto Industrial Medical Interface Total Geographic Net Sales: U.S. $ 80.7 $ 33.8 $ 0.1 $ 13.3 $ 127.9 Malta 26.7 7.0 — 0.1 33.8 China 20.5 9.6 — — 30.1 Canada 21.1 5.5 — — 26.6 Egypt 10.0 — — — 10.0 Belgium 7.2 — — — 7.2 Other 6.7 4.3 — 0.3 11.3 Total Net Sales $ 172.9 $ 60.2 $ 0.1 $ 13.7 $ 246.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 165.7 $ 60.2 $ 0.1 $ 13.7 $ 239.7 Goods Transferred Over Time 7.2 — — — 7.2 Total Net Sales $ 172.9 $ 60.2 $ 0.1 $ 13.7 $ 246.9 Nine Months Ended January 26, 2019 Auto Industrial Medical Interface Total Geographic Net Sales: U.S. $ 254.7 $ 70.8 $ 0.7 $ 42.7 $ 368.9 Malta 86.8 22.7 — 0.2 109.7 China 63.0 27.5 — 0.1 90.6 Canada 66.2 8.0 — — 74.2 Egypt 35.6 — — — 35.6 Belgium 24.2 — — — 24.2 Other 19.3 10.8 — 1.0 31.1 Total Net Sales $ 549.8 $ 139.8 $ 0.7 $ 44.0 $ 734.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 524.8 $ 139.8 $ 0.7 $ 44.0 $ 709.3 Goods Transferred Over Time 25.0 — — — 25.0 Total Net Sales $ 549.8 $ 139.8 $ 0.7 $ 44.0 $ 734.3 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jan. 26, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Fiscal 2019 Acquisition Grakon Parent, Inc. On September 12, 2018 , we acquired 100% of the stock of Grakon for $421.6 million in cash, net of cash acquired. The business, headquartered in Seattle, Washington, is a manufacturer of custom designed lighting solutions and highly styled engineered components. Grakon’s manufacturing capabilities and products help diversify our product offerings and expand the Industrial segment, which is a key component of our strategic direction. The accounts and transactions of Grakon have been included in the Automotive and Industrial segments in the condensed consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Grakon has been included in the Company's North American Automotive and Grakon Industrial reporting units. The Company has not yet completed the process of estimating the fair value of the assets acquired and liabilities assumed. Accordingly, the Company's preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the process, which would likely impact the Company's allocation of the purchase price to goodwill. Based on the Company's preliminary allocation of the purchase price, revised as of January 26, 2019 , goodwill increased $2.9 million from the preliminary amount reported in the Company's condensed consolidated financial statements at October 27, 2018 . The revised preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed were: Cash $ 6.9 Accounts Receivable 36.1 Inventory 31.0 Prepaid Expenses and Other Current Assets 1.2 Other Intangible Assets 218.9 Goodwill 178.1 Pre-production Costs 1.5 Property, Plant and Equipment 16.2 Accounts Payable (19.4 ) Salaries, Wages and Payroll Taxes (4.4 ) Other Accrued Expenses (7.2 ) Income Tax Payable (0.7 ) Deferred Income Tax Liability (29.7 ) Total Purchase Price $ 428.5 The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 54.0 19.5 years Customer Relationships and Agreements - All Other Customers 125.0 19.5 years Technology Licenses 17.7 6.3 years Trade Names 22.2 8.5 years Total $ 218.9 The Company's results of operations for the three months ended January 26, 2019 was comprised of revenues of $46.9 million and net income of $4.4 million from Grakon. The Company's results of operations for the nine months ended January 26, 2019 included approximately four and a half months of the operating results of Grakon, which was comprised of revenues of $71.1 million and net income of $4.2 million . Acquisition-related costs of $3.8 million and $15.3 million were incurred in relation to the acquisition of Grakon for the three and nine months ended January 26, 2019 , respectively. Acquisition-related costs for the three months ended January 26, 2019 included $0.8 million of costs which have been reported in selling and administrative expenses and $3.0 million of costs which have been reported in costs of products sold on the condensed consolidated statements of income. Acquisition-related costs for the nine months ended January 26, 2019 included $9.7 million of costs which have been reported in selling and administrative expenses and $5.6 million of costs which have been reported in costs of products sold on the condensed consolidated statements of income. Fiscal 2018 Acquisitions Procoplast S.A. On July 27, 2017 , we acquired 100% of the stock of Procoplast S.A. ("Procoplast") for $22.2 million in cash, net of cash acquired. The business, located near the Belgian-German border, is an independent manufacturer of automotive assemblies. The accounts and transactions of Procoplast have been included in the Automotive segment in the consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Procoplast has been included in the Company's European Automotive reporting unit. During the fourth quarter of fiscal 2018, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was: Cash $ 1.3 Accounts Receivable 7.4 Inventory 3.5 Other Intangible Assets 19.2 Goodwill 6.8 Pre-production Costs 2.3 Property, Plant and Equipment 23.8 Accounts Payable (4.9 ) Salaries, Wages and Payroll Taxes (0.8 ) Other Accrued Expenses (0.7 ) Income Tax Payable (0.6 ) Short-term Debt (3.2 ) Other Liabilities (2.1 ) Long-term Debt (20.6 ) Deferred Income Tax Liability (7.9 ) Total Purchase Price $ 23.5 The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 12.3 17.0 years Customer Relationships and Agreements - All Other Customers 2.8 11.5 years Technology Licenses 2.1 8.5 years Trade Names 2.0 8.5 years Total $ 19.2 No acquisition-related costs were incurred in relation to the acquisition of Procoplast for the three months ended January 27, 2018 . Acquisition-related costs of $1.3 million were incurred in relation to the acquisition of Procoplast for the nine months ended January 27, 2018 . Acquisition costs for the nine months ended January 27, 2018 included $1.1 million of costs which have been reported in selling and administrative expenses and $0.2 million of costs which have been reported in costs of products sold on the condensed consolidated statements of income. Pacific Insight Electronics Corp. On October 3, 2017 , we acquired 100% of the outstanding common shares of Pacific Insight Electronics Corp. ("Pacific Insight") in a cash transaction for $108.7 million , net of cash acquired. Pacific Insight, headquartered in Vancouver, British Columbia, Canada, is a global solutions provider offering design, development, manufacturing and delivery of lighting and electronic products and full-service solutions to the automotive and commercial vehicle markets, and has manufacturing facilities in both Canada and Mexico. Its technology in LED-based ambient and direct lighting expands our presence within the automotive interior, as well as augments our efforts in overhead console and other areas. The accounts and transactions of Pacific Insight have been included in the Automotive segment in the consolidated financial statements from the effective date of the acquisition. For goodwill impairment testing purposes, Pacific Insight has been included in the Company's North American Automotive reporting unit. During the fourth quarter of fiscal 2018, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was: Cash $ 4.9 Accounts Receivable 18.3 Inventory 13.0 Prepaid Expenses and Other Current Assets 0.3 Income Taxes Receivable 1.2 Other Intangible Assets 40.1 Goodwill 50.4 Pre-production Costs 0.8 Property, Plant and Equipment 13.2 Accounts Payable (7.9 ) Salaries, Wages and Payroll Taxes (0.8 ) Other Accrued Expenses (2.9 ) Short-term Debt (0.8 ) Long-term Debt (3.4 ) Deferred Income Tax Liability (12.8 ) Total Purchase Price $ 113.6 The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Automotive $ 22.6 11.0 years Customer Relationships and Agreements - Commercial 9.6 13.0 years Trade Names 6.2 7.5 years Technology Licenses 1.7 5.5 years Total $ 40.1 No acquisition-related costs were incurred in relation to the acquisition of Pacific Insight for the three months ended January 27, 2018 . Acquisition-related costs of $5.5 million were incurred in relation to the acquisition of Pacific Insight for the nine months ended January 27, 2018 . Acquisition-related costs for the nine months ended January 27, 2018 included $4.9 million of costs which have been reported in selling and administrative expenses and $0.6 million of costs which have been reported in costs of products sold on the condensed consolidated statements of income. The following table presents unaudited supplemental pro forma results for the three and nine months ended January 26, 2019 and January 27, 2018 , respectively, as if both the Grakon acquisition had occurred as of the beginning of fiscal 2018 and the Pacific Insight acquisition had occurred as of the beginning of fiscal 2017. The unaudited pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such times. The unaudited pro forma results presented below primarily include amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, interest expense adjustments due to an increased debt level, adjustments for certain acquisition-related charges and related tax effects. (Unaudited) Three Months Ended Nine Months Ended January 26, January 27, January 26, January 27, Revenues $ 249.5 $ 261.2 $ 805.7 $ 804.6 Net Income $ 36.0 $ (23.9 ) $ 91.4 $ 28.8 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jan. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with ASC No. 350, "Intangibles — Goodwill and Others." The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. Effective October 27, 2018, the Company reorganized the reportable segments within its business to align to its new structure resulting from the acquisition of Grakon. Prior to this reorganization, the Company's four reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's four reportable segments are now Automotive, Industrial, Interface and Medical. Historical information has been revised to reflect the new reportable segments. Refer to Note 9, "Segment Information," for further information. As part of the acquisition of Grakon in fiscal 2019, the Company recorded goodwill of $178.1 million , of which $39.4 million is deductible for income taxes. As part of the acquisitions of Procoplast and Pacific Insight in fiscal 2018, the Company recorded goodwill of $6.8 million and $50.4 million , respectively, none of which is deductible for income taxes. The following table shows the roll-forward of goodwill in the financial statements by segment as of January 26, 2019 . Automotive Industrial Total Balance as of April 28, 2018 $ 57.5 $ 1.7 $ 59.2 Goodwill Acquired 50.6 127.5 178.1 Foreign Currency Translation (0.4 ) (0.1 ) (0.5 ) Balance as of January 26, 2019 $ 107.7 $ 129.1 $ 236.8 As part of the acquisition of Grakon in fiscal 2019, the Company acquired estimated intangible assets of $218.9 million . As part of the acquisitions of Procoplast and Pacific Insight in fiscal 2018, the Company acquired intangible assets of $19.2 million and $40.1 million , respectively. The following tables present details of the Company’s intangible assets. As of January 26, 2019 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer Relationships and Agreements $ 242.1 $ 24.4 $ 217.7 17.7 Trade Names, Patents and Technology Licenses 77.5 27.6 49.9 6.7 Total $ 319.6 $ 52.0 $ 267.6 As of April 28, 2018 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer Relationships and Agreements $ 64.4 $ 18.1 $ 46.3 12.3 Trade Names, Patents and Technology Licenses 37.7 23.0 14.7 5.3 Total $ 102.1 $ 41.1 $ 61.0 The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: 2019 $ 16.5 2020 $ 20.1 2021 $ 20.0 2022 $ 20.0 2023 $ 20.0 As of January 26, 2019 and April 28, 2018 , the trade names, patents and technology licenses include $1.8 million of trade names that are not subject to amortization. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jan. 26, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes for an interim period is based on an estimated effective income tax rate for the full fiscal year and applies that rate to ordinary year-to-date earnings or loss. The estimated annual effective income tax rate is determined excluding the effects of unusual or significant discrete items that are reported net of the related tax effects and in the period in which they occur. In addition, any effects of enacted tax law or rate changes as well as the Company’s ability to utilize various tax assets is recognized in the period in which the change occurs. The Company recognized an income tax benefit of $3.0 million and an income tax expense of $63.4 million for the three months ended January 26, 2019 and January 27, 2018 , respectively. The Company’s effective tax rate was (10.4)% and 162.1% for the three months ended January 26, 2019 and January 27, 2018 , respectively. The Company recognized an income tax provision of $4.5 million and $72.6 million for the nine months ended January 26, 2019 and January 27, 2018 , respectively. The Company’s effective tax rate was 6.1% and 78.1% for the nine months ended January 26, 2019 and January 27, 2018 , respectively. The income tax provision for both the three and nine months ended January 26, 2019 is lower than the U.S. statutory tax rate primarily due to foreign investment tax credits, foreign operations with lower statutory rates, and a discrete tax adjustment of $7.5 million . The discrete tax adjustment is primarily related to the finalization of the transition tax associated with U.S. tax reform, foreign tax credits related to dividend repatriation, and the release of a tax reserve. The income tax provision for both the three and nine months ended January 27, 2018 is higher than the U.S. statutory tax rate primarily due to the transition tax and the impact of revaluing deferred taxes due to the change in the federal tax rate from U.S. Tax Reform. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin ("SAB") 118 to provide certain guidance in determining the accounting for income tax effects of the legislation in the accounting period of enactment as well as provide a one-year measurement period to finalize the effects associated with U.S. Tax Reform. The Company recognized a provisional tax expense estimate of $56.8 million related to the deemed repatriated earnings and the revaluation of deferred taxes in its consolidated financial statements for the quarter ended January 27, 2018. Adjustments made to the provisional amounts allowed under SAB 118 were identified and recorded as described in the following paragraph. In the fourth quarter ended April 28, 2018, the Company recognized a $3.1 million discrete tax benefit for the deemed repatriated earnings and the revaluation of deferred taxes to the provisional tax impacts of the U.S. Tax Reform. In the third quarter ended January 26, 2019, the Company recognized a $4.8 million discrete tax benefit from the re-measurement of the deemed repatriated foreign earnings associated with U.S. Tax Reform. These adjustments included changes in interpretations and assumptions the Company made, additional regulatory guidance that was issued, and actions the Company took as a result of U.S. Tax Reform. Due to the enactment of U.S. Tax Reform, repatriations of foreign earnings will generally not be subject to U.S. federal income tax but may be subject to other taxes such as withholding tax or state income tax. Indefinite reinvestment is determined by management’s intentions concerning the future operations and liquidity needs of the Company. Most of these earnings have been reinvested in non-U.S. business operations. However, due to U.S. Tax Reform, substantially all prior unrepatriated foreign earnings were subject to U.S. tax. Accordingly, we expect to have the ability to repatriate those earnings without incremental U.S. federal tax cost. We have also changed our intent regarding certain cash repatriations. However, substantially all prior undistributed earnings from foreign subsidiaries are indefinitely reinvested. A determination of the potential deferred taxes related to these undistributed earnings or any other basis differences is not practicable. |
COMMON STOCK AND STOCK-BASED CO
COMMON STOCK AND STOCK-BASED COMPENSATION | 9 Months Ended |
Jan. 26, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
COMMON STOCK AND STOCK-BASED COMPENSATION | COMMON STOCK AND STOCK-BASED COMPENSATION Restricted Stock Awards ("RSAs") In fiscal 2016, the Compensation Committee of the Board of Directors authorized a new long-term incentive program (the “LTIP”) for key employees consisting of performance-based restricted stock awards (“RSAs”) and time-based restricted stock units (“RSUs”). Additionally, in the first quarter of fiscal 2019 , the Compensation Committee awarded a maximum of 11,625 RSAs to an additional key member of management under the LTIP. In the aggregate, the number of RSAs earned will vary based on performance relative to established goals for fiscal 2020 EBITDA, with 50% of the target shares earned for threshold performance (representing 332,543 shares), 100% of the target shares earned for target performance (representing 665,085 shares) and 150% of the target shares earned for maximum performance (representing 997,628 shares). Starting in the third quarter of fiscal 2018 and ending with the first quarter of fiscal 2019, the Company had been recording the RSA compensation expense based on threshold performance. Prior thereto, the Company had been recording the RSA compensation expense based on target performance. Per ASC 718 accounting guidance, management is required in each reporting period to determine the fiscal 2020 EBITDA level that is "probable" ( 70% confidence) for which a performance condition will be achieved. Due to the expected accretive nature of the Grakon acquisition on fiscal 2020 results, management determined during the second quarter of fiscal 2019 that it was probable that the Company will meet the fiscal 2020 target consolidated EBITDA performance level of $221.0 million . At the target level of performance, the expected expense for the RSAs is $22.1 million through fiscal 2020. In the three and nine months ended January 26, 2019 , the Company recorded $0.6 million and $9.7 million , respectively, in compensation expense related to the RSAs based on target performance. The $9.7 million in compensation expense recorded in the nine months ended January 26, 2019 is inclusive of $7.4 million in compensation expense, which was the result of changing the estimated level of performance from threshold to target levels in the second quarter. In the three and nine months ended January 27, 2018 , the Company recorded a net reversal of compensation expense of $5.4 million and $2.2 million , respectively, related to the RSAs based on threshold performance. These amounts are inclusive of a $6.0 million compensation expense reversal in the third quarter of fiscal 2018, which was the result of changing the estimated level of performance from target to threshold levels. In future reporting periods, if management makes a determination that exceeding the target level is probable for fiscal 2020, an appropriate adjustment to compensation expense will be recorded in that period. In addition, if management makes a determination that it is not probable the Company will meet the target level for fiscal 2020, a reversal of compensation expense will be recorded in that period. The adjustments could be material to the financial statements. Restricted Stock Units ("RSUs") In the first quarter of fiscal 2019 , the Compensation Committee awarded 7,750 RSUs to an additional key member of Methode management. In the aggregate, the Company has granted 646,675 RSUs to key employees, of which 329,497 are still unvested and outstanding. The RSUs are subject to a vesting period, with 30% vested on April 28, 2018, 30% vesting on April 27, 2019 and 40% vesting on May 2, 2020. The total expense for the RSUs is expected to be $17.0 million through fiscal 2020. During the three and nine months ended January 26, 2019 , the Company recorded $0.2 million and $1.1 million , respectively, of compensation expense related to the RSUs. During the three and nine months ended January 27, 2018 , the Company recorded $1.5 million and $4.5 million , respectively, in compensation expense related to the RSUs. Director Awards During the first quarter of fiscal 2019 , the Company issued 24,000 shares of common stock to our independent directors, all of which vested immediately upon grant. We recorded $0.9 million of compensation expense related to these shares during the nine months ended January 26, 2019 . |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Jan. 26, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the applicable period. Diluted net income (loss) per share is calculated after adjusting the denominator of the basic net income (loss) per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended January 26, January 27, January 26, January 27, Numerator - Net Income (Loss) $ 30.7 $ (24.3 ) $ 69.0 $ 20.4 Denominator: Denominator for Basic Net Income (Loss) per Share-Weighted Average Shares Outstanding and Vested/Unissued Restricted Stock Awards 37,405,550 37,292,934 37,387,181 37,275,041 Dilutive Potential Common Shares-Employee Stock Options, Restricted Stock Awards and Restricted Stock Units 248,700 — 250,289 385,979 Denominator for Diluted Net Income (Loss) per Share 37,654,250 37,292,934 37,637,470 37,661,020 Net Income (Loss) per Share: Basic $ 0.82 $ (0.65 ) $ 1.84 $ 0.54 Diluted $ 0.82 $ (0.65 ) $ 1.83 $ 0.54 For both the three and nine months ended January 26, 2019 , 101,668 options have been excluded in the computation of diluted net income per share because the average market price was lower than the exercise price for the period. RSAs for 665,085 and 570,818 shares have been excluded in the computation of diluted net income per share for the three and nine months ended January 26, 2019 , respectively, as these awards are contingent on the Company's full-year performance in fiscal 2020. For the three months ended January 27, 2018 , potential dilutive shares have been excluded in the computation of diluted net loss per share, as the effect would have been anti-dilutive. For the nine months ended January 27, 2018 , no options have been excluded in the computation of diluted net income per share because the average market price was greater than the exercise price for the period. RSAs for 423,038 shares have been excluded in the computation of diluted net income per share for the nine months ended January 27, 2018 , as these awards are contingent on the Company's full-year performance in fiscal 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jan. 26, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We are a global manufacturer of component and subsystem devices. We design, manufacture and market devices employing electrical, electronic, wireless, sensing and optical technologies. Our components are found in the primary end-markets of the automotive, appliance, communications (including information processing and storage, networking equipment and wireless and terrestrial voice/data systems), consumer and industrial equipment, aerospace, rail and other transportation industries. ASC No. 280, “Segment Reporting” establishes annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM, as defined by ASC No. 280, is the Company’s President and Chief Executive Officer (“CEO”). Effective October 27, 2018, the Company reorganized the reportable segments within its business to align to its new structure resulting from the acquisition of Grakon. Prior to this reorganization, the Company's four reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's four reportable segments are now Automotive, Industrial, Interface and Medical. Historical information has been revised to reflect the new reportable segments. Refer to Note 5, "Goodwill and Intangible Assets," for further information. A summary of the significant reportable segment changes is as follows: • Grakon's automotive business has been included in the Automotive segment, while Grakon's non-automotive business has been included in the Industrial segment. • The busbar business, previously included in the Power segment, is now part of the Industrial segment. • The radio-remote control business, previously included in the Interface segment, is now part of the Industrial segment. • The medical devices business, previously included in the Other segment, now makes up the Medical segment. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered suppliers. Our products include integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, LED-based lighting and sensors, which incorporate magneto-elastic sensing and other technologies that monitor the operation or status of a component or system. The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as our PowerRail® solution, high-current low-voltage flexible power cabling systems and powder-coated busbars that are used in various markets and applications, including aerospace, computers, industrial, power conversion, military, telecommunications and transportation. The Interface segment provides a variety of copper and fiber-optic interface and interface solutions for the appliance, commercial food service, construction, consumer, material handling, medical, point-of-sale and telecommunications markets. Solutions include optical and copper transceivers and solid-state field-effect consumer touch panels. The Medical segment is made up of our medical device business, Dabir Surfaces, our surface support technology aimed at pressure injury prevention. Methode is developing the technology for use by patients who are immobilized or otherwise at risk for pressure injuries, including patients undergoing long-duration surgical procedures. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended April 28, 2018 , with the exception of accounting policies for revenue, which can be found in Note 3, "Revenue," in this Form 10-Q. We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. The tables below present information about our reportable segments. Three Months Ended January 26, 2019 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 174.0 $ 60.9 $ 13.8 $ 0.1 $ (1.9 ) $ 246.9 Transfers between Segments (1.1 ) (0.7 ) (0.1 ) — 1.9 — Net Sales to Unaffiliated Customers $ 172.9 $ 60.2 $ 13.7 $ 0.1 $ — $ 246.9 Income (Loss) from Operations $ 27.0 $ 8.9 $ — $ (1.7 ) $ (8.2 ) $ 26.0 Interest Expense, Net 3.2 Other Income, Net (4.9 ) Income before Income Taxes $ 27.7 Three Months Ended January 27, 2018 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 187.7 $ 25.5 $ 17.7 $ 0.1 $ (3.0 ) $ 228.0 Transfers between Segments (2.8 ) — (0.1 ) — 2.9 — Net Sales to Unaffiliated Customers $ 184.9 $ 25.5 $ 17.6 $ 0.1 $ (0.1 ) $ 228.0 Income (Loss) from Operations $ 39.4 $ 3.2 $ 1.6 $ (2.3 ) $ (6.3 ) $ 35.6 Interest Expense, Net 0.3 Other Income, Net (3.8 ) Income before Income Taxes $ 39.1 Nine Months Ended January 26, 2019 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 555.0 $ 141.8 $ 44.2 $ 0.7 $ (7.4 ) $ 734.3 Transfers between Segments (5.2 ) (2.0 ) (0.2 ) — 7.4 — Net Sales to Unaffiliated Customers $ 549.8 $ 139.8 $ 44.0 $ 0.7 $ — $ 734.3 Income (Loss) from Operations $ 96.7 $ 21.1 $ 0.2 $ (6.3 ) $ (37.9 ) $ 73.8 Interest Expense, Net 5.0 Other Income, Net (4.7 ) Income before Income Taxes $ 73.5 Nine Months Ended January 27, 2018 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 535.4 $ 75.7 $ 55.6 $ 0.2 $ (7.6 ) $ 659.3 Transfers between Segments (7.3 ) 0.3 (0.5 ) — 7.5 — Net Sales to Unaffiliated Customers $ 528.1 $ 76.0 $ 55.1 $ 0.2 $ (0.1 ) $ 659.3 Income (Loss) from Operations $ 118.1 $ 8.3 $ 5.0 $ (8.1 ) $ (32.6 ) $ 90.7 Interest Expense, Net 0.3 Other Income, Net (2.6 ) Income before Income Taxes $ 93.0 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Jan. 26, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Certain litigation arising in the normal course of business is pending against us. We are, from time-to-time, subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is our opinion, based on the information available, that we have adequate reserves for these liabilities. Hetronic Germany-GmbH Matters For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. We became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, we terminated all of our agreements with the Fuchs companies. On June 20, 2014, we filed a lawsuit against the Fuchs companies in the Federal District Court for the Western District of Oklahoma alleging material breaches of the distribution and assembly agreements and seeking damages, as well as various forms of injunctive relief. The defendants have filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, we amended our complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties. As of January 26, 2019 , the matter remains in the pre-trial stage. |
PRE-PRODUCTION COSTS RELATED TO
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | 9 Months Ended |
Jan. 26, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS We incur pre-production tooling costs related to certain products produced for our customers under long-term supply agreements. We had $32.5 million and $20.5 million as of January 26, 2019 and April 28, 2018 , respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the customer has provided a non-cancelable right to use the tooling. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. We had $8.6 million and $10.1 million at January 26, 2019 and April 28, 2018 , respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. |
DEBT
DEBT | 9 Months Ended |
Jan. 26, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On September 12, 2018, the Company entered into an Amended and Restated Credit Agreement with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein (the “Credit Agreement”). The Credit Agreement amends and restates the Credit Agreement, dated November 18, 2016, among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein. The Credit Agreement has a maturity date of September 12, 2023. The Credit Agreement includes a senior unsecured revolving credit facility, as well as a senior unsecured term loan, and is guaranteed by the Company’s wholly-owned U.S. subsidiaries. The revolving credit facility has a maximum principal amount of $200.0 million and is available for general corporate purposes, including working capital and acquisitions. The term loan has a principal amount of $250.0 million , and requires quarterly payments of $3.1 million over the five -year term, with the remaining balance due upon maturity. The term loan was made to partially fund the acquisition of Grakon in the second quarter of fiscal 2019. The Credit Agreement contains an option to increase the aggregate principal amount of the revolving credit facility and term loan by up to an additional $200.0 million , subject to customary conditions and approval of the lender(s) providing new commitment(s). The Credit Agreement provides for variable rates of interest based on the type of borrowing and the Company's debt to EBITDA financial ratio and contains customary representations and warranties, financial covenants, restrictive covenants and events of default. At January 26, 2019 , the interest rate on both the revolving credit facility and term loan was LIBOR plus 1.50% and we were in compliance with the covenants of the agreement. During the nine months ended January 26, 2019 , we had $350.0 million of borrowings, including the $250.0 million term loan, and payments of $101.4 million , which includes interest of $5.3 million , under the Credit Agreement. As of January 26, 2019 , there were outstanding balances of $37.0 million and $246.9 million against the revolving credit facility and term loan, respectively. We believe the fair values approximate the carrying amounts as of January 26, 2019 . Methode's subsidiary, Pacific Insight, is party to a credit agreement with the Bank of Montreal. The credit agreement with the Bank of Montreal has a maturity date of December 21, 2019 and provides a credit facility in the maximum principal amount of C$10.0 million , with an option to increase the principal amount by up to an additional C$5.0 million . Availability under the facility is determined based upon a percentage of eligible accounts receivable and finished goods inventory balances and funds are available in either Canadian or U.S. currency. Interest is calculated at either the Canadian Dollar Offered Rate plus 1.25% , the Federal Funds Rate plus 1.25% or LIBOR plus 1.75% . As of January 26, 2019 , there were no outstanding balances against this credit facility and Pacific Insight was in compliance with the covenants of the agreement. In addition to the credit agreement with the Bank of Montreal, Pacific Insight was, until the second quarter of fiscal 2019, party to a credit agreement with Roynat. The credit agreement between Pacific Insight and Roynat was terminated during the second quarter of fiscal 2019 and payments of $2.8 million were made upon termination, including a prepayment fee of $0.1 million . Total repayments under this credit facility in fiscal 2019 were $3.8 million . Excluding credit facilities, the Company also holds debt at its Procoplast subsidiary. As of January 26, 2019 , Procoplast holds short-term debt totaling $2.9 million , with a weighted average interest rate of 1.76% . As of January 26, 2019 , Procoplast holds long-term debt that consists of seventeen notes totaling $16.3 million , with a weighted-average interest rate of 1.47% and maturities ranging from 2019 to 2031. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Jan. 26, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued and Recently Adopted Accounting Pronouncements | In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." The amendments in this update are intended to address a specific consequence of the Tax Cuts and Jobs Act (“U.S. Tax Reform”) by allowing a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. Tax Reform’s reduction of the U.S. federal corporate income tax rate. The ASU is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate is recognized. For Methode, the amendments in this update will be effective for our fiscal 2020, beginning on April 28, 2019. Management does not expect this ASU to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases (ASC 842)," which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. Accounting Standards Codification ("ASC") 842 supersedes the previous leases standard, ASC 840 Leases. The amendments in this update are effective for fiscal years beginning after December 15, 2018, which is our fiscal 2020, beginning on April 28, 2019. Prior to the issuance of ASU No. 2018-11, this ASU was required to be applied with a modified retrospective approach and required application of the new standard at the beginning of the earliest comparative period presented. In July 2018, the FASB issued ASU No. 2018-11, "Leases (Topic 842): Targeted Improvements." In issuing ASU No. 2018-11, the FASB decided to provide another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will elect this optional transition method to recognize a cumulative effect adjustment to the opening balance of retained earnings on April 27, 2019. We are continuing to assess the accounting and disclosure impact of ASU 2016-02 and refine our processes for adoption on April 27, 2019. As part of our adoption of this standard, we have selected, and are currently in the process of implementing, a software solution to assist in managing our inventory of leases and in complying with the disclosure requirements of this standard. We expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under non-cancelable operating leases on our consolidated balance sheets resulting in the recording of right of use assets and lease obligations. Our minimum commitments under non-cancelable operating leases are not significantly different than those disclosed in our fiscal 2018 Form 10-K. Management does not expect the new standard will have a material impact on the Company’s consolidated results of operations or cash flows. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which created ASC 606 “Revenue from Contracts with Customers” (“ASC 606”) and supersedes the revenue recognition requirements in ASC 605 “Revenue Recognition” (“ASC 605”). The guidance in ASU No. 2014-09 and subsequently issued amendments outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with customers as well as required disclosures. Under the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The new standard requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers including significant judgments and changes in judgments. We adopted the new standard effective April 29, 2018 using the modified retrospective transition method with the cumulative effect recorded to the opening balance of retained earnings as of the date of adoption. See Note 3, "Revenue" for further details. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” The amendments in this update provide guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims. The amendments in this ASU, where practicable, are to be applied retrospectively. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting." The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard was adopted by Methode on April 29, 2018 and did not have a material impact on our consolidated financial statements. |
Revenue recognition | The majority of our revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control has transferred to a customer is physical shipment or delivery, depending on the contractual shipping terms, with the exception of consignment transactions. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage. Revenues associated with products which we believe have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. In transition to ASC 606, the Company noted some customers ordered highly customized parts in which the Company was entitled to payment throughout the manufacturing process. In accordance with ASC 606, the Company has begun recognizing revenue over time for these customers as the performance obligation is satisfied. The Company believes the most faithful depiction of the transfer of goods to the customer is based on progress to date, which is typically smooth throughout the production process. As such, the Company recognizes revenue evenly over the production process through transfer of control to the customer. In addition, customers typically negotiate annual price downs. Management has evaluated these price downs and determined that in some instances, these price downs give rise to a material right. In instances that a material right exists, a portion of the transaction price is allocated to the material right and recognized over the life of the contract. Our warranties are standard, assurance-type warranties only. We do not offer any additional service or extended term warranties to our customers. As such, we continue to recognize warranty as an expense with accounting outside of the scope of ASC 606. The Company has elected to treat shipping and handling costs as an activity necessary to fulfill the performance obligation to transfer product to the customer and not as a separate performance obligation. Shipping and handling costs are estimated at quarter end in proportion to revenue recognized for transactions where actual costs are not yet known. Across all products, the amount of revenue recognized corresponds to the related purchase order. Revenue is adjusted for variable consideration (such as discounts) as described further below. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption from the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. |
Goodwill and Intangible Assets | We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with ASC No. 350, "Intangibles — Goodwill and Others." The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. |
Net Income Per Share | Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the applicable period. Diluted net income (loss) per share is calculated after adjusting the denominator of the basic net income (loss) per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. |
Segment Information | The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended April 28, 2018 , with the exception of accounting policies for revenue, which can be found in Note 3, "Revenue," in this Form 10-Q. We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. |
Contingencies | Certain litigation arising in the normal course of business is pending against us. We are, from time-to-time, subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is our opinion, based on the information available, that we have adequate reserves for these liabilities. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Impact of Changes in Accounting Policy | The impact of the changes in accounting policy on our fiscal 2019 is provided below. Impact of Changes in Accounting Policy Three Months Ended January 26, 2019 Nine Months Ended January 26, 2019 As Reported Adjustments Balance Under ASC 605 As Reported Adjustments Balance Under ASC 605 Net Sales $ 246.9 $ (0.5 ) $ 247.4 $ 734.3 $ (16.5 ) $ 750.8 Cost of Products Sold $ 182.6 $ (0.5 ) $ 183.1 $ 539.1 $ (16.5 ) $ 555.6 Total Inventories $ 124.0 $ (0.6 ) $ 124.6 Contract Assets $ 0.9 $ 0.9 $ — Contract Liabilities $ 0.2 $ 0.2 $ — Retained Earnings $ 526.7 $ 0.1 $ 526.6 |
Disaggregated Revenue Information | The Company views the following disaggregated disclosures as useful to understanding the composition of revenue recognized during the respective reporting periods. Geographic net sales are determined based on our sales from our various operational locations. Though revenue recognition patterns and contracts are generally consistent, the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and economic factors. Three Months Ended January 26, 2019 Auto Industrial Medical Interface Total Geographic Net Sales: U.S. $ 80.7 $ 33.8 $ 0.1 $ 13.3 $ 127.9 Malta 26.7 7.0 — 0.1 33.8 China 20.5 9.6 — — 30.1 Canada 21.1 5.5 — — 26.6 Egypt 10.0 — — — 10.0 Belgium 7.2 — — — 7.2 Other 6.7 4.3 — 0.3 11.3 Total Net Sales $ 172.9 $ 60.2 $ 0.1 $ 13.7 $ 246.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 165.7 $ 60.2 $ 0.1 $ 13.7 $ 239.7 Goods Transferred Over Time 7.2 — — — 7.2 Total Net Sales $ 172.9 $ 60.2 $ 0.1 $ 13.7 $ 246.9 Nine Months Ended January 26, 2019 Auto Industrial Medical Interface Total Geographic Net Sales: U.S. $ 254.7 $ 70.8 $ 0.7 $ 42.7 $ 368.9 Malta 86.8 22.7 — 0.2 109.7 China 63.0 27.5 — 0.1 90.6 Canada 66.2 8.0 — — 74.2 Egypt 35.6 — — — 35.6 Belgium 24.2 — — — 24.2 Other 19.3 10.8 — 1.0 31.1 Total Net Sales $ 549.8 $ 139.8 $ 0.7 $ 44.0 $ 734.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 524.8 $ 139.8 $ 0.7 $ 44.0 $ 709.3 Goods Transferred Over Time 25.0 — — — 25.0 Total Net Sales $ 549.8 $ 139.8 $ 0.7 $ 44.0 $ 734.3 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was: Cash $ 1.3 Accounts Receivable 7.4 Inventory 3.5 Other Intangible Assets 19.2 Goodwill 6.8 Pre-production Costs 2.3 Property, Plant and Equipment 23.8 Accounts Payable (4.9 ) Salaries, Wages and Payroll Taxes (0.8 ) Other Accrued Expenses (0.7 ) Income Tax Payable (0.6 ) Short-term Debt (3.2 ) Other Liabilities (2.1 ) Long-term Debt (20.6 ) Deferred Income Tax Liability (7.9 ) Total Purchase Price $ 23.5 The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed was: Cash $ 4.9 Accounts Receivable 18.3 Inventory 13.0 Prepaid Expenses and Other Current Assets 0.3 Income Taxes Receivable 1.2 Other Intangible Assets 40.1 Goodwill 50.4 Pre-production Costs 0.8 Property, Plant and Equipment 13.2 Accounts Payable (7.9 ) Salaries, Wages and Payroll Taxes (0.8 ) Other Accrued Expenses (2.9 ) Short-term Debt (0.8 ) Long-term Debt (3.4 ) Deferred Income Tax Liability (12.8 ) Total Purchase Price $ 113.6 The revised preliminary allocation of the purchase price to the fair values of the assets acquired and liabilities assumed were: Cash $ 6.9 Accounts Receivable 36.1 Inventory 31.0 Prepaid Expenses and Other Current Assets 1.2 Other Intangible Assets 218.9 Goodwill 178.1 Pre-production Costs 1.5 Property, Plant and Equipment 16.2 Accounts Payable (19.4 ) Salaries, Wages and Payroll Taxes (4.4 ) Other Accrued Expenses (7.2 ) Income Tax Payable (0.7 ) Deferred Income Tax Liability (29.7 ) Total Purchase Price $ 428.5 |
Schedule of Intangible Assets Acquired | The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 54.0 19.5 years Customer Relationships and Agreements - All Other Customers 125.0 19.5 years Technology Licenses 17.7 6.3 years Trade Names 22.2 8.5 years Total $ 218.9 The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 12.3 17.0 years Customer Relationships and Agreements - All Other Customers 2.8 11.5 years Technology Licenses 2.1 8.5 years Trade Names 2.0 8.5 years Total $ 19.2 The following table presents details of the intangible assets acquired: Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Automotive $ 22.6 11.0 years Customer Relationships and Agreements - Commercial 9.6 13.0 years Trade Names 6.2 7.5 years Technology Licenses 1.7 5.5 years Total $ 40.1 |
Unaudited Pro Forma Results | The unaudited pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such times. The unaudited pro forma results presented below primarily include amortization charges for acquired intangible assets, depreciation adjustments for property, plant and equipment that has been revalued, interest expense adjustments due to an increased debt level, adjustments for certain acquisition-related charges and related tax effects. (Unaudited) Three Months Ended Nine Months Ended January 26, January 27, January 26, January 27, Revenues $ 249.5 $ 261.2 $ 805.7 $ 804.6 Net Income $ 36.0 $ (23.9 ) $ 91.4 $ 28.8 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Roll-forward | The following table shows the roll-forward of goodwill in the financial statements by segment as of January 26, 2019 . Automotive Industrial Total Balance as of April 28, 2018 $ 57.5 $ 1.7 $ 59.2 Goodwill Acquired 50.6 127.5 178.1 Foreign Currency Translation (0.4 ) (0.1 ) (0.5 ) Balance as of January 26, 2019 $ 107.7 $ 129.1 $ 236.8 |
Schedule of Intangible Assets | The following tables present details of the Company’s intangible assets. As of January 26, 2019 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer Relationships and Agreements $ 242.1 $ 24.4 $ 217.7 17.7 Trade Names, Patents and Technology Licenses 77.5 27.6 49.9 6.7 Total $ 319.6 $ 52.0 $ 267.6 As of April 28, 2018 Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Customer Relationships and Agreements $ 64.4 $ 18.1 $ 46.3 12.3 Trade Names, Patents and Technology Licenses 37.7 23.0 14.7 5.3 Total $ 102.1 $ 41.1 $ 61.0 |
Schedule of Estimated Aggregate Amortization Expense of Intangible Assets | The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: 2019 $ 16.5 2020 $ 20.1 2021 $ 20.0 2022 $ 20.0 2023 $ 20.0 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended January 26, January 27, January 26, January 27, Numerator - Net Income (Loss) $ 30.7 $ (24.3 ) $ 69.0 $ 20.4 Denominator: Denominator for Basic Net Income (Loss) per Share-Weighted Average Shares Outstanding and Vested/Unissued Restricted Stock Awards 37,405,550 37,292,934 37,387,181 37,275,041 Dilutive Potential Common Shares-Employee Stock Options, Restricted Stock Awards and Restricted Stock Units 248,700 — 250,289 385,979 Denominator for Diluted Net Income (Loss) per Share 37,654,250 37,292,934 37,637,470 37,661,020 Net Income (Loss) per Share: Basic $ 0.82 $ (0.65 ) $ 1.84 $ 0.54 Diluted $ 0.82 $ (0.65 ) $ 1.83 $ 0.54 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jan. 26, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The tables below present information about our reportable segments. Three Months Ended January 26, 2019 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 174.0 $ 60.9 $ 13.8 $ 0.1 $ (1.9 ) $ 246.9 Transfers between Segments (1.1 ) (0.7 ) (0.1 ) — 1.9 — Net Sales to Unaffiliated Customers $ 172.9 $ 60.2 $ 13.7 $ 0.1 $ — $ 246.9 Income (Loss) from Operations $ 27.0 $ 8.9 $ — $ (1.7 ) $ (8.2 ) $ 26.0 Interest Expense, Net 3.2 Other Income, Net (4.9 ) Income before Income Taxes $ 27.7 Three Months Ended January 27, 2018 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 187.7 $ 25.5 $ 17.7 $ 0.1 $ (3.0 ) $ 228.0 Transfers between Segments (2.8 ) — (0.1 ) — 2.9 — Net Sales to Unaffiliated Customers $ 184.9 $ 25.5 $ 17.6 $ 0.1 $ (0.1 ) $ 228.0 Income (Loss) from Operations $ 39.4 $ 3.2 $ 1.6 $ (2.3 ) $ (6.3 ) $ 35.6 Interest Expense, Net 0.3 Other Income, Net (3.8 ) Income before Income Taxes $ 39.1 Nine Months Ended January 26, 2019 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 555.0 $ 141.8 $ 44.2 $ 0.7 $ (7.4 ) $ 734.3 Transfers between Segments (5.2 ) (2.0 ) (0.2 ) — 7.4 — Net Sales to Unaffiliated Customers $ 549.8 $ 139.8 $ 44.0 $ 0.7 $ — $ 734.3 Income (Loss) from Operations $ 96.7 $ 21.1 $ 0.2 $ (6.3 ) $ (37.9 ) $ 73.8 Interest Expense, Net 5.0 Other Income, Net (4.7 ) Income before Income Taxes $ 73.5 Nine Months Ended January 27, 2018 Automotive Industrial Interface Medical Eliminations/Corporate Consolidated Net Sales $ 535.4 $ 75.7 $ 55.6 $ 0.2 $ (7.6 ) $ 659.3 Transfers between Segments (7.3 ) 0.3 (0.5 ) — 7.5 — Net Sales to Unaffiliated Customers $ 528.1 $ 76.0 $ 55.1 $ 0.2 $ (0.1 ) $ 659.3 Income (Loss) from Operations $ 118.1 $ 8.3 $ 5.0 $ (8.1 ) $ (32.6 ) $ 90.7 Interest Expense, Net 0.3 Other Income, Net (2.6 ) Income before Income Taxes $ 93.0 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 9 Months Ended |
Jan. 26, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 4 |
RECENTLY ISSUED ACCOUNTING PR_2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - Accounting Standards Update 2014-09 $ in Millions | Apr. 29, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase to retained earnings | $ 0.1 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Increase to retained earnings | $ 0.1 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Apr. 29, 2018 | Apr. 28, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Pre-production Costs | $ 32.5 | $ 32.5 | $ 20.5 | |||
Cost of Products Sold | 182.6 | $ 167.9 | $ 539.1 | $ 481.6 | ||
Payment terms, min | 30 days | |||||
Payment terms, max | 45 days | |||||
Contract asset | 0.9 | $ 0.9 | $ 0.8 | |||
Contract asset, reclassified to receivable | (0.8) | |||||
Contract asset, impairment | 0 | |||||
Contract liabilities | 0.2 | 0.2 | 0.2 | |||
Contract liabilities, revenue recognized | 0 | |||||
Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Increase to retained earnings | 0.1 | |||||
Difference between revenue guidance in effect before and after topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cost of Products Sold | (0.5) | (16.5) | ||||
Contract asset | 0.9 | 0.9 | ||||
Contract liabilities | 0.2 | 0.2 | ||||
Tooling reimbursements | Difference between revenue guidance in effect before and after topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Cost of Products Sold | $ 0.5 | $ 16.6 | ||||
Retained Earnings | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Increase to retained earnings | $ 0.1 |
REVENUE - Impact of Changes in
REVENUE - Impact of Changes in Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | Apr. 29, 2018 | Apr. 28, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net Sales | $ 246.9 | $ 228 | $ 734.3 | $ 659.3 | ||
Cost of Products Sold | 182.6 | $ 167.9 | 539.1 | $ 481.6 | ||
Total Inventories | 124 | 124 | $ 84.1 | |||
Contract Assets | 0.9 | 0.9 | $ 0.8 | |||
Contract Liabilities | 0.2 | 0.2 | $ 0.2 | |||
Retained Earnings | 526.7 | 526.7 | $ 472 | |||
Adjustments | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net Sales | (0.5) | (16.5) | ||||
Cost of Products Sold | (0.5) | (16.5) | ||||
Total Inventories | (0.6) | (0.6) | ||||
Contract Assets | 0.9 | 0.9 | ||||
Contract Liabilities | 0.2 | 0.2 | ||||
Retained Earnings | 0.1 | 0.1 | ||||
Balance Under ASC 605 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Net Sales | 247.4 | 750.8 | ||||
Cost of Products Sold | 183.1 | 555.6 | ||||
Total Inventories | 124.6 | 124.6 | ||||
Contract Assets | 0 | 0 | ||||
Contract Liabilities | 0 | 0 | ||||
Retained Earnings | $ 526.6 | $ 526.6 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 246.9 | $ 228 | $ 734.3 | $ 659.3 |
Goods Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 239.7 | 709.3 | ||
Goods Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.2 | 25 | ||
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 127.9 | 368.9 | ||
Malta | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 33.8 | 109.7 | ||
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 30.1 | 90.6 | ||
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 26.6 | 74.2 | ||
Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 10 | 35.6 | ||
Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.2 | 24.2 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 11.3 | 31.1 | ||
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 172.9 | 184.9 | 549.8 | 528.1 |
Automotive | Goods Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 165.7 | 524.8 | ||
Automotive | Goods Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.2 | 25 | ||
Automotive | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 80.7 | 254.7 | ||
Automotive | Malta | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 26.7 | 86.8 | ||
Automotive | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 20.5 | 63 | ||
Automotive | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 21.1 | 66.2 | ||
Automotive | Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 10 | 35.6 | ||
Automotive | Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7.2 | 24.2 | ||
Automotive | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 6.7 | 19.3 | ||
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 60.2 | 25.5 | 139.8 | 76 |
Industrial | Goods Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 60.2 | 139.8 | ||
Industrial | Goods Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Industrial | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 33.8 | 70.8 | ||
Industrial | Malta | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7 | 22.7 | ||
Industrial | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 9.6 | 27.5 | ||
Industrial | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 5.5 | 8 | ||
Industrial | Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Industrial | Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Industrial | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 4.3 | 10.8 | ||
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0.1 | 0.1 | 0.7 | 0.2 |
Medical | Goods Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0.1 | 0.7 | ||
Medical | Goods Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0.1 | 0.7 | ||
Medical | Malta | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Medical | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Interface | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 13.7 | $ 17.6 | 44 | $ 55.1 |
Interface | Goods Transferred at a Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 13.7 | 44 | ||
Interface | Goods Transferred Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Interface | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 13.3 | 42.7 | ||
Interface | Malta | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0.1 | 0.2 | ||
Interface | China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0.1 | ||
Interface | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Interface | Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Interface | Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 0 | 0 | ||
Interface | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 0.3 | $ 1 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Sep. 12, 2018 | Oct. 03, 2017 | Jul. 27, 2017 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Jan. 26, 2019 | Jan. 26, 2019 | Jan. 27, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Payments to acquire businesses, net of cash acquired | $ 421.6 | $ 129.9 | ||||||||||
Goodwill, increase (decrease) | $ 2.9 | |||||||||||
Net Income (Loss) | $ 30.7 | $ 14.6 | $ 23.7 | $ (24.3) | $ 24.2 | $ 20.5 | 69 | $ 20.4 | ||||
Grakon | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage acquired | 100.00% | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 421.6 | |||||||||||
Revenues | 46.9 | 71.1 | ||||||||||
Net Income (Loss) | 4.4 | 4.2 | ||||||||||
Acquisition-related costs incurred | 3.8 | 15.3 | ||||||||||
Procoplast | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage acquired | 100.00% | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 22.2 | |||||||||||
Acquisition-related costs incurred | 0 | 1.3 | ||||||||||
Pacific Insight | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage acquired | 100.00% | |||||||||||
Payments to acquire businesses, net of cash acquired | $ 108.7 | |||||||||||
Acquisition-related costs incurred | 0 | 5.5 | ||||||||||
Selling and administrative expenses | Grakon | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | 0.8 | 9.7 | ||||||||||
Selling and administrative expenses | Procoplast | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | 1.1 | |||||||||||
Selling and administrative expenses | Pacific Insight | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | 4.9 | |||||||||||
Cost of products sold | Grakon | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | $ 3 | 5.6 | ||||||||||
Cost of products sold | Procoplast | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | 0.2 | |||||||||||
Cost of products sold | Pacific Insight | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs incurred | $ 0.6 |
ACQUISITIONS - Assets and Liabi
ACQUISITIONS - Assets and Liabilities Acquired (Details) - USD ($) $ in Millions | Jan. 26, 2019 | Sep. 12, 2018 | Apr. 28, 2018 | Oct. 03, 2017 | Jul. 27, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 236.8 | $ 59.2 | |||
Grakon | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 6.9 | ||||
Accounts Receivable | 36.1 | ||||
Inventory | 31 | ||||
Prepaid Expenses and Other Current Assets | 1.2 | ||||
Other Intangible Assets | 218.9 | ||||
Goodwill | 178.1 | ||||
Pre-production Costs | 1.5 | ||||
Property, Plant and Equipment | 16.2 | ||||
Accounts Payable | (19.4) | ||||
Salaries, Wages and Payroll Taxes | (4.4) | ||||
Other Accrued Expenses | (7.2) | ||||
Income Tax Payable | (0.7) | ||||
Deferred Income Tax Liability | (29.7) | ||||
Total Purchase Price | $ 428.5 | ||||
Procoplast | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 1.3 | ||||
Accounts Receivable | 7.4 | ||||
Inventory | 3.5 | ||||
Other Intangible Assets | 19.2 | ||||
Goodwill | 6.8 | ||||
Pre-production Costs | 2.3 | ||||
Property, Plant and Equipment | 23.8 | ||||
Accounts Payable | (4.9) | ||||
Salaries, Wages and Payroll Taxes | (0.8) | ||||
Other Accrued Expenses | (0.7) | ||||
Income Tax Payable | (0.6) | ||||
Short-term Debt | (3.2) | ||||
Other Liabilities | (2.1) | ||||
Long-term Debt | (20.6) | ||||
Deferred Income Tax Liability | (7.9) | ||||
Total Purchase Price | $ 23.5 | ||||
Pacific Insight | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 4.9 | ||||
Accounts Receivable | 18.3 | ||||
Inventory | 13 | ||||
Prepaid Expenses and Other Current Assets | 0.3 | ||||
Income Taxes Receivable | 1.2 | ||||
Other Intangible Assets | 40.1 | ||||
Goodwill | 50.4 | ||||
Pre-production Costs | 0.8 | ||||
Property, Plant and Equipment | 13.2 | ||||
Accounts Payable | (7.9) | ||||
Salaries, Wages and Payroll Taxes | (0.8) | ||||
Other Accrued Expenses | (2.9) | ||||
Short-term Debt | (0.8) | ||||
Long-term Debt | (3.4) | ||||
Deferred Income Tax Liability | (12.8) | ||||
Total Purchase Price | $ 113.6 |
ACQUISITIONS - Intangible Asset
ACQUISITIONS - Intangible Assets Acquired (Details) - USD ($) $ in Millions | Sep. 12, 2018 | Oct. 03, 2017 | Jul. 27, 2017 |
Grakon | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 218.9 | ||
Grakon | Customer Relationships and Agreements - Significant Customer | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 54 | ||
Amortization period | 19 years 6 months | ||
Grakon | Customer Relationships and Agreements - All Other Customers | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 125 | ||
Amortization period | 19 years 6 months | ||
Grakon | Technology Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 17.7 | ||
Amortization period | 6 years 4 months 6 days | ||
Grakon | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 22.2 | ||
Amortization period | 8 years 6 months | ||
Procoplast | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 19.2 | ||
Procoplast | Customer Relationships and Agreements - Significant Customer | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 12.3 | ||
Amortization period | 17 years | ||
Procoplast | Customer Relationships and Agreements - All Other Customers | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2.8 | ||
Amortization period | 11 years 6 months | ||
Procoplast | Technology Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2.1 | ||
Amortization period | 8 years 6 months | ||
Procoplast | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 2 | ||
Amortization period | 8 years 6 months | ||
Pacific Insight | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 40.1 | ||
Pacific Insight | Technology Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 1.7 | ||
Amortization period | 5 years 6 months | ||
Pacific Insight | Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 6.2 | ||
Amortization period | 7 years 6 months | ||
Pacific Insight | Customer Relationships and Agreements - Automotive | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 22.6 | ||
Amortization period | 11 years | ||
Pacific Insight | Customer Relationships and Agreements - Commercial | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 9.6 | ||
Amortization period | 13 years |
ACQUISITIONS - Pro Forma Calcul
ACQUISITIONS - Pro Forma Calculations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Business Combinations [Abstract] | ||||
Revenues | $ 249.5 | $ 261.2 | $ 805.7 | $ 804.6 |
Net Income | $ 36 | $ (23.9) | $ 91.4 | $ 28.8 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) | 9 Months Ended | ||||
Jan. 26, 2019USD ($)segment | Sep. 12, 2018USD ($) | Apr. 28, 2018USD ($) | Oct. 03, 2017USD ($) | Jul. 27, 2017USD ($) | |
Goodwill [Line Items] | |||||
Number of reportable segments | segment | 4 | ||||
Goodwill | $ 236,800,000 | $ 59,200,000 | |||
Trade names not subject to amortization | $ 1,800,000 | $ 1,800,000 | |||
Grakon | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 178,100,000 | ||||
Business acquisition, goodwill, expected tax deductible amount | 39,400,000 | ||||
Intangible assets acquired | 218,900,000 | ||||
Procoplast | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 6,800,000 | ||||
Business acquisition, goodwill, expected tax deductible amount | 0 | ||||
Intangible assets acquired | $ 19,200,000 | ||||
Pacific Insight | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 50,400,000 | ||||
Business acquisition, goodwill, expected tax deductible amount | $ 0 | ||||
Intangible assets acquired | $ 40,100,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill Roll-forward (Details) $ in Millions | 9 Months Ended |
Jan. 26, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 59.2 |
Goodwill Acquired | 178.1 |
Foreign Currency Translation | (0.5) |
Ending balance | 236.8 |
Automotive | |
Goodwill [Roll Forward] | |
Beginning balance | 57.5 |
Goodwill Acquired | 50.6 |
Foreign Currency Translation | (0.4) |
Ending balance | 107.7 |
Industrial | |
Goodwill [Roll Forward] | |
Beginning balance | 1.7 |
Goodwill Acquired | 127.5 |
Foreign Currency Translation | (0.1) |
Ending balance | $ 129.1 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jan. 26, 2019 | Apr. 28, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 319.6 | $ 102.1 |
Accumulated Amortization | 52 | 41.1 |
Net | 267.6 | 61 |
Customer Relationships and Agreements | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 242.1 | 64.4 |
Accumulated Amortization | 24.4 | 18.1 |
Net | $ 217.7 | $ 46.3 |
Wtd. Avg. Remaining Amortization Periods (Years) | 17 years 7 months 27 days | 12 years 4 months |
Trade Names, Patents and Technology Licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 77.5 | $ 37.7 |
Accumulated Amortization | 27.6 | 23 |
Net | $ 49.9 | $ 14.7 |
Wtd. Avg. Remaining Amortization Periods (Years) | 6 years 8 months 6 days | 5 years 3 months 15 days |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense of Intangible Assets (Details) $ in Millions | Jan. 26, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 16.5 |
2,020 | 20.1 |
2,021 | 20 |
2,022 | 20 |
2,023 | $ 20 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 26, 2019 | Apr. 28, 2018 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Income tax expense | $ (3) | $ 63.4 | $ 4.5 | $ 72.6 | |
Document Period End Date | Jan. 26, 2019 | ||||
Discrete Income Tax Benefits | $ 7.5 | $ 7.5 | |||
Effective income tax rate | (10.40%) | 162.10% | 6.10% | 78.10% | |
Total Impact of U.S. Tax Reform [Member] | |||||
Income tax expense | $ (4.8) | $ (3.1) | $ 56.8 |
COMMON STOCK AND STOCK-BASED _2
COMMON STOCK AND STOCK-BASED COMPENSATION (Details) - Two Thousand Fourteen Stock Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Restricted Stock Awards (RSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Multiplier - threshold performance | 50.00008% | |||
Multiplier - target performance | 100.00% | |||
Multiplier - maximum performance | 150.00% | |||
EBITDA goal, percentage of likelihood | 70.00% | |||
Restricted Stock Awards (RSAs) | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0.6 | $ (5.4) | $ 9.7 | $ (2.2) |
Allocated share-based compensation expense, amount recorded to true-up prior periods | 7.4 | |||
Restricted Stock Awards (RSAs) | Independent directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 0.9 | |||
Number of shares issued (in shares) | 24,000 | |||
Time-Based Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected expense | $ 17 | |||
Compensation expense | $ 0.2 | $ 1.5 | $ 1.1 | $ 4.5 |
Time-Based Restricted Stock Units (RSUs) | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awarded (in shares) | 7,750 | |||
Granted (in shares) | 646,675 | 646,675 | ||
Outstanding (in shares) | 329,497 | 329,497 | ||
Time-Based Restricted Stock Units (RSUs) | Percentage Vesting on April 28, 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent | 30.00% | |||
Time-Based Restricted Stock Units (RSUs) | Percentage Vesting on April 27, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent | 30.00% | |||
Time-Based Restricted Stock Units (RSUs) | Percentage Vesting on May 2, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percent | 40.00% | |||
2020 EBITDA Threshold Performance | Restricted Stock Awards (RSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares represented (in shares) | 332,542.6666666667 | |||
2020 EBITDA Target Performance | Restricted Stock Awards (RSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares represented (in shares) | 665,085 | |||
EBITDA goal | $ 221 | |||
Expected expense | $ 22.1 | |||
2020 EBITDA Maximum Performance | Restricted Stock Awards (RSAs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares represented (in shares) | 997,628 | |||
2020 EBITDA Maximum Performance | Restricted Stock Awards (RSAs) | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awarded (in shares) | 11,625 | |||
Change in estimated level of performance from target to threshold levels | Restricted Stock Awards (RSAs) | Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ (6) |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | Jan. 27, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Jan. 26, 2019 | Jan. 27, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Numerator - Net Income (Loss) | $ 30.7 | $ 14.6 | $ 23.7 | $ (24.3) | $ 24.2 | $ 20.5 | $ 69 | $ 20.4 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||
Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards (in shares) | 37,405,550 | 37,292,934 | 37,387,181 | 37,275,041 | ||||
Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units (in shares) | 248,700 | 0 | 250,289 | 385,979 | ||||
Denominator for diluted net income per share (in shares) | 37,654,250 | 37,292,934 | 37,637,470 | 37,661,020 | ||||
Net Income (Loss) per Share: | ||||||||
Basic (in dollars per share) | $ 0.82 | $ (0.65) | $ 1.84 | $ 0.54 | ||||
Diluted (in dollars per share) | $ 0.82 | $ (0.65) | $ 1.83 | $ 0.54 |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | |
Jan. 26, 2019 | Jan. 26, 2019 | Jan. 27, 2018 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 101,668 | 101,668 | 0 |
Restricted Stock Awards (RSAs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 665,085 | 570,818 | 423,038 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Jan. 26, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2019 | Jan. 27, 2018 | Jan. 26, 2019 | Jan. 27, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 246.9 | $ 228 | $ 734.3 | $ 659.3 |
Income (Loss) from Operations | 26 | 35.6 | 73.8 | 90.7 |
Interest Expense, Net | 3.2 | 0.3 | 5 | 0.3 |
Other Income, Net | (4.9) | (3.8) | (4.7) | (2.6) |
Income before Income Taxes | 27.7 | 39.1 | 73.5 | 93 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 246.9 | 228 | 734.3 | 659.3 |
Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 172.9 | 184.9 | 549.8 | 528.1 |
Income (Loss) from Operations | 27 | 39.4 | 96.7 | 118.1 |
Automotive | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 174 | 187.7 | 555 | 535.4 |
Automotive | Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (1.1) | (2.8) | (5.2) | (7.3) |
Industrial | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 60.2 | 25.5 | 139.8 | 76 |
Income (Loss) from Operations | 8.9 | 3.2 | 21.1 | 8.3 |
Industrial | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 60.9 | 25.5 | 141.8 | 75.7 |
Industrial | Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (0.7) | 0 | (2) | 0.3 |
Interface | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 13.7 | 17.6 | 44 | 55.1 |
Income (Loss) from Operations | 0 | 1.6 | 0.2 | 5 |
Interface | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 13.8 | 17.7 | 44.2 | 55.6 |
Interface | Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (0.1) | (0.1) | (0.2) | (0.5) |
Medical | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0.1 | 0.1 | 0.7 | 0.2 |
Income (Loss) from Operations | (1.7) | (2.3) | (6.3) | (8.1) |
Medical | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0.1 | 0.1 | 0.7 | 0.2 |
Medical | Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Eliminations/Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 0 | (0.1) | 0 | (0.1) |
Income (Loss) from Operations | (8.2) | (6.3) | (37.9) | (32.6) |
Eliminations/Corporate | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | (1.9) | (3) | (7.4) | (7.6) |
Eliminations/Corporate | Transfers between Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 1.9 | $ 2.9 | $ 7.4 | $ 7.5 |
PRE-PRODUCTION COSTS RELATED _2
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS - Narrative (Details) - USD ($) $ in Millions | Jan. 26, 2019 | Apr. 28, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Pre-production tooling costs | $ 32.5 | $ 20.5 |
Company owned pre-production tooling capitalized within property, plant and equipment | $ 8.6 | $ 10.1 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 9 Months Ended | ||
Jan. 26, 2019USD ($) | Jan. 27, 2018USD ($) | Jan. 26, 2019CAD ($) | |
Line of Credit Facility [Line Items] | |||
Proceeds from borrowings | $ 350,000,000 | $ 71,300,000 | |
Repayments of lines of credit | (103,300,000) | $ (3,000,000) | |
Bank of America Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum principal amount | 200,000,000 | ||
Term loan, maximum borrowing capacity | 250,000,000 | ||
Quarterly payments | $ 3,100,000 | ||
Term loan, term | 5 years | ||
Option to increase principal amount, additional amount (up to) | $ 200,000,000 | ||
Variable rate basis | LIBOR | ||
Basis spread on variable rate | 1.50% | ||
Proceeds from borrowings | $ 350,000,000 | ||
Repayments in the period | (101,400,000) | ||
Interest expense | (5,300,000) | ||
Amount outstanding | 37,000,000 | ||
BMO Harris Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum principal amount | $ 10,000,000 | ||
Option to increase principal amount, additional amount (up to) | 5,000,000 | ||
Amount outstanding | 0 | ||
Roynat Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Extinguishment of debt, amount | 2,800,000 | ||
Gain (loss) on extinguishment of debt | (100,000) | ||
Repayments of lines of credit | $ (3,800,000) | ||
Canadian Dollar Offered Rate | BMO Harris Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis | Canadian Dollar Offered Rate | ||
Basis spread on variable rate | 1.25% | ||
Federal Funds Rate | BMO Harris Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis | Federal Funds Rate | ||
Basis spread on variable rate | 1.25% | ||
London Interbank Offered Rate (LIBOR) | BMO Harris Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Variable rate basis | LIBOR | ||
Basis spread on variable rate | 1.75% | ||
Term loan | Bank of America Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Proceeds from borrowings | $ 250,000,000 | ||
Amount outstanding | $ 246,900,000 |
DEBT - Excluding Credit Agreeme
DEBT - Excluding Credit Agreements (Short-Term) (Details) - USD ($) $ in Millions | Jan. 26, 2019 | Apr. 28, 2018 |
Short-term Debt [Line Items] | ||
Short-term debt | $ 15.2 | $ 4.4 |
Procoplast | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 2.9 | |
Weighted-average interest rate | 1.76% |
DEBT - Excluding Credit Agree_2
DEBT - Excluding Credit Agreements (Long-Term) (Details) $ in Millions | 9 Months Ended | |
Jan. 26, 2019USD ($)debt_note | Apr. 28, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 287.7 | $ 53.4 |
Procoplast | ||
Debt Instrument [Line Items] | ||
Number of notes | debt_note | 17 | |
Long-term debt | $ 16.3 | |
Weighted-average interest rate | 1.47% |
Uncategorized Items - mei-20190
Label | Element | Value |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,700,000 |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,700,000 |