Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
May 02, 2020 | Jun. 16, 2020 | Oct. 26, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | METHODE ELECTRONICS, INC. | ||
Entity Central Index Key | 0000065270 | ||
Document Type | 10-K | ||
Document Period End Date | May 2, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --05-01 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | MEI | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 0.9 | ||
Entity Common Stock, Shares Outstanding | 37,164,331 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 0-2816 | ||
Entity Tax Identification Number | 36-2090085 | ||
Entity Address, Address Line One | 8750 West Bryn Mawr Avenue, | ||
Entity Address, Address Line Two | Suite 1000 | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60631-3518 | ||
City Area Code | 708 | ||
Local Phone Number | 867-6777 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, $0.50 Par Value | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive P roxy S tatement for the 2020 annual shareholders' meeting to be held on September 16, 2020 are incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 217.3 | $ 83.2 |
Accounts Receivable, Less Allowance (2020 - $0.7 and 2019 - $0.9) | 188.5 | 219.3 |
Inventories | 131 | 116.7 |
Income Taxes Receivable | 12.9 | 14.3 |
Prepaid Expenses and Other Current Assets | 15.9 | 20 |
TOTAL CURRENT ASSETS | 565.6 | 453.5 |
LONG-TERM ASSETS | ||
Property, Plant and Equipment, Net | 201.9 | 191.9 |
Goodwill | 231.6 | 233.3 |
Other Intangible Assets, Net | 244.8 | 264.9 |
Operating Lease Assets, Net | 23.5 | 0 |
Deferred Tax Assets | 31.4 | 34.3 |
Pre-production Costs | 37.1 | 32.8 |
Other Long-term Assets | 34.7 | 21 |
TOTAL LONG-TERM ASSETS | 805 | 778.2 |
TOTAL ASSETS | 1,370.6 | 1,231.7 |
CURRENT LIABILITIES | ||
Accounts Payable | 73.8 | 91.9 |
Accrued Employee Liabilities | 19.1 | 20.1 |
Other Accrued Expenses | 18.5 | 33.9 |
Short-term Operating Lease Liability | 5.5 | 0 |
Short-term Debt | 15.3 | 15.7 |
Income Tax Payable | 11.6 | 19.3 |
TOTAL CURRENT LIABILITIES | 143.8 | 180.9 |
LONG-TERM LIABILITIES | ||
Long-term Debt | 336.8 | 276.9 |
Long-term Operating Lease Liability | 20.4 | 0 |
Long-term Income Taxes Payable | 29.3 | 33 |
Other Long-term Liabilities | 15.3 | 14.8 |
Deferred Tax Liabilities | 41.6 | 36.4 |
TOTAL LONG-TERM LIABILITIES | 443.4 | 361.1 |
TOTAL LIABILITIES | 587.2 | 542 |
SHAREHOLDERS’ EQUITY | ||
Common Stock, $0.50 par value, 100,000,000 shares authorized, 38,438,111 shares and 38,333,576 shares issued as of May 2, 2020 and April 27, 2019, respectively | 19.2 | 19.2 |
Additional Paid-in Capital | 150.7 | 150.4 |
Accumulated Other Comprehensive Loss | (26.9) | (13.6) |
Treasury Stock, 1,346,624 shares as of May 2, 2020 and April 27, 2019 | (11.5) | (11.5) |
Retained Earnings | 651.9 | 545.2 |
TOTAL SHAREHOLDERS' EQUITY | 783.4 | 689.7 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,370.6 | $ 1,231.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance, accounts receivable | $ 0.7 | $ 0.9 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,438,111 | 38,333,576 |
Treasury stock (in shares) | 1,346,624 | 1,346,624 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Income Statement [Abstract] | |||
Net Sales | $ 1,023.9 | $ 1,000.3 | $ 908.3 |
Cost of Products Sold | 741 | 734.5 | 668.7 |
Gross Profit | 282.9 | 265.8 | 239.6 |
Selling and Administrative Expenses | 116.8 | 142.9 | 115.7 |
Amortization of Intangibles | 19 | 16.1 | 5.6 |
Income from Operations | 147.1 | 106.8 | 118.3 |
Interest Expense, Net | 10.1 | 8.3 | 0.9 |
Other Income, Net | (11.7) | (5.1) | (6.4) |
Income before Income Taxes | 148.7 | 103.6 | 123.8 |
Income Tax Expense | 25.3 | 12 | 66.6 |
Net Income | $ 123.4 | $ 91.6 | $ 57.2 |
Basic and Diluted Income per Share: | |||
Basic (in dollars per share) | $ 3.28 | $ 2.45 | $ 1.54 |
Diluted (in dollars per share) | 3.26 | 2.43 | 1.52 |
Cash Dividends per Share | $ 0.44 | $ 0.44 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 123.4 | $ 91.6 | $ 57.2 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Foreign Currency Translation Adjustments | (12.3) | (27.5) | 39.6 |
Derivative Financial Instruments | (1) | 0 | 0 |
Total Comprehensive Income | $ 110.1 | $ 64.1 | $ 96.8 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Treasury Stock | Retained Earnings |
Beginning balance at Apr. 29, 2017 | $ 541.1 | $ 19.1 | $ 132.2 | $ (25.7) | $ (11.5) | $ 427 |
Beginning balance (in shares) at Apr. 29, 2017 | 38,133,925 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Earned Portion of Restricted Stock, Net of Tax Withholding | (0.2) | (0.2) | ||||
Earned Portion of Restricted Stock, Net of Tax Withholding (in shares) | 51,095 | |||||
Stock-based Compensation Expense | 4 | 4 | ||||
Exercise of Stock Options | 0.3 | 0.3 | ||||
Exercise of Stock Options (in shares) | 13,333 | |||||
Other Comprehensive Income Loss | 39.6 | 39.6 | ||||
Net Income | 57.2 | 57.2 | ||||
Dividends on Common Stock | (14.7) | (14.7) | ||||
Ending balance at Apr. 28, 2018 | 630 | $ 19.1 | 136.5 | 13.9 | (11.5) | 472 |
Ending balance (in shares) at Apr. 28, 2018 | 38,198,353 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASUs | Accounting Standards Update 2016-09 | 2.7 | 2.7 | ||||
Earned Portion of Restricted Stock, Net of Tax Withholding | (1.7) | $ 0.1 | (0.1) | (1.7) | ||
Earned Portion of Restricted Stock, Net of Tax Withholding (in shares) | 135,223 | |||||
Stock-based Compensation Expense | 14 | 14 | ||||
Other Comprehensive Income Loss | (27.5) | (27.5) | ||||
Net Income | 91.6 | 91.6 | ||||
Dividends on Common Stock | (16.8) | (16.8) | ||||
Ending balance at Apr. 27, 2019 | 689.7 | $ 19.2 | 150.4 | (13.6) | (11.5) | 545.2 |
Ending balance (in shares) at Apr. 27, 2019 | 38,333,576 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASUs | Accounting Standards Update 2014-09 | 0.1 | 0.1 | ||||
Earned Portion of Restricted Stock, Net of Tax Withholding | (0.4) | (0.4) | ||||
Earned Portion of Restricted Stock, Net of Tax Withholding (in shares) | 104,535 | |||||
Stock-based Compensation Expense | 0.3 | 0.3 | ||||
Other Comprehensive Income Loss | (13.3) | (13.3) | ||||
Net Income | 123.4 | 123.4 | ||||
Dividends on Common Stock | (16.3) | (16.3) | ||||
Ending balance at May. 02, 2020 | $ 783.4 | $ 19.2 | $ 150.7 | $ (26.9) | $ (11.5) | $ 651.9 |
Ending balance (in shares) at May. 02, 2020 | 38,438,111 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
May 02, 2020 | Jul. 27, 2019 | Apr. 27, 2019 | Jul. 28, 2018 | May 02, 2020 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
OPERATING ACTIVITIES: | ||||||||
Net Income | $ 30.1 | $ 28.3 | $ 22.6 | $ 23.7 | $ 123.4 | $ 123.4 | $ 91.6 | $ 57.2 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 48.3 | 43.3 | 28.1 | |||||
Stock-based Compensation Expense | 0.3 | 14 | 4 | |||||
Change in Cash Surrender Value of Life Insurance | (0.6) | (0.8) | ||||||
Amortization of Debt Issuance Costs | 0.7 | 0.5 | ||||||
Gain on Sale of Business/Investment/Property | (0.4) | (0.4) | (1.6) | |||||
Change in Deferred Income Taxes | 8 | (4.4) | (12.7) | |||||
Other | (0.2) | 0.2 | ||||||
Changes in Operating Assets and Liabilities: | ||||||||
Accounts Receivable | 27.4 | 1.5 | 2.8 | |||||
Inventories | (15.8) | (3.9) | (7.2) | |||||
Prepaid Expenses and Other Assets | (3.6) | (16.7) | 8.2 | |||||
Accounts Payable and Other Liabilities | (47.5) | (23.1) | 39.8 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 140.6 | 102 | 117.8 | |||||
INVESTING ACTIVITIES: | ||||||||
Purchases of Property, Plant and Equipment | (45.1) | (49.8) | (47.7) | |||||
Acquisition of Businesses, Net of Cash Acquired | (422.1) | (130.9) | ||||||
Acquisition of Technology Licenses | (0.7) | |||||||
Sale of Business/Investment/Property | 0.6 | 1.1 | 0.3 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (44.5) | (470.8) | (179) | |||||
FINANCING ACTIVITIES: | ||||||||
Taxes Paid Related to Net Share Settlement of Equity Awards | (0.4) | (1.7) | (0.3) | |||||
Repayments of Finance Leases | (0.7) | |||||||
Debt Issuance Costs | (3.1) | |||||||
Proceeds from Exercise of Stock Options | 0.3 | |||||||
Cash Dividends | (16.3) | (16.3) | (14.7) | |||||
Proceeds from Borrowings | 157.5 | 359 | 81.4 | |||||
Repayment of Borrowings | (98.4) | (120.5) | (79.4) | |||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 41.7 | 217.4 | (12.7) | |||||
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents | (3.7) | (11.5) | 26 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 134.1 | (162.9) | (47.9) | |||||
Cash and Cash Equivalents at Beginning of Year | $ 83.2 | $ 246.1 | 83.2 | 246.1 | 294 | |||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ 217.3 | $ 83.2 | $ 217.3 | 217.3 | 83.2 | 246.1 | ||
Cash paid during the year for: | ||||||||
Interest | 9.9 | 8.8 | 2.4 | |||||
Income Taxes, Net of Refunds | $ 21.1 | $ 27.8 | $ 20.2 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
May 02, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Methode Electronics, Inc. (the "Company" or "Methode") is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in Belgium, Canada, China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States. The Company's primary manufacturing facilities are located in Dongguan and Shanghai, China; Cairo, Egypt; Mriehel, Malta; and Monterrey and Fresnillo, Mexico. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, LED lighting, wireless and sensing technologies. Impact of COVID-19. The COVID-19 pandemic has negatively affected the global economy, disrupted global supply chains, and created extreme volatility and disruptions to capital and credit markets in the global financial markets. The Company began to see the impacts of the COVID-19 pandemic at the beginning of its fourth quarter of fiscal 2020 at its China manufacturing facilities, which were initially closed for a few weeks after the Chinese New Year. The Company’s manufacturing facilities in China resumed operations later in the fourth quarter of fiscal 2020, but at lower capacity utilization. However, the major impact to the Company’s business from the COVID-19 pandemic began in mid-March 2020, as the Company’s operations in North America and Europe were adversely impacted by many customers suspending their manufacturing operations due to the COVID-19 pandemic. As a result, productions levels at the Company’s major North American and European manufacturing facilities were significantly reduced to well below capacity, thus impacting the Company’s results of operations during the fourth quarter of fiscal 2020. Some of our international locations received government assistance with respect to wages and other expenses. The amounts received were not material and have been reported as other income. The Company assessed certain accounting matters that require consideration of forecasted financial information, including, but not limited to, its allowance for credit losses, the carrying value of the Company's goodwill, intangible assets, and other long-lived assets, and valuation allowances in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic as of May 2, 2020 and through the date of this report. As a result of these assessments, there were no impairments or material increases in credit allowances or valuation allowances that impacted the Company's consolidated financial statements as of and for year ended May 2, 2020. However, the Company's future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the consolidated financial statements in future reporting periods. Basis of Presentation. The Company's consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). Principles of Consolidation. The consolidated financial statements include the accounts and operations of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Financial Reporting Periods. The Company maintains its financial records on the basis of a 52- or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2020 represented 53 weeks and ended on May 2, 2020. Fiscal 2019 and 2018 represented 52 weeks and ended on April 27, 2019 and April 28, 2018, respectively. The following discussions of comparative results among periods should be reviewed in that context. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents. Cash and cash equivalents include all highly liquid investments with a maturity of three months or less. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are customer obligations due under normal trade terms and are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is based upon past transaction history with customers, customer payment practices and economic conditions. A change to the allowance for doubtful accounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account balance. The Company does not require collateral for its accounts receivable. When a receivable balance is determined to be no longer collectible, it is written off against the allowance for doubtful accounts. Accounts receivable are generally due within 30 days to 45 days. Credit losses relating to all customers have not been material. Sales to General Motors Company ("GM") and Ford Motor Company ("Ford") in the Automotive segment, either directly or through their tiered suppliers, represented a significant portion of the Company's business. As of May 2, 2020 and April 27, 2019, combined accounts receivable from GM and Ford (including tiered suppliers) were approximately $32.4 million and $65.2 million, respectively. Inventories: Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using the first-in, first-out method. Finished products and work-in-process inventories include direct material costs and direct and indirect manufacturing costs. The Company records reserves for inventory that may be obsolete or in excess of current and future market demand. See Note 5, “Inventory” for additional information. Property, Plant and Equipment: Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. See Note 6, “Property, Plant and Equipment” for additional information. Business Combinations. The Company accounts for business combinations using the acquisition method. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in our consolidated financial statements from the acquisition date. See Note 4, “Acquisitions” for additional information. Goodwill. Goodwill is not amortized but is tested for impairment on at least an annual basis. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount including goodwill. An impairment of goodwill exists if the carrying amount of the reporting unit exceeds its fair value. The impairment loss is the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. In performing the goodwill impairment test, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. See Note 7, “Goodwill and Other Intangible Assets” for additional information regarding the Company’s goodwill impairment assessment for fiscal 2020. Amortizable Intangible Assets . Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Amortization is recognized over the useful lives of the intangible assets, generally up to 20 years, using the straight-line method. See Note 7, “Goodwill and Other Intangible Assets” for additional information. Impairment Long-Lived Assets. The Company continually evaluates whether events and circumstances have occurred which indicate that the remaining estimated useful lives of its intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators exist, the Company performs an impairment analysis by comparing the undiscounted cash flows resulting from the use of the asset group to the carrying amount. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset’s carrying amount over its fair value. Pre-production Costs Related to Long-term Supply Arrangements. The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply agreements. At May 2, 2020 and April 27, 2019, the Company had $37.1 million and $32.8 million, 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. At May 2, 2020 and April 27, 2019, the Company had $19.0 million and $15.0 million, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. Derivative Financial Instruments. The Company recognizes derivative financial instruments on its consolidated balance sheet at fair value. The only derivative financial instruments used by the Company are cross-currency swaps which are treated as a net investment hedge. For net investment hedges, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of income when the hedged item affects earnings. See Note 8, “Derivative Instruments” for additional information. Income Taxes. Income taxes are calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. See Note 11, “Income Taxes” for additional information. Revenue Recognition. The majority of the Company's 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 the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. In transition to Accounting Standards Codification Revenue from Contracts with Customers,” 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. Across all products, the amount of revenue recognized corresponds to the related purchase order and is adjusted for variable consideration (such as discounts). 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. Shipping and Handling Fees and Costs . Shipping and handling fees billed to customers are included in net sales, and the related costs are included in cost of products sold. Foreign Currency Translation. The functional currencies of the majority of the Company's foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average monthly rates, while the assets and liabilities are translated using period-end exchange rates. The resulting translation adjustments are recognized in accumulated other comprehensive loss. Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the foreign subsidiary are included in the consolidated statements of income in other income, net. Government Grants. The Company recognizes grant income in other income, net in the consolidated statements of income when it is considered that there is reasonable assurance that the grant will be received and the necessary qualifying conditions, as stated in the grant agreement, are met. The international government grants are generally paid over a period of years and are recorded at amortized cost on the Company’s consolidated balance sheets. As of May 2, 2020 and April 27, 2019, grant receivables outstanding (both current and long-term) were $18.7 million and $10.6 million, respectively. Additionally, as of May 2, 2020 and April 27, 2019, the Company has no deferred grant income. Research and Development Costs . Costs associated with the enhancement of existing products and the development of new products are charged to expense when incurred. Research and development expenses primarily relate to product engineering and design and development expenses and are classified as a component of cost of goods sold on the consolidated statements of income. Research and development costs were $34.9 million, $41.2 million and $37.9 million for fiscal 2020, fiscal 2019 and fiscal 2018, respectively Stock-Based Compensation. The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method in accordance with ASC 718, " ." See Note 13, "Shareholders’ Equity," for additional information. Product Warranty. The Company’s warranties are standard, assurance-type warranties only. The Company does not offer any additional service or extended term warranties to its customers. As such, warranty obligations are accrued when its probable that a liability has been incurred and the related amounts are reasonably estimable. Fair Value . ASC 820, " Fair Value Measurement ," provides a framework for measuring f air value , which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under ASC 820 requires an entity to maximize the use of observable inputs. The Company groups assets and liabilities at fair value in three levels as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities; • Level 3 - Unobservable inputs in which little or no market activity exists, requiring the Company to develop its own assumptions that market participants would use to value the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes to the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying values of the Company's short-term financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their fair values because of the short maturity of these instruments. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, “ Leases requires entities to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients and interim transition disclosure requirements. The Company adopted the standard on April 28, 2019, by applying the modified retrospective method without restatement of comparative periods' financial information, as permitted by the transition guidance . has provided disclosures required by prior lease guidance for comparative periods. The adoption of this standard resulted in the recognition of right-of-use assets of $27.6 million and related lease obligations of $28.1 million as of April 28, 2019. The standard did not have a significant impact on the Company's operating results or cash flows. The Company elected certain practical expedients, including the election not to reassess its prior conclusions about lease identification, lease classification and initial direct costs, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. Lastly, the Company elected to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. The Company determines if an arrangement contains a lease at inception. Operating lease expense is recognized on a straight-line basis over the lease term. For purposes of calculating operating lease obligations under the standard, the Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. See Note 3, "Leases," for additional information. In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities documentation and assessment requirements. The Company adopted ASU 2017-12 as of April 28, 2019 and the adoption had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued 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 allow 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 Company adopted ASU 2018-02 as of April 28, 2019 and the adoption had no impact on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-15, " Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance in ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect that the adoption of the standard will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ." The guidance in ASU 2018-13 changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect that the adoption of the standard will have a material impact on the disclosures to the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, " Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) ," which simplifies the accounting for income taxes. The new guidance removes certain exceptions to the general principles in ASC 740, such as recognizing deferred taxes for equity investments, the incremental approach to performing intraperiod tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. This guidance is effective for annual periods beginning after December 15, 2020, and interim periods thereafter; however, early adoption is permitted. The Company is currently assessing the potential impact of standard on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” |
Revenue
Revenue | 12 Months Ended |
May 02, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 2. 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, commercial vehicle, 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. The majority of the Company's 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, except for 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 the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. 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. 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. 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. 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. The Company's customers' payment terms are typically 30-45 days from the time control transfers. Costs to Fulfill/Obtain a Contract The Company incurs pre-production tooling costs related to products produced for customers under long-term supply agreements. 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. Prior to the adoption of ASC 606, such reimbursements were accounted for as revenue. 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 Assets and Liabilities 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 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. Unbilled receivables were $0.5 million and $0.8 million as of May 2, 2020 and April 27, 2019, respectively. During fiscal 2020, $0.8 million of previously unbilled receivables were recorded into accounts receivable. There were no impairments of contract assets as of May 2, 2020. 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 $0.3 million as of both May 2, 2020 and April 27, 2019. Previously deferred revenue of $0.1 million was recorded into revenue during fiscal 2020. Disaggregated Revenue Information The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. 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. Fiscal Year Ended May 2, 2020 (53 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: U.S. $ 330.9 $ 141.1 $ 57.9 $ 1.6 $ 531.5 Malta 113.2 30.4 0.3 — 143.9 China 74.4 42.4 0.1 — 116.9 Mexico 104.7 — — — 104.7 Other 88.9 37.5 0.5 — 126.9 Total Net Sales $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ 1,023.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 675.4 $ 251.4 $ 58.8 $ 1.6 $ 987.2 Goods Transferred Over Time 36.7 — — — 36.7 Total Net Sales $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ 1,023.9 Fiscal Year Ended April 27, 2019 (52 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: U.S. $ 373.0 $ 110.3 $ 56.1 $ 1.1 $ 540.5 Malta 116.4 31.8 0.3 — 148.5 China 78.2 35.3 0.2 — 113.7 Canada 87.8 13.8 — — 101.6 Other 79.3 15.6 1.1 — 96.0 Total Net Sales $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ 1,000.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 704.4 $ 206.8 $ 57.7 $ 1.1 $ 970.0 Goods Transferred Over Time 30.3 — — — 30.3 Total Net Sales $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ 1,000.3 Customer Concentration Sales to GM and Ford in the Automotive segment, either directly or through their tiered suppliers, are shown below. Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 Percentage of Net Sales: GM 26.8 % 35.5 % 43.3 % Ford 10.7 % 11.6 % 12.3 % |
Leases
Leases | 12 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Leases | Note 3. The Company leases real estate, automobiles and certain equipment under both operating and finance leases. The Company does not have any significant arrangements where it is the lessor. The majority of the Company's global lease portfolio represents leases of real estate, such as manufacturing facilities, warehouses and buildings. As of May 2, 2020, the Company's leases have remaining lease terms of up to 11.3 years, some of which include optional renewals or terminations, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. Any variable payments related to the lease will be recorded as lease expense when and as incurred. The Company’s lease payments are largely fixed. As of May 2, 2020, the operating leases that the Company has signed but have not yet commenced are immaterial. In addition to the operating lease assets presented on the consolidated balance sheets, assets under finance leases of $1.0 million are included in property, plant and equipment, net on the consolidated balance sheets as of May 2, 2020. Finance lease obligations were $1.4 million as of May 2, 2020 and is split between other accrued expenses for the short-term portion and other long-term liabilities for the long-term portion on the consolidated balance sheets. The Company had an immaterial amount of finance lease expense in the year ended May 2, 2020. The components of lease expense were as follows: (Dollars in Millions) Fiscal Year Ended May 2, 2020 Lease Cost: Operating Lease Cost $ 9.0 Variable Lease Cost 1.3 Total Lease Cost $ 10.3 Supplemental cash flow and other information related to operating leases was as follows: (Dollars in Millions) Fiscal Year Ended May 2, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligations $ 8.7 Non-cash Activity: Right-of-use Assets Obtained in Exchange for Lease Obligations $ 5.5 Weighted-average Remaining Lease Term 5.7 years Weighted-average Discount Rate 4.7 % Maturities of operating lease liabilities as of May 2, 2020, are shown below: (Dollars in Millions) Operating Leases Fiscal Year: 2021 $ 6.6 2022 5.9 2023 5.2 2024 4.0 2025 2.3 Thereafter 5.7 Total Lease Payments 29.7 Less: Imputed Interest (3.8 ) Present Value of Lease Liabilities $ 25.9 Disclosures related to periods prior to the adoption of ASC 842 Total rent expense was $7.6 million and $5.9 million in the years ended April 27, 2019 and April 28, 2018, respectively. Future minimum lease payments for assets under operating leases as of April 27, 2019 were as follows: (Dollars in Millions) Operating Leases Fiscal Years: 2020 $ 7.8 2021 5.6 2022 4.9 2023 4.2 2024 3.3 Thereafter 8.4 Net Minimum Lease Payments $ 34.2 |
Acquisitions
Acquisitions | 12 Months Ended |
May 02, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4. Acquisition of Grakon On September 12, 2018, the Company acquired 100% of the stock of Grakon Parent, Inc. (“Grakon) for $422.1 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 the Company's product offerings and expand the Industrial segment, which is a key component of the Company's strategic direction. The accounts and transactions of Grakon have been included in the Automotive and Industrial segments in the 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. During the second quarter of fiscal 2020, the Company completed the allocation of the purchase price to the assets acquired and liabilities assumed. Based on the final allocation, goodwill decreased by $0.2 million from the preliminary amount reported in the Company's consolidated financial statements as of April 27, 2019. The final allocation of the purchase price to the fair values of the assets acquired and liabilities assumed were: (Dollars in Millions) Cash $ 6.9 Accounts Receivable 36.1 Inventory 30.8 Prepaid Expenses and Other Current Assets 1.6 Intangible Assets 221.9 Goodwill 175.1 Pre-production Costs 1.5 Property, Plant and Equipment 16.2 Accounts Payable (19.4 ) Accrued Employee Liabilities (4.4 ) Other Accrued Expenses (7.6 ) Income Tax Payable (0.3 ) Deferred Income Tax Liability (29.4 ) Total Purchase Price $ 429.0 The following table presents details of the intangible assets acquired: (Dollars in Millions) Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 57.0 19.5 years Customer Relationships and Agreements - All Other Customers 125.0 19.5 years Technology Licenses 17.7 11.7 years Trade Names 22.2 8.5 years Total $ 221.9 In fiscal 2019, acquisition-related costs of $15.4 million were incurred in relation to the acquisition of Grakon, of which $9.8 million was reported in selling and administrative expenses and $5.6 million was reported in costs of products sold on the consolidated statements of income. Fiscal 2018 Acquisitions On July 27, 2017, the Company 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. On October 3, 2017, the Company acquired 100% of the outstanding common shares of Pacific Insight Electronics Corp. ("Pacific Insight") for $108.7 million in cash, net of cash acquired. Headquartered in Canada, Pacific Insight 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. The purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition dates. Goodwill arising from the acquisition of Procoplast and Pacific Insight are not deductible for tax purposes. The purchase price allocations were finalized at the end of fiscal 2018 and are summarized as follows: (Dollars in Millions) Procoplast Pacific Insight Total Cash $ 1.3 $ 4.9 $ 6.2 Accounts Receivable 7.4 18.3 25.7 Inventory 3.5 13.0 16.5 Intangible Assets 19.2 40.1 59.3 Goodwill 6.8 50.4 57.2 Other Assets 2.3 2.3 4.6 Property, Plant and Equipment 23.8 13.2 37.0 Accounts Payable (4.9 ) (7.9 ) (12.8 ) Other Accrued Expenses (2.1 ) (3.7 ) (5.8 ) Short-term Debt (3.2 ) (0.8 ) (4.0 ) Other Long-term Liabilities (2.1 ) — (2.1 ) Long-term Debt (20.6 ) (3.4 ) (24.0 ) Deferred Income Tax Liability (7.9 ) (12.8 ) (20.7 ) Total Purchase Price $ 23.5 $ 113.6 $ 137.1 Intangible assets acquired consisted of customer relationships, technology licenses and trademarks. The weighted average amortization period for the acquired Procoplast and Pacific Insight intangible assets were 14.4 years and 10.7 years, respectively. For goodwill impairment testing purposes, Procoplast is included in the Company's European Automotive reporting unit and Pacific Insight is included in the Company’s North American Automotive reporting unit. The accounts and transactions of Procoplast and Pacific Insight have been included in the Automotive segment in the consolidated financial statements from the effective date of each acquisition. For both acquisitions, combined transaction costs of $6.8 million were incurred in fiscal 2018, of which $6.0 million was reported in selling and administrative expenses and $0.8 million was reported in costs of products sold on the consolidated statements of income. The following table presents unaudited supplemental pro forma results for fiscal 2019 and 2018 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. Fiscal Year Ended (Dollars in Millions) April 27, 2019 April 28, 2018 Revenues $ 1,073.3 $ 1,095.0 Net Income $ 106.4 $ 70.5 |
Inventory
Inventory | 12 Months Ended |
May 02, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5. Inventory A summary of inventories is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Finished Products $ 45.7 $ 40.2 Work in Process 10.8 9.4 Raw Materials 74.5 67.1 Total Inventories $ 131.0 $ 116.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
May 02, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 6. A summary of property, plant and equipment is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Land $ 3.3 $ 3.7 Buildings and Building Improvements 87.3 81.2 Machinery and Equipment 412.3 390.7 Total Property, Plant and Equipment, Gross 502.9 475.6 Less: Accumulated Depreciation (301.0 ) (283.7 ) Property, Plant and Equipment, Net $ 201.9 $ 191.9 Depreciation expense was $29.3 million, $27.2 million and $22.5 million in fiscal 2020, fiscal 2019 and fiscal 2018, respectively. As of May 2, 2020 and April 27, 2019, capital expenditures recorded in accounts payable totaled $5.8 million and $6.4 million, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
May 02, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 7. Goodwill and Other Intangible Assets Goodwill The Company tests goodwill for impairment on an annual basis as of the beginning of the fourth quarter each year, or more frequently if indicators of potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. At the beginning of the fourth quarter of fiscal 2020, the Company performed a quantitative goodwill impairment test on its reporting units. The Company utilizes a combination of the income approach and market value approach to estimate the fair value of a reporting unit. Cash flow projections are based on management’s estimates of revenue growth rates and earnings before interest, taxes, depreciation and amortization ("EBITDA") margins, taking into consideration business and market conditions for the countries and markets in which the reporting unit operates. The Company calculates the discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry specific rates of return on debt and equity capital for a target industry capital structure, adjusted for risks associated with business size, geography and other factors specific to the reporting unit. The market value approach is based on appropriate valuation multiples observed for the reporting unit’s guideline public companies. The goodwill impairment assessment indicated that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying value. The Company does not believe that any of its reporting units are at risk for impairment . While the Company considered the impact from the COVID-19 pandemic may have on its future cash flows when preparing its annual goodwill impairment test, the full extent of the impact that the COVID-19 pandemic will have on the Company's business, operations and financial condition is currently unknown. The Company will continue to assess its goodwill for impairment as events and circumstances change. Any deterioration in the Company's forecasted revenue and EBITDA margin s , could result in an impairment of a portion or all of its goodwill. The amount of such impairment would be recognized as an expense in the period the goodwill is impaired. A summary of the changes in goodwill by reportable segment is as follows: (Dollars in Millions) Automotive Industrial Total Balance as of April 29, 2017 $ — $ 1.6 $ 1.6 Acquisitions 57.2 — 57.2 Foreign Currency Translation 0.3 0.1 0.4 Balance as of April 28, 2018 57.5 1.7 59.2 Acquisitions 49.4 125.9 175.3 Foreign Currency Translation (0.6 ) (0.6 ) (1.2 ) Balance as of April 27, 2019 106.3 127.0 233.3 Acquisitions — (0.2 ) (0.2 ) Foreign Currency Translation (0.1 ) (1.4 ) (1.5 ) Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 A summary of goodwill by reporting unit is as follows: (Dollars in Millions) May 2, 2020 April 27, 2019 Grakon Industrial $ 123.8 $ 125.4 North American Automotive 99.8 99.8 European Automotive 6.4 6.5 Other 1.6 1.6 Total $ 231.6 $ 233.3 Other Intangible Assets, Net The following tables present details of the Company's identifiable intangible assets: As of May 2, 2020 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 243.5 $ (40.8 ) $ 202.7 16.5 Trade Names, Patents and Technology Licenses 75.3 (35.0 ) 40.3 7.8 Total Definite-lived Intangible Assets 318.8 (75.8 ) 243.0 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 320.6 $ (75.8 ) $ 244.8 As of April 27, 2019 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 244.5 $ (27.7 ) $ 216.8 17.4 Trade Names, Patents and Technology Licenses 75.5 (29.2 ) 46.3 8.4 Total Definite-lived Intangible Assets 320.0 (56.9 ) 263.1 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 321.8 $ (56.9 ) $ 264.9 The Company performed an impairment test for its indefinite-lived intangible asset and determined that no impairment existed at May 2, 2020. Based on the current amount of intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: (Dollars in Millions) Fiscal Year: 2021 $ 18.9 2022 18.9 2023 18.9 2024 18.5 2025 17.9 Thereafter 149.9 Total $ 243.0 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
May 02, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 8. Derivative Instruments The Company is exposed to foreign currency risks that arise from normal business operations. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. On April 14, 2020, the Company As of May 2, 2020, the cross-currency swap was in a net liability position with an aggregate fair value of $1.3 million and is recorded within other long-term liabilities in the consolidated balance sheets. The fair value of the cross-currency swap is classified within Level 2 of the fair value hierarchy. Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company records changes in fair value attributable to the translation of foreign currencies through accumulated other comprehensive income (loss). The Company amortizes the impact of all other changes in fair value of the derivative through interest expense, which was not material in fiscal 2020. |
Employee 401(k) Savings and Def
Employee 401(k) Savings and Deferred Compensation Plans | 12 Months Ended |
May 02, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee 401(k) Savings and Deferred Compensation Plans | Note 9. Retirement Benefits Defined Contribution Plans The Company has an employee 401(k) Savings Plan covering substantially all U.S. employees to which it makes contributions equal to 3% of eligible compensation. In addition, certain of the Company’s foreign subsidiaries also have defined contribution savings plans. Company contributions to these plans were $1.7 million, $1.5 million and $1.4 million fiscal 2020, 2019 and 2018, respectively. Non-Qualified Deferred Compensation Plan The Company maintains a non-qualified deferred compensation plan (“the NQDC Plan”) for certain eligible employees and members of the Board of Directors. Under the NQDC Plan, participants may elect to defer up to 75% of their annual base salary and 100% of their annual cash incentive compensation, with an aggregate minimum deferral of $3,000. The minimum period of deferral is three years. Participants are immediately 100% vested. The Company does not make any contributions to the NQDC Plan. The deferred compensation liability for the NDQC Plan was $5.4 million and $6.1 million as of May 2, 2020 and April 27, 2019, respectively. The Company has purchased life insurance policies on certain employees, which are held in a Rabbi trust, on certain employees to potentially offset these unsecured obligations. These life insurance policies are recorded at their cash surrender value of $6.6 million and $6.9 million as of May 2, 2020 and April 27, 2019, respectively, and are included in other long-term assets in the consolidated balance sheets. The Company also owns and is the beneficiary of a number of life insurance policies on the lives of former key executives that are unrestricted as to use. These life insurance policies are recorded at their cash surrender value of $9.0 million and $8.6 million as of May 2, 2020 and April 27, 2019, respectively, and are included in other long-term assets in the consolidated balance sheets. The cash surrender value of the life insurance policies approximates its fair value and are classified within Level 2 of the fair value hierarchy. |
Debt
Debt | 12 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 10. Debt A summary of debt is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Revolving Credit Facility $ 108.5 $ 35.0 Term Loan 231.2 243.7 Other Debt 14.6 16.8 Unamortized Debt Issuance Costs (2.2 ) (2.9 ) Total Debt 352.1 292.6 Less: Current Maturities (15.3 ) (15.7 ) Total Long-term Debt $ 336.8 $ 276.9 Revolving Credit Facility/Term Loan In September 2018, the Company entered into five-year On March 23, 2020, the Company borrowed $100.0 million under its Revolving Credit Facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of the current uncertainty in the global markets resulting from the COVID-19 pandemic. As of May 2, 2020, the Company has $91.4 million of availability under the Revolving Credit Facility. Outstanding borrowings under the Credit Agreement bear interest at variable rates based on the type of borrowing and the Company’s debt to EBITDA financial ratio, as defined. The weighted-average interest rate on outstanding borrowings under the Credit Agreement was approximately 1.7 % at May 2, 2020. The Credit Agreement contains customary representations and warranties, financial covenants, restrictive covenants and events of default. As of May 2, 2020, the Company was in compliance with all the covenants in the Credit Agreement. The fair value of borrowings under the Credit Agreement approximates book value because the interest rate is variable. Other Debt One of the Company’s European subsidiaries has debt that consists of 15 notes with maturities ranging from 2020 to 2031. The weighted-average interest rate was approximately 1.5% at May 2, 2020 and $2.8 million of the debt was classified as short-term. The fair value of other debt was $14.2 million at May 2, 2020 and was based on Level 2 inputs on a non-recurring basis. Scheduled Maturities As of May 2, 2020, scheduled principal payments of debt are as follows: (Dollars in Millions) Amount Fiscal Years: 2021 $ 15.3 2022 14.6 2023 13.7 2024 307.5 2025 0.4 Thereafter 2.8 Total $ 354.3 |
Income Taxes
Income Taxes | 12 Months Ended |
May 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Income Tax Provision Details of the Company’s income tax provision are as follows: Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) Income (Loss) before Income Taxes: Domestic Source $ 47.3 $ (0.6 ) $ 11.4 Foreign Source 101.4 104.2 112.4 Income before Income Taxes $ 148.7 $ 103.6 $ 123.8 Current Tax Provision (Benefit): U.S. (Federal and State) $ 5.1 $ (5.7 ) $ 46.8 Foreign 12.8 21.5 18.8 Subtotal 17.9 15.8 65.6 Deferred Tax Provision (Benefit): U.S. (Federal and State) 6.1 2.5 11.6 Foreign 1.3 (6.3 ) (10.6 ) Subtotal 7.4 (3.8 ) 1.0 Total Income Tax Expense $ 25.3 $ 12.0 $ 66.6 A reconciliation of the income tax expense to the prevailing statutory federal income tax rate (21.0% for 2020, 21.0% for 2019 and 30.5% for 2018) to pre-tax earnings is as follows: Fiscal Year Ended (Dollars in Millions) May 2, 2020 April 27, 2019 April 28, 2018 Income Tax at Statutory Rate $ 31.2 $ 21.8 $ 37.7 Effect of: State Income Taxes, Net of Federal Benefit 1.5 (0.8 ) 0.1 Withholding Taxes 2.3 1.8 — U.S. Tax Reform Transition Tax — (4.8 ) 48.5 Foreign Tax Differential (8.3 ) (9.6 ) (15.3 ) U.S. Tax on Foreign Income (1.0 ) 3.4 — Foreign Investment Tax Credit (0.8 ) (2.0 ) (9.8 ) Change in Tax Reserve 2.2 (0.1 ) 0.1 Change in Valuation Allowance 0.8 — 0.4 Tax Rate Change, Foreign (0.1 ) — (1.5 ) U.S. Tax Reform Re-measurements — — 5.2 Other, Net (2.5 ) 2.3 1.2 Income Tax Expense $ 25.3 $ 12.0 $ 66.6 Effective Income Tax Rate 17.0 % 11.6 % 53.8 % The Company’s fiscal 2020 effective tax rate is primarily affected by the amount of income earned in the jurisdictions in which the Company operates, the amount of tax credits earned, withholding taxes, tax reserves, and the current taxation of foreign earnings. The Company had a favorable impact from operations in foreign countries with tax rates lower than the U.S. statutory tax rate. The Company earned $0.8 million in investment tax credits primarily related to an investment in qualified expenditures. This was offset by a change in tax reserves of $2.2 million and foreign withholding taxes of $2.3 million. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, includes various income and payroll tax provisions, modifications to federal net operating loss rules, business interest deduction limitations, and bonus depreciation eligibility for qualified improvement property. The Company does not expect there to be a significant tax impact on its consolidated financial statements at this time and will continue to assess the implications of the CARES Act and its continuing developments and interpretations. In fiscal 2019, the effective tax rate was favorably impacted by the amount of income earned in foreign jurisdictions with lower tax rates and a beneficial adjustment related to the finalization of U.S. Tax Reform of $4.8 million. This adjustment under SAB 118 primarily consists of 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. U.S. Tax Reform includes a new global intangible low-taxed income (“GILTI”) provision which requires the Company to include foreign subsidiary earnings in its U.S. tax return starting in fiscal 2019. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. In fiscal 2018, the U.S. enacted The Tax Cuts and Jobs Act (“U.S. Tax Reform”) making significant changes to U.S. corporate income tax laws. This included a reduction in the statutory federal corporate income tax rate from 35.0% to 21.0%, an exemption for dividends received from certain foreign subsidiaries, a one-time repatriation tax on deemed repatriated earnings from foreign subsidiaries, immediate expensing of certain depreciable tangible assets, and limiting the deductibility of certain executive compensation. In fiscal 2018, the Company had a favorable impact from earnings in lower taxes jurisdictions. In addition, the Company recorded an unfavorable provisional estimate on the effects of tax law changes in the U.S. due to U.S. Tax Reform of $53.7 million. This was partially offset by a tax law change and recognition of additional foreign investment tax credits. Deferred Income Taxes and Valuation Allowances Significant components of the Company's deferred income tax assets and liabilities were as follows: (Dollars in Millions) May 2, 2020 April 27, 2019 Deferred Tax Liabilities: Depreciation $ (4.5 ) $ (9.0 ) Amortization (47.8 ) (43.9 ) Foreign Tax (1.8 ) (2.0 ) Lease Liabilities (5.2 ) — Other Liabilities (1.0 ) (0.1 ) Deferred Tax Liabilities, Gross (60.3 ) (55.0 ) Deferred Tax Assets: Deferred Compensation and Stock Award Amortization 7.0 8.6 Inventory Valuation Differences 2.7 1.9 Property Valuation Differences 0.8 1.6 Environmental Reserves 0.2 0.3 Lease Assets 5.7 — Vacation Accruals — 0.4 Foreign Investment Tax Credit 25.9 28.2 Net Operating Loss Carryovers 12.9 13.8 Foreign Tax Credits — 1.1 Other 1.9 3.3 Deferred Tax Assets, Gross 57.1 59.2 Less Valuation Allowance (7.0 ) (6.3 ) Deferred Tax Assets, Net of Valuation Allowance 50.1 52.9 Net Deferred Tax Liabilities $ (10.2 ) $ (2.1 ) Balance Sheet Classification: Long-term Asset 31.4 34.3 Long-term Liability (41.6 ) (36.4 ) Net Deferred Tax Liabilities $ (10.2 ) $ (2.1 ) The Company recorded a net deferred tax liability for U.S. and foreign income taxes of $10.2 million for fiscal 2020 and $2.1 million for fiscal 2019. In assessing the realizability of the deferred tax assets, the Company considers whether it is more likely than not that some portion or the entire deferred tax asset will be realized. Ultimately, the realization of the deferred tax asset is dependent upon the generation of sufficient earnings in future periods in which these temporary items can be utilized. In that regard, the Company has a valuation allowance of $7.0 million related to certain state, federal, and foreign net operating loss carryovers and other credits and determined that these deferred tax assets did not reach the more likely than not realizable standard. At May 2, 2020, the Company had available $7.9 million of federal, $4.7 million of state, and $0.3 million of foreign net operating loss carryforwards with a valuation allowance of $5.3 million of federal and $1.7 million of state. If unused, the U.S. federal net operating loss carryforwards will expire in the years 2021 through 2034. The state net operating loss carryforwards will expire in the years 2021 through 2037. The Company earns investment tax credits of 30.0% for certain qualified expenditures in foreign jurisdictions. Total unused credits are $25.9 million as of May 2, 2020, all of which can be carried forward indefinitely. Indefinite Reinvestment The Company has not provided for deferred income taxes on the undistributed earnings of foreign subsidiaries except for certain identified amounts. The amount the Company expects to repatriate is based on a variety of factors including current year earnings of the foreign subsidiaries, foreign investment needs, and U.S. cash flow considerations. The Company considers the remaining undistributed foreign earnings that are not specifically identified to be indefinitely reinvested. It is not practicable to determine the amount of deferred tax liability on such foreign earnings as the actual tax liability is dependent on circumstances that exist when the remittance occurs. Unrecognized Tax Benefits The Company operates in multiple jurisdictions throughout the world and the income tax returns of its subsidiaries in various jurisdictions are subject to periodic examination by the tax authorities. The Company regularly assesses the status of these examinations and the various outcomes to determine the adequacy of its provision for income taxes. The amount of gross unrecognized tax benefits totaled $5.2 million and $3.1 million at May 2, 2020 and April 27, 2019, respectively. These amounts represent the amount of unrecognized benefits that, if recognized, would favorably impact the effective tax rate if resolved in the Company’s favor. The Company recognizes interest and penalties related to income tax uncertainties in income tax expense. Accrued interest and penalties at May 2, 2020 and April 27, 2019 were not significant. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (Dollars in Millions) May 2, 2020 April 27, 2019 Balance at Beginning of Fiscal Year $ 3.1 $ 1.4 Increases for Positions Related to the Prior Years 1.9 1.8 Increases for Positions Related to the Current Year 0.3 0.9 Lapsing of Statutes of Limitations (0.1 ) (1.0 ) Balance at End of Fiscal Year $ 5.2 $ 3.1 At May 2, 2020, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. The U.S. federal statute of limitations remains open for fiscal years ended on or after 2017 and for state tax purposes on or after fiscal year 2013. Tax authorities may have the ability to review and adjust net operating losses or tax credits that were generated prior to these fiscal years. In the major foreign jurisdictions, fiscal 2013 and subsequent periods remain open and subject to examination by taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
May 02, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Environmental Matters The Company is not aware of any potential unasserted environmental claims that may be brought against us. At May 2, 2020 and April 27, 2019, the Company had accruals, primarily based upon independent engineering studies, for environmental matters of $0.9 million and $1.1 million, respectively. The accrual at May 2, 2020 consists of $0.6 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheet. The accrual at April 27, 2019 consists of $0.8 million classified in other accrued expenses and the remainder was included in other long-term liabilities on the consolidated balance sheet. The Company believes the provisions made for environmental matters are adequate to satisfy liabilities relating to such matters, however it is reasonably possible that costs could exceed accrued amounts if the selected methods of remediation do not reduce the contaminates at the sites to levels acceptable to federal and state regulatory agencies. In fiscal 2020, the Company spent $0.5 million on remediation cleanups and related studies, compared with $0.1 million in fiscal 2019 and $0.3 million in fiscal 2018. The costs associated with environmental matters as they relate to day-to-day activities were not material in fiscal 2020, fiscal 2019 or fiscal 2018. Litigation The Company, from time to time, is subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, patent infringement claims, employment-related matters and environmental matters. The Company considers 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 the opinion of the Company's management, based on the information available, that the Company has adequate reserves for these liabilities and that the ultimate resolution of these matters will not have a material adverse effect on the Company's consolidated financial statements. 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. The Company became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, the Company On June 20, 2014, the Company 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 filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, the Company amended its complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties. A trial with respect to the matter began in February 2020. During the trial, the defendants dismissed their one remaining counterclaim with prejudice. On March 2, 2020, the jury returned a verdict in favor of the Company. The verdict included approximately $102 million in compensatory damages and $11 million in punitive damages. On April 22, 2020, the Court entered a permanent injunction barring defendants from selling infringing products and ordering them to return Hetronic’s confidential information. Defendants appealed entry of the permanent injunction. On May 29, 2020, the Court held defendants in contempt for violating the permanent injunction and entered the final judgment. The final judgment is subject to post-trial motions and possible appeal. Once the automatic stay has expired and assuming that defendants are not granted a further stay pending appeal, the Company will work with counsel to collect on the judgment. Like any judgment, particularly any judgment involving defendants outside of the United States, there is no guarantee that the Company will be able to collect the judgment. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
May 02, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Shareholders' Equity | Note 13. Shareholders’ Equity Dividends The Company paid dividends totaling $16.3 million in both fiscal 2020 and 2019, and $14.7 million in fiscal 2018. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources . A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below: Fiscal Year Ended (Dollars in Millions) May 2, 2020 April 27, 2019 April 28, 2018 Currency Translation Adjustments: Balance at Beginning of Year $ (13.6 ) $ 13.9 $ (25.7 ) Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax (12.3 ) (27.5 ) 39.6 Balance at End of Year (25.9 ) (13.6 ) 13.9 Derivative Instruments: Balance at Beginning of Year — — — Other Comprehensive Loss Recognized During the Period, Net of Tax (1.0 ) — — Balance at End of Year (1.0 ) — — Accumulated Other Comprehensive Income (Loss), End of Period $ (26.9 ) $ (13.6 ) $ 13.9 Stock-Based Compensation The Company has granted stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and stock awards to employees and non-employee directors under the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”), the Methode Electronics, Inc. 2010 Stock Plan (“2010 Plan”), the Methode Electronics, Inc. 2007 Stock Plan (“2007 Plan”) and the Methode Electronics, Inc. 2004 Stock Plan (“2004 Plan”). The Company’s stockholders approved the 2014 Plan in September 2014. The Company can no longer make grants under the 2010 Plan, 2007 Plan and 2004 Plan. The number of shares of common stock originally authorized under the 2014 Plan is 3,000,000, less one share for every one share of common stock issued or issuable pursuant to awards made after May 3, 2014 under the 2007 Plan or 2010 Plan. As of May 2, 2020, there were 1,897,442 shares available for award under the 2014 Plan. Stock-Based Compensation Expense All stock-based payments to employees and directors are recognized in selling and administrative expenses on the consolidated statements of income. Awards subject to graded vesting are recognized using the accelerated recognition method over the requisite service period. The table below summarizes the stock-based compensation expense (benefit) related to the equity awards: Fiscal Year Ended Unrecognized Compensation Expense at May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) May 2, 2020 RSAs $ (2.1 ) $ 10.9 $ (2.0 ) $ — RSUs 1.5 2.2 5.0 — Director Awards 0.9 0.9 1.0 — Total Stock-based Compensation Expense $ 0.3 $ 14.0 $ 4.0 $ — 2014 Plan The 2014 Plan provides for discretionary grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units and performance units to key employees and directors. The 2014 Plan is intended to promote the success of the Company and to increase stockholder value by providing an additional means to attract, motivate, retain and reward selected employees and eligible directors through the grant of equity awards. Restricted Stock Awards The grant of RSAs under the 2014 Incentive Plan were performance-based awards that vested at the end of fiscal 2020 based on the achievement of an EBITDA hurdle. The fair value of the RSAs granted was based on the closing stock price on the date of grant. All RSAs accrued dividend equivalents based on the awards vested. Per ASC 718, “ Compensation - Stock Compensation” In fiscal 2018, the Company determined that only a threshold performance level would be achieved and adjusted its stock-based compensation expense for these awards. The result was a reversal of previously recognized stock-based compensation expense of $6.0 million. Stock-based compensation expense for these awards in fiscal 2018 was a credit of $2.0 million. In fiscal 2019, the Company determined that the target hurdle would be achieved based on the recent acquisition of Grakon and adjusted its stock-based compensation expense for these awards. The result was an additional expense of $7.4 million. Stock-based compensation expense for these awards in fiscal 2019 was $10.9 million. The actual EBITDA hurdle achieved was approximately 69% of target, which was determined in the fourth quarter of fiscal 2020. The target hurdle was not achieved because of among other factors, the impact of the COVID-19 pandemic. The result was a reversal of previously recognized stock-based compensation expense related to prior years of $5.2 million. Stock-based compensation expense for these awards in fiscal 2020 was a credit of $2.1 million. The following table summarizes the RSA activity under the 2014 Incentive Plan: RSA Shares Wtd. Avg. Grant Date Fair Value Non-vested at April 29, 2017 1,168,500 $ 33.42 Awarded 128,738 $ 40.92 Vested — $ — Forfeited (126,000 ) $ 34.42 Non-vested at April 28, 2018 1,171,238 $ 34.13 Awarded 11,625 $ 38.75 Vested — $ — Forfeited (151,455 ) $ 34.79 Non-vested at April 27, 2019 1,031,408 $ 34.09 Awarded — $ — Vested (455,750 ) $ 33.89 Forfeited (575,658 ) $ 34.25 Non-vested at May 2, 2020 — $ — As of May 2, 2020, there were 444,500 RSAs that were vested for which shares were issued in the first quarter of fiscal 2021. Restricted Stock Units RSUs granted under the 2014 Plan vest over a pre-determined period of time, generally three to five years from the date of grant. The fair value of the RSUs granted was based on the closing stock price on the date of grant. The following table summarizes RSU activity granted under the 2014 Plan: RSU Shares Wtd. Avg. Grant Date Fair Value Non-vested at April 29, 2017 568,000 $ 33.45 Awarded 30,925 $ 41.82 Vested (160,553 ) $ 33.72 Forfeited (56,000 ) $ 34.42 Non-vested at April 28, 2018 382,372 $ 33.87 Awarded 7,750 $ 38.75 Vested (152,328 ) $ 33.75 Forfeited (49,950 ) $ 32.42 Non-vested at April 27, 2019 187,844 $ 34.55 Awarded — $ — Vested (176,994 ) $ 34.25 Forfeited (7,750 ) $ 38.75 Non-vested at May 2, 2020 3,100 $ 41.20 As of May 2, 2020, there were 91,694 RSUs that were vested for which shares were issued in the first quarter of fiscal 2021. In addition, 80,800 shares that vested were deferred for issuance. Director Awards During fiscal 2020, fiscal 2019 and fiscal 2018, the Company issued 30,000 shares, 24,000 shares and 24,000 shares, respectively, of common stock to our independent directors, all of which vested immediately upon grant. 2010 Plan and 2007 Plan The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan: Shares Wtd. Avg. Exercise Price Weighted- Average Life (years) Aggregate Intrinsic Value (in millions) Outstanding and Exercisable at April 29, 2017 129,169 $ 34.71 Exercised (13,333 ) $ 24.67 Forfeited (1,668 ) $ 37.01 Outstanding and Exercisable at April 28, 2018 114,168 $ 35.85 6.1 $ 0.6 Exercised — $ — Forfeited (7,500 ) $ 37.01 Outstanding and Exercisable at April 27, 2019 106,668 $ 35.76 5.0 $ 0.1 Exercised — $ — Forfeited — $ — Outstanding and Exercisable at May 2, 2020 106,668 $ 35.76 4.0 $ 0.1 The aggregate intrinsic value represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on that date. Options Outstanding and Exercisable at May 2, 2020 Shares Exercise Price Avg. Remaining Life (Years) 101,668 $ 37.01 4.2 5,000 $ 10.55 0.2 Deferred RSUs Under the 2014 Plan and 2010 Plan, RSUs that have vested for certain executives, including the Company’s CEO, will not be delivered in common stock until after the executive terminates employment from the Company or upon a change of control. As of May 2, 2020, shares to be delivered to these executives were 121,200 shares under the 2014 Plan and 180,000 shares under the 2010 Plan. Under the 2004 Plan, 225,000 shares of common stock subject to performance based RSAs granted to the Company’s CEO in fiscal 2006 and 2007 were converted to RSUs. The shares of common stock underlying the RSUs will not be issued and delivered until the earlier of: (1) thirty days after the CEO’s date of termination of employment with the Company and all of its subsidiaries and affiliates; or (2) the last day of the Company’s fiscal year in which the payment of common stock in satisfaction of the RSUs becomes deductible to the Company under Section 162(m) of the Code. As of May 2, 2020, 29,945 shares have been delivered in connection with these RSUs with a remaining balance to be delivered of 195,055 shares. The RSUs are not entitled to voting rights or dividends, however a bonus in lieu of dividends are paid. The vested deferred RSUs are considered outstanding for earnings per share calculations. |
Income Per Share
Income Per Share | 12 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Share | Note 14. Income Per Share Basic income per share is calculated by dividing net income by the number of weighted average common shares outstanding for the applicable period. The weighted average number of common shares used in the diluted income per share calculation is determined using the treasury stock method which includes the effect of all potential dilutive common shares outstanding during the period. The following table sets forth the computation of basic and diluted income per share: Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (53 Weeks) (52 Weeks) (52 Weeks) Numerator: Net Income (in millions) $ 123.4 $ 91.6 $ 57.2 Denominator: Denominator for Basic Income Per Share-Weighted Average Shares Outstanding and Vested/Unissued Restricted Stock Units 37,574,671 37,405,298 37,281,630 Dilutive Potential Common Shares-Employee Stock Options, Restricted Stock Awards and Restricted Stock Units 269,799 264,262 260,269 Denominator for Diluted Income Per Share 37,844,470 37,669,560 37,541,899 Basic and Diluted Income Per Share: Basic Income Per Share $ 3.28 $ 2.45 $ 1.54 Diluted Income Per Share $ 3.26 $ 2.43 $ 1.52 Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding 566,620 678,321 363,413 |
Segment Information and Geograp
Segment Information and Geographic Area Information | 12 Months Ended |
May 02, 2020 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Area Information | Note 15. Segment Information and Geographic Area Information 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 is the Company’s President and Chief Executive Officer (“CEO”). Effective October 27, 2018, the Company reorganized its reportable segments upon the acquisition of Grakon. Prior to the acquisition, the Company's reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's reportable segments are now Automotive, Industrial, Interface and Medical. Historical information has been revised to reflect the new reportable segments. 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. 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, commercial vehicles, 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, point-of-sale and telecommunications markets. Solutions include copper transceivers and solid-state field-effect consumer touch panels. The Medical segment is made up of the Company's medical device business, Dabir Surfaces, with its surface support technology aimed at pressure injury prevention. Dabir Surfaces has developed 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 Note 1, "Description of Business and Summary of Significant Accounting Policies." The CODM allocates resources to and evaluates the performance of each operating segments based on operating income. Transfers between segments are recorded using internal transfer prices set by the Company. The tables below present information about the Company’s reportable segments. Fiscal Year Ended May 2, 2020 (53 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 716.8 $ 253.9 $ 58.9 $ 1.6 $ (7.3 ) $ 1,023.9 Transfers between Segments (4.7 ) (2.5 ) (0.1 ) — 7.3 — Net Sales to Unaffiliated Customers $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ — $ 1,023.9 Income/(Loss) from Operations $ 124.4 $ 59.4 $ 5.6 $ (6.0 ) $ (36.3 ) $ 147.1 Interest Expense, Net 10.1 Other Income, Net (11.7 ) Income before Income Taxes $ 148.7 Purchases of Property, Plant and Equipment $ 37.5 $ 5.7 $ 0.3 $ 0.7 $ 0.9 $ 45.1 Depreciation and Amortization $ 31.0 $ 13.7 $ 0.9 $ 1.1 $ 1.6 $ 48.3 Identifiable Assets $ 670.9 $ 421.8 $ 71.0 $ 8.8 $ 198.1 $ 1,370.6 Fiscal Year Ended April 27, 2019 (52 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 741.6 $ 210.0 $ 57.9 $ 1.1 $ (10.3 ) $ 1,000.3 Transfers between Segments (6.9 ) (3.2 ) (0.2 ) — 10.3 — Net Sales to Unaffiliated Customers $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ — $ 1,000.3 Income/(Loss) from Operations $ 126.3 $ 37.4 $ (0.3 ) $ (8.6 ) $ (48.0 ) $ 106.8 Interest Expense, Net 8.3 Other Income, Net (5.1 ) Income before Income Taxes $ 103.6 Purchases of Property, Plant and Equipment $ 38.9 $ 2.6 $ 0.5 $ 1.9 $ 5.9 $ 49.8 Depreciation and Amortization $ 25.2 $ 11.7 $ 3.2 $ 1.0 $ 2.2 $ 43.3 Identifiable Assets $ 677.4 $ 404.3 $ 88.6 $ 9.4 $ 52.0 $ 1,231.7 Fiscal Year Ended April 28, 2018 (52 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 738.4 $ 105.6 $ 73.9 $ 0.3 $ (9.9 ) $ 908.3 Transfers between Segments (9.7 ) 0.2 (0.7 ) — 10.2 — Net Sales to Unaffiliated Customers $ 728.7 $ 105.8 $ 73.2 $ 0.3 $ 0.3 $ 908.3 Income/(Loss) from Operations $ 156.3 $ 13.0 $ 6.0 $ (11.4 ) $ (45.6 ) $ 118.3 Interest Expense, Net 0.9 Other Income, Net (6.4 ) Income before Income Taxes $ 123.8 Purchases of Property, Plant and Equipment $ 31.7 $ 1.5 $ 0.4 $ 3.8 $ 10.3 $ 47.7 Depreciation and Amortization $ 21.3 $ 2.0 $ 3.1 $ 0.8 $ 0.9 $ 28.1 Identifiable Assets $ 632.7 $ 93.1 $ 206.8 $ 8.1 $ (24.8 ) $ 915.9 Geographic information The following tables sets forth net sales and tangible long-lived assets for each geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets. Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) Net Sales: U.S. $ 531.5 $ 540.5 $ 487.5 Malta 143.9 148.5 184.0 China 116.9 113.7 117.3 Mexico 104.7 — — Canada 19.5 101.6 54.4 Other 107.4 96.0 65.1 Total Net Sales $ 1,023.9 $ 1,000.3 $ 908.3 May 2, 2020 April 27, 2019 Tangible Long-lived Assets, Net: U.S. $ 89.8 $ 83.9 Malta 40.1 33.0 China 24.1 18.6 Mexico 24.0 9.2 Belgium 21.4 22.1 Other 26.0 25.1 Total Tangible Long-lived Assets, Net $ 225.4 $ 191.9 |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Unaudited) | 12 Months Ended |
May 02, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations (Unaudited) | Note 16. Summary of Quarterly Results of Operations (Unaudited) The following is a summary of unaudited quarterly results of operations for fiscal 2020 and fiscal 2019: Fiscal 2020 Quarter Ended July 27, 2019 October 26, 2019 February 1, 2020 May 2, 2020 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (14 Weeks) (13 Weeks) Net Sales $ 270.2 $ 257.2 $ 285.9 $ 210.6 Gross Profit $ 75.8 $ 68.6 $ 79.3 $ 59.2 Net Income $ 28.3 $ 23.8 $ 41.2 $ 30.1 Net Income per Basic Common Share $ 0.75 $ 0.63 $ 1.10 $ 0.80 Net Income per Diluted Common Share $ 0.75 $ 0.63 $ 1.09 $ 0.79 Fiscal 2019 Quarter Ended July 28, 2018 October 27, 2018 January 26, 2019 April 27, 2019 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (13 Weeks) (13 Weeks) Net Sales $ 223.4 $ 264.0 $ 246.9 $ 266.0 Gross Profit $ 60.1 $ 70.8 $ 64.3 $ 70.6 Net Income $ 23.7 $ 14.6 $ 30.7 $ 22.6 Net Income per Basic Common Share $ 0.63 $ 0.39 $ 0.82 $ 0.61 Net Income per Diluted Common Share $ 0.63 $ 0.39 $ 0.82 $ 0.60 Significant Items for Fiscal 2020 The table below contains items included in fiscal 2020: Fiscal 2020 Quarter Ended July 27, 2019 October 26, 2019 February 1, 2020 May 2, 2020 (Dollars in Millions) (13 Weeks) (13 Weeks) (14 Weeks) (13 Weeks) Legal Fees Related to the Hetronic lawsuit $ 0.8 $ 1.4 $ 1.1 $ 2.1 Grant Income from Foreign Government for Maintaining Certain Employment Levels $ — $ — $ (5.5 ) $ (4.4 ) RSA Compensation Expense Adjustment $ — $ — $ — $ (6.5 ) Expense for Initiatives to Reduce Overall Costs and Improve Operational Profitability $ — $ 0.5 $ 1.1 $ 0.2 Significant Items for Fiscal 2019 Fiscal 2019 Quarter Ended July 28, 2018 October 27, 2018 January 26, 2019 April 27, 2019 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (13 Weeks) (13 Weeks) Legal Fees Related to the Hetronic lawsuit $ 0.9 $ 1.0 $ 0.8 $ 0.8 Acquisition-related Expenses $ 0.6 $ 10.9 $ 3.8 $ 0.1 Grant Income from Foreign Government for Maintaining Certain Employment Levels $ (1.1 ) $ (1.4 ) $ (1.9 ) $ (1.4 ) RSA Compensation Expense Adjustment $ — $ 7.4 $ — $ — Expense for Initiatives to Reduce Overall Costs and Improve Operational Profitability $ 0.8 $ 2.5 $ 2.6 $ 1.0 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
May 02, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS METHODE ELECTRONICS, INC. AND SUBSIDIARIES (in millions) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions Other Balance at End of Period Year Ended May 2, 2020: Allowance for uncollectible accounts $ 0.9 $ (0.2 ) $ — $ — $ 0.7 Deferred tax valuation allowance $ 6.3 $ 0.7 (3 ) $ — $ — $ 7.0 Year Ended April 27, 2019: Allowance for uncollectible accounts $ 0.5 $ 0.2 $ — $ 0.2 (1 ) $ 0.9 Deferred tax valuation allowance $ 2.5 $ — $ (1.0 ) (3 ) $ 4.8 (1 ) $ 6.3 Year Ended April 28, 2018: Allowance for uncollectible accounts $ 0.6 $ — $ (0.1 ) (2 ) $ — $ 0.5 Deferred tax valuation allowance $ 1.9 $ 0.6 (3 ) $ — $ — $ 2.5 (1) Represents business acquisitions. (2) Uncollectible accounts written off, net of recoveries. (3) Represents change in temporary items. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 02, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. The Company's consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts and operations of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Reporting Periods | Financial Reporting Periods. The Company maintains its financial records on the basis of a 52- or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2020 represented 53 weeks and ended on May 2, 2020. Fiscal 2019 and 2018 represented 52 weeks and ended on April 27, 2019 and April 28, 2018, respectively. The following discussions of comparative results among periods should be reviewed in that context. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents include all highly liquid investments with a maturity of three months or less. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are customer obligations due under normal trade terms and are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is based upon past transaction history with customers, customer payment practices and economic conditions. A change to the allowance for doubtful accounts may be required if a future event or other change in circumstances results in a change in the estimate of the ultimate collectability of a specific account balance. The Company does not require collateral for its accounts receivable. When a receivable balance is determined to be no longer collectible, it is written off against the allowance for doubtful accounts. Accounts receivable are generally due within 30 days to 45 days. Credit losses relating to all customers have not been material. Sales to General Motors Company ("GM") and Ford Motor Company ("Ford") in the Automotive segment, either directly or through their tiered suppliers, represented a significant portion of the Company's business. As of May 2, 2020 and April 27, 2019, combined accounts receivable from GM and Ford (including tiered suppliers) were approximately $32.4 million and $65.2 million, respectively. |
Inventories | Inventories: Inventories are stated at the lower-of-cost or net realizable value. Cost is determined using the first-in, first-out method. Finished products and work-in-process inventories include direct material costs and direct and indirect manufacturing costs. The Company records reserves for inventory that may be obsolete or in excess of current and future market demand. See Note 5, “Inventory” for additional information. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are recorded at cost less accumulated depreciation, with the exception of assets acquired through acquisitions, which are initially recorded at fair value. Equipment acquired under finance lease is recorded at the present value of the future minimum lease payments. Depreciation is computed using the straight-line method over the estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment. Costs of additions and major improvements are capitalized, whereas maintenance and repairs that do not improve or extend the life of the asset are charged to expense as incurred. See Note 6, “Property, Plant and Equipment” for additional information. |
Business Combinations | Business Combinations. The Company accounts for business combinations using the acquisition method. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including the amount assigned to identifiable intangible assets. Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in our consolidated financial statements from the acquisition date. See Note 4, “Acquisitions” for additional information. |
Goodwill | Goodwill. Goodwill is not amortized but is tested for impairment on at least an annual basis. Goodwill is evaluated at the reporting unit level by comparing the fair value of the reporting unit with its carrying amount including goodwill. An impairment of goodwill exists if the carrying amount of the reporting unit exceeds its fair value. The impairment loss is the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to that reporting unit. In performing the goodwill impairment test, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. See Note 7, “Goodwill and Other Intangible Assets” for additional information regarding the Company’s goodwill impairment assessment for fiscal 2020. |
Amortizable Intangible Assets | Amortizable Intangible Assets . Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Amortization is recognized over the useful lives of the intangible assets, generally up to 20 years, using the straight-line method. See Note 7, “Goodwill and Other Intangible Assets” for additional information. |
Impairment Long-Lived Assets | Impairment Long-Lived Assets. The Company continually evaluates whether events and circumstances have occurred which indicate that the remaining estimated useful lives of its intangible assets, excluding goodwill, and other long-lived assets, may warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators exist, the Company performs an impairment analysis by comparing the undiscounted cash flows resulting from the use of the asset group to the carrying amount. If the carrying amount exceeds the undiscounted cash flows, an impairment loss is recognized based on the excess of the asset’s carrying amount over its fair value. |
Pre-production Costs Related to Long-term Supply Arrangements | Pre-production Costs Related to Long-term Supply Arrangements. The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply agreements. At May 2, 2020 and April 27, 2019, the Company had $37.1 million and $32.8 million, 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. At May 2, 2020 and April 27, 2019, the Company had $19.0 million and $15.0 million, respectively, of Company owned pre-production tooling, which is capitalized within property, plant and equipment. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company recognizes derivative financial instruments on its consolidated balance sheet at fair value. The only derivative financial instruments used by the Company are cross-currency swaps which are treated as a net investment hedge. For net investment hedges, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of income when the hedged item affects earnings. See Note 8, “Derivative Instruments” for additional information. |
Income Taxes | Income Taxes. Income taxes are calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. See Note 11, “Income Taxes” for additional information. |
Revenue Recognition | Revenue Recognition. The majority of the Company's 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 the Company believes have no alternative use, and where the Company has an enforceable right to payment, are recognized on an over time basis. In transition to Accounting Standards Codification Revenue from Contracts with Customers,” 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. Across all products, the amount of revenue recognized corresponds to the related purchase order and is adjusted for variable consideration (such as discounts). 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. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs . Shipping and handling fees billed to customers are included in net sales, and the related costs are included in cost of products sold. |
Foreign Currency Translation | Foreign Currency Translation. The functional currencies of the majority of the Company's foreign subsidiaries are their local currencies. The results of operations of these foreign subsidiaries are translated into U.S. dollars using average monthly rates, while the assets and liabilities are translated using period-end exchange rates. The resulting translation adjustments are recognized in accumulated other comprehensive loss. Exchange gains and losses arising from transactions denominated in a currency other than the functional currency of the foreign subsidiary are included in the consolidated statements of income in other income, net. |
Government Grants | Government Grants. The Company recognizes grant income in other income, net in the consolidated statements of income when it is considered that there is reasonable assurance that the grant will be received and the necessary qualifying conditions, as stated in the grant agreement, are met. The international government grants are generally paid over a period of years and are recorded at amortized cost on the Company’s consolidated balance sheets. As of May 2, 2020 and April 27, 2019, grant receivables outstanding (both current and long-term) were $18.7 million and $10.6 million, respectively. Additionally, as of May 2, 2020 and April 27, 2019, the Company has no deferred grant income. |
Research and Development Costs | Research and Development Costs . Costs associated with the enhancement of existing products and the development of new products are charged to expense when incurred. Research and development expenses primarily relate to product engineering and design and development expenses and are classified as a component of cost of goods sold on the consolidated statements of income. Research and development costs were $34.9 million, $41.2 million and $37.9 million for fiscal 2020, fiscal 2019 and fiscal 2018, respectively |
Stock-Based Compensation | Stock-Based Compensation. The Company recognizes compensation expense for the cost of awards of equity compensation using a fair value method in accordance with ASC 718, " ." See Note 13, "Shareholders’ Equity," for additional information. |
Product Warranty | Product Warranty. The Company’s warranties are standard, assurance-type warranties only. The Company does not offer any additional service or extended term warranties to its customers. As such, warranty obligations are accrued when its probable that a liability has been incurred and the related amounts are reasonably estimable. |
Fair Value | Fair Value . ASC 820, " Fair Value Measurement ," provides a framework for measuring f air value , which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under ASC 820 requires an entity to maximize the use of observable inputs. The Company groups assets and liabilities at fair value in three levels as follows: • Level 1 - Quoted prices in active markets for identical assets or liabilities; • Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities; • Level 3 - Unobservable inputs in which little or no market activity exists, requiring the Company to develop its own assumptions that market participants would use to value the asset or liability. Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes to the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The carrying values of the Company's short-term financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate their fair values because of the short maturity of these instruments. |
Recently Issued/Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, “ Leases requires entities to record most leased assets and liabilities on the balance sheet, and also retains a dual model approach for assessing lease classification and recognizing expense. The FASB subsequently issued updates to provide clarification on specific topics, including adoption guidance, practical expedients and interim transition disclosure requirements. The Company adopted the standard on April 28, 2019, by applying the modified retrospective method without restatement of comparative periods' financial information, as permitted by the transition guidance . has provided disclosures required by prior lease guidance for comparative periods. The adoption of this standard resulted in the recognition of right-of-use assets of $27.6 million and related lease obligations of $28.1 million as of April 28, 2019. The standard did not have a significant impact on the Company's operating results or cash flows. The Company elected certain practical expedients, including the election not to reassess its prior conclusions about lease identification, lease classification and initial direct costs, as well as the election not to separate lease and non-lease components for arrangements where the Company is a lessee. Lastly, the Company elected to recognize a right-of-use asset and related lease liability for leases with a lease term of 12 months or less for all classes of underlying assets. The Company determines if an arrangement contains a lease at inception. Operating lease expense is recognized on a straight-line basis over the lease term. For purposes of calculating operating lease obligations under the standard, the Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments. See Note 3, "Leases," for additional information. In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities documentation and assessment requirements. The Company adopted ASU 2017-12 as of April 28, 2019 and the adoption had no impact on the Company’s consolidated financial statements. In February 2018, the FASB issued 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 allow 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 Company adopted ASU 2018-02 as of April 28, 2019 and the adoption had no impact on the Company’s consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-15, " Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The guidance in ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect that the adoption of the standard will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement ." The guidance in ASU 2018-13 changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve the effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The standard will be effective for the Company in the first quarter of fiscal 2021. The Company does not expect that the adoption of the standard will have a material impact on the disclosures to the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, " Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) ," which simplifies the accounting for income taxes. The new guidance removes certain exceptions to the general principles in ASC 740, such as recognizing deferred taxes for equity investments, the incremental approach to performing intraperiod tax allocation and calculating income taxes in interim periods. The standard also simplifies accounting for income taxes under GAAP by clarifying and amending existing guidance, including the recognition of deferred taxes for goodwill, the allocation of taxes to members of a consolidated group and requiring that an entity reflect the effect of enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. This guidance is effective for annual periods beginning after December 15, 2020, and interim periods thereafter; however, early adoption is permitted. The Company is currently assessing the potential impact of standard on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
May 02, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregated Revenue Information | The following table represents a disaggregation of revenue from contracts with customers by segment and geographical location. Net sales are attributed to regions based on the location of production. 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. Fiscal Year Ended May 2, 2020 (53 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: U.S. $ 330.9 $ 141.1 $ 57.9 $ 1.6 $ 531.5 Malta 113.2 30.4 0.3 — 143.9 China 74.4 42.4 0.1 — 116.9 Mexico 104.7 — — — 104.7 Other 88.9 37.5 0.5 — 126.9 Total Net Sales $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ 1,023.9 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 675.4 $ 251.4 $ 58.8 $ 1.6 $ 987.2 Goods Transferred Over Time 36.7 — — — 36.7 Total Net Sales $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ 1,023.9 Fiscal Year Ended April 27, 2019 (52 Weeks) (Dollars in Millions) Auto Industrial Interface Medical Total Geographic Net Sales: U.S. $ 373.0 $ 110.3 $ 56.1 $ 1.1 $ 540.5 Malta 116.4 31.8 0.3 — 148.5 China 78.2 35.3 0.2 — 113.7 Canada 87.8 13.8 — — 101.6 Other 79.3 15.6 1.1 — 96.0 Total Net Sales $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ 1,000.3 Timing of Revenue Recognition: Goods Transferred at a Point in Time $ 704.4 $ 206.8 $ 57.7 $ 1.1 $ 970.0 Goods Transferred Over Time 30.3 — — — 30.3 Total Net Sales $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ 1,000.3 |
Customer Concentration | Sales to GM and Ford in the Automotive segment, either directly or through their tiered suppliers, are shown below. Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 Percentage of Net Sales: GM 26.8 % 35.5 % 43.3 % Ford 10.7 % 11.6 % 12.3 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
May 02, 2020 | |
Leases [Abstract] | |
Lease Costs | The components of lease expense were as follows: (Dollars in Millions) Fiscal Year Ended May 2, 2020 Lease Cost: Operating Lease Cost $ 9.0 Variable Lease Cost 1.3 Total Lease Cost $ 10.3 |
Supplemental Cash Flow | Supplemental cash flow and other information related to operating leases was as follows: (Dollars in Millions) Fiscal Year Ended May 2, 2020 Operating Cash Flows: Cash Paid Related to Operating Lease Obligations $ 8.7 Non-cash Activity: Right-of-use Assets Obtained in Exchange for Lease Obligations $ 5.5 Weighted-average Remaining Lease Term 5.7 years Weighted-average Discount Rate 4.7 % |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of May 2, 2020, are shown below: (Dollars in Millions) Operating Leases Fiscal Year: 2021 $ 6.6 2022 5.9 2023 5.2 2024 4.0 2025 2.3 Thereafter 5.7 Total Lease Payments 29.7 Less: Imputed Interest (3.8 ) Present Value of Lease Liabilities $ 25.9 |
Future Minimum Lease Payments | Future minimum lease payments for assets under operating leases as of April 27, 2019 were as follows: (Dollars in Millions) Operating Leases Fiscal Years: 2020 $ 7.8 2021 5.6 2022 4.9 2023 4.2 2024 3.3 Thereafter 8.4 Net Minimum Lease Payments $ 34.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
May 02, 2020 | |
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 were: (Dollars in Millions) Cash $ 6.9 Accounts Receivable 36.1 Inventory 30.8 Prepaid Expenses and Other Current Assets 1.6 Intangible Assets 221.9 Goodwill 175.1 Pre-production Costs 1.5 Property, Plant and Equipment 16.2 Accounts Payable (19.4 ) Accrued Employee Liabilities (4.4 ) Other Accrued Expenses (7.6 ) Income Tax Payable (0.3 ) Deferred Income Tax Liability (29.4 ) Total Purchase Price $ 429.0 (Dollars in Millions) Procoplast Pacific Insight Total Cash $ 1.3 $ 4.9 $ 6.2 Accounts Receivable 7.4 18.3 25.7 Inventory 3.5 13.0 16.5 Intangible Assets 19.2 40.1 59.3 Goodwill 6.8 50.4 57.2 Other Assets 2.3 2.3 4.6 Property, Plant and Equipment 23.8 13.2 37.0 Accounts Payable (4.9 ) (7.9 ) (12.8 ) Other Accrued Expenses (2.1 ) (3.7 ) (5.8 ) Short-term Debt (3.2 ) (0.8 ) (4.0 ) Other Long-term Liabilities (2.1 ) — (2.1 ) Long-term Debt (20.6 ) (3.4 ) (24.0 ) Deferred Income Tax Liability (7.9 ) (12.8 ) (20.7 ) Total Purchase Price $ 23.5 $ 113.6 $ 137.1 |
Schedule of Intangible Assets Acquired | The following table presents details of the intangible assets acquired: (Dollars in Millions) Fair Value at Date of Acquisition Amortization Period Customer Relationships and Agreements - Significant Customer $ 57.0 19.5 years Customer Relationships and Agreements - All Other Customers 125.0 19.5 years Technology Licenses 17.7 11.7 years Trade Names 22.2 8.5 years Total $ 221.9 |
Unaudited Pro Forma Results | The following table presents unaudited supplemental pro forma results for fiscal 2019 and 2018 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. Fiscal Year Ended (Dollars in Millions) April 27, 2019 April 28, 2018 Revenues $ 1,073.3 $ 1,095.0 Net Income $ 106.4 $ 70.5 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
May 02, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Finished Products $ 45.7 $ 40.2 Work in Process 10.8 9.4 Raw Materials 74.5 67.1 Total Inventories $ 131.0 $ 116.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
May 02, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | A summary of property, plant and equipment is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Land $ 3.3 $ 3.7 Buildings and Building Improvements 87.3 81.2 Machinery and Equipment 412.3 390.7 Total Property, Plant and Equipment, Gross 502.9 475.6 Less: Accumulated Depreciation (301.0 ) (283.7 ) Property, Plant and Equipment, Net $ 201.9 $ 191.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
May 02, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A summary of the changes in goodwill by reportable segment is as follows: (Dollars in Millions) Automotive Industrial Total Balance as of April 29, 2017 $ — $ 1.6 $ 1.6 Acquisitions 57.2 — 57.2 Foreign Currency Translation 0.3 0.1 0.4 Balance as of April 28, 2018 57.5 1.7 59.2 Acquisitions 49.4 125.9 175.3 Foreign Currency Translation (0.6 ) (0.6 ) (1.2 ) Balance as of April 27, 2019 106.3 127.0 233.3 Acquisitions — (0.2 ) (0.2 ) Foreign Currency Translation (0.1 ) (1.4 ) (1.5 ) Balance as of May 2, 2020 $ 106.2 $ 125.4 $ 231.6 |
Summary of Goodwill by Reporting Unit | A summary of goodwill by reporting unit is as follows: (Dollars in Millions) May 2, 2020 April 27, 2019 Grakon Industrial $ 123.8 $ 125.4 North American Automotive 99.8 99.8 European Automotive 6.4 6.5 Other 1.6 1.6 Total $ 231.6 $ 233.3 |
Schedule of Other Intangible Assets, Net | The following tables present details of the Company's identifiable intangible assets: As of May 2, 2020 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 243.5 $ (40.8 ) $ 202.7 16.5 Trade Names, Patents and Technology Licenses 75.3 (35.0 ) 40.3 7.8 Total Definite-lived Intangible Assets 318.8 (75.8 ) 243.0 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 320.6 $ (75.8 ) $ 244.8 As of April 27, 2019 (Dollars in Millions) Gross Accumulated Amortization Net Wtd. Avg. Remaining Amortization Periods (Years) Definite-lived Intangible Assets: Customer Relationships and Agreements $ 244.5 $ (27.7 ) $ 216.8 17.4 Trade Names, Patents and Technology Licenses 75.5 (29.2 ) 46.3 8.4 Total Definite-lived Intangible Assets 320.0 (56.9 ) 263.1 Indefinite-lived Intangible Assets: Trade Names, Patents and Technology Licenses 1.8 — 1.8 Total Indefinite-lived Intangible Assets 1.8 — 1.8 Total Other Intangible Assets $ 321.8 $ (56.9 ) $ 264.9 |
Schedule of Estimated Aggregate Amortization Expense of Intangible Assets | Based on the current amount of intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows: (Dollars in Millions) Fiscal Year: 2021 $ 18.9 2022 18.9 2023 18.9 2024 18.5 2025 17.9 Thereafter 149.9 Total $ 243.0 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
May 02, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | A summary of debt is shown below: (Dollars in Millions) May 2, 2020 April 27, 2019 Revolving Credit Facility $ 108.5 $ 35.0 Term Loan 231.2 243.7 Other Debt 14.6 16.8 Unamortized Debt Issuance Costs (2.2 ) (2.9 ) Total Debt 352.1 292.6 Less: Current Maturities (15.3 ) (15.7 ) Total Long-term Debt $ 336.8 $ 276.9 |
Scheduled Principal Payments of Debt | As of May 2, 2020, scheduled principal payments of debt are as follows: (Dollars in Millions) Amount Fiscal Years: 2021 $ 15.3 2022 14.6 2023 13.7 2024 307.5 2025 0.4 Thereafter 2.8 Total $ 354.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | Details of the Company’s income tax provision are as follows: Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) Income (Loss) before Income Taxes: Domestic Source $ 47.3 $ (0.6 ) $ 11.4 Foreign Source 101.4 104.2 112.4 Income before Income Taxes $ 148.7 $ 103.6 $ 123.8 Current Tax Provision (Benefit): U.S. (Federal and State) $ 5.1 $ (5.7 ) $ 46.8 Foreign 12.8 21.5 18.8 Subtotal 17.9 15.8 65.6 Deferred Tax Provision (Benefit): U.S. (Federal and State) 6.1 2.5 11.6 Foreign 1.3 (6.3 ) (10.6 ) Subtotal 7.4 (3.8 ) 1.0 Total Income Tax Expense $ 25.3 $ 12.0 $ 66.6 |
Schedule of Reconciliation of Income Tax Expense | A reconciliation of the income tax expense to the prevailing statutory federal income tax rate (21.0% for 2020, 21.0% for 2019 and 30.5% for 2018) to pre-tax earnings is as follows: Fiscal Year Ended (Dollars in Millions) May 2, 2020 April 27, 2019 April 28, 2018 Income Tax at Statutory Rate $ 31.2 $ 21.8 $ 37.7 Effect of: State Income Taxes, Net of Federal Benefit 1.5 (0.8 ) 0.1 Withholding Taxes 2.3 1.8 — U.S. Tax Reform Transition Tax — (4.8 ) 48.5 Foreign Tax Differential (8.3 ) (9.6 ) (15.3 ) U.S. Tax on Foreign Income (1.0 ) 3.4 — Foreign Investment Tax Credit (0.8 ) (2.0 ) (9.8 ) Change in Tax Reserve 2.2 (0.1 ) 0.1 Change in Valuation Allowance 0.8 — 0.4 Tax Rate Change, Foreign (0.1 ) — (1.5 ) U.S. Tax Reform Re-measurements — — 5.2 Other, Net (2.5 ) 2.3 1.2 Income Tax Expense $ 25.3 $ 12.0 $ 66.6 Effective Income Tax Rate 17.0 % 11.6 % 53.8 % |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities were as follows: (Dollars in Millions) May 2, 2020 April 27, 2019 Deferred Tax Liabilities: Depreciation $ (4.5 ) $ (9.0 ) Amortization (47.8 ) (43.9 ) Foreign Tax (1.8 ) (2.0 ) Lease Liabilities (5.2 ) — Other Liabilities (1.0 ) (0.1 ) Deferred Tax Liabilities, Gross (60.3 ) (55.0 ) Deferred Tax Assets: Deferred Compensation and Stock Award Amortization 7.0 8.6 Inventory Valuation Differences 2.7 1.9 Property Valuation Differences 0.8 1.6 Environmental Reserves 0.2 0.3 Lease Assets 5.7 — Vacation Accruals — 0.4 Foreign Investment Tax Credit 25.9 28.2 Net Operating Loss Carryovers 12.9 13.8 Foreign Tax Credits — 1.1 Other 1.9 3.3 Deferred Tax Assets, Gross 57.1 59.2 Less Valuation Allowance (7.0 ) (6.3 ) Deferred Tax Assets, Net of Valuation Allowance 50.1 52.9 Net Deferred Tax Liabilities $ (10.2 ) $ (2.1 ) Balance Sheet Classification: Long-term Asset 31.4 34.3 Long-term Liability (41.6 ) (36.4 ) Net Deferred Tax Liabilities $ (10.2 ) $ (2.1 ) |
Schedule of Reconciliation of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (Dollars in Millions) May 2, 2020 April 27, 2019 Balance at Beginning of Fiscal Year $ 3.1 $ 1.4 Increases for Positions Related to the Prior Years 1.9 1.8 Increases for Positions Related to the Current Year 0.3 0.9 Lapsing of Statutes of Limitations (0.1 ) (1.0 ) Balance at End of Fiscal Year $ 5.2 $ 3.1 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
May 02, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes in accumulated other comprehensive income (loss), net of tax is shown below: Fiscal Year Ended (Dollars in Millions) May 2, 2020 April 27, 2019 April 28, 2018 Currency Translation Adjustments: Balance at Beginning of Year $ (13.6 ) $ 13.9 $ (25.7 ) Other Comprehensive Income (Loss) Recognized During the Period, Net of Tax (12.3 ) (27.5 ) 39.6 Balance at End of Year (25.9 ) (13.6 ) 13.9 Derivative Instruments: Balance at Beginning of Year — — — Other Comprehensive Loss Recognized During the Period, Net of Tax (1.0 ) — — Balance at End of Year (1.0 ) — — Accumulated Other Comprehensive Income (Loss), End of Period $ (26.9 ) $ (13.6 ) $ 13.9 |
Summary of Stock-based Compensation Expense (Benefit) Related to Equity Awards | The table below summarizes the stock-based compensation expense (benefit) related to the equity awards: Fiscal Year Ended Unrecognized Compensation Expense at May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) May 2, 2020 RSAs $ (2.1 ) $ 10.9 $ (2.0 ) $ — RSUs 1.5 2.2 5.0 — Director Awards 0.9 0.9 1.0 — Total Stock-based Compensation Expense $ 0.3 $ 14.0 $ 4.0 $ — |
2014 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of RSA and RSU Activity | The following table summarizes the RSA activity under the 2014 Incentive Plan: RSA Shares Wtd. Avg. Grant Date Fair Value Non-vested at April 29, 2017 1,168,500 $ 33.42 Awarded 128,738 $ 40.92 Vested — $ — Forfeited (126,000 ) $ 34.42 Non-vested at April 28, 2018 1,171,238 $ 34.13 Awarded 11,625 $ 38.75 Vested — $ — Forfeited (151,455 ) $ 34.79 Non-vested at April 27, 2019 1,031,408 $ 34.09 Awarded — $ — Vested (455,750 ) $ 33.89 Forfeited (575,658 ) $ 34.25 Non-vested at May 2, 2020 — $ — The following table summarizes RSU activity granted under the 2014 Plan: RSU Shares Wtd. Avg. Grant Date Fair Value Non-vested at April 29, 2017 568,000 $ 33.45 Awarded 30,925 $ 41.82 Vested (160,553 ) $ 33.72 Forfeited (56,000 ) $ 34.42 Non-vested at April 28, 2018 382,372 $ 33.87 Awarded 7,750 $ 38.75 Vested (152,328 ) $ 33.75 Forfeited (49,950 ) $ 32.42 Non-vested at April 27, 2019 187,844 $ 34.55 Awarded — $ — Vested (176,994 ) $ 34.25 Forfeited (7,750 ) $ 38.75 Non-vested at May 2, 2020 3,100 $ 41.20 |
2010 Plan and 2007 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of combined stock option activity and related information for stock options granted | The following table summarizes combined stock option activity under the 2010 Plan and 2007 Plan: Shares Wtd. Avg. Exercise Price Weighted- Average Life (years) Aggregate Intrinsic Value (in millions) Outstanding and Exercisable at April 29, 2017 129,169 $ 34.71 Exercised (13,333 ) $ 24.67 Forfeited (1,668 ) $ 37.01 Outstanding and Exercisable at April 28, 2018 114,168 $ 35.85 6.1 $ 0.6 Exercised — $ — Forfeited (7,500 ) $ 37.01 Outstanding and Exercisable at April 27, 2019 106,668 $ 35.76 5.0 $ 0.1 Exercised — $ — Forfeited — $ — Outstanding and Exercisable at May 2, 2020 106,668 $ 35.76 4.0 $ 0.1 |
Summary of stock option activity and related information for stock options granted, options outstanding and exercisable | Options Outstanding and Exercisable at May 2, 2020 Shares Exercise Price Avg. Remaining Life (Years) 101,668 $ 37.01 4.2 5,000 $ 10.55 0.2 |
Income Per Share (Tables)
Income Per Share (Tables) | 12 Months Ended |
May 02, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Income per Share | The following table sets forth the computation of basic and diluted income per share: Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (53 Weeks) (52 Weeks) (52 Weeks) Numerator: Net Income (in millions) $ 123.4 $ 91.6 $ 57.2 Denominator: Denominator for Basic Income Per Share-Weighted Average Shares Outstanding and Vested/Unissued Restricted Stock Units 37,574,671 37,405,298 37,281,630 Dilutive Potential Common Shares-Employee Stock Options, Restricted Stock Awards and Restricted Stock Units 269,799 264,262 260,269 Denominator for Diluted Income Per Share 37,844,470 37,669,560 37,541,899 Basic and Diluted Income Per Share: Basic Income Per Share $ 3.28 $ 2.45 $ 1.54 Diluted Income Per Share $ 3.26 $ 2.43 $ 1.52 Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding 566,620 678,321 363,413 |
Segment Information and Geogr_2
Segment Information and Geographic Area Information (Tables) | 12 Months Ended |
May 02, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segments | The tables below present information about the Company’s reportable segments. Fiscal Year Ended May 2, 2020 (53 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 716.8 $ 253.9 $ 58.9 $ 1.6 $ (7.3 ) $ 1,023.9 Transfers between Segments (4.7 ) (2.5 ) (0.1 ) — 7.3 — Net Sales to Unaffiliated Customers $ 712.1 $ 251.4 $ 58.8 $ 1.6 $ — $ 1,023.9 Income/(Loss) from Operations $ 124.4 $ 59.4 $ 5.6 $ (6.0 ) $ (36.3 ) $ 147.1 Interest Expense, Net 10.1 Other Income, Net (11.7 ) Income before Income Taxes $ 148.7 Purchases of Property, Plant and Equipment $ 37.5 $ 5.7 $ 0.3 $ 0.7 $ 0.9 $ 45.1 Depreciation and Amortization $ 31.0 $ 13.7 $ 0.9 $ 1.1 $ 1.6 $ 48.3 Identifiable Assets $ 670.9 $ 421.8 $ 71.0 $ 8.8 $ 198.1 $ 1,370.6 Fiscal Year Ended April 27, 2019 (52 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 741.6 $ 210.0 $ 57.9 $ 1.1 $ (10.3 ) $ 1,000.3 Transfers between Segments (6.9 ) (3.2 ) (0.2 ) — 10.3 — Net Sales to Unaffiliated Customers $ 734.7 $ 206.8 $ 57.7 $ 1.1 $ — $ 1,000.3 Income/(Loss) from Operations $ 126.3 $ 37.4 $ (0.3 ) $ (8.6 ) $ (48.0 ) $ 106.8 Interest Expense, Net 8.3 Other Income, Net (5.1 ) Income before Income Taxes $ 103.6 Purchases of Property, Plant and Equipment $ 38.9 $ 2.6 $ 0.5 $ 1.9 $ 5.9 $ 49.8 Depreciation and Amortization $ 25.2 $ 11.7 $ 3.2 $ 1.0 $ 2.2 $ 43.3 Identifiable Assets $ 677.4 $ 404.3 $ 88.6 $ 9.4 $ 52.0 $ 1,231.7 Fiscal Year Ended April 28, 2018 (52 Weeks) (Dollars in Millions) Automotive Industrial Interface Medical Eliminations/ Corporate Consolidated Net Sales $ 738.4 $ 105.6 $ 73.9 $ 0.3 $ (9.9 ) $ 908.3 Transfers between Segments (9.7 ) 0.2 (0.7 ) — 10.2 — Net Sales to Unaffiliated Customers $ 728.7 $ 105.8 $ 73.2 $ 0.3 $ 0.3 $ 908.3 Income/(Loss) from Operations $ 156.3 $ 13.0 $ 6.0 $ (11.4 ) $ (45.6 ) $ 118.3 Interest Expense, Net 0.9 Other Income, Net (6.4 ) Income before Income Taxes $ 123.8 Purchases of Property, Plant and Equipment $ 31.7 $ 1.5 $ 0.4 $ 3.8 $ 10.3 $ 47.7 Depreciation and Amortization $ 21.3 $ 2.0 $ 3.1 $ 0.8 $ 0.9 $ 28.1 Identifiable Assets $ 632.7 $ 93.1 $ 206.8 $ 8.1 $ (24.8 ) $ 915.9 |
Schedule of Geographic Financial Information | The following tables sets forth net sales and tangible long-lived assets for each geographic area where the Company operates. Tangible long-lived assets include property, plant and equipment and operating lease assets. Fiscal Year Ended May 2, 2020 April 27, 2019 April 28, 2018 (Dollars in Millions) (53 Weeks) (52 Weeks) (52 Weeks) Net Sales: U.S. $ 531.5 $ 540.5 $ 487.5 Malta 143.9 148.5 184.0 China 116.9 113.7 117.3 Mexico 104.7 — — Canada 19.5 101.6 54.4 Other 107.4 96.0 65.1 Total Net Sales $ 1,023.9 $ 1,000.3 $ 908.3 May 2, 2020 April 27, 2019 Tangible Long-lived Assets, Net: U.S. $ 89.8 $ 83.9 Malta 40.1 33.0 China 24.1 18.6 Mexico 24.0 9.2 Belgium 21.4 22.1 Other 26.0 25.1 Total Tangible Long-lived Assets, Net $ 225.4 $ 191.9 |
Summary of Quarterly Results _2
Summary of Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
May 02, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of unaudited quarterly results of operations | The following is a summary of unaudited quarterly results of operations for fiscal 2020 and fiscal 2019: Fiscal 2020 Quarter Ended July 27, 2019 October 26, 2019 February 1, 2020 May 2, 2020 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (14 Weeks) (13 Weeks) Net Sales $ 270.2 $ 257.2 $ 285.9 $ 210.6 Gross Profit $ 75.8 $ 68.6 $ 79.3 $ 59.2 Net Income $ 28.3 $ 23.8 $ 41.2 $ 30.1 Net Income per Basic Common Share $ 0.75 $ 0.63 $ 1.10 $ 0.80 Net Income per Diluted Common Share $ 0.75 $ 0.63 $ 1.09 $ 0.79 Fiscal 2019 Quarter Ended July 28, 2018 October 27, 2018 January 26, 2019 April 27, 2019 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (13 Weeks) (13 Weeks) Net Sales $ 223.4 $ 264.0 $ 246.9 $ 266.0 Gross Profit $ 60.1 $ 70.8 $ 64.3 $ 70.6 Net Income $ 23.7 $ 14.6 $ 30.7 $ 22.6 Net Income per Basic Common Share $ 0.63 $ 0.39 $ 0.82 $ 0.61 Net Income per Diluted Common Share $ 0.63 $ 0.39 $ 0.82 $ 0.60 Significant Items for Fiscal 2020 The table below contains items included in fiscal 2020: Fiscal 2020 Quarter Ended July 27, 2019 October 26, 2019 February 1, 2020 May 2, 2020 (Dollars in Millions) (13 Weeks) (13 Weeks) (14 Weeks) (13 Weeks) Legal Fees Related to the Hetronic lawsuit $ 0.8 $ 1.4 $ 1.1 $ 2.1 Grant Income from Foreign Government for Maintaining Certain Employment Levels $ — $ — $ (5.5 ) $ (4.4 ) RSA Compensation Expense Adjustment $ — $ — $ — $ (6.5 ) Expense for Initiatives to Reduce Overall Costs and Improve Operational Profitability $ — $ 0.5 $ 1.1 $ 0.2 Significant Items for Fiscal 2019 Fiscal 2019 Quarter Ended July 28, 2018 October 27, 2018 January 26, 2019 April 27, 2019 (Dollars in Millions, except per share data) (13 Weeks) (13 Weeks) (13 Weeks) (13 Weeks) Legal Fees Related to the Hetronic lawsuit $ 0.9 $ 1.0 $ 0.8 $ 0.8 Acquisition-related Expenses $ 0.6 $ 10.9 $ 3.8 $ 0.1 Grant Income from Foreign Government for Maintaining Certain Employment Levels $ (1.1 ) $ (1.4 ) $ (1.9 ) $ (1.4 ) RSA Compensation Expense Adjustment $ — $ 7.4 $ — $ — Expense for Initiatives to Reduce Overall Costs and Improve Operational Profitability $ 0.8 $ 2.5 $ 2.6 $ 1.0 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Fiscal period duration | 371 days | 364 days | 364 days |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 02, 2020 | Apr. 27, 2019 | |
Automotive | Material customers | ||
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | ||
Accounts Receivable, Net | $ 32.4 | $ 65.2 |
Minimum | ||
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | ||
Accounts receivable collection terms | 30 days | |
Maximum | ||
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | ||
Accounts receivable collection terms | 45 days |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
May 02, 2020 | |
Buildings and Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Buildings and Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies - Pre-production Tooling Costs Related to Long-term Supply Arrangements (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Accounting Policies [Abstract] | ||
Pre-production Costs | $ 37.1 | $ 32.8 |
Preproduction Costs Related to Long-term Supply Arrangements, Asset for Molds Dies and Tools Owned | $ 19 | $ 15 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies - Government Grants (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Accounting Policies [Abstract] | ||
Grants Receivable | $ 18.7 | $ 10.6 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 34.9 | $ 41.2 | $ 37.9 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements Costs (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 28, 2019 | Apr. 27, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Right-of-use assets | $ 23.5 | $ 0 | |
Operating Lease, Liability | $ 25.9 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Right-of-use assets | $ 27.6 | ||
Operating Lease, Liability | $ 28.1 |
Revenue (Details)
Revenue (Details) | 12 Months Ended |
May 02, 2020 | |
Minimum | |
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | |
Accounts receivable collection terms | 30 days |
Maximum | |
Accounts Receivable and Allowance for Doubtful Accounts [Line Items] | |
Accounts receivable collection terms | 45 days |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
May 02, 2020 | Apr. 27, 2019 | |
Contract With Customer Asset And Liability [Abstract] | ||
Unbilled receivables | $ 500,000 | $ 800,000 |
Unbilled receivables recorded into accounts receivable | (800,000) | |
Impairment of contract assets | 0 | |
Deferred revenue | 300,000 | $ 300,000 |
Deferred revenue recorded into revenue | $ (100,000) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 210.6 | $ 285.9 | $ 257.2 | $ 270.2 | $ 266 | $ 246.9 | $ 264 | $ 223.4 | $ 1,023.9 | $ 1,000.3 | $ 908.3 |
Goods Transferred at a Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 987.2 | 970 | |||||||||
Goods Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 36.7 | 30.3 | |||||||||
U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 531.5 | 540.5 | 487.5 | ||||||||
Malta | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 143.9 | 148.5 | 184 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 116.9 | 113.7 | 117.3 | ||||||||
Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 104.7 | 0 | 0 | ||||||||
CANADA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 19.5 | 101.6 | 54.4 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 126.9 | 96 | |||||||||
Auto | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 712.1 | 734.7 | 728.7 | ||||||||
Auto | Goods Transferred at a Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 675.4 | 704.4 | |||||||||
Auto | Goods Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 36.7 | 30.3 | |||||||||
Auto | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 330.9 | 373 | |||||||||
Auto | Malta | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 113.2 | 116.4 | |||||||||
Auto | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 74.4 | 78.2 | |||||||||
Auto | Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 104.7 | ||||||||||
Auto | CANADA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 87.8 | ||||||||||
Auto | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 88.9 | 79.3 | |||||||||
Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 251.4 | 206.8 | 105.8 | ||||||||
Industrial | Goods Transferred at a Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 251.4 | 206.8 | |||||||||
Industrial | Goods Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | 0 | |||||||||
Industrial | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 141.1 | 110.3 | |||||||||
Industrial | Malta | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 30.4 | 31.8 | |||||||||
Industrial | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 42.4 | 35.3 | |||||||||
Industrial | Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | ||||||||||
Industrial | CANADA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 13.8 | ||||||||||
Industrial | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 37.5 | 15.6 | |||||||||
Interface | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 58.8 | 57.7 | 73.2 | ||||||||
Interface | Goods Transferred at a Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 58.8 | 57.7 | |||||||||
Interface | Goods Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | 0 | |||||||||
Interface | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 57.9 | 56.1 | |||||||||
Interface | Malta | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0.3 | 0.3 | |||||||||
Interface | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0.1 | 0.2 | |||||||||
Interface | Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | ||||||||||
Interface | CANADA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | ||||||||||
Interface | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0.5 | 1.1 | |||||||||
Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 1.6 | 1.1 | $ 0.3 | ||||||||
Medical | Goods Transferred at a Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 1.6 | 1.1 | |||||||||
Medical | Goods Transferred Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | 0 | |||||||||
Medical | U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 1.6 | 1.1 | |||||||||
Medical | Malta | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | 0 | |||||||||
Medical | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | 0 | |||||||||
Medical | Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | ||||||||||
Medical | CANADA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | 0 | ||||||||||
Medical | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net Sales | $ 0 | $ 0 |
Revenue - Customer Concentratio
Revenue - Customer Concentration (Details) - Automotive - Customer Concentration Risk | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
GM | |||
Concentration Risk [Line Items] | |||
Percentage of Net Sales | 26.80% | 35.50% | 43.30% |
Ford | |||
Concentration Risk [Line Items] | |||
Percentage of Net Sales | 10.70% | 11.60% | 12.30% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | May 02, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Finance lease, right-of-use asset | $ 1 |
Finance lease obligations | $ 1.4 |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 11 years 3 months 18 days |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Millions | 12 Months Ended |
May 02, 2020USD ($) | |
Lease Cost [Abstract] | |
Operating Lease Cost | $ 9 |
Variable Lease Cost | 1.3 |
Total Lease Cost | $ 10.3 |
Leases - Supplemental Lessee In
Leases - Supplemental Lessee Information (Details) $ in Millions | 12 Months Ended |
May 02, 2020USD ($) | |
Leases [Abstract] | |
Cash Paid Related to Operating Lease Obligations | $ 8.7 |
Right-of-use Assets Obtained in Exchange for Lease Obligations | $ 5.5 |
Weighted-average Remaining Lease Term | 5 years 8 months 12 days |
Weighted-average Discount Rate | 4.70% |
Leases - Operating Lease Maturi
Leases - Operating Lease Maturity (Details) $ in Millions | May 02, 2020USD ($) |
Fiscal Year: | |
2021 | $ 6.6 |
2022 | 5.9 |
2023 | 5.2 |
2024 | 4 |
2025 | 2.3 |
Thereafter | 5.7 |
Total Lease Payments | 29.7 |
Less: Imputed Interest | (3.8) |
Present Value of Lease Liabilities | $ 25.9 |
Leases - Operating Leases under
Leases - Operating Leases under ASC 840 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 27, 2019 | Apr. 28, 2018 | |
Leases [Abstract] | ||
Rent expense | $ 7.6 | $ 5.9 |
Fiscal Years: | ||
2020 | 7.8 | |
2021 | 5.6 | |
2022 | 4.9 | |
2023 | 4.2 | |
2024 | 3.3 | |
Thereafter | 8.4 | |
Net Minimum Lease Payments | $ 34.2 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Apr. 27, 2019 | Sep. 12, 2018 | Oct. 03, 2017 | Jul. 27, 2017 | Apr. 27, 2019 | Apr. 28, 2018 |
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 422.1 | $ 130.9 | ||||
Grakon | ||||||
Business Acquisition [Line Items] | ||||||
Percentage acquired | 100.00% | |||||
Payments to acquire businesses, net of cash acquired | $ 422.1 | |||||
Goodwill, increase (decrease) | $ (0.2) | |||||
Acquisition-related costs incurred | 15.4 | |||||
Grakon | Selling and Administrative Expenses | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs incurred | 9.8 | |||||
Grakon | Cost of Products Sold | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs incurred | $ 5.6 | |||||
Procoplast | ||||||
Business Acquisition [Line Items] | ||||||
Percentage acquired | 100.00% | |||||
Payments to acquire businesses, net of cash acquired | $ 22.2 | |||||
Amortization period | 14 years 4 months 24 days | |||||
Pacific Insight | ||||||
Business Acquisition [Line Items] | ||||||
Percentage acquired | 100.00% | |||||
Payments to acquire businesses, net of cash acquired | $ 108.7 | |||||
Amortization period | 10 years 8 months 12 days | |||||
Procoplast and Pacific Insight | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs incurred | 6.8 | |||||
Procoplast and Pacific Insight | Selling and Administrative Expenses | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs incurred | 6 | |||||
Procoplast and Pacific Insight | Cost of Products Sold | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition-related costs incurred | $ 0.8 |
Acquisitions - Assets and Liabi
Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 | Sep. 12, 2018 | Apr. 28, 2018 | Oct. 03, 2017 | Jul. 27, 2017 | Apr. 29, 2017 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Goodwill | $ 231.6 | $ 233.3 | $ 59.2 | $ 1.6 | |||
Grakon | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash | $ 6.9 | ||||||
Accounts Receivable | 36.1 | ||||||
Inventory | 30.8 | ||||||
Prepaid Expenses and Other Current Assets | 1.6 | ||||||
Intangible Assets | 221.9 | ||||||
Goodwill | 175.1 | ||||||
Pre-production Costs | 1.5 | ||||||
Property, Plant and Equipment | 16.2 | ||||||
Accounts Payable | (19.4) | ||||||
Accrued Employee Liabilities | (4.4) | ||||||
Other Accrued Expenses | (7.6) | ||||||
Income Tax Payable | (0.3) | ||||||
Deferred Income Tax Liability | (29.4) | ||||||
Total Purchase Price | $ 429 | ||||||
Procoplast | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash | $ 1.3 | ||||||
Accounts Receivable | 7.4 | ||||||
Inventory | 3.5 | ||||||
Intangible Assets | 19.2 | ||||||
Goodwill | 6.8 | ||||||
Other Assets | 2.3 | ||||||
Property, Plant and Equipment | 23.8 | ||||||
Accounts Payable | (4.9) | ||||||
Other Accrued Expenses | (2.1) | ||||||
Short-term Debt | (3.2) | ||||||
Other Long-term Liabilities | (2.1) | ||||||
Long-term Debt | (20.6) | ||||||
Deferred Income Tax Liability | (7.9) | ||||||
Total Purchase Price | $ 23.5 | ||||||
Pacific Insight | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash | $ 4.9 | ||||||
Accounts Receivable | 18.3 | ||||||
Inventory | 13 | ||||||
Intangible Assets | 40.1 | ||||||
Goodwill | 50.4 | ||||||
Other Assets | 2.3 | ||||||
Property, Plant and Equipment | 13.2 | ||||||
Accounts Payable | (7.9) | ||||||
Other Accrued Expenses | (3.7) | ||||||
Short-term Debt | (0.8) | ||||||
Long-term Debt | (3.4) | ||||||
Deferred Income Tax Liability | (12.8) | ||||||
Total Purchase Price | $ 113.6 | ||||||
Procoplast and Pacific Insight | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash | 6.2 | ||||||
Accounts Receivable | 25.7 | ||||||
Inventory | 16.5 | ||||||
Intangible Assets | 59.3 | ||||||
Goodwill | 57.2 | ||||||
Other Assets | 4.6 | ||||||
Property, Plant and Equipment | 37 | ||||||
Accounts Payable | (12.8) | ||||||
Other Accrued Expenses | (5.8) | ||||||
Short-term Debt | (4) | ||||||
Other Long-term Liabilities | (2.1) | ||||||
Long-term Debt | (24) | ||||||
Deferred Income Tax Liability | (20.7) | ||||||
Total Purchase Price | $ 137.1 |
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 | $ 221.9 | ||
Grakon | Customer Relationships and Agreements - Significant Customer | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 57 | ||
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 | 11 years 8 months 12 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 | ||
Amortization period | 14 years 4 months 24 days | ||
Pacific Insight | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 40.1 | ||
Amortization period | 10 years 8 months 12 days |
Acquisitions - Pro Forma Calcul
Acquisitions - Pro Forma Calculations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 27, 2019 | Apr. 28, 2018 | |
Business Combinations [Abstract] | ||
Revenues | $ 1,073.3 | $ 1,095 |
Net Income | $ 106.4 | $ 70.5 |
Inventory - Summary of Inventor
Inventory - Summary of Inventories (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Inventory Net Items Net Of Reserve Alternative [Abstract] | ||
Finished Products | $ 45.7 | $ 40.2 |
Work in Process | 10.8 | 9.4 |
Raw Materials | 74.5 | 67.1 |
Total Inventories | $ 131 | $ 116.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 502.9 | $ 475.6 |
Less: Accumulated Depreciation | (301) | (283.7) |
Property, Plant and Equipment, Net | 201.9 | 191.9 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 3.3 | 3.7 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | 87.3 | 81.2 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Property, Plant and Equipment, Gross | $ 412.3 | $ 390.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 29.3 | $ 27.2 | $ 22.5 |
Capital expenditures recorded in accounts payable | $ 5.8 | $ 6.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill Roll-forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 233.3 | $ 59.2 | $ 1.6 |
Acquisitions | (0.2) | 175.3 | 57.2 |
Foreign Currency Translation | (1.5) | (1.2) | 0.4 |
Ending balance | 231.6 | 233.3 | 59.2 |
Automotive | |||
Goodwill [Roll Forward] | |||
Beginning balance | 106.3 | 57.5 | |
Acquisitions | 49.4 | 57.2 | |
Foreign Currency Translation | (0.1) | (0.6) | 0.3 |
Ending balance | 106.2 | 106.3 | 57.5 |
Industrial | |||
Goodwill [Roll Forward] | |||
Beginning balance | 127 | 1.7 | 1.6 |
Acquisitions | (0.2) | 125.9 | |
Foreign Currency Translation | (1.4) | (0.6) | 0.1 |
Ending balance | $ 125.4 | $ 127 | $ 1.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill by Reporting Unit (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 |
Goodwill [Line Items] | ||||
Goodwill | $ 231.6 | $ 233.3 | $ 59.2 | $ 1.6 |
Grakon Industrial | ||||
Goodwill [Line Items] | ||||
Goodwill | 123.8 | 125.4 | ||
North American Automotive | ||||
Goodwill [Line Items] | ||||
Goodwill | 99.8 | 99.8 | ||
European Automotive | ||||
Goodwill [Line Items] | ||||
Goodwill | 6.4 | 6.5 | ||
Other | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 1.6 | $ 1.6 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 02, 2020 | Apr. 27, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 318.8 | $ 320 |
Accumulated Amortization | (75.8) | (56.9) |
Net/ Total | 243 | 263.1 |
Gross | 1.8 | 1.8 |
Net | 1.8 | 1.8 |
Other intangible assets, gross | 320.6 | 321.8 |
Other intangible assets, accumulated amortization | (75.8) | (56.9) |
Other intangible assets, net | 244.8 | 264.9 |
Trade Names, Patents and Technology Licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 1.8 | 1.8 |
Net | 1.8 | 1.8 |
Customer Relationships and Agreements | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | 243.5 | 244.5 |
Accumulated Amortization | (40.8) | (27.7) |
Net/ Total | $ 202.7 | $ 216.8 |
Wtd. Avg. Remaining Amortization Periods (Years) | 16 years 6 months | 17 years 4 months 24 days |
Trade Names, Patents and Technology Licenses | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross | $ 75.3 | $ 75.5 |
Accumulated Amortization | (35) | (29.2) |
Net/ Total | $ 40.3 | $ 46.3 |
Wtd. Avg. Remaining Amortization Periods (Years) | 7 years 9 months 18 days | 8 years 4 months 24 days |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 | $ 18.9 | |
2022 | 18.9 | |
2023 | 18.9 | |
2024 | 18.5 | |
2025 | 17.9 | |
Thereafter | 149.9 | |
Net/ Total | $ 243 | $ 263.1 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Cross-Currency Swap [Member] € in Millions, $ in Millions | Apr. 14, 2020USD ($) | May 02, 2020USD ($) | Apr. 14, 2020EUR (€) |
Derivative [Line Items] | |||
Derivative, maturity date | Aug. 31, 2023 | ||
Derivative, notional amount | $ 60 | € 54.8 | |
Other long-term liabilities, fair value | $ 1.3 |
Employee 401(k) Savings and D_2
Employee 401(k) Savings and Deferred Compensation Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer matching contribution, percent | 3.00% | ||
Employer 401(k) contribution | $ 1,700,000 | $ 1,500,000 | $ 1,400,000 |
Deferred Compensation Plan, maximum deferral percentage, annual base salary | 75.00% | ||
Deferred Compensation Plan, maximum deferral percentage, annual cash incentive | 100.00% | ||
Deferred Compensation Plan, aggregate minimum deferral | $ 3,000 | ||
Deferred Compensation Plan, minimum deferral period | 3 years | ||
Deferred Compensation Plan, vesting percentage | 100.00% | ||
Deferred Compensation Plan, employer discretionary contribution amount | $ 0 | ||
Deferred compensation | 5,400,000 | 6,100,000 | |
Key Individual Life Insurance | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Cash surrender value of life insurance | 9,000,000 | 8,600,000 | |
Asset Held in Trust | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Cash surrender value of life insurance | $ 6,600,000 | $ 6,900,000 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Costs | $ (2.2) | $ (2.9) |
Total Debt | 352.1 | 292.6 |
Less: Current Maturities | (15.3) | (15.7) |
Long-term Debt | 336.8 | 276.9 |
Line of credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt | 108.5 | 35 |
Term loan | ||
Debt Instrument [Line Items] | ||
Debt | 231.2 | 243.7 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt | 14.6 | $ 16.8 |
Less: Current Maturities | $ (2.8) |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility/Term Loan (Details) - Bank of America, N.A., and Wells Fargo Bank, N.A. [Member] - Revolving Credit Facility - USD ($) | Mar. 23, 2020 | Sep. 30, 2018 | May 02, 2020 |
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Borrowing capacity, increase limit | $ 200,000,000 | ||
Interest rate (as a percent) | 1.70% | ||
Term loan | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 250,000,000 | ||
Periodic payment, principal, proportion of total borrowing (as a percent) | 1.25% | ||
Periodic payment, principal | $ 3,100,000 | ||
Line of credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | ||
Revolving credit facility borrowed | $ 100,000,000 | ||
Revolving credit facility available | $ 91,400,000 |
Debt - Other Debt (Details)
Debt - Other Debt (Details) $ in Millions | 12 Months Ended | |
May 02, 2020USD ($)note | Apr. 27, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Debt, short-term | $ 15.3 | $ 15.7 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Number of notes | note | 15 | |
Weighted-average interest rate (as a percent) | 1.50% | |
Debt, short-term | $ 2.8 | |
Debt, fair value | $ 14.2 |
Debt - Scheduled Principal Paym
Debt - Scheduled Principal Payments of Debt (Details) $ in Millions | May 02, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 15.3 |
2022 | 14.6 |
2023 | 13.7 |
2024 | 307.5 |
2025 | 0.4 |
Thereafter | 2.8 |
Total | $ 354.3 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Income Tax Contingency [Line Items] | |||
Income before Income Taxes | $ 148.7 | $ 103.6 | $ 123.8 |
Current Income Tax Expense (Benefit) | 17.9 | 15.8 | 65.6 |
Deferred Income Tax Expense (Benefit) | 7.4 | (3.8) | 1 |
Total Income Tax Expense | 25.3 | 12 | 66.6 |
Domestic tax authority | |||
Income Tax Contingency [Line Items] | |||
Income before Income Taxes | 47.3 | (0.6) | 11.4 |
Current Income Tax Expense (Benefit) | 5.1 | (5.7) | 46.8 |
Deferred Income Tax Expense (Benefit) | 6.1 | 2.5 | 11.6 |
Foreign tax authority | |||
Income Tax Contingency [Line Items] | |||
Income before Income Taxes | 101.4 | 104.2 | 112.4 |
Current Income Tax Expense (Benefit) | 12.8 | 21.5 | 18.8 |
Deferred Income Tax Expense (Benefit) | $ 1.3 | $ (6.3) | $ (10.6) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Consolidated Provisions for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax at statutory rate (as a percent) | 21.00% | 21.00% | 30.50% | 35.00% |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Income Tax at Statutory Rate | $ 31.2 | $ 21.8 | $ 37.7 | |
State Income Taxes, Net of Federal Benefit | 1.5 | (0.8) | 0.1 | |
Withholding Taxes | 2.3 | 1.8 | ||
U.S. Tax Reform Transition Tax | (4.8) | 48.5 | ||
Foreign Tax Differential | (8.3) | (9.6) | (15.3) | |
U.S. Tax on Foreign Income | (1) | 3.4 | ||
Foreign Investment Tax Credit | (0.8) | (2) | (9.8) | |
Change in Tax Reserve | 2.2 | (0.1) | 0.1 | |
Change in Valuation Allowance | 0.8 | 0.4 | ||
Tax Rate Change, Foreign | (0.1) | (1.5) | ||
U.S. Tax Reform Re-measurements | 5.2 | |||
Other, Net | (2.5) | 2.3 | 1.2 | |
Total Income Tax Expense | $ 25.3 | $ 12 | $ 66.6 | |
Effective Income Tax Rate | 17.00% | 11.60% | 53.80% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 29, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Foreign Investment Tax Credit | $ 0.8 | $ 2 | $ 9.8 | |
Change in Tax Reserve | 2.2 | (0.1) | 0.1 | |
Foreign withholding taxes | 2.3 | |||
Income tax expense (benefit) | $ 25.3 | $ 12 | $ 66.6 | |
Income tax at statutory rate (as a percent) | 21.00% | 21.00% | 30.50% | 35.00% |
Deferred tax liabilities | $ 10.2 | $ 2.1 | ||
Valuation allowance | 7 | 6.3 | ||
Gross unrecognized tax benefits | 5.2 | 3.1 | $ 1.4 | |
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 7.9 | |||
Federal income tax benefit | 5.3 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 4.7 | |||
Federal income tax benefit | 1.7 | |||
Foreign tax authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | $ 0.3 | |||
Foreign tax authority | Investment Tax Credit Carryforward | Malta | ||||
Tax Credit Carryforward [Line Items] | ||||
Percentage of qualified expenditures subject to investment tax credit | 30.00% | |||
Foreign tax authority | Tax Credit Carryforward, Period, Indefinite | Investment Tax Credit Carryforward | Malta | ||||
Tax Credit Carryforward [Line Items] | ||||
Total unused credits | $ 25.9 | |||
Impact of U.S. Tax Reform | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax expense (benefit) | $ (4.8) | $ 53.7 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | May 02, 2020 | Apr. 27, 2019 |
Deferred Tax Liabilities: | ||
Depreciation | $ (4.5) | $ (9) |
Amortization | (47.8) | (43.9) |
Foreign Tax | (1.8) | (2) |
Lease Liabilities | (5.2) | |
Other Liabilities | (1) | (0.1) |
Deferred Tax Liabilities, Gross | (60.3) | (55) |
Deferred Tax Assets: | ||
Deferred Compensation and Stock Award Amortization | 7 | 8.6 |
Inventory Valuation Differences | 2.7 | 1.9 |
Property Valuation Differences | 0.8 | 1.6 |
Environmental Reserves | 0.2 | 0.3 |
Lease Assets | 5.7 | |
Vacation Accruals | 0.4 | |
Foreign Investment Tax Credit | 25.9 | 28.2 |
Net Operating Loss Carryovers | 12.9 | 13.8 |
Foreign Tax Credits | 1.1 | |
Other | 1.9 | 3.3 |
Deferred Tax Assets, Gross | 57.1 | 59.2 |
Less Valuation Allowance | (7) | (6.3) |
Deferred Tax Assets, Net of Valuation Allowance | 50.1 | 52.9 |
Net Deferred Tax Liabilities | (10.2) | (2.1) |
Balance Sheet Classification: | ||
Long-term Asset | 31.4 | 34.3 |
Long-term Liability | $ (41.6) | $ (36.4) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 02, 2020 | Apr. 27, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 3.1 | $ 1.4 |
Increases for Positions Related to the Prior Years | 1.9 | 1.8 |
Increases for Positions Related to the Current Year | 0.3 | 0.9 |
Lapsing of Statutes of Limitations | (0.1) | (1) |
Ending balance | $ 5.2 | $ 3.1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |||
May 02, 2020USD ($)site | Apr. 27, 2019USD ($) | Apr. 28, 2018USD ($) | Mar. 02, 2020USD ($) | |
Loss Contingencies [Line Items] | ||||
Site contingency, number of sites subject to environmental investigation or remediation | site | 2 | |||
Accrual for environmental loss contingencies | $ 0.9 | $ 1.1 | ||
Environmental remediation expense | 0.5 | 0.1 | $ 0.3 | |
Compensatory Damages | ||||
Loss Contingencies [Line Items] | ||||
Gain Contingency, Unrecorded Amount | $ 102 | |||
Punitive Damages | ||||
Loss Contingencies [Line Items] | ||||
Gain Contingency, Unrecorded Amount | $ 11 | |||
Other accrued expenses | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 0.6 | $ 0.8 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Cash Dividends | $ (16.3) | $ (16.3) | $ (14.7) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 689.7 | $ 630 | $ 541.1 |
Foreign Currency Translation Adjustments | (12.3) | (27.5) | 39.6 |
Ending balance | 783.4 | 689.7 | 630 |
Accumulated Other Comprehensive Income (Loss), End of Period | (26.9) | (13.6) | 13.9 |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (13.6) | 13.9 | (25.7) |
Foreign Currency Translation Adjustments | (12.3) | (27.5) | 39.6 |
Ending balance | (25.9) | $ (13.6) | $ 13.9 |
Derivative Instruments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Ending balance | (1) | ||
Other Comprehensive Loss Recognized During the Period, Net of Tax | $ (1) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | Apr. 30, 2007 | |
2014 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized (in shares) | 3,000,000 | 3,000,000 | ||||||||||
Stock-based compensation, description | The number of shares of common stock originally authorized under the 2014 Plan is 3,000,000, less one share for every one share of common stock issued or issuable pursuant to awards made after May 3, 2014 under the 2007 Plan or 2010 Plan. | |||||||||||
Number of shares available for award (in shares) | 1,897,442 | 1,897,442 | ||||||||||
Compensation expense | $ 0.3 | $ 14 | $ 4 | |||||||||
Deferred RSU's | 121,200 | 121,200 | ||||||||||
2014 Incentive Plan | RSAs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
EBITDA goal, percentage of likelihood | 70.00% | |||||||||||
Number of restricted stock, vested | 444,500 | |||||||||||
2014 Incentive Plan | RSAs | Independent directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | $ 0.9 | $ 0.9 | $ 1 | |||||||||
Number of shares issued (in shares) | 30,000 | 24,000 | 24,000 | |||||||||
2014 Incentive Plan | RSAs | Executives and non-executive members of management | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Allocated share-based compensation expense, amount recorded to true-up prior periods | $ (6.5) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 7.4 | $ 0 | $ 5.2 | $ 7.4 | $ 6 | |
Compensation expense | $ (2.1) | $ 10.9 | $ (2) | |||||||||
EBITDA hurdle achieved of target | 69.00% | |||||||||||
2014 Incentive Plan | RSUs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of restricted stock, vested | 176,994 | 152,328 | 160,553 | |||||||||
Number of restricted stock vested for which shares issued | 91,694 | |||||||||||
Number of restricted stock vested but deferred for issuance | 80,800 | |||||||||||
2014 Incentive Plan | RSUs | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
2014 Incentive Plan | RSUs | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 5 years | |||||||||||
2014 Incentive Plan | RSUs | Executives and non-executive members of management | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | $ 1.5 | $ 2.2 | $ 5 | |||||||||
2010 Stock Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Deferred RSU's | 180,000 | 180,000 | ||||||||||
2004 Stock Plan | Converted from Restricted Stock Awards to Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 225,000 | |||||||||||
2004 Stock Plan | RSUs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares converted from RSAs to RSUs outstanding (in shares) | 29,945 | 29,945 | ||||||||||
Converted RSUs delivered (in shares) | 195,055 |
Shareholders' Equity - Stock-ba
Shareholders' Equity - Stock-based Compensation Expense (Benefit) (Details) - 2014 Incentive Plan - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0.3 | $ 14 | $ 4 |
Unrecognized equity-based compensation cost | 0 | ||
RSAs | Executives and non-executive members of management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | (2.1) | 10.9 | (2) |
Unrecognized equity-based compensation cost | 0 | ||
RSAs | Independent directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 0.9 | 0.9 | 1 |
Unrecognized equity-based compensation cost | 0 | ||
RSUs | Executives and non-executive members of management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1.5 | $ 2.2 | $ 5 |
Unrecognized equity-based compensation cost | $ 0 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Restricted Stock Awards and Restricted Stock Units Activity (Details) - 2014 Incentive Plan - $ / shares | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
RSAs | |||
Shares | |||
Vested (in shares) | (444,500) | ||
RSUs | |||
Shares | |||
Non-vested beginning balance (in shares) | 187,844 | 382,372 | 568,000 |
Awarded (in shares) | 0 | 7,750 | 30,925 |
Vested (in shares) | (176,994) | (152,328) | (160,553) |
Forfeited and cancelled (in shares) | (7,750) | (49,950) | (56,000) |
Non-vested ending balance (in shares) | 3,100 | 187,844 | 382,372 |
Wtd. Avg. Grant Date Fair Value | |||
Weighted average value - beginning balance (in dollars per share) | $ 34.55 | $ 33.87 | $ 33.45 |
Weighted average value, awarded (in dollars per share) | 0 | 38.75 | 41.82 |
Weighted average value, vested (in dollars per share) | 34.25 | 33.75 | 33.72 |
Weighted average value, forfeited (in dollars per share) | 38.75 | 32.42 | 34.42 |
Weighted average value - ending balance (in dollars per share) | 41.20 | 34.55 | 33.87 |
Executives and non-executive members of management | RSAs | |||
Wtd. Avg. Grant Date Fair Value | |||
Weighted average value - beginning balance (in dollars per share) | 34.09 | 34.13 | 33.42 |
Weighted average value, awarded (in dollars per share) | 0 | 38.75 | 40.92 |
Weighted average value, vested (in dollars per share) | 33.89 | 0 | 0 |
Weighted average value, forfeited (in dollars per share) | 34.25 | 34.79 | 34.42 |
Weighted average value - ending balance (in dollars per share) | $ 0 | $ 34.09 | $ 34.13 |
Executives and non-executive members of management | 2020 EBITDA Maximum Performance | RSAs | |||
Shares | |||
Non-vested beginning balance (in shares) | 1,031,408 | 1,171,238 | 1,168,500 |
Awarded (in shares) | 0 | 11,625 | 128,738 |
Vested (in shares) | (455,750) | 0 | 0 |
Forfeited and cancelled (in shares) | (575,658) | (151,455) | (126,000) |
Non-vested ending balance (in shares) | 0 | 1,031,408 | 1,171,238 |
Shareholders' Equity - Summar_3
Shareholders' Equity - Summary of Combined Stock Option Activity and Related Information for Stock Options Granted (Details) - Stock Options - 2010 Plan and 2007 Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding - beginning balance (in shares) | 106,668 | 114,168 | 129,169 |
Exercised (in shares) | 0 | 0 | (13,333) |
Cancelled (in shares) | 0 | (7,500) | (1,668) |
Outstanding - ending balance (in shares) | 106,668 | 106,668 | 114,168 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Wtd. Avg. Exercise Price, Outstanding - beginning balance (in dollars per share) | $ 35.76 | $ 35.85 | $ 34.71 |
Wtd. Avg. Exercise Price, Exercised (in dollars per share) | 0 | 0 | 24.67 |
Wtd. Avg. Exercise Price, Cancelled (in dollars per share) | 0 | 37.01 | 37.01 |
Wtd. Avg. Exercise Price, Outstanding - ending balance (in dollars per share) | $ 35.76 | $ 35.76 | $ 35.85 |
Weighted-average life of outstanding options | 4 years | 5 years | 6 years 1 month 6 days |
Intrinsic value of outstanding options | $ 0.1 | $ 0.1 | $ 0.6 |
Shareholders' Equity - Summar_4
Shareholders' Equity - Summary of Stock Option Activity and Related Information for Stock Options Granted, Options Outstanding and Exercisable (Details) - 2010 Plan and 2007 Plan - Stock Options | 12 Months Ended |
May 02, 2020$ / sharesshares | |
Exercise Price 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 101,668 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 37.01 |
Options outstanding - avg remaining life | 4 years 2 months 12 days |
Exercise Price 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 5,000 |
Options outstanding - exercise price (in dollars per share) | $ / shares | $ 10.55 |
Options outstanding - avg remaining life | 2 months 12 days |
Income Per Share - Schedule of
Income Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Earnings Per Share [Abstract] | ||||||||||||
Net Income | $ 30.1 | $ 41.2 | $ 23.8 | $ 28.3 | $ 22.6 | $ 30.7 | $ 14.6 | $ 23.7 | $ 123.4 | $ 123.4 | $ 91.6 | $ 57.2 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||||
Denominator for Basic Income Per Share-Weighted Average Shares Outstanding and Vested/Unissued Restricted Stock Units | 37,574,671 | 37,405,298 | 37,281,630 | |||||||||
Dilutive Potential Common Shares-Employee Stock Options, Restricted Stock Awards and Restricted Stock Units (in shares) | 269,799 | 264,262 | 260,269 | |||||||||
Denominator for Diluted Income Per Share | 37,844,470 | 37,669,560 | 37,541,899 | |||||||||
Basic and Diluted Income Per Share: | ||||||||||||
Basic Income Per Share (in dollars per share) | $ 0.80 | $ 1.10 | $ 0.63 | $ 0.75 | $ 0.61 | $ 0.82 | $ 0.39 | $ 0.63 | $ 3.28 | $ 3.28 | $ 2.45 | $ 1.54 |
Diluted Income Per Share (in dollars per share) | $ 0.79 | $ 1.09 | $ 0.63 | $ 0.75 | $ 0.60 | $ 0.82 | $ 0.39 | $ 0.63 | $ 3.26 | $ 3.26 | $ 2.43 | $ 1.52 |
Number of Anti-dilutive Potentially Issuable Shares Excluded from Diluted Common Shares Outstanding | 566,620 | 678,321 | 363,413 |
Segment Information and Geogr_3
Segment Information and Geographic Area Information - Narrative (Details) | 12 Months Ended |
May 02, 2020 | |
Segment Reporting [Abstract] | |
Reportable segments description | Prior to the acquisition, the Company's reportable segments were Automotive, Power, Interface and Other. As a result of this change, the Company's reportable segments are now Automotive, Industrial, Interface and Medical. |
Segment Information and Geogr_4
Segment Information and Geographic Area Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 210.6 | $ 285.9 | $ 257.2 | $ 270.2 | $ 266 | $ 246.9 | $ 264 | $ 223.4 | $ 1,023.9 | $ 1,000.3 | $ 908.3 |
Income/(Loss) from Operations | 147.1 | 106.8 | 118.3 | ||||||||
Interest Expense, Net | 10.1 | 8.3 | 0.9 | ||||||||
Other Income, Net | (11.7) | (5.1) | (6.4) | ||||||||
Income before Income Taxes | 148.7 | 103.6 | 123.8 | ||||||||
Purchases of Property, Plant and Equipment | 45.1 | 49.8 | 47.7 | ||||||||
Depreciation and Amortization | 48.3 | 43.3 | 28.1 | ||||||||
Identifiable Assets | 1,370.6 | 1,231.7 | 1,370.6 | 1,231.7 | 915.9 | ||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,023.9 | 1,000.3 | 908.3 | ||||||||
Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 0 | 0 | 0 | ||||||||
Automotive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 712.1 | 734.7 | 728.7 | ||||||||
Income/(Loss) from Operations | 124.4 | 126.3 | 156.3 | ||||||||
Interest Expense, Net | 0 | 0 | 0 | ||||||||
Other Income, Net | 0 | 0 | 0 | ||||||||
Income before Income Taxes | 0 | 0 | 0 | ||||||||
Purchases of Property, Plant and Equipment | 37.5 | 38.9 | 31.7 | ||||||||
Depreciation and Amortization | 31 | 25.2 | 21.3 | ||||||||
Identifiable Assets | 670.9 | 677.4 | 670.9 | 677.4 | 632.7 | ||||||
Automotive | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 716.8 | 741.6 | 738.4 | ||||||||
Automotive | Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | (4.7) | (6.9) | (9.7) | ||||||||
Industrial | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 251.4 | 206.8 | 105.8 | ||||||||
Income/(Loss) from Operations | 59.4 | 37.4 | 13 | ||||||||
Interest Expense, Net | 0 | 0 | 0 | ||||||||
Other Income, Net | 0 | 0 | 0 | ||||||||
Income before Income Taxes | 0 | 0 | 0 | ||||||||
Purchases of Property, Plant and Equipment | 5.7 | 2.6 | 1.5 | ||||||||
Depreciation and Amortization | 13.7 | 11.7 | 2 | ||||||||
Identifiable Assets | 421.8 | 404.3 | 421.8 | 404.3 | 93.1 | ||||||
Industrial | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 253.9 | 210 | 105.6 | ||||||||
Industrial | Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | (2.5) | (3.2) | 0.2 | ||||||||
Interface | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 58.8 | 57.7 | 73.2 | ||||||||
Income/(Loss) from Operations | 5.6 | (0.3) | 6 | ||||||||
Interest Expense, Net | 0 | 0 | 0 | ||||||||
Other Income, Net | 0 | 0 | 0 | ||||||||
Income before Income Taxes | 0 | 0 | 0 | ||||||||
Purchases of Property, Plant and Equipment | 0.3 | 0.5 | 0.4 | ||||||||
Depreciation and Amortization | 0.9 | 3.2 | 3.1 | ||||||||
Identifiable Assets | 71 | 88.6 | 71 | 88.6 | 206.8 | ||||||
Interface | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 58.9 | 57.9 | 73.9 | ||||||||
Interface | Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | (0.1) | (0.2) | (0.7) | ||||||||
Medical | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1.6 | 1.1 | 0.3 | ||||||||
Income/(Loss) from Operations | (6) | (8.6) | (11.4) | ||||||||
Interest Expense, Net | 0 | 0 | 0 | ||||||||
Other Income, Net | 0 | 0 | 0 | ||||||||
Income before Income Taxes | 0 | 0 | 0 | ||||||||
Purchases of Property, Plant and Equipment | 0.7 | 1.9 | 3.8 | ||||||||
Depreciation and Amortization | 1.1 | 1 | 0.8 | ||||||||
Identifiable Assets | 8.8 | 9.4 | 8.8 | 9.4 | 8.1 | ||||||
Medical | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1.6 | 1.1 | 0.3 | ||||||||
Medical | Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 0 | 0 | 0 | ||||||||
Eliminations/Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 0 | 0 | 0.3 | ||||||||
Income/(Loss) from Operations | (36.3) | (48) | (45.6) | ||||||||
Interest Expense, Net | 0 | 0 | 0 | ||||||||
Other Income, Net | 0 | 0 | 0 | ||||||||
Income before Income Taxes | 0 | 0 | 0 | ||||||||
Purchases of Property, Plant and Equipment | 0.9 | 5.9 | 10.3 | ||||||||
Depreciation and Amortization | 1.6 | 2.2 | 0.9 | ||||||||
Identifiable Assets | $ 198.1 | $ 52 | 198.1 | 52 | (24.8) | ||||||
Eliminations/Corporate | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | (7.3) | (10.3) | (9.9) | ||||||||
Eliminations/Corporate | Transfers between Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 7.3 | $ 10.3 | $ 10.2 |
Segment Information and Geogr_5
Segment Information and Geographic Area Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | $ 210.6 | $ 285.9 | $ 257.2 | $ 270.2 | $ 266 | $ 246.9 | $ 264 | $ 223.4 | $ 1,023.9 | $ 1,000.3 | $ 908.3 |
Total Tangible Long-lived Assets, Net | 225.4 | 191.9 | 225.4 | 191.9 | |||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 531.5 | 540.5 | 487.5 | ||||||||
Total Tangible Long-lived Assets, Net | 89.8 | 83.9 | 89.8 | 83.9 | |||||||
Malta | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 143.9 | 148.5 | 184 | ||||||||
Total Tangible Long-lived Assets, Net | 40.1 | 33 | 40.1 | 33 | |||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 116.9 | 113.7 | 117.3 | ||||||||
Total Tangible Long-lived Assets, Net | 24.1 | 18.6 | 24.1 | 18.6 | |||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 104.7 | 0 | 0 | ||||||||
Total Tangible Long-lived Assets, Net | 24 | 9.2 | 24 | 9.2 | |||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 19.5 | 101.6 | 54.4 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 107.4 | 96 | $ 65.1 | ||||||||
Belgium | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Tangible Long-lived Assets, Net | 21.4 | 22.1 | 21.4 | 22.1 | |||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Sales | 126.9 | 96 | |||||||||
Total Tangible Long-lived Assets, Net | $ 26 | $ 25.1 | $ 26 | $ 25.1 |
Summary of Quarterly Results _3
Summary of Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
May 02, 2020 | Feb. 01, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 28, 2018 | May 02, 2020 | May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 210.6 | $ 285.9 | $ 257.2 | $ 270.2 | $ 266 | $ 246.9 | $ 264 | $ 223.4 | $ 1,023.9 | $ 1,000.3 | $ 908.3 | |
Gross Profit | 59.2 | 79.3 | 68.6 | 75.8 | 70.6 | 64.3 | 70.8 | 60.1 | 282.9 | 265.8 | 239.6 | |
Net Income | $ 30.1 | $ 41.2 | $ 23.8 | $ 28.3 | $ 22.6 | $ 30.7 | $ 14.6 | $ 23.7 | $ 123.4 | $ 123.4 | $ 91.6 | $ 57.2 |
Net Income per Basic Common Share | $ 0.80 | $ 1.10 | $ 0.63 | $ 0.75 | $ 0.61 | $ 0.82 | $ 0.39 | $ 0.63 | $ 3.28 | $ 3.28 | $ 2.45 | $ 1.54 |
Net Income per Diluted Common Share | $ 0.79 | $ 1.09 | $ 0.63 | $ 0.75 | $ 0.60 | $ 0.82 | $ 0.39 | $ 0.63 | $ 3.26 | $ 3.26 | $ 2.43 | $ 1.52 |
Acquisition-related Expenses | $ 0.1 | $ 3.8 | $ 10.9 | $ 0.6 | ||||||||
Grant Income | $ (4.4) | $ (5.5) | $ 0 | $ 0 | (1.4) | (1.9) | (1.4) | (1.1) | ||||
Expense for Initiatives to Reduce Overall Costs and Improve Operational Profitability | 0.2 | 1.1 | 0.5 | 0 | 1 | 2.6 | 2.5 | 0.8 | ||||
Hetronic Lawsuit | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Legal Fees | 2.1 | 1.1 | 1.4 | 0.8 | 0.8 | 0.8 | 1 | 0.9 | ||||
RSAs | Executives and non-executive members of management | 2014 Incentive Plan | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Allocated share-based compensation expense, amount recorded to true-up prior periods | $ (6.5) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 7.4 | $ 0 | $ 5.2 | $ 7.4 | $ 6 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
May 02, 2020 | Apr. 27, 2019 | Apr. 28, 2018 | |
Allowance for uncollectible accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 0.9 | $ 0.5 | $ 0.6 |
Charged to Costs and Expenses | (0.2) | 0.2 | 0 |
Deductions | 0 | 0 | (0.1) |
Other | 0 | 0.2 | 0 |
Balance at End of Period | 0.7 | 0.9 | 0.5 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6.3 | 2.5 | 1.9 |
Charged to Costs and Expenses | 0.7 | 0 | 0.6 |
Deductions | 0 | (1) | 0 |
Other | 0 | 4.8 | 0 |
Balance at End of Period | $ 7 | $ 6.3 | $ 2.5 |