(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. ~~(Check one):~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At November ~~30, 2021,~~28, 2022, the registrant had ~~37,268,905~~36,091,673 shares of common stock outstanding.


	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	October 30, 2021			October 31, 2020			October 30, 2021			October 31, 2020			October 29, 2022			October 30, 2021			October 29, 2022			October 30, 2021
Net sales	$	295.5		$	300.8		$	583.3		$	491.7		$	315.9		$	295.5		$	598.3		$	583.3

Cost of products sold		226.3			220.0			442.4			365.8			241.8			226.3			462.4			442.4

Gross profit		69.2			80.8			140.9			125.9			74.1			69.2			135.9			140.9

Selling and administrative expenses		31.2			30.8			64.0			57.4			36.6			31.2			71.9			64.0
Amortization of intangibles		4.8			5.0			9.6			9.7			4.7			4.8			9.4			9.6

Income from operations		33.2			45.0			67.3			58.8			32.8			33.2			54.6			67.3

Interest expense, net		1.1			1.4			2.2			3.0			0.5			1.1			0.5			2.2
Other income, net		(0.9	)		(2.6	)		(2.7	)		(6.0	)		(1.1	)		(0.9	)		(5.2	)		(2.7	)

Income before income taxes		33.0			46.2			67.8			61.8			33.4			33.0			59.3			67.8

Income tax expense		5.5			7.6			11.2			2.5			5.8			5.5			10.2			11.2

Net income	$	27.5		$	38.6		$	56.6		$	59.3		$	27.6		$	27.5		$	49.1		$	56.6

Basic and diluted income per share:
Basic	$	0.73		$	1.01		$	1.50		$	1.56		$	0.76		$	0.73		$	1.35		$	1.50
Diluted	$	0.72		$	1.01		$	1.48		$	1.56		$	0.75		$	0.72		$	1.33		$	1.48

Cash dividends per share	$	0.14		$	0.11		$	0.28		$	0.22		$	0.14		$	0.14		$	0.28		$	0.28


	October 30, 2021			May 1, 2021			October 29, 2022			April 30, 2022
	(unaudited)						(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	177.2		$	233.2		$	129.6		$	172.0
Accounts receivable, net		281.0			282.5			312.8			273.3
Inventories		149.0			124.2			172.5			158.5
Income taxes receivable		14.0			11.5
Income tax receivable								8.2			8.3
Prepaid expenses and other current assets		21.9			22.6			35.3			16.9
Total current assets		643.1			674.0			658.4			629.0
Long-term assets:
Property, plant and equipment, net		206.6			204.0			189.6			197.0
Goodwill		235.0			235.6			231.0			233.0
Other intangible assets, net		219.1			229.4			196.7			207.7
Operating lease right-of-use assets, net		21.8			22.3			24.2			20.0
Deferred tax assets		39.2			41.2			35.4			36.8
Pre-production costs		30.1			25.0			27.0			27.2
Other long-term assets		35.8			35.5			32.0			38.4
Total long-term assets		787.6			793.0			735.9			760.1
Total assets	$	1,430.7		$	1,467.0		$	1,394.3		$	1,389.1

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	118.6		$	122.9		$	124.5		$	108.5
Accrued employee liabilities		26.7			33.5			29.9			30.0
Other accrued liabilities		23.6			25.0			31.0			24.5
Short-term operating lease liabilities		6.9			6.1			6.3			6.0
Short-term debt		14.7			14.9			13.0			13.0
Income tax payable		17.3			20.3			8.3			6.6
Total current liabilities		207.8			222.7			213.0			188.6
Long-term liabilities:
Long-term debt		208.4			225.2			191.0			197.5
Long-term operating lease liabilities		16.0			17.5			19.0			14.8
Long-term income taxes payable		22.1			24.8
Long-term income tax payable								16.7			22.1
Other long-term liabilities		19.5			20.5			15.4			14.0
Deferred tax liabilities		37.4			38.3			40.4			38.3
Total long-term liabilities		303.4			326.3			282.5			286.7
Total liabilities		511.2			549.0			495.5			475.3
Shareholders' equity:
Common stock, $0.50 par value, 100,000,000 shares authorized, 38,737,129 shares and 39,644,913 shares issued as of October 30, 2021 and May 1, 2021, respectively		19.4			19.8
Common stock, $0.50 par value, 100,000,000 shares authorized, 37,505,633 shares and 38,276,968 shares issued as of October 29, 2022 and April 30, 2022, respectively								18.7			19.2
Additional paid-in capital		163.8			157.6			174.7			169.0
Accumulated other comprehensive (loss) income		(2.0	)		6.1
Treasury stock, 1,346,624 shares as of October 30, 2021 and May 1, 2021		(11.5	)		(11.5	)
Accumulated other comprehensive loss								(54.3	)		(26.8	)
Treasury stock, 1,346,624 shares as of October 29, 2022 and April 30, 2022								(11.5	)		(11.5	)
Retained earnings		749.8			746.0			771.2			763.9
Total shareholders' equity		919.5			918.0			898.8			913.8
Total liabilities and shareholders' equity	$	1,430.7		$	1,467.0		$	1,394.3		$	1,389.1

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY ~~(Continued)~~ (Unaudited) (continued)

	Six Months Ended October 30, 2021
	Common stock shares			Common stock			Additional paid-in capital			Accumulated other comprehensive income (loss)			Treasury stock			Retained earnings			Total shareholders' equity			Six Months Ended October 29, 2022
Balance as of May 1, 2021		39,644,913		$	19.8		$	157.6		$	6.1		$	(11.5	)	$	746.0		$	918.0
																						Common stock shares			Common stock			Additional paid-in capital		Accumulated other comprehensive income (loss)			Treasury stock			Retained earnings			Total shareholders' equity
Balance as of April 30, 2022																							38,276,968		$	19.2		$	169.0	$	(26.8	)	$	(11.5	)	$	763.9		$	913.8
Issuance of restricted stock, net of tax withholding		44,245			0.1			(0.1	)		—			—			(0.3	)		(0.3	)		54,479			—			—		—			—			(0.4	)		(0.4	)
Exercise of stock options		13,000			—			0.5			—			—			—			0.5
Purchases of common stock		(965,029	)		(0.5	)		—			—			—			(41.9	)		(42.4	)		(825,814	)		(0.5	)		—		—			—			(31.1	)		(31.6	)
Stock-based compensation expense		—			—			5.8			—			—			—			5.8			—			—			5.7		—			—			—			5.7
Other comprehensive loss		—			—			—			(8.1	)		—			—			(8.1	)		—			—			—		(27.5	)		—			—			(27.5	)
Net income		—			—			—			—			—			56.6			56.6			—			—			—		—			—			49.1			49.1
Dividends on common stock		—			—			—			—			—			(10.6	)		(10.6	)		—			—			—		—			—			(10.3	)		(10.3	)
Balance as of October 30, 2021		38,737,129		$	19.4		$	163.8		$	(2.0	)	$	(11.5	)	$	749.8		$	919.5
Balance as of October 29, 2022																							37,505,633		$	18.7		$	174.7	$	(54.3	)	$	(11.5	)	$	771.2		$	898.8


	Six Months Ended						Six Months Ended
	October 30, 2021			October 31, 2020			October 29, 2022			October 30, 2021
Operating activities:
Net income	$	56.6		$	59.3		$	49.1		$	56.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		25.9			24.7			24.5			25.9
Stock-based compensation expense		6.6			1.9			6.7			6.6
Change in cash surrender value of life insurance		(0.6	)		(0.7	)		(0.2	)		(0.6	)
Amortization of debt issuance costs		0.3			0.3			0.3			0.3
Gain on sale of property, plant and equipment		(0.4	)		—
Loss (gain) on sale of property, plant and equipment								0.1			(0.4	)
Impairment of long-lived assets								0.4			—
Change in deferred income taxes		0.1			(6.2	)		1.0			0.1
Other		0.1			1.2			0.2			0.1
Changes in operating assets and liabilities:
Accounts receivable		(0.9	)		(94.3	)		(50.6	)		(0.9	)
Inventories		(25.8	)		13.0			(19.5	)		(25.8	)
Prepaid expenses and other assets		(10.5	)		7.8			(15.7	)		(10.5	)
Accounts payable		(1.3	)		8.4			21.5			(1.3	)
Other liabilities		(13.4	)		41.3			10.3			(13.4	)
Net cash provided by operating activities		36.7			56.7			28.1			36.7

Investing activities:
Purchases of property, plant and equipment		(21.3	)		(15.2	)		(18.0	)		(21.3	)
Sale of property, plant and equipment		0.6			—			3.5			0.6
Net cash used in investing activities		(20.7	)		(15.2	)		(14.5	)		(20.7	)

Financing activities:
Taxes paid related to net share settlement of equity awards		(0.3	)		(3.9	)		(0.5	)		(0.3	)
Repayments of finance leases		(0.3	)		(0.2	)		(0.2	)		(0.3	)
Proceeds from exercise of stock options		0.5			0.1			—			0.5
Purchases of common stock		(42.5	)		—			(31.6	)		(42.5	)
Cash dividends		(10.3	)		(9.1	)		(9.9	)		(10.3	)
Proceeds from borrowings		—			1.5
Repayments of borrowings		(16.8	)		(7.6	)		(6.5	)		(16.8	)
Net cash used in financing activities		(69.7	)		(19.2	)		(48.7	)		(69.7	)
Effect of foreign currency exchange rate changes on cash and cash equivalents		(2.3	)		2.7			(7.3	)		(2.3	)
(Decrease) increase in cash and cash equivalents		(56.0	)		25.0
Decrease in cash and cash equivalents								(42.4	)		(56.0	)
Cash and cash equivalents at beginning of the period		233.2			217.3			172.0			233.2
Cash and cash equivalents at end of the period	$	177.2		$	242.3		$	129.6		$	177.2

Supplemental cash flow information:
Cash paid during the period for:
Interest	$	1.8		$	3.0		$	1.4		$	1.8
Income taxes, net of refunds	$	19.9		$	10.3		$	12.5		$	19.9
Operating lease obligations	$	4.5		$	4.4		$	4.0		$	4.5

Note 1. Description of Business and Summary of Significant Accounting Policies

Description of business

Methode Electronics, Inc. (the “Company” or “Methode”) is a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. The Company designs, engineers and produces mechatronic products for Original Equipment Manufacturers (“OEMs”) utilizing its broad range of technologies for user interface, light-emitting diode (“LED”) lighting system, power distribution and sensor applications.

The Company’s solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance and medical devices.

Impact of the COVID-19 pandemic and supply chain disruptions

The COVID-19 pandemic and the ongoing measures to reduce its spread have negatively impacted the global economy, disrupted consumer and customer demand and global supply chains, and resulted in manufacturing inefficiencies and increased freight costs due to global capacity constraints. ~~The Company expects that~~As a result of a resurgence of the ~~global health crisis caused~~virus in China and corresponding government lock-down orders, the COVID-19 pandemic had a negative impact on the Company's China operations in the first quarter of fiscal 2023. Future resurgences of the COVID-19 virus or its variants in China or other regions, including corresponding lock-downs or similar government orders, could impact the Company's results of operations.

Various government programs have been enacted to provide assistance to businesses impacted by the COVID-19 ~~pandemic will continue~~pandemic. The amount of assistance the Company received was $0.2 million and $2.1 million in the three months ended October 29, 2022 and October 30, 2021, respectively. The Company received $4.3 million and $4.0 million in the six months ended October 29, 2022 and October 30, 2021, respectively. Government assistance has been reported as other income.

The Company continues to negatively impact its business and results of operations for the foreseeable future. The extent of the impact will depend on a number of evolving and uncertain factors, including the duration and spread of COVID-19 (and its variants), the rate of vaccinations, actions taken by governmental authorities to further restrict business operations and social activity and impose travel restrictions, shifting consumer demand, the ability of the Company’s supply chain to deliver in a timely and cost-effective manner, the ability of the Company’s employees and manufacturing facilities to operate efficiently and effectively, the continued viability and financial stability of the Company’s customers and suppliers and future access to capital.

~~While demand for the Company’s products improved, the recovery in demand has had business interruptions, including~~experience increased material and logistics costs, labor shortages, and most significantly, impacts from the worldwide semiconductor supply shortage. The semiconductor supply shortage is due, in part, to increased demand across multiple industries, including the automotive industry, resulting in a slowdown in ~~their~~ production schedules. The semiconductor supply shortage is also impacting the Company’s supply chain and its ability to meet demand at some of its non-automotive customers.

The Russia-Ukraine military conflict has negatively impacted the Company's European customers and suppliers. Although the Company ~~expects this semiconductor shortage will likely~~does not have ~~a continued impact on~~any operations in Russia or Ukraine, certain of its ~~operating results~~customers and ~~financial condition in fiscal 2022.~~

~~Various government programs~~suppliers have been ~~enacted to provide assistance to businesses~~negatively impacted by ~~the COVID-19 pandemic.~~ ~~The amount of assistance~~these events, which in turn has impacted markets where the Company ~~received was $2.1 million~~conducts business, including Europe and ~~$3.3 million in~~Asia. The economic sanctions imposed by the ~~three months ended October 30, 2021~~international community have further increased existing supply chain, logistics, and October 31, 2020, respectively. The Company received $4.0 million and $6.2 million in the six months ended October 30, 2021 and October 31, 2020, respectively. Government assistance has been reported as other income.inflationary challenges.

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, identifiable intangible assets, and other long-lived assets, and its valuation allowances in context with the information reasonably available to the Company and the unknown future impacts of the COVID-19 pandemic as of October 30, 2021 and through the date of this report. As a result of these assessments, the Company concluded that there were no impairments or material increases in credit allowances or valuation allowances that impacted the Company’s condensed consolidated financial statements as of October 30, 2021 and for the three and six months then ended. 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 its consolidated financial statements in future reporting periods.

At this time, the ultimate impact of the COVID-19 pandemic cannot be reasonably estimated due to the uncertainty about the extent and duration of the spread of the virus. Therefore, it is possible the COVID-19 pandemic could still have an adverse impact on the Company’s future business, operating results and financial condition.

~~Table of Contents~~

Basis of presentation

The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments, except as otherwise disclosed) that management believes are necessary for a fair presentation of the results of operations, financial position and cash flows of the Company for the interim periods presented. These financial statements should be read in conjunction with the consolidated financial statements included in the Company’s Form 10-K for the year ended ~~May 1, 2021,~~April 30, 2022, filed with the SEC on June ~~24, 2021.~~23, 2022. Results may vary from quarter to quarter for reasons other than seasonality.

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. The three months ended October 29, 2022 and October 30, 2021 ~~and October 31, 2020~~ were both ~~13-week~~13-week periods, and the six months ended October 29, 2022 and October 30, 2021 ~~and October 31, 2020~~ were both ~~26-week~~26-week periods.

Table of Contents

Use of estimates

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results could differ from these estimates.

Summary of significant accounting policies

The Company’s significant accounting policies are described in Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements included in the Company’s Form 10-K for the year ended ~~May 1, 2021.~~April 30, 2022. There have been no material changes to the significant accounting policies in the six months ended October ~~30, 2021~~29, 2022. ~~other than those noted below.~~

~~Recently adopted~~New accounting pronouncements not yet adopted

In ~~December 2019,~~November 2021, the Financial Accounting Standards Board ~~(“FASB”)~~ issued Accounting Standards Update (“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 Accounting Standards Codification (“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. The Company adopted this guidance as of May 2, 2021, and the impact on its condensed consolidated financial statements was not material.

~~New accounting pronouncements not yet adopted~~

~~In November 2021, the FASB issued ASU~~ 2021-10, “Government Assistance (Topic 832),” which requires ~~business entities~~annual disclosures when an entity has received government assistance. This guidance is intended to ~~disclose information about transactions with a~~improve the transparency of government ~~that are accounted~~assistance received by requiring disclosure of: (1) the types of government assistance received; (2) the accounting for ~~by applying a grant or contribution model by analogy (for example, IFRS guidance in IAS 20 or guidance on contributions for not-for-profit entities in ASC 958-605). For transactions in~~such assistance; and (3) the ~~scope~~effect of the ~~new~~assistance on the registrant’s financial statements. The Company will adopt this standard ~~business entities will need~~effective April 29, 2023 and expects the standard to ~~provide information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific~~only impact annual financial statement line items affected by the transaction. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The Company does not expect that the adoption of this standard will have an impact on its condensed consolidated financial statements; however the Company expects to increase its disclosures with respect to government assistance beginning in fiscal 2023.footnote disclosures.

Note 2. Revenue

The Company generates revenue from the manufacturing of products for customers in diversified global markets. The substantial majority of the Company’s revenue is recognized at a point in time. The Company has determined that the most definitive demonstration that control of the product 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~~the product until it is used by the customer. Revenue for consignment arrangements is recognized upon the customer’s usage.

~~Table of Contents~~

Revenue associated with products which the Company believes have no alternative use (such as highly customized parts), and where the Company has an enforceable right to payment, are recognized on an over time basis. Revenue is recognized based on progress to date, which is typically even over the production process through transfer of control to the customer.

From time to time, customers may 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.

Contract balances

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 an entity has received consideration, or the amount is due from the customer in advance of revenue recognition. The net changes in the contract asset and contract liability balances for the ~~three and~~ six months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020~~30, 2021 were not material.

Table of Contents

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.


	Three Months Ended October 29, 2022
(in millions)	Automotive		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	97.8	$	40.1	$	14.0	$	1.1	$	153.0
Europe, the Middle East & Africa ("EMEA")		53.9		37.9		—		—		91.8
Asia		45.2		25.8		0.1		—		71.1
Total net sales	$	196.9	$	103.8	$	14.1	$	1.1	$	315.9
Timing of revenue recognition:
Goods transferred at a point in time	$	192.3	$	103.8	$	14.1	$	1.1	$	311.3
Goods transferred over time		4.6		—		—		—		4.6
Total net sales	$	196.9	$	103.8	$	14.1	$	1.1	$	315.9


	Three Months Ended October 30, 2021
(in millions)	Automotive		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	99.3	$	42.1	$	17.8	$	0.8	$	160.0
EMEA		54.9		23.4		—		—		78.3
Asia		41.8		15.2		0.2		—		57.2
Total net sales	$	196.0	$	80.7	$	18.0	$	0.8	$	295.5
Timing of revenue recognition:
Goods transferred at a point in time	$	189.2	$	80.7	$	18.0	$	0.8	$	288.7
Goods transferred over time		6.8		—		—		—		6.8
Total net sales	$	196.0	$	80.7	$	18.0	$	0.8	$	295.5


	Six Months Ended October 29, 2022
(in millions)	Automotive		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	192.5	$	80.8	$	27.0	$	1.8	$	302.1
EMEA		106.0		66.4		—		—		172.4
Asia		75.0		48.7		0.1		—		123.8
Total net sales	$	373.5	$	195.9	$	27.1	$	1.8	$	598.3
Timing of revenue recognition:
Goods transferred at a point in time	$	364.4	$	195.9	$	27.1	$	1.8	$	589.2
Goods transferred over time		9.1		—		—		—		9.1
Total net sales	$	373.5	$	195.9	$	27.1	$	1.8	$	598.3


	Six Months Ended October 30, 2021
(in millions)	Automotive		Industrial		Interface		Medical		Total
Geographic net sales:
North America	$	198.4	$	84.5	$	30.3	$	1.6	$	314.8
EMEA		112.7		43.2		—		—		155.9
Asia		80.7		31.5		0.4		—		112.6
Total net sales	$	391.8	$	159.2	$	30.7	$	1.6	$	583.3
Timing of revenue recognition:
Goods transferred at a point in time	$	378.9	$	159.2	$	30.7	$	1.6	$	570.4
Goods transferred over time		12.9		—		—		—		12.9
Total net sales	$	391.8	$	159.2	$	30.7	$	1.6	$	583.3

Three Months Ended October 31, 2020

(in millions)

Automotive

Industrial

Interface

Medical

Total

Geographic net sales:

North America

$
117.8

$
41.8

$
16.2

$
0.8

$
176.6

EMEA

58.2

16.7

—

—

74.9

Asia

39.7

9.4

0.2

—

49.3

Total net sales

$
215.7

$
67.9

$
16.4

$
0.8

$
300.8

Timing of revenue recognition:

Goods transferred at a point in time

$
206.7

$
67.9

$
16.4

$
0.8

$
291.8

Goods transferred over time

9.0

—

—

—

9.0

Total net sales

$
215.7

$
67.9

$
16.4

$
0.8

$
300.8

Table of Contents

Six Months Ended October 30, 2021

(in millions)

Automotive

Industrial

Interface

Medical

Total

Geographic net sales:

North America

$
198.4

$
84.5

$
30.3

$
1.6

$
314.8

EMEA

112.7

43.2

—

—

155.9

Asia

80.7

31.5

0.4

—

112.6

Total net sales

$
391.8

$
159.2

$
30.7

$
1.6

$
583.3

Timing of revenue recognition:

Goods transferred at a point in time

$
378.9

$
159.2

$
30.7

$
1.6

$
570.4

Goods transferred over time

12.9

—

—

—

12.9

Total net sales

$
391.8

$
159.2

$
30.7

$
1.6

$
583.3

Six Months Ended October 31, 2020

(in millions)

Automotive

Industrial

Interface

Medical

Total

Geographic net sales:

North America

$
194.1

$
62.4

$
29.4

$
1.2

$
287.1

EMEA

87.0

29.5

—

—

116.5

Asia

59.7

28.0

0.4

—

88.1

Total net sales

$
340.8

$
119.9

$
29.8

$
1.2

$
491.7

Timing of Revenue Recognition:

Goods transferred at a point in time

$
326.8

$
119.9

$
29.8

$
1.2

$
477.7

Goods transferred over time

14.0

—

—

—

14.0

Total net sales

$
340.8

$
119.9

$
29.8

$
1.2

$
491.7

Note 3. ~~Restructuring~~

The Company continually monitors market factors and industry trends and takes necessary actions to reduce overall costs and improve operational profitability. In fiscal 2021, the Company initiated certain restructuring actions in response to the adverse impacts from the COVID-19 pandemic. These actions included plant consolidations and workforce reductions in the Automotive, Industrial and Interface segments. In the three months ended October 31, 2020, the Company recognized $4.2 million of restructuring costs, of which $2.7 million was recorded in cost of products sold and $1.5 million was recorded in selling and administrative expenses. In the six months ended October 31, 2020, the Company recognized $7.6 million of restructuring costs, of which $4.6 million was recorded in cost of products sold and $3.0 million was recorded in selling and administrative expenses.

Employee termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable. Asset impairment charges relate to the impairment of right-of-use lease assets and equipment. Contract termination costs are recorded when notification of termination is given to the other party. The table below presents restructuring costs by reportable segment:

Three Months Ended October 31, 2020

(in millions)
Automotive

Industrial

Interface

Medical

Corporate

Total

Employee termination benefits
$
3.6

$
0.2

$
—

$
—

$
—

$
3.8

Asset impairment charges

0.3

0.1

—

—

—

0.4

Contract termination costs

—

—

—

—

—

—

Total
$
3.9

$
0.3

$
—

$
—

$
—

$
4.2

Six Months Ended October 31, 2020

(in millions)
Automotive

Industrial

Interface

Medical

Corporate

Total

Employee termination benefits
$
5.0

$
0.8

$
0.4

$
—

$
0.1

$
6.3

Asset impairment charges

0.3

0.1

0.3

—

—

0.7

Contract termination costs

0.6

—

—

—

—

0.6

Total
$
5.9

$
0.9

$
0.7

$
—

$
0.1

$
7.6

~~Table of Contents~~

The Company’s restructuring liability was $0.2 million and $1.2 million as of October 30, 2021 and May 1, 2021, respectively. Estimates of restructuring costs are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring costs, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals.

~~Note 4.~~ Income Taxes

The provision for income taxes for an interim period is based on an estimated annual effective income tax rate ~~and this rate is~~ applied to ordinary year-to-date earnings or losses. The estimated annual effective income tax rate is determined excluding the effects of unusual or significant one-time items that are reported net of the related tax effects in the period in which they occur. In addition, any material effects of enacted tax law or rate changes as well as the Company’s ability to utilize various tax assets is recognized in the period in which the change occurs.

The computation of the estimated annual effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year by jurisdiction, certain book to tax adjustments, and the likelihood of the realizability of deferred tax assets generated in the current year. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or as the Company’s tax environment changes.

The Company’s income tax expense and effective tax rate for the three and six months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020~~30, 2021 were as follows:


	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
($ in millions)	October 30, 2021			October 31, 2020			October 30, 2021			October 31, 2020			October 29, 2022			October 30, 2021			October 29, 2022			October 30, 2021
Income before income taxes	$	33.0		$	46.2		$	67.8		$	61.8		$	33.4		$	33.0		$	59.3		$	67.8
Income tax expense	$	5.5		$	7.6		$	11.2		$	2.5		$	5.8		$	5.5		$	10.2		$	11.2
Effective tax rate		16.7	%		16.5	%		16.5	%		4.0	%		17.4	%		16.7	%		17.2	%		16.5	%

The effective tax rate for the three and six months ended October ~~30, 2021 and three months ended October 31, 2020~~29, 2022 was lower than the U.S. statutory tax rate primarily due to income derived from foreign operations with lower statutory tax ~~rates.~~rates and research deductions claimed in foreign jurisdictions, partially offset by non-deductible expenses. The effective tax rate for the three and six months ended October ~~31, 2020~~30, 2021 was lower than the U.S. statutory tax rate primarily due to ~~a benefit from tax credits earned and research deductions claimed in foreign jurisdictions and~~ income derived from foreign operations with lower statutory tax rates.

The Company’s gross unrecognized income tax benefits were ~~$5.3~~$5.2 million and $5.1 million as of ~~both~~ October 29, 2022 and April 30, ~~2021 and May 1, 2021.~~2022, respectively. If any portion of the Company’s unrecognized tax benefits is recognized, it would impact the Company’s effective tax rate. The unrecognized tax benefits are reviewed periodically and adjusted for changing facts and circumstances, such as tax audits, ~~lapse~~the lapsing of applicable statutes of limitations and changes in tax law. The Company recognizes interest and penalties related to income tax uncertainties in income tax expense. Accrued interest and penalties were ~~$0.2~~$0.3 million and $0.2 million as of ~~both~~ October 29, 2022 and April 30, ~~2021 and May~~ 2022, respectively.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was enacted in the United States. The IR Act imposes a 1 ~~2021.~~% excise tax on the fair market value of stock repurchases made by covered corporations after December 31, 2022. The total taxable value of shares repurchased is reduced by the fair market value of any newly issued shares during the taxable year. The Company is assessing the potential impact of the stock repurchase excise tax, but based on its preliminary assessment, the Company does not expect a material impact on its consolidated financial statements. Further, the remaining corporate tax changes included in the IR Act are not expected to have a material impact on the Company’s consolidated financial statements.

Note 5.4. Balance Sheet Components

Cash and cash equivalents

Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less. Highly liquid investments include money market funds which are classified within Level 1 of the fair value hierarchy. As of October 29, 2022 and April 30, ~~2021,~~2022, the Company had a balance of ~~$30.0~~$33.3 million and $40.0 million, respectively, in money market accounts. ~~The Company did not have any money market accounts as of May 1, 2021.~~

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 Company establishes an allowance for doubtful accounts based on the current expected credit loss impairment model. The Company applies a historical loss rate based on historic write-offs to aging categories. The historical loss rate is adjusted for current conditions and reasonable and supportable forecasts of future losses as necessary. The Company may also record a specific reserve for individual accounts when it becomes aware of specific customer circumstances, such as in the case of a bankruptcy filing or deterioration in the customer’s operating results or financial position. The allowance for doubtful accounts balance was ~~$0.8~~$1.3 million and ~~$0.7~~$1.0 million as of October 29, 2022 and April 30, ~~2021 and May 1, 2021,~~2022, respectively.

1211

Table of Contents

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. A summary of inventories is shown below:


(in millions)	October 30, 2021		May 1, 2021		October 29, 2022		April 30, 2022
Finished products	$	30.0	$	24.8	$	36.6	$	31.8
Work in process		14.5		14.0		15.0		12.9
Raw materials		104.5		85.4		120.9		113.8
Total inventories	$	149.0	$	124.2	$	172.5	$	158.5

Property, plant and equipment

Property, plant and equipment is stated at cost. Maintenance and repair costs are expensed as incurred. Depreciation is calculated using the straight-line method using estimated useful lives of 5 to 40 years for buildings and building improvements and 3 to 15 years for machinery and equipment.A summary of property, plant and equipment is shown below:


(in millions)	October 30, 2021			May 1, 2021			October 29, 2022			April 30, 2022
Land	$	3.3		$	3.3		$	2.9		$	3.3
Buildings and building improvements		87.9			88.9			83.9			89.2
Machinery and equipment		417.9			408.0			397.0			407.5
Construction in progress		24.2			24.8			32.3			21.5
Total property, plant and equipment, gross		533.3			525.0			516.1			521.5
Less: accumulated depreciation		(326.7	)		(321.0	)		(326.5	)		(324.5	)
Property, plant and equipment, net	$	206.6		$	204.0		$	189.6		$	197.0

Depreciation expense was ~~$8.5~~$7.5 million and ~~$7.6~~$8.5 million in the three months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020,~~30, 2021, respectively. Depreciation expense was ~~$16.3~~$15.1 million and ~~$15.0~~$16.3 million in the six months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020,~~30, 2021, respectively. As of October 29, 2022 and April 30, ~~2021 and May 1, 2021,~~2022, capital expenditures recorded in accounts payable totaled ~~$2.9~~$5.1 million and ~~$5.5~~$4.4 million, respectively.

The Company incurs pre-production tooling costs related to products produced for its customers under long-term supply arrangements. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable by the customer. As of October 29, 2022 and April 30, ~~2021 and May 1, 2021,~~2022, the Company had ~~$30.1~~$27.0 million and ~~$25.0~~$27.2 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.

Costs for molds, dies and other tools used in products produced for its customers under long-term supply arrangements for which the Company has title are capitalized in property, plant and equipment and amortized over the shorter of the life of the arrangement or ~~over~~ the estimated useful life of the assets. As of October 29, 2022 and April 30, ~~2021 and May 1, 2021,~~2022, Company-owned tooling was ~~$13.5~~$13.1 million and ~~$17.0~~$14.6 million, respectively.

The Company tests goodwill and indefinite-lived intangible assets ~~and goodwill~~ for impairment ~~by either performing a qualitative evaluation or a quantitative test at least annually, or more frequently if~~on an ~~indication~~annual basis as of ~~impairment arises. The qualitative evaluation is an assessment~~the beginning of ~~factors to determine whether it is more likely than not~~the fourth quarter each fiscal year. In addition, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions used in determining fair value ~~of a reporting unit or asset is less than its carrying amount.~~ and therefore require interim goodwill impairment testing, including long-term revenue growth projections, profitability, discount rates, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. No impairment indicators were identified in the ~~second quarter of fiscal~~six months ended October 29, 2022.

Details of identifiable intangible assets are shown below:


	As of October 29, 2022
(in millions)	Gross		Accumulated amortization			Net		Weighted average useful life (years)
Amortized intangible assets:
Customer relationships and agreements	$	230.4	$	(61.0	)	$	169.4		14.2
Trade names, patents and technology licenses		57.5		(32.0	)		25.5		5.8
Total amortized intangible assets		287.9		(93.0	)		194.9
Unamortized trade name		1.8		—			1.8
Total other intangible assets	$	289.7	$	(93.0	)	$	196.7


	As of April 30, 2022
(in millions)	Gross		Accumulated amortization			Net		Weighted average useful life (years)
Amortized intangible assets:
Customer relationships and agreements	$	232.3	$	(55.1	)	$	177.2		14.7
Trade names, patents and technology licenses		58.0		(29.3	)		28.7		6.2
Total amortized intangible assets		290.3		(84.4	)		205.9
Unamortized trade name		1.8		—			1.8
Total other intangible assets	$	292.1	$	(84.4	)	$	207.7

As of October 30, 2021

(in millions)

Gross

Accumulated
amortization

Net

Weighted
average useful
life (years)

Amortized intangible assets:

Customer relationships and agreements

$
234.5

$
(49.1
)

$
185.4

15.1

Trade names, patents and technology licenses

58.5

(26.6
)

31.9

6.6

Total amortized intangible assets

293.0

(75.7
)

217.3

Unamortized trade name

1.8

—

1.8

Total other intangible assets

$
294.8

$
(75.7
)

$
219.1

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:

(in millions)

Fiscal Year:

Remainder of 2022

$
9.5

2023

19.1

2024

18.7

2025

18.1

2026

17.2

Thereafter

134.7

Total

$
217.3

The Company is exposed to various market risks including, but not limited to, foreign currency exchange rates and market interest rates. The Company strives to control its exposure to these risks through our normal operating activities and, where appropriate, through the use of derivative financial instruments. Derivative financial instruments are measured at fair value on a recurring basis.

For a designated cash flow hedge, the effective portion of the change in the fair value of the derivative financial instrument is recorded in ~~Accumulated Other Comprehensive Income~~accumulated other comprehensive income (“AOCI”) in the condensed consolidated balance sheets. When the underlying hedged transaction is realized, the gain or loss previously included in AOCI is recorded in earnings and reflected in the condensed consolidated statements of income on the same line as the gain or loss on the hedged item attributable to the hedged risk. The gain or loss associated with changes in the fair value of derivatives not designated as hedges are recorded immediately in the condensed consolidated statements of income on the same line as the associated risk. For a designated net investment hedge, the effective portion of the change in the fair value of the derivative financial instrument is recorded as a cumulative translation adjustment in AOCI in the condensed consolidated balance sheets.

The Company has a variable-rate, cross-currency swap, maturing on August 31, 2023, with a notional value of ~~$60.0~~$60.0 million (€54.8 million). The Company entered into the cross-currency swap to mitigate changes in net assets due to changes in U.S. dollar-euro spot exchange rates. The cross-currency swap is designated as a hedge of the Company’s net investment in a euro-based subsidiary.

Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter, under the spot-to-spot method. The Company recognizes the impact of all other changes in fair value of the derivative, which represents the interest rate differential of the cross-currency swap, through interest ~~expense, which was not material in either~~expense. For the three ormonths ended October 29, 2022 and October 30, 2021, the Company recorded gains of $0.6 million and $0.1 million, respectively, in interest expense, net in the condensed consolidated statements of income. For the six months ended October ~~30, 2021 or~~29, 2022 and October ~~31, 2020.~~

~~In April~~30, 2021, the Company ~~entered into~~recorded gains of $0.9 million and $0.1 million, respectively, in interest expense, net in the condensed consolidated statements of income.

The Company has interest rate swaps, maturing on August 31, 2023, with a notional value of ~~$100.0~~$100.0 million, to manage its exposure to, and to mitigate the impact of, interest rate variability. The interest rate swaps are designated as cash flow hedges.

Hedge effectiveness is assessed at the inception of the hedging relationship and quarterly thereafter. The effective portion of the periodic changes in fair value is recognized in ~~AOCI.~~AOCI in the condensed consolidated balance sheets. Subsequently, the accumulated gains and losses recorded in AOCI are reclassified to income in the period during which the hedged cash flow impacts earnings, which are expected to be immaterial over the next 12 months. No ineffectiveness was recognized in the three or six months ended October 29, 2022 or October 30, 2021.

The Company uses short-term foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. These forward contracts are not designated as hedging instruments. Gains and losses on these forward contracts are recognized in other income, net, along with the foreign currency gains and losses on monetary assets and liabilities, in the condensed consolidated statements of income.

As of October 29, 2022 and April 30, ~~2021 and May 1, 2021,~~2022, the Company held foreign currency forward contracts with a notional value of ~~$27.5~~$62.6 million and ~~$14.8~~$38.6 million, respectively. During the three and six months ended October 29, 2022, the Company recognized a loss of $2.4 million and $2.8 million, respectively, related to foreign currency forward contracts in the condensed consolidated statements of income. During both the three and six months ended October 30, 2021, ~~an immaterial~~a gain of $0.3 million was recognized in the condensed consolidated statements of income.

Gross amounts recorded in other comprehensive income (loss) were as follows:


	Three Months Ended				Six Months Ended					Three Months Ended				Six Months Ended
(in millions)	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020			October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Net investment hedges	$	1.6	$	1.1	$	2.8	$	(3.5	)	$	1.4	$	1.6	$	3.4	$	2.8
Interest rate swaps		0.7		—		0.6		—			0.7		0.7		0.7		0.6
Total	$	2.3	$	1.1	$	3.4	$	(3.5	)

1514

Table of Contents


Total		$	2.1			$	2.3			$	4.1			$	3.4

Note 8.7. Debt

A summary of debt is shown below:


(in millions)	October 30, 2021			May 1, 2021			October 29, 2022			April 30, 2022
Revolving credit facility	$	—		$	9.9
Term loan		212.5			218.7		$	200.0		$	206.3
Other debt		11.8			13.0			4.6			5.1
Unamortized debt issuance costs		(1.2	)		(1.5	)		(0.6	)		(0.9	)
Total debt		223.1			240.1			204.0			210.5
Less: current maturities		(14.7	)		(14.9	)		(13.0	)		(13.0	)
Total long-term debt	$	208.4		$	225.2		$	191.0		$	197.5

Revolving credit facility/term loan

~~The~~On October 31, 2022, the Company isentered into a ~~party to an~~Second Amended and Restated Credit Agreement ~~(“Credit~~(the “Credit Agreement”) ~~with~~among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the Lenders and other parties named therein. The Credit Agreement amends and restates the Amended and Restated Credit Agreement, dated September 12, 2018 and as previously amended (the “Prior Credit Agreement”), among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, Wells Fargo Bank, ~~N.A.~~National Association, as L/C Issuer, and the Lenders named therein. Among other things, the Credit Agreement (i) increased the multicurrency revolving credit commitments under the Prior Credit Agreement to $750,000,000, (ii) refinanced in full and terminated the term loan facility under the Prior Credit Agreement, and (iii) made certain other changes to the covenants, terms, and conditions under the Prior Credit Agreement. In addition, the Credit Agreement permits the Company to increase the revolving commitments and/or add one or more tranches of term loans under the Credit Agreement from time to time by up to an amount equal to (i) $250,000,000 plus (ii) an additional amount so long as the leverage ratio would not exceed 3.00:1.00 on a pro forma basis, subject to, among other things, the receipt of additional commitments from existing and/or new lenders. The Credit Agreement terminates on October 31, 2027.

Loans denominated in September 2023 and consists of a senior unsecured revolving credit facility (“Revolving Credit Facility”) of $200.0 million and a senior unsecured term loan (“Term Loan”) of $250.0 million. In addition, the Company has an option to increase the size of the Revolving Credit Facility and Term Loan by up to an additional $200.0 million, subject to customary conditions and approval of the lenders providing new commitments. The Credit Agreement is guaranteed by the Company’s wholly-owned U.S. subsidiaries. For the Term Loan, the Company is required to make quarterly principal payments of 1.25% of the original Term Loan ($3.1 million) through maturity, with the remaining balance due on September 12, 2023.

~~Outstanding borrowings~~US dollars under the Credit Agreement bear interest at ~~variable rates~~either (a) an adjusted base rate or (b) an adjusted term Secured Overnight Financing Rate (“SOFR”) rate or term SOFR daily floating rate (in each case, as determined in accordance with the provisions of the Credit Agreement) in each case plus an applicable margin (the “Applicable Margin”) ranging between 0.375% and 1.25%, in the case of adjusted base rate loans, and between 1.375% and 2.25%, in the case of adjusted term SOFR rate loans and term SOFR daily floating rate loans. The Applicable Margin is set based on the ~~type of borrowing and the~~ Company’s ~~debt to EBITDA financial ratio, as defined in~~consolidated leverage ratio.

In connection with the Credit Agreement, the Company incurred debt issuance costs of approximately $3.2 million which will be capitalized and, along with the current unamortized debt issuance costs of $0.6 million, will be amortized into interest expense over the term of the Credit Agreement.

The weighted-average interest rate on outstanding borrowings under the Prior Credit Agreement was approximately ~~1.3%~~4.4% as of October ~~30, 2021.~~29, 2022. The Prior Credit Agreement ~~contains~~contained customary representations and warranties, financial covenants, restrictive covenants and events of default. As of October ~~30, 2021,~~29, 2022, the Company was in compliance with all the covenants in the Prior Credit Agreement.

Other debt

One of the Company’s European subsidiaries has debt that consists of 11three notes with maturities ranging from ~~2021~~2023 to 2031. The weighted-average interest rate on this debt was approximately ~~1.5%~~1.4% at October ~~30, 2021~~29, 2022 and ~~$2.2~~$0.5 million of the debt was classified as short-term.

Note 9.8. Shareholders’ Equity

Share buyback program

On March 31, 2021, the Board of Directors authorized the purchase of up to ~~$100.0~~$100.0 million of the Company’s outstanding common stock through March 31, 2023. ~~Such purchases~~On June 16, 2022, the Board of Directors authorized an increase in the share buyback program of an additional $100.0 million, and extended the expiration of the program to June 14, 2024. Purchases may be made in private transactions or on the open market, ~~in private transactions or~~including pursuant to purchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934.

The following table summarizes the Company’s stock buyback activity under this share buyback program:


	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
(in millions, except share and per share data)	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020		October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Shares purchased		807,516		—		965,029		—		508,179		807,516		825,814		965,029
Average price per share	$	43.07	$	—	$	43.93	$	—	$	38.69	$	43.07	$	38.21	$	43.93
Total cost	$	34.8	$	—	$	42.4	$	—	$	19.7	$	34.8	$	31.6	$	42.4

As of October ~~30, 2021,~~29, 2022, a total of ~~1,132,978~~2,418,953 shares have been purchased at a total cost of ~~$49.9~~$102.8 million since the commencement of the share buyback program. All purchased shares were retired and are reflected as a reduction of common stock for the par value of shares, with the excess applied as a reduction to retained earnings. As of October ~~30, 2021,~~29, 2022, the dollar value of shares that remained available to be purchased by the Company under this share buyback program was ~~approximately $50.1~~$97.2 million.

~~Table of Contents~~Dividends

~~Dividends~~

The Company paid dividends totaling ~~$5.1~~$4.9 million and ~~$4.1~~$5.1 million in the three months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020,~~30, 2021, respectively. The Company paid dividends totaling ~~$10.3~~$9.9 million and ~~$9.1~~$10.3 million in the six months ended October 29, 2022 and October 30, 2021, ~~and October 31, 2020,~~ respectively. Dividends paid in the six months ended October 31, 2020 include $0.9 million of dividends on restricted stock that vested during the period. The Company increased its quarterly dividend from $0.11 per share to $0.14 per share beginning in the three months ended July 31, 2021.

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 AOCI, net of tax is shown below:

Three Months Ended

Six Months Ended

(in millions)

October 30, 2021

October 31, 2020

October 30, 2021

October 31, 2020

Currency Translation Adjustments:

Balance at beginning of period

$
7.4

$
(5.6
)

$
11.5

$
(25.9
)
Other comprehensive (loss) income recognized during the period, net of tax (expense) benefit of $0.1 million; $-; $(0.1) million; $0.3 million

(6.6
)

1.4

(10.7
)

21.7

Balance at end of period

0.8

(4.2
)

0.8

(4.2
)

Derivative Financial Instruments:

Balance at beginning of period

(4.5
)

(4.6
)

(5.4
)

(1.0
)
Other comprehensive income (loss) recognized during the period, net of tax (expense) benefit of $(0.6) million; $(0.2) million; $(0.8) million; $0.8 million

1.7

0.9

2.6

(2.7
)
Balance at end of period

(2.8
)

(3.7
)

(2.8
)

(3.7
)

Total accumulated other comprehensive loss

$
(2.0
)

$
(7.9
)

$
(2.0
)

$
(7.9
)


	Three Months Ended October 29, 2022									Six Months Ended October 29, 2022
(in millions)	Currency translation adjustments			Derivative instruments			Total			Currency translation adjustments			Derivative instruments			Total
Balance at beginning of period	$	(41.4	)	$	5.2		$	(36.2	)	$	(30.5	)	$	3.7		$	(26.8	)
Other comprehensive income (loss)		(19.9	)		2.1			(17.8	)		(30.8	)		4.1			(26.7	)
Tax (expense) benefit		0.2			(0.5	)		(0.3	)		0.2			(1.0	)		(0.8	)
Net other comprehensive income (loss)		(19.7	)		1.6			(18.1	)		(30.6	)		3.1			(27.5	)
Balance at the end of period	$	(61.1	)	$	6.8		$	(54.3	)	$	(61.1	)	$	6.8		$	(54.3	)


	Three Months Ended October 30, 2021									Six Months Ended October 30, 2021
(in millions)	Currency translation adjustments			Derivative instruments			Total			Currency translation adjustments			Derivative instruments			Total
Balance at beginning of period	$	7.4		$	(4.5	)	$	2.9		$	11.5		$	(5.4	)	$	6.1
Other comprehensive income (loss)		(6.7	)		2.3			(4.4	)		(10.6	)		3.4			(7.2	)
Tax (expense) benefit		0.1			(0.6	)		(0.5	)		(0.1	)		(0.8	)		(0.9	)
Net other comprehensive income (loss)		(6.6	)		1.7			(4.9	)		(10.7	)		2.6			(8.1	)
Balance at the end of period	$	0.8		$	(2.8	)	$	(2.0	)	$	0.8		$	(2.8	)	$	(2.0	)

Table of Contents

Stock-based compensation

On September 14, 2022, the Company's stockholders approved the Methode Electronics, Inc. 2022 Omnibus Incentive Plan (“2022 Plan”). After that date, no further awards can be granted under the Methode Electronics, Inc. 2014 Omnibus Incentive Plan (“2014 Plan”). The 2022 Plan provides for discretionary grants of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units and performance grants to employees and directors.

Subject to adjustment as provided in the 2022 Plan and the 2022 Plan’s share counting provisions, the number of shares of the Company's common stock that will be available for all awards under the 2022 Plan is 5,550,000, less one share for every one share of common stock subject to an option or SAR award granted after April 30, 2022 under the 2014 Plan and 2.28 shares for every one share that was subject to an award other than an option or SAR granted after April 30, 2022 under the 2014 Plan. As of October 29, 2022, there were 5,244,232 shares available for award under the 2022 Plan.

The Company has granted stock options, restricted stock awards (“RSAs”), performance units (“PUs”), restricted stock units (“RSUs”) and stock awards to employees and non-employee directors under the ~~Methode Electronics, Inc.~~2022 Plan, the 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 can no longer make grants under the 2014 Plan, 2010 Plan, 2007 Plan and 2004 Plan. ~~The number of shares of common stock originally authorized under the 2014 Plan is 3,000,000. As of October 30, 2021, there were 101,691 shares available for award under the 2014 Plan.~~

Restricted stock awards and performance units

As of October ~~30, 2021,~~29, 2022, the Company had ~~928,412~~949,674 RSAs outstanding which ~~will~~may be earned based on the achievement of an earnings before net interest, taxes, fixed asset depreciation and intangible asset amortization (“EBITDA”) measure for fiscal 2025. The RSAs will vest ranging from 0%0% (for performance below threshold) to ~~100%~~100% (target performance) based on the achievement of the EBITDA performance measure and continued employment. In addition, if the target performance is exceeded, up to an additional ~~464,206~~474,837 PUs can be earned that will be settled in cash. At the discretion of the Compensation Committee, the PUs may be settled in shares of common stock.

~~Table of Contents~~

The fair value of the RSAs was based on the closing stock price on the date of grant and the RSAs earn dividend equivalents during the vesting period, which are forfeitable if the RSAs do not vest. Compensation expense for the RSAs is recognized when it is probable the minimum threshold performance criteria will be achieved. Compensation expense for the PUs is recognized when it is probable that the target performance criteria will be ~~achieved.~~exceeded. The Company assesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment. The cash-settled PUs represent a non-equity unit with a conversion value equal to the fair market value of a share of the Company’s common stock on the vesting date. The PUs are classified as liability awards due to the cash settlement feature and are re-measured at each balance sheet date. In accordance with ~~ASC~~Accounting Standards Codification 718, based on projections of the Company’s current business portfolio, no compensation expense has ~~not~~ been recognized for the RSAs or PUs ~~in the three or six months ended October 30, 2021 and October 31, 2020,~~to date, as the performance conditions are not probable of being met. Unrecognized stock-based compensation expense at target level of performance is ~~$26.5~~$27.3 million as of October ~~30, 2021.~~29, 2022, which, subject to the performance conditions being met, will be recognized through fiscal 2025.

The following table summarizes RSA activity:


	Restricted stock awards		Weighted average grant date fair value
Non-vested at April 30, 2022		928,412	$	28.50
Awarded		21,262	$	38.41
Vested		—	$	—
Forfeited		—	$	—
Non-vested at October 29, 2022		949,674	$	28.72

Table of Contents

Restricted stock units

RSUs granted ~~under the 2014 Plan~~ vest over a pre-determined period of time, up to five years from the date of grant. The fair value of the RSUs granted ~~was~~are based on the closing stock price on the date of grant and earn dividend equivalents during the vesting periods, which are forfeitable if the RSUs don’t vest.

The following table summarizes RSU ~~activity under the 2014 Plan:~~activity:

	Restricted Stock Units		Weighted average grant date fair value
Non-vested at May 1, 2021		927,611	$	28.50
					Restricted stock units			Weighted average grant date fair value
Non-vested at April 30, 2022						936,391		$	29.16
Awarded		46,300	$	48.41		73,292		$	39.10
Vested		—	$	—		—		$	—
Forfeited		—	$	—		(734	)	$	48.41
Non-vested at October 30, 2021		973,911	$	29.45
Non-vested at October 29, 2022						1,008,949		$	29.87

Under the various stock plans, common stock underlying vested RSUs held by certain executives will not be delivered until termination of employment or a change of control of the Company. As of October ~~30, 2021,~~29, 2022, common stock to be delivered to these executives totaled 577,055 shares.

Director awards

~~In the six months ended October 30, 2021 and October 31, 2020, the~~The Company ~~granted 32,505 shares and 33,000 shares, respectively, of common~~grants stock awards to its non-employee directors ~~under the 2014 Plan.~~as a component of their compensation. The ~~shares vested~~stock awards vest immediately upon grant. Non-employee directors may elect to defer receipt of their shares under the Company’s non-qualified deferred compensation plan. In the six months ended October ~~30, 2021, a total~~29, 2022, the Company granted 43,043 shares, of ~~17,730~~which 27,503 shares were deferred. ~~The fair value of~~All dividends on deferred shares ~~granted was determined~~are reinvested into additional deferred shares based on the closing price of the Company’s common stock on the ~~date~~dividend payment date. Deferred shares will be settled with shares of ~~grant.~~common stock upon each director’s retirement from the Company’s Board of Directors. As of October 29, 2022, there were 45,459 deferred shares outstanding.

Stock options

The following table summarizes ~~combined~~ stock option ~~activity under the 2010 Plan and 2007 Plan:~~activity:

	Shares			Weighted average exercise price		Weighted- average life (years)		Aggregate intrinsic value (in millions)
Outstanding and exercisable at May 1, 2021		73,000		$	37.01		3.2	$	0.6
										Stock options		Weighted average exercise price		Weighted- average life (years)		Aggregate intrinsic value (in millions)
Outstanding and exercisable at April 30, 2022											60,000	$	37.01		2.2	$	0.5
Exercised		(13,000	)	$	37.01						—	$	—
Forfeited		—		$	—						—	$	—
Outstanding and exercisable at October 30, 2021		60,000		$	37.01		2.7	$	0.3
Outstanding and exercisable at October 29, 2022											60,000	$	37.01		1.7	$	0.2

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 period 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. ~~The total intrinsic value of options exercised in the six months ended October 30, 2021 was $0.2 million.~~

~~Table of Contents~~

Stock-based compensation expense

All stock-based awards to employees and non-employee directors are recognized in selling and administrative expenses on the condensed 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 related to the equity awards:


	Three Months Ended				Six Months Ended
(in millions)	October 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
RSUs	$	2.7	$	2.6	$	5.1	$	5.1
Deferred director awards		—		—		1.0		0.8
Director awards		—		—		0.6		0.7
Total stock-based compensation expense	$	2.7	$	2.6	$	6.7	$	6.6

Three Months Ended

Six Months Ended

(in millions)

October 30, 2021

October 31, 2020

October 30, 2021

October 31, 2020

RSUs

$
2.6

$
1.0

$
5.1

$
1.0

Phantom director awards

—

—

0.8

—

Director awards

—

—

0.7

0.9

Total stock-based compensation expense

$
2.6

$
1.0

$
6.6

$
1.9

Three Months Ended

Six Months Ended

October 30, 2021

October 31, 2020

October 30, 2021

October 31, 2020

Numerator:

Net income (in millions)

$
27.5

$
38.6

$
56.6

$
59.3

Denominator:

Denominator for basic income per share - weighted average shares outstanding and vested/unissued restricted stock units

37,544,357

38,106,793

37,741,923

37,971,668

Dilutive potential common shares

538,899

20,745

528,684

171,310

Denominator for diluted income per share

38,083,256

38,127,538

38,270,607

38,142,978

Basic and diluted income per share:

Basic income per share

$
0.73

$
1.01

$
1.50

$
1.56

Diluted income per share

$
0.72

$
1.01

$
1.48

$
1.56

Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding

928,412

1,017,000

928,412

559,334

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”).~~Officer. The Company has four reporting segments as described below.

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, 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. Methode 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 tables below present information about the Company’s reportable segments:


	Three Months Ended October 30, 2021																	Three Months Ended October 29, 2022
(in millions)	Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated			Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated
Net sales	$	197.1		$	82.7		$	18.0	$	0.8		$	(3.1	)	$	295.5		$	198.3		$	107.8		$	14.1	$	1.1		$	(5.4	)	$	315.9
Transfers between segments		(1.1	)		(2.0	)		0		0			3.1			0			(1.4	)		(4.0	)		—		—			5.4			—
Net sales to unaffiliated customers	$	196.0		$	80.7		$	18.0	$	0.8		$	0		$	295.5		$	196.9		$	103.8		$	14.1	$	1.1		$	—		$	315.9

Income (loss) from operations	$	23.6		$	18.8		$	4.4	$	(1.8	)	$	(11.8	)	$	33.2		$	23.4		$	25.0		$	1.6	$	(1.4	)	$	(15.8	)	$	32.8
Interest expense, net																1.1																	0.5
Other income, net																(0.9	)																(1.1	)
Income before income taxes															$	33.0																$	33.4


	Three Months Ended October 31, 2020																	Three Months Ended October 30, 2021
(in millions)	Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated			Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated
Net sales	$	216.9		$	69.5		$	16.4	$	0.8		$	(2.8	)	$	300.8		$	197.1		$	82.7		$	18.0	$	0.8		$	(3.1	)	$	295.5
Transfers between segments		(1.2	)		(1.6	)		0		0			2.8			0			(1.1	)		(2.0	)		—		—			3.1			—
Net sales to unaffiliated customers	$	215.7		$	67.9		$	16.4	$	0.8		$	0		$	300.8		$	196.0		$	80.7		$	18.0	$	0.8		$	—		$	295.5

Income (loss) from operations	$	38.8		$	16.1		$	3.1	$	(1.5	)	$	(11.5	)	$	45.0		$	23.6		$	18.8		$	4.4	$	(1.8	)	$	(11.8	)	$	33.2
Interest expense, net																1.4																	1.1
Other income, net																(2.6	)																(0.9	)
Income before income taxes															$	46.2																$	33.0


	Six Months Ended October 30, 2021																	Six Months Ended October 29, 2022
(in millions)	Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated			Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated
Net sales	$	394.1		$	163.9		$	30.7	$	1.6		$	(7.0	)	$	583.3		$	375.6		$	201.5		$	27.1	$	1.8		$	(7.7	)	$	598.3
Transfers between segments		(2.3	)		(4.7	)		0		0			7.0			0			(2.1	)		(5.6	)		—		—			7.7			—
Net sales to unaffiliated customers	$	391.8		$	159.2		$	30.7	$	1.6		$	0		$	583.3		$	373.5		$	195.9		$	27.1	$	1.8		$	—		$	598.3

Income (loss) from operations	$	50.9		$	39.0		$	5.5	$	(3.0	)	$	(25.1	)	$	67.3		$	38.1		$	47.4		$	3.2	$	(2.9	)	$	(31.2	)	$	54.6
Interest expense, net																2.2																	0.5
Other income, net																(2.7	)																(5.2	)
Income before income taxes															$	67.8																$	59.3


	Six Months Ended October 31, 2020																	Six Months Ended October 30, 2021
(in millions)	Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated			Automotive			Industrial			Interface		Medical			Eliminations /Corporate			Consolidated
Net sales	$	343.3		$	121.9		$	29.8	$	1.2		$	(4.5	)	$	491.7		$	394.1		$	163.9		$	30.7	$	1.6		$	(7.0	)	$	583.3
Transfers between segments		(2.5	)		(2.0	)		0		0			4.5			0			(2.3	)		(4.7	)		—		—			7.0			—
Net sales to unaffiliated customers	$	340.8		$	119.9		$	29.8	$	1.2		$	0		$	491.7		$	391.8		$	159.2		$	30.7	$	1.6		$	—		$	583.3

Income (loss) from operations	$	54.1		$	23.1		$	4.2	$	(3.1	)	$	(19.5	)	$	58.8		$	50.9		$	39.0		$	5.5	$	(3.0	)	$	(25.1	)	$	67.3
Interest expense, net																3.0																	2.2
Other income, net																(6.0	)																(2.7	)
Income before income taxes															$	61.8																$	67.8


(in millions)	October 29, 2022		April 30, 2022
Identifiable assets:
Automotive	$	700.6	$	689.8
Industrial		463.7		455.3
Interface		113.2		108.1
Medical		6.5		7.9
Eliminations/Corporate		110.3		128.0
Total identifiable assets	$	1,394.3	$	1,389.1

Table of Contents

(in millions)

October 30, 2021

May 1, 2021

Identifiable assets:

Automotive

$
749.7

$
739.5

Industrial

483.7

461.6

Interface

100.9

90.4

Medical

7.3

7.6

Eliminations/Corporate

89.1

167.9

Total identifiable assets

$
1,430.7

$
1,467.0

~~Note 12.~~

Note 11. Contingencies

Certain litigation arising in the normal course of business is pending against us. The Company is, from time-to-time, subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters, environmental matters and intellectual property matters. 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 Company's opinion, based on the information available, that it has adequate reserves for these liabilities.

Hetronic Germany-GmbH Matters

For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. The Company became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, the Company terminated all of its agreements with the Fuchs companies. 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~~$102 million in compensatory damages and ~~$11~~$11 million in punitive damages. On April 22, 2020, the District 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 District Court held defendants in contempt for violating the permanent injunction and entered the final judgment. Defendants appealed entry of the final monetary judgment as well. The appeal of the permanent injunction and the appeal of the final judgment were consolidated into a single appeal before the U.S. Court of Appeals for the Tenth Circuit. On August 24, 2021, the Tenth Circuit issued a decision affirming the lower court’s ruling with the exception that it instructed the District Court to modify the injunction from the entire world to all of the countries in which Hetronic sells its products. ~~The~~On April 20 and 21, 2022, the District Court ~~has indicated that it will set~~held a hearing related to modifying the injunction pursuant to the Tenth Circuit’s ~~opinion.~~opinion, and the parties have filed post-hearing briefs. The defendants ~~have~~also filed a ~~motion~~petition for certiorari with the United States Supreme Court seeking ~~a 60-day extension~~ to ~~late January 2022 to determine if they will seek~~further appeal the extraterritorial application of the Lanham Act in this case. The Company opposed that petition. The Supreme Court requested the views of the Solicitor General on the petition for certiorari, and ~~if so, to file their~~the Solicitor General recommended granting the petition. On November 4, 2022, the Supreme Court granted the petition. The Supreme Court appeal currently is being briefed. No hearing date has yet been set. Like any judgment, particularly ~~any~~a judgment involving defendants outside of the United States, there is no guarantee that the Company will be able to collect all or any portion of the judgment.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries.

This Quarterly Report on Form 10-Q (“Quarterly Report”) includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, express or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook” or “continue,” and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following:

Additional details and factors are discussed under the caption “Risk Factors” in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended ~~May 1, 2021.~~April 30, 2022. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly ~~disclaims~~disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.

We are a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer and produce mechatronic products for Original Equipment Manufacturers (“OEMs”) utilizing our broad range of technologies for user interface, light-emitting diode (“LED”) lighting system, power distribution and sensor applications.

Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance and medical devices. Our business is managed on a segment basis, with those segments being Automotive, Industrial, Interface and Medical.

The COVID-19 pandemic and the ongoing measures to reduce its spread have negatively impacted the global economy, disrupted consumer and customer demand and global supply chains, and resulted in manufacturing inefficiencies and increased freight costs due to global capacity constraints. ~~We expect that~~Beginning late in the ~~global health crisis caused~~fourth quarter of fiscal 2022 and continuing into the first quarter of fiscal 2023, various regions in China, including regions where we and our customers have operations, were subjected to lock-downs imposed by governmental authorities to mitigate the spread of COVID-19 ~~pandemic will continue to~~in those areas. The resulting industry-wide production interruptions adversely impacted our results of operations in the six months ended October 29, 2022.

Any future resurgence of COVID-19, and its related impacts, could negatively impact our business and future results of ~~operations for the foreseeable future.~~operations. The extent of the impact will depend on a number of evolving and uncertain factors, including the duration and spread of COVID-19 (and its variants), the rate of vaccinations, actions taken by governmental authorities to further restrict business operations and social activity and impose travel restrictions, shifting consumer demand, the ability of our supply chain to deliver in a timely and cost-effective manner, the ability of our employees and manufacturing facilities to operate efficiently and effectively, the continued viability and financial stability of our customers and suppliers and future access to capital.

We continue to focus on effectively managing the unprecedented challenges and uncertainties of the pandemic on a global basis. Management has prioritized the health and safety of our employees and their families. We adopted numerous safety procedures at our global facilities, including hygiene and disinfection protocols, testing and contact tracing, social distancing and wearing personal protective equipment. We implemented the sharing of best practices throughout our global facilities, resulting in effective and standardized safety guidelines and procedures, updated on a regular basis, promoting the health and safety of our employees.

~~While demand for our products improved in fiscal 2021, the recovery in demand has had~~We continue to experience business interruptions, including customer shutdowns and increased material and logistics costs, labor shortages, and most significantly, impacts from the worldwide semiconductor supply shortage. The semiconductor supply shortage is due, in part, to increased demand across multiple industries, including the automotive industry, resulting in a slowdown in ~~their~~ production schedules. The semiconductor supply shortage is also impacting our supply chain and our ability to meet demand at some of our non-automotive customers. We expect this semiconductor shortage ~~will likely~~to have a continued impact on our operating results and financial condition for the remainder of fiscal 2023.

Adverse macroeconomic conditions, including but not limited to inflation, slower growth or recession, new or increased tariffs, changes to fiscal and monetary policy, higher interest rates, wage and commodity inflation and currency fluctuations could adversely affect demand for our products. In addition, the Russia/Ukraine conflict has resulted in, ~~fiscal 2022.~~among other things, economic sanctions imposed by the international community which have impacted the global economy and given rise to potential global security issues that may adversely affect international business and economic conditions. Although we have no operations in Russia or Ukraine, certain of our customers and suppliers have been negatively impacted by these events, which in turn has impacted markets where we do business, including Europe and Asia. The economic sanctions imposed on Russia have further increased existing global supply chain, logistics, and inflationary challenges. For example, in response to the sanctions imposed on Russia by Western countries, Russia has reduced the volume of natural gas it sends to European countries, which has resulted in, and could continue to result in increased energy costs for our EMEA operations. If Russia further reduces or turns off energy supplies to Europe, our EMEA operations could be adversely affected.

The ~~comparison of~~table below compares our ~~historical~~ results of operations ~~for~~between the three and six months ended October ~~30, 2021~~ to29, 2022 and the three and six months ended October ~~31, 2020~~30, 2021: ~~is as follows:~~

Net sales ~~decreased $5.3~~increased $20.4 million, or ~~1.8%~~6.9%, to $315.9 million in the three months ended October 29, 2022, compared to $295.5 million in the three months ended October 30, ~~2021, compared to $300.8 million in the three months ended October 31, 2020.~~2021. The ~~decrease~~increase was primarily due to ~~lower~~higher sales ~~volumes~~ in the ~~Automotive~~Industrial segment, partially offset by ~~higher~~lower sales ~~volumes~~ in the ~~Industrial~~Interface segment. Net sales were ~~favorably~~unfavorably impacted by foreign currency translation of ~~$2.8~~$22.2 million, primarily due to the strengthening of the ~~Chinese renminbi,~~U.S. dollar relative to the ~~U.S. dollar.~~

Net sales increased ~~$91.6~~$15.0 million, or ~~18.6%~~2.6%, to $598.3 million in the six months ended October 29, 2022, compared to $583.3 million in the six months ended October 30, ~~2021, compared to $491.7 million in the six months ended October 31, 2020.~~2021. The increase was primarily due to higher sales in the ~~Automotive and~~ Industrial ~~segments, which were negatively impacted~~segment, partially offset by ~~the COVID-19 pandemic~~lower sales in the ~~first quarter of fiscal 2021.~~Automotive segment. Net sales were ~~favorably~~unfavorably impacted by foreign currency translation of ~~$13.1~~$36.5 million, primarily due to the strengthening of the ~~Chinese renminbi and euro,~~U.S. dollar relative to the ~~U.S. dollar.~~euro and Chinese renminbi. Net sales included customer cost recoveries from spot buys of materials and premium freight costs of $16.9 million in the six months ended October 29, 2022, compared to $4.5 million in the six months ended October 30, 2021. Excluding the impact of foreign currency translation and customer cost recoveries, net sales increased $39.1 million, or 6.8%.

Cost of products sold increased ~~$6.3~~$15.5 million, or ~~2.9%~~6.8%, to $241.8 million (76.5% of net sales) in the three months ended October 29, 2022, compared to $226.3 million (76.6% of net sales) in the three months ended October 30, ~~2021, compared to $220.0 million (73.1% of net sales) in the three months ended October 31, 2020.~~2021. Excluding ~~the impact of~~ foreign currency translation, cost of products sold increased ~~by $4.3~~$32.2 million. The increase was primarily due to higher material costs of $29.5 million as a result of ~~higher material, logistics~~an increase in sales volumes and ~~other operating~~ costs related to spot buys of $7.0 million due in part to global supply chain disruptions and factory inefficiencies. This was partially offset by restructuring costs of $2.7 million recognized in the three months ended October 31, 2020.materials.

Cost of products sold increased ~~$76.6~~$20.0 million, or ~~20.9%~~4.5%, to $462.4 million (77.3% of net sales) in the six months ended October 29, 2022, compared to $442.4 million (75.8% of net sales) in the six months ended October 30, ~~2021, compared to $365.8 million (74.4% of net sales) in the six months ended October 31, 2020.~~2021. Excluding ~~the impact of~~ foreign currency translation, cost of products sold increased ~~by $67.4~~$46.9 million. The increase was primarily due to higher material ~~logistics and other operating~~ costs of ~~$71.9~~$42.4 million as a result of ~~higher~~an increase in sales volumes and costs related to spot buys of materials.

Gross profit margin was 23.5% of net sales in the ~~impact of global supply chain disruptions and factory inefficiencies. Labor costs were higher as the six~~three months ended October ~~31, 2020 included the impact of temporary salary reductions and four-day work weeks in response~~29, 2022, compared to ~~the COVID-19 pandemic. This was partially offset by restructuring costs of $4.6 million recognized in the six months ended October 31, 2020.~~

~~Gross profit margin was~~ 23.4% of net sales in the three months ended October 30, ~~2021, compared to 26.9%~~2021. Gross margins remained steady as higher sales volumes offset higher material costs.

Gross profit margin was 22.7% of net sales in the ~~three~~six months ended October ~~31, 2020. The decrease was due~~29, 2022, compared to ~~lower sales volumes and higher material and other costs associated with supply chain disruptions.~~

~~Gross profit margin was~~ 24.2% of net sales in the six months ended October 30, ~~2021, compared to 25.6% of net sales in the six months ended October 31, 2020.~~2021. The decrease was due to higher material and other costs associated with supply chain disruptions, ~~higher labor costs,~~ partially offset by higher sales volumes. ~~Labor costs were higher as the six months ended October 31, 2020 included the impact~~

Selling and administrative expenses increased ~~$0.4~~$5.4 million, or ~~1.3%~~17.3%, to $36.6 million (11.6% of net sales) in the three months ended October 29, 2022, compared to $31.2 million (10.6% of net sales) in the three months ended October 30, ~~2021, compared to $30.8 million (10.2% of net sales) in the three months ended October 31, 2020.~~2021. Excluding ~~the impact of~~ foreign currency translation, selling and administrative expenses increased ~~by $0.2~~$7.0 million. The increase was primarily due to higher ~~stock-based~~annual cash incentive compensation expense, professional fees and salary ~~expense, partially offset by lower restructuring costs and professional fees.~~expense.

Selling and administrative expenses increased ~~$6.6~~$7.9 million, or ~~11.5%~~12.3%, to $71.9 million (12.0% of net sales) in the six months ended October 29, 2022, compared to $64.0 million (11.0% of net sales) in the six months ended October 30, ~~2021, compared to $57.4 million (11.7% of net sales) in the six months ended October 31, 2020.~~2021. Excluding foreign currency translation, selling and administrative expenses increased ~~by $5.6~~$10.7 million. The increase was primarily due to higher ~~stock-based~~annual cash incentive compensation expense, salary expense, professional fees and travel ~~expense, partially offset by lower restructuring costs and professional fees. Selling and administrative expenses as a percentage~~expense.

Amortization of intangibles was ~~higher~~$4.7 million in the three months ended October 29, 2022, compared to $4.8 million in the three months ended October 30, 2021.

Amortization of intangibles was $9.4 million in the six months ended October ~~31, 2020 as net sales was impacted by the COVID-19 pandemic.~~

~~Stock-based compensation expense increased as our long-term incentive plan was not introduced until the second quarter of fiscal 2021. Professional fees decreased due~~29, 2022, compared to ~~lower Hetronic-related legal fees. Salary and travel expense was lower~~$9.6 million in the six months ended October ~~31, 2020 as a result of actions we took in response to the COVID-19 pandemic which included temporary salary reductions and four-day work weeks (which ended~~30, 2021.

Interest expense, net was $0.5 million in the ~~second quarter of fiscal 2021) and the elimination of most business travel. In~~three months ended October 29, 2022, compared to $1.1 million in the three months ended October 30, 2021. The decrease was due to higher interest income of $0.8 million, partially offset by higher interest expense of $0.2 million recognized during the period. Higher interest income and interest expense was due to increasing interest rates.

Interest expense, net was $0.5 million in the six months ended October ~~31, 2020, we recognized restructuring costs of $1.5 million and $3.0 million, respectively.~~

~~Amortization of intangibles was $4.8 million and $9.6~~29, 2022, compared to $2.2 million in the ~~three and~~ six months ended October 30, ~~2021, respectively, compared to $5.0 million and $9.7 million in the three and six months ended October 31, 2020, respectively.~~

Interest expense, net was $1.1 million and $2.2 million in the three and six months ended October 30, 2021, respectively, compared to $1.4 million and $3.0 million in the three and six months ended October 31, 2020, respectively.

2021. The decrease was due to ~~lower average borrowings and~~higher interest income of $1.5 million primarily from our cash holdings as a ~~lower effective~~result of increasing interest ~~rate on outstanding borrowings. Average borrowings were lower as~~rates.

Other income, net was $1.1 million in the three ~~and six~~ months ended October ~~31, 2020 included the precautionary $100.0~~29, 2022, compared to $0.9 million ~~draw-down in March 2020, which was fully repaid~~ in the ~~third quarter of fiscal~~three months ended October 30, 2021.

~~Other income, net~~ Net foreign exchange gain was $0.9 million in the three months ended October ~~30, 2021,~~29, 2022, compared to $2.6 million in the three months ended October 31, 2020. In the three months ended October 30, 2021, we received $2.1 million of government assistance at certain of our international locations with respect to the COVID-19 pandemic, compared to $3.3 million in the three months ended October 31, 2020. ~~Net~~a net foreign exchange ~~losses were~~loss of $1.2 million in the three months ended October 30, ~~2021,~~2021. In the three months ended October 29, 2022, we received $0.2 million of international government assistance, compared to ~~$0.6~~$2.1 million in the three months ended October ~~31, 2020.~~30, 2021.

Other income, net was $5.2 million in the six months ended October 29, 2022, compared to $2.7 million in the six months ended October 30, ~~2021, compared to $6.0~~2021. Net foreign exchange gain was $0.9 million in the six months ended October ~~31, 2020. In the six months ended October 30, 2021, we received $4.0 million of government assistance at certain of our international locations with respect to the COVID-19 pandemic,~~29, 2022, compared to ~~$6.2 million in the six months ended October 31, 2020. Net~~a net foreign exchange ~~losses were~~loss of $1.5 million in the six months ended October 30, ~~2021,~~2021. In the six months ended October 29, 2022, we received $4.3 million of international government assistance with respect to the COVID-19 pandemic, compared to ~~a net foreign exchange gain of $0.1~~$4.0 million in the six months ended October ~~31, 2020.~~30, 2021.

Income tax expense was $5.8 million (17.4% effective tax rate) in the three months ended October 29, 2022, compared to $5.5 million (16.7% effective tax rate) in the three months ended October 30, 2021. The effective tax rate for the three months ended October 29, 2022 was lower than the U.S. statutory tax rate primarily due to income derived from foreign operations with lower statutory tax rates and research deductions claimed in foreign jurisdictions, partially offset by non-deductible expenses. The effective tax rate for the three months ended October 30, 2021 ~~compared~~was lower than the U.S. statutory tax rate primarily due to ~~$7.6~~income derived from foreign operations with lower statutory tax rates.

Income tax expense was $10.2 million ~~(16.5%~~(17.2% effective tax rate) in the ~~three~~six months ended October ~~31, 2020. Our effective tax rate was relatively unchanged between periods.~~

~~Income tax expense was~~29, 2022, compared to $11.2 million (16.5% effective tax rate) in the six months ended October 30, 2021. The effective tax rate for the six months ended October 29, 2022 was lower than the U.S. statutory tax rate primarily due to income derived from foreign operations with lower statutory tax rates and research deductions claimed in foreign jurisdictions, partially offset by non-deductible expenses. The effective tax rate for the six months ended October 30, 2021 was lower than the U.S. statutory tax rate primarily due to income derived from foreign operations with lower statutory tax rates.

Net income increased $0.1 million, or 0.4%, to $27.6 million in the three months ended October 29, 2022, compared to ~~$2.5~~$27.5 million ~~(4.0% effective tax rate)~~in the three months ended October 30, 2021. Net income was unfavorably impacted by foreign currency translation of $3.4 million. Excluding foreign currency translation, net income increased $3.5 million as a result of the reasons described above.

Net income decreased $7.5 million, or 13.3%, to $49.1 million in the six months ended October ~~31, 2020. The lower effective tax rate~~29, 2022, compared to $56.6 million in the six months ended October ~~31, 2020~~30, 2021. Net income was ~~primarily due to discrete tax benefits recorded~~unfavorably impacted by foreign currency translation of ~~$8.2~~$6.3 million. ~~These discrete tax benefits included tax credits earned and research deductions claimed in~~Excluding foreign ~~jurisdictions. Excluding~~currency translation, net income decreased $1.2 million as a result of the ~~discrete tax benefits, the effective tax rate would have been 17.3%.~~reasons described above.

Automotive segment net sales ~~decreased $19.7~~increased $0.9 million, or ~~9.1%~~0.5%, to $196.9 million in the three months ended October 29, 2022, compared to $196.0 million in the three months ended October 30, ~~2021, compared~~2021. Net sales were unfavorably impacted by foreign currency translation of $13.2 million. Excluding foreign currency translation and customer cost recoveries, net sales increased $15.8 million, or 8.2%.

Net sales in North America decreased $1.5 million to ~~$215.7~~$97.8 million in the three months ended October ~~31, 2020. Excluding the impact of foreign currency translation, net sales decreased by $21.6 million.~~

~~Net sales in North America decreased $18.5 million~~29, 2022, compared to $99.3 million in the three months ended October 30, ~~2021, compared~~2021. Excluding customer cost recoveries, net sales increased $0.9 million primarily due to ~~$117.8~~higher vehicle lighting product sales volumes, partially offset by lower sales volumes from a major program roll-off. Net sales in EMEA decreased $1.0 million to $53.9 million in the three months ended October 31, 2020. The decrease was due to lower sales volumes as a result of the worldwide semiconductor supply shortage which impacted demand from our automotive customers. Net sales in EMEA decreased $3.3 million29, 2022, compared to $54.9 million in the three months ended October 30, ~~2021, compared~~2021. The weaker euro, relative to ~~$58.2~~the U.S. dollar, decreased net sales in EMEA by $9.5 million. Excluding foreign currency translation and customer cost recoveries, net sales in EMEA increased $8.4 million due to higher sales volumes. Net sales in Asia increased $3.4 million to $45.2 million in the three months ended October ~~31, 2020. Excluding the impact of foreign currency translation, net sales in EMEA decreased by $2.9 million as a result of lower sales volumes. Net sales in Asia increased $2.1 million~~29, 2022, compared to $41.8 million in the three months ended October 30, ~~2021, compared to $39.7 million in the three months ended October 31, 2020.~~2021. The ~~stronger~~weaker Chinese renminbi, relative to the U.S. dollar, ~~increased~~decreased net sales in Asia by ~~$2.3~~$3.6 million. Excluding ~~the impact of~~ foreign currency translation ~~net sales in Asia decreased by $0.2 million.~~

Automotive segment net sales increased $51.0 million, or 15.0%, to $391.8 million in the six months ended October 30, 2021, compared to $340.8 million in the six months ended October 31, 2020. Excluding the impact of foreign currency translation, net sales increased by $42.0 million.

Net sales in North America increased $4.3 million to $198.4 million in the six months ended October 30, 2021, compared to $194.1 million in the six months ended October 31, 2020. The increase was due to the impact of the COVID-19 pandemic on sales volumes in the six months ended October 31, 2020. Net sales in EMEA increased $25.7 million to $112.7 million in the six months ended October 30, 2021, compared to $87.0 million in the six months ended October 31, 2020. Excluding the impact of foreign currency translation, net sales in EMEA increased by $22.4 million. The increase was due to the impact of the COVID-19 pandemic on sales volumes in the six months ended October 31, 2020. Net sales in Asia increased $21.0 million to $80.7 million in the six months ended October 30, 2021, compared to $59.7 million in the six months ended October 31, 2020. Excluding the impact of foreign currency translation,and customer cost recoveries, Asia net sales increased ~~by $15.3~~$6.4 million primarily due to higher electric vehicle product sales volumes, partially offset by lower touchscreen sales volumes.

Automotive segment net sales decreased $18.3 million, or 4.7%, to $373.5 million in the six months ended October 29, 2022, compared to $391.8 million in the six months ended October 30, 2021. Net sales were unfavorably impacted by foreign currency translation of $22.2 million and the roll-off of a major program in North America. Excluding foreign currency translation and customer cost recoveries, net sales decreased $3.4 million, or 0.9%.

Net sales in North America decreased $5.9 million to $192.5 million in the six months ended October 29, 2022, compared to $198.4 million in the six months ended October 30, 2021. Excluding customer cost recoveries, net sales decreased $11.3 million primarily due to a major program roll-off, partially offset by higher vehicle lighting product ~~sales.~~sales volumes. Net sales in EMEA decreased $6.7 million to $106.0 million in the six months ended October 29, 2022, compared to $112.7 million in the six months ended October 30, 2021. The weaker euro, relative to the U.S. dollar, decreased net sales in EMEA by $17.3 million. Excluding foreign currency translation and customer cost recoveries, net sales in EMEA increased $9.3 million due to higher sales volumes. Net sales in Asia decreased $5.7 million to $75.0 million in the six months ended October 29, 2022, compared to $80.7 million in the six months ended October 30, 2021. The weaker Chinese renminbi, relative to the U.S. dollar, decreased net sales in Asia by $4.9 million. Excluding foreign currency translation and customer cost recoveries, Asia net sales decreased $1.4 million primarily due to COVID-19 lockdowns in China in the first quarter of fiscal 2023.

Automotive segment gross profit ~~decreased $15.7~~increased $1.1 million, or ~~29.7%~~3.0%, to $38.3 million in the three months ended October 29, 2022, compared to $37.2 million in the three months ended October 30, ~~2021, compared~~2021. Excluding the impact of foreign currency translation, gross profit increased $4.0 million. Gross profit margins increased to ~~$52.9 million~~19.5% in the three months ended October ~~31, 2020.~~29, 2022, compared to 19.0% in the three months ended October 30, 2021. The increase in gross profit margins was due to higher sales volumes, which partially offset higher material and other costs due to inflationary pressures.

Automotive segment gross profit decreased $11.2 million, or 14.2%, to $67.7 million in the six months ended October 29, 2022, compared to $78.9 million in the six months ended October 30, 2021. Excluding the impact of foreign currency translation, gross profit decreased ~~by $16.2~~$6.1 million. Gross profit margins decreased to 19.0% in the three months ended October 30, 2021, compared to 24.5% in the three months ended October 31, 2020. The decrease in gross profit margins was primarily due to lower sales volumes and higher material and other costs ~~associated with supply chain disruptions, partially offset by lower restructuring costs.~~ ~~In the three months ended October 31, 2020, gross profit included restructuring costs of $2.6 million.~~

~~Automotive segment gross profit decreased $0.2 million, or 0.3%, to $78.9 million~~18.1% in the six months ended October ~~30, 2021,~~29, 2022, compared ~~to $79.1 million in the six months ended October 31, 2020. Excluding the impact of foreign currency translation, gross profit decreased by $2.5 million. Gross profit margins decreased~~ to 20.1% in the six months ended October 30, ~~2021, compared to 23.2% in the six months ended October 31, 2020.~~2021. The decrease in gross profit margins was due to lower sales volumes in the first quarter of fiscal 2023, higher material and other costs ~~associated with supply chain disruptions~~due to inflationary pressures and the impact from product ~~mix, partially offset by higher sales volumes and lower restructuring costs. In the six months ended October 31, 2020, gross profit included restructuring costs of $4.5 million.~~mix.

Automotive segment income from operations decreased ~~$15.2~~$0.2 million, or ~~39.2%~~0.8%, to $23.4 million in the three months ended October 29, 2022, compared to $23.6 million in the three months ended October 30, ~~2021, compared~~2021. Excluding the impact of foreign currency translation, income from operations increased $1.4 million. The increase was primarily due to ~~$38.8~~higher gross profit, partially offset by higher selling and administrative expenses. Selling and administrative expenses increased due to higher annual cash incentive compensation expense and salary expense as a result of wage inflation.

Automotive segment income from operations decreased $12.8 million, or 25.1%, to $38.1 million in the ~~three~~six months ended October ~~31, 2020.~~29, 2022, compared to $50.9 million in the six months ended October 30, 2021. Excluding the impact of foreign currency translation, income from operations decreased ~~by $15.5~~$9.9 million. The decrease was primarily due to ~~lower~~ ~~gross profit, partially offset by lower selling and administrative expenses. Selling and administrative expenses in the three months ended~~ ~~October 31, 2020 included restructuring costs of $1.3 million.~~

Automotive segment income from operations decreased $3.2 million, or 5.9%, to $50.9 million in the six months ended October 30, 2021, compared to $54.1 million in the six months ended October 31, 2020. Excluding the impact of foreign currency translation, income from operations decreased by $4.8 million. The decrease was primarily due to lower gross profit and higher selling and administrative expenses. Selling and administrative expenses increased due to higher annual cash incentive compensation expense and salary expense ~~partially offset by lower restructuring costs. Salary expense was lower in the six months ended~~ ~~October 31, 2020~~ ~~due to the impact~~as a result of ~~salary reductions and other cost saving measures in response to the COVID-19 pandemic. Restructuring costs were $1.4 million in the six months ended~~ wage inflation.~~October 31, 2020.~~

Industrial segment net sales increased ~~$12.8~~$23.1 million, or ~~18.9%~~28.6%, to $103.8 million in the three months ended October 29, 2022, compared to $80.7 million in the three months ended October 30, ~~2021, compared to $67.9 million in the three months ended October 31, 2020.~~2021. Net sales were unfavorably impacted by foreign currency translation of $9.0 million. Excluding the impact of foreign currency translation and customer cost recoveries, net sales increased ~~by $11.9~~$29.7 million, or 36.8%, primarily due to higher sales volumes ~~from all product categories in the Industrial segment.~~ ~~Net sales in the three months ended October 31, 2020~~of power distribution solutions for data centers and electric vehicles and commercial vehicle lighting solutions ~~and radio remote control devices~~ products.~~were negatively impacted by the COVID-19 pandemic, resulting in lower demand from customers.~~

Industrial segment net sales increased ~~$39.3~~$36.7 million, or ~~32.8%~~23.1%, to $195.9 million in the six months ended October 29, 2022, compared to $159.2 million in the six months ended October 30, ~~2021, compared to $119.9 million in the six months ended October 31, 2020.~~2021. Net sales were unfavorably impacted by foreign currency translation of $14.3 million. Excluding the impact of foreign currency translation and customer cost recoveries, net sales increased ~~by $35.2~~$47.2 million, or 29.7%, primarily due to higher sales volumes of ~~all product categories in the Industrial segment.~~power distribution solutions for data centers and electric vehicles and by commercial vehicle lighting solutions products.

~~Sales volumes in the six months ended October 31, 2020 were negatively impacted from the COVID-19 pandemic.~~

Industrial segment gross profit increased ~~$2.1~~$6.8 million, or ~~8.6%~~25.7%, to $33.3 million in the three months ended October 29, 2022, compared to $26.5 million in the three months ended October 30, ~~2021, compared to $24.4 million in the three months ended October 31, 2020.~~2021. Excluding the impact of foreign currency translation, gross profit increased ~~by $1.8~~$9.4 million. Gross profit margins decreased to 32.1% in the three months ended October 29, 2022, compared to 32.8% in the three months ended October 30, ~~2021, compared to 35.9% in the three months ended October 31, 2020. The decrease in~~2021. Product mix impacted gross ~~profit~~ margins ~~was primarily~~ due to higher ~~materials~~material costs for commercial vehicle lighting solutions products, which was partially offset by higher gross margins for power distribution solutions for data centers and ~~logistics costs and product mix.~~electric vehicles due to increased sales volumes.

Industrial segment gross profit increased ~~$14.2~~$8.7 million, or ~~34.8%~~15.8%, to $63.7 million in the six months ended October 29, 2022, compared to $55.0 million in the six months ended October 30, ~~2021, compared to $40.8 million in the six months ended October 31, 2020.~~2021. Excluding the impact of foreign currency translation, gross profit increased ~~by $12.6~~$13.1 million. Gross profit margins ~~slightly increased~~decreased to 32.5% in the six months ended October 29, 2022, compared to 34.5% in the six months ended October 30, ~~2021, compared to 34.0% in the six months ended October 31, 2020. The increase in~~2021. Product mix impacted gross ~~profit~~ margins ~~was due to~~primarily from higher ~~sales volumes of~~material costs for commercial vehicle lighting solutions ~~and radio remote control product sales. This was partially offset by lower gross profit margins from busbar products.~~products as a result of supply chain disruptions.

Industrial segment income from operations increased ~~$2.7~~$6.2 million, or ~~16.8%~~33.0%, to $25.0 million in the three months ended October 29, 2022, compared to $18.8 million in the three months ended October 30, ~~2021, compared to $16.1 million in the three months ended October 31, 2020.~~2021. Excluding the impact of foreign currency translation, income from operations increased ~~by $2.5~~$8.3 million. The increase was primarily due to higher gross profit, ~~and lower~~partially offset by a slight increase in selling and administrative expenses. ~~Selling and administrative expenses decreased primarily due to lower legal expenses.~~

Industrial segment income from operations increased ~~$15.9~~$8.4 million, or ~~68.8%~~21.5%, to $47.4 million in the six months ended October 29, 2022, compared to $39.0 million in the six months ended October 30, ~~2021, compared to $23.1 million in the six months ended October 31, 2020.~~2021. Excluding the impact of foreign currency translation, income from operations increased ~~by $14.7~~$12.0 million. The increase was primarily due to higher gross profit, ~~and lower~~partially offset by a slight increase in selling and administrative expenses. ~~Selling and administrative expenses decreased primarily due to lower legal expenses and restructuring costs. In the six months ended~~ ~~October 31, 2020, restructuring costs were $0.7 million.~~

Interface segment net sales ~~increased $1.6~~decreased $3.9 million, or ~~9.8%,~~21.7% to $14.1 million in the three months ended October 29, 2022, compared to $18.0 million in the three months ended October 30, ~~2021, compared~~2021. Excluding customer cost recoveries, net sales decreased $4.6 million, or 26.1%. The decrease was primarily due to ~~$16.4 million in the three months ended October 31, 2020.~~ lower demand of appliance products.

Interface segment net sales ~~increased $0.9~~decreased $3.6 million, or ~~3.0%~~11.7%, to $27.1 million in the six months ended October 29, 2022, compared to $30.7 million in the six months ended October 30, ~~2021, compared to $29.8~~2021. Excluding customer cost recoveries, net sales decreased $4.9 million, ~~in the six months ended October 31, 2020.~~or 16.2%. The ~~increase~~decrease was primarily due to ~~higher sales volumes of legacy data solutions products, partially offset by~~ lower ~~sales volumes~~demand of appliance ~~products, which were negatively impacted by a shortage of semiconductor chips.~~products.

Interface segment gross profit ~~increased $1.4~~decreased $2.5 million, or ~~38.9%~~50.0%, to $2.5 million in the three months ended October 29, 2022, compared to $5.0 million in the three months ended October 30, ~~2021, compared~~2021. Gross profit margins decreased to ~~$3.6 million~~17.7% in the three months ended October ~~31, 2020. Gross profit margins increased~~29, 2022, compared to 27.8% in the three months ended October 30, ~~2021, compared to 22.0% in the three months ended October 31, 2020.~~2021. The ~~increase~~decrease in gross profit margins was primarily due to ~~higher~~lower sales ~~volumes of legacy data solutions products.~~volumes.

Interface segment gross profit ~~increased $0.6~~decreased $2.0 million, or ~~9.8%~~29.9%, to $4.7 million in the six months ended October 29, 2022, compared to $6.7 million in the six months ended October 30, ~~2021, compared~~2021. Gross profit margins decreased to ~~$6.1 million~~17.3% in the six months ended October ~~31, 2020. Gross profit margins increased~~29, 2022, compared to 21.8% in the six months ended October 30, ~~2021, compared to 20.5% in the six months ended October 31, 2020.~~2021. The ~~increase~~decrease in gross profit margins was primarily due to ~~higher~~lower sales ~~volumes~~volumes.

Interface segment income from operations ~~increased $1.3~~decreased $2.8 million, or ~~41.9%~~63.6%, to $1.6 million in the three months ended October 29, 2022, compared to $4.4 million in the three months ended October 30, ~~2021, compared to $3.1 million in the three months ended October 31, 2020.~~2021. The ~~increase~~decrease was ~~primarily~~ due to lower gross profit and slightly higher ~~gross profit.~~selling and administrative expenses.

Interface segment income from operations ~~increased $1.3~~decreased $2.3 million, or ~~31.0%~~41.8%, to $3.2 million in the six months ended October 29, 2022, compared to $5.5 million in the six months ended October 30, ~~2021,~~2021. The decrease was due to lower gross profit and slightly higher selling and administrative expenses.

Medical segment net sales increased $0.3 million to $1.1 million in the three months ended October 29, 2022, compared to ~~$4.2~~$0.8 million in the three months ended October 30, 2021. The increase was due to higher product acceptance.

Medical segment net sales increased $0.2 million to $1.8 million in the six months ended October ~~31, 2020. The increase was primarily due to higher gross profit and lower selling and administrative expenses~~. ~~Selling and administrative expenses were lower due to restructuring costs of $0.8 million recognized in the six months ended October 31, 2020.~~

~~Net sales in the Medical segment were unchanged in the three months ended October 30, 2021~~29, 2022, compared to ~~the three months ended October 31, 2020.~~

~~The Medical segment had net sales of~~ $1.6 million in the six months ended October 30, ~~2021, compared to $1.2 million in the six months ended October 31, 2020. Net sales increased~~2021. The increase was due to higher product ~~demand.~~acceptance.

Medical segment gross profit was a loss of $0.1 million in the three months ended October 29, 2022 compared to a loss of $0.4 million in ~~both~~ the three months ended October 30, ~~2021 and~~2021. The improvement was due to higher net sales, partially offset by higher operating costs in the three months ended October ~~31, 2020.~~29, 2022.

Medical segment gross profit was a loss of $0.3 million in the six months ended October 29, 2022 compared to a loss of $0.4 million in the six months ended October 30, ~~2021, compared to a loss of $1.0 million in the six months ended October 31, 2020.~~2021. The improvement was due to higher net sales, ~~and lower research and development expenses.~~partially offset by higher operating costs in the six months ended October 29, 2022.

Medical segment loss from operations ~~increased $0.3~~decreased $0.4 million to $1.4 million in the three months ended October 29, 2022, compared to $1.8 million in the three months ended October 30, ~~2021, compared to $1.5 million in the three months ended October 31, 2020.~~2021. The ~~increase~~decrease in the loss was primarily due to higher gross profit and slightly lower selling and administrative expenses.

Medical segment loss from operations ~~was~~decreased $0.1 million to $2.9 million in the six months ended October 29, 2022, compared to $3.0 million in the six months ended October 30, ~~2021, compared to $3.1 million~~2021. The decrease in the ~~six months ended October 31, 2020. The slight improvement~~loss was primarily due to higher gross ~~profit, partially offset by higher selling and administrative expenses.~~

~~Selling and administrative expenses increased in both the three and six months ended October 30, 2021 due to higher travel and advertising expenses.~~

Our liquidity requirements are primarily to fund our business operations, including capital expenditures and working capital requirements, as well as to fund debt service requirements, dividends and ~~share buybacks.~~stock repurchases. Our primary sources of liquidity are cash flows from operations, existing cash balances and borrowings under our senior unsecured credit agreement. We believe our liquidity position will be sufficient to fund our existing operations and current commitments for at least the next twelve months. However, if economic conditions remain impacted for longer than we expect due to the COVID-19 pandemic, supply chain disruptions, inflationary pressure or other geopolitical risks, including the Russia-Ukraine war, our liquidity position could be severely impacted.

As of October ~~30, 2021,~~29, 2022, we had ~~$177.2~~$129.6 million of cash and cash equivalents, of which ~~$131.4~~$86.1 million was held in subsidiaries outside the U.S. Cash held by these subsidiaries is used to fund operational activities and can be repatriated, primarily through the payment of dividends and the repayment of intercompany loans, without creating material additional income tax expense.

On March 31, 2021, the Board of Directors authorized the purchase of up to $100.0 million of our common stock. ~~Such purchases~~On June 16, 2022, the Board of Directors authorized an increase in the existing share buyback program of an additional $100.0 million, and extended the expiration of the program to June 14, 2024. Purchases may be made in private transactions or on the open market, ~~in private transactions or~~including pursuant to purchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934. As of October ~~30, 2021,~~29, 2022, a total of ~~1,132,978~~2,418,953 shares have been purchased at a total cost of ~~$49.9~~$102.8 million since the commencement of the share buyback program. As of October ~~30, 2021,~~29, 2022, the dollar value of shares that remained available to be purchased under this share buyback program was ~~approximately $50.1~~$97.2 million.

~~Our senior unsecured credit agreement provides for~~On October 31, 2022, we entered into a ~~$200.0 million~~Second Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and the Lenders and other parties named therein. The Credit Agreement amends and restates the Amended and Restated Credit Agreement, dated September 12, 2018 and as previously amended (the “Prior Credit Agreement”), with Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, Wells Fargo Bank, National Association, as L/C Issuer, and the Lenders named therein. Among other things, the Credit Agreement (i) increased the multicurrency revolving credit commitments under the Prior Credit Agreement to $750,000,000, (ii) refinanced in full and terminated the term loan facility under the Prior Credit Agreement, and (iii) made certain other changes to the covenants, terms, and conditions under the Prior Credit Agreement. In addition, the Credit Agreement permits us to increase the revolving commitments and/or add one or more tranches of term loans under the Credit Agreement from time to time by up to an amount equal to (i) $250,000,000 plus (ii) an additional amount so long as the leverage ratio would not exceed 3.00:1.00 on a ~~$250.0 million term loan.~~ pro forma basis, subject to, among other things, the receipt of additional commitments from existing and/or new lenders. The Credit Agreement terminates on October 31, 2027.

As of October ~~30, 2021, no principal was outstanding under the revolving credit facility and we have~~29, 2022, $200.0 ~~million of availability under the revolving credit facility. As of October 30, 2021, $212.5~~ million in principal was outstanding under the term ~~loan. The term~~ loan ~~matures in September 2023 and requires quarterly principal payments of $3.1 million over~~under the ~~five-year term, with the remaining balance due upon maturity.~~Prior Credit Agreement. We were in compliance with all covenants under the ~~senior unsecured credit agreement~~Prior Credit Agreement as of October ~~30, 2021.~~29, 2022. For further information, see Note 8,7, “Debt” to the condensed consolidated financial statements included in this Quarterly Report.

Borrowings under our senior unsecured credit agreement bear interest at rates equal to LIBOR plus an applicable margin. Certain USD LIBOR tenors are expected to be phased out by the end of 2021, with the remaining USD LIBOR tenors expected to be discontinued by June 2023. We may also continue to make borrowings under the unsecured credit agreement at an alternate base rate in the event that LIBOR is unavailable regardless of whether a replacement or alternative rate has been determined. The consequences of the discontinuance of LIBOR cannot be entirely predicted but could result in an increase in our cost of borrowing.

Our senior unsecured credit agreement provides an option to increase the size of our revolving credit facility and term loan by an additional $200.0 million, subject to customary conditions and approval of the lenders providing the new commitments. There can be no assurance that lenders will approve additional commitments under current circumstances. As a result of the impacts of the COVID-19 pandemic, we may be required to raise additional capital and our access to, and cost of, financing will depend on, among other things, global economic conditions, conditions in the global financing markets, the availability of sufficient amounts of financing, and our future prospects.

Net cash provided by operating activities decreased ~~$20.0~~$8.6 million to $28.1 million in the six months ended October 29, 2022, compared to $36.7 million in the six months ended October 30, ~~2021, compared to $56.7 million in the six months ended October 31, 2020.~~2021. The decrease was due to ~~higher cash outflows related to changes in operating assets and liabilities, partially offset by higher~~lower net income adjusted for non-cash items. The ~~$51.9~~$54.0 million of cash outflows for operating assets and liabilities in the six months ended October ~~30, 2021~~29, 2022 was primarily due to higher accounts receivable and inventory, ~~prepaid expenses and other assets and lower other liabilities.~~partially offset by higher accounts payable.

Net cash used in investing activities was $14.5 million in the six months ended October 29, 2022, compared to $20.7 million in the six months ended October 30, ~~2021, compared to $15.2~~2021. Capital expenditures were $18.0 million and $21.3 million in the six months ended October ~~31, 2020. Capital expenditures were $21.3 million~~29, 2022 and ~~$15.2 million in the six months ended~~ October 30, 2021, ~~and October 31, 2020,~~ respectively. We received $3.5 million and $0.6 million of cash from the sale of property, plant and equipment in the six months ended October 29, 2022 and October 30, ~~2021.~~2021, respectively.

Net cash used in financing activities was $48.7 million in the six months ended October 29, 2022, compared to $69.7 million in the six months ended October 30, ~~2021, compared to $19.2 million in the six months ended October 31, 2020.~~2021. In the six months ended October ~~30, 2021,~~29, 2022, we used ~~$42.5~~$31.6 million of cash for the purchase of shares under our share buyback ~~program.~~program, compared to $42.5 million in the six months ended October 30, 2021. We paid cash dividends of $9.9 million in the six months ended October 29, 2022, compared to $10.3 million in the six months ended October 30, ~~2021,~~2021. In the six months ended October 29, 2022, we had repayments on our borrowings of $6.5 million, compared to ~~$9.1~~$16.8 million in the six months ended October ~~31, 2020. We increased our quarterly dividend from $0.11 per share to $0.14 per share in the first quarter of fiscal 2022. In the six months ended October~~ 30, 2021, we paid $0.3 million in taxes related to the net share settlement of equity awards compared to $3.9 million in the six months ended October 31, 2020. In the six months ended October 30, 2021, we had net repayments on our borrowings of $16.8 million, compared to $6.1 million in the six months ended October 31, 2020.2021.

See Note 1, “Description of Business and Summary of Significant Accounting Policies” to the condensed consolidated financial statements included in Item 1.

For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. We became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, we terminated all of our agreements with the Fuchs companies. On June 20, 2014, we filed a lawsuit against the Fuchs companies in the Federal District Court for the Western District of Oklahoma alleging material breaches of the distribution and assembly agreements and seeking damages, as well as various forms of injunctive relief. The defendants filed counterclaims alleging breach of contract, interference with business relations and business slander. On April 2, 2015, we amended our complaint against the Fuchs companies to add additional unfair competition and Lanham Act claims and to add additional affiliated parties.

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 District 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 District Court held defendants in contempt for violating the permanent injunction and entered the final judgment. Defendants appealed entry of the final monetary judgment as well. The appeal of the permanent injunction and the appeal of the final judgment were consolidated into a single appeal before the U.S. Court of Appeals for the Tenth Circuit. On August 24, 2021, the Tenth Circuit issued a decision affirming the lower court’s ruling with the exception that it instructed the District Court to modify the injunction from the entire world to all of the countries in which Hetronic sells its products. ~~The~~On April 20 and 21, 2022, the District Court ~~has indicated that it will set~~held a hearing related to modifying the injunction pursuant to the Tenth Circuit’s ~~opinion.~~opinion, and the parties have filed post-hearing briefs. The defendants ~~have~~also filed a ~~motion~~petition for certiorari with the United States Supreme Court seeking ~~a 60-day extension~~ to ~~late January 2022 to determine if they will seek~~further appeal the extraterritorial application of the Lanham Act in this case. We opposed that petition. The Supreme Court requested the views of the Solicitor General on the petition for certiorari, and ~~if so, to file their~~the Solicitor General recommended granting the petition. On November 4, 2022, the Supreme Court granted the petition. The Supreme Court appeal currently is being briefed. No hearing date has yet been set. Like any judgment, particularly ~~any~~a judgment involving defendants outside of the United States, there is no guarantee that ~~the Company~~we will be able to collect all or any portion of the judgment.

In the ~~three~~six months ended October ~~30, 2021~~29, 2022 and October ~~31, 2020,~~30, 2021, we incurred Hetronic-related legal fees of ~~$0.3 million and $1.6 million, respectively. In the six months ended October 30, 2021 and October 31, 2020, we incurred Hetronic-related legal fees of $1.0~~$1.4 million and $3.5 million, respectively. These amounts are included in the selling and administrative expenses in the Industrial segment.

We are exposed to market risks from foreign currency exchange, interest rates, and commodity prices, which could affect our operating results, financial position and cash flows. We manage a portion of these risks through use of derivative financial instruments in accordance with our policies. We do not enter into derivative financial instruments for speculative or trading purposes.

There has been no significant change in our exposure to market risk during the six months ended October ~~30, 2021.~~29, 2022. For a discussion of our exposure to market risk, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk,” contained in our Annual Report on Form 10-K for the year ended ~~May 1, 2021.~~April 30, 2022.

As of the end of the period covered by this quarterly report on Form 10-Q, we performed an evaluation under the supervision and with the participation of the Company’s management, including our Chief Executive Officer and our Chief Financial Officer, of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934). The Company’s disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s applicable rules and forms. As a result of this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.

There have been no changes in our internal control over financial reporting during the quarter ended October ~~30, 2021~~29, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Our business, financial condition, results of operations and cash flows are subject to various ‎risks which could cause actual results to vary from recent results or from anticipated future results. There have ‎been no material changes to the risk factors previously disclosed in Part I - Item 1A, “Risk Factors” of our Form 10-K for the ‎year ended ~~May 1, 2021.~~April 30, 2022.‎

On March 31, 2021, the Board of Directors authorized the purchase of up to $100.0 million of ~~our~~the Company’s outstanding common stock ~~expiring on~~through March 31, 2023. On June 16, 2022, the Board of Directors authorized an increase in the share buyback program of an additional $100.0 million, and extended the expiration of the program to June 14, 2024. Purchases ~~under this program~~ may be made in private transactions or on the open market, ~~in private transactions or~~including pursuant to purchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934. As of October ~~30, 2021,~~29, 2022, we purchased and retired ~~$49.9~~$102.8 million of common stock since the commencement of the share buyback program.

The following table provides information about our purchases of equity securities during the three months ended October ~~30, 2021:~~29, 2022:

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Delaware	36-2090085
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
8750 West Bryn Mawr Avenue, Suite 1000, Chicago, Illinois	60631-3518
(Address of principal executive offices)	(Zip Code)


Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 Par Value	MEI	New York Stock Exchange


		Page

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Statements of Income (unaudited) - Three and Six Months Ended October ~~30, 2021~~29, 2022 and October ~~31, 2020~~30, 2021	2

	Condensed Consolidated Statements of Comprehensive Income (unaudited) - Three and Six Months Ended October 29, 2022 and October 30, 2021 ~~and October 31, 2020~~	3

	Condensed Consolidated Balance Sheets as of October ~~30, 2021~~29, 2022 (unaudited) and ~~May 1, 2021~~April 30, 2022	4

	Condensed Consolidated Statements of ~~Shareholders~~Shareholders’ Equity (unaudited) - Three and Six Months Ended October ~~30, 2021~~29, 2022 and October ~~31, 2020~~30, 2021	5

	Condensed Consolidated Statements of Cash Flows (unaudited) - Six Months Ended October ~~30, 2021~~29, 2022 and October ~~31, 2020~~30, 2021	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3132

Item 4.	Controls and Procedures	3132

PART II.	OTHER INFORMATION

Item 1A.	Risk Factors	3233

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3233

Item 6.	Exhibits	3233

SIGNATURES		3334


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	As of October 30, 2021
(in millions)	Gross		Accumulated amortization			Net		Weighted average useful life (years)
Amortized intangible assets:
Customer relationships and agreements	$	234.5	$	(49.1	)	$	185.4		15.1
Trade names, patents and technology licenses		58.5		(26.6	)		31.9		6.6
Total amortized intangible assets		293.0		(75.7	)		217.3
Unamortized trade name		1.8		—			1.8
Total other intangible assets	$	294.8	$	(75.7	)	$	219.1

	As of May 1, 2021
(in millions)	Gross		Accumulated amortization			Net		Weighted average useful life (years)
Amortized intangible assets:
Customer relationships and agreements	$	235.3	$	(42.7	)	$	192.6		15.6
Trade names, patents and technology licenses		58.7		(23.7	)		35.0		7.0
Total amortized intangible assets		294.0		(66.4	)		227.6
Unamortized trade name		1.8		—			1.8
Total other intangible assets	$	295.8	$	(66.4	)	$	229.4


(in millions)
Fiscal Year:
Remainder of 2023	$	9.3
2024		18.4
2025		17.8
2026		16.9
2027		16.3
Thereafter		116.2
Total	$	194.9

(in millions)
Fiscal Year:
Remainder of 2022	$	9.5
2023		19.1
2024		18.7
2025		18.1
2026		17.2
Thereafter		134.7
Total	$	217.3


		Asset/(Liability)							Asset/(Liability)
(in millions)	Financial Statement Caption	October 30, 2021			May 1, 2021			Financial Statement Caption	October 29, 2022			April 30, 2022
Derivatives designated as hedging instruments:
Net investment hedges								Prepaid expenses and other current assets	$	5.3		$	—
Net investment hedges	Other long-term liabilities	$	(4.0	)	$	(6.8	)	Other long-term assets	$	—		$	1.9
Interest rate swaps	Other long-term liabilities	$	—		$	(0.2	)	Prepaid expenses and other current assets	$	3.7		$	—
Interest rate swaps	Other long-term assets	$	0.4		$	—		Other long-term assets	$	—		$	3.0
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets	$	—		$	—		Prepaid expenses and other current assets	$	0.1		$	—
Foreign currency forward contracts								Other accrued liabilities	$	(0.8	)	$	(0.2	)

Period	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plan		Approximate dollar value of shares that may yet be purchased under the program (in millions)
August 1, 2021 through August 28, 2021		28,485	$	46.56		28,485	$	83.5
August 29, 2021 through October 2, 2021		631,306	$	43.03		631,306	$	56.4
October 3, 2021 through October 30, 2021		147,725	$	42.57		147,725	$	50.1


Exhibit Number		Description
~~31.1~~
10.1		Methode Electronics, Inc. 2022 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 14, 2022).
31.1		Rule 13a-14(a)/15d-14(a) Certification of Principal Executive ~~Officer~~Officer.
31.2		Rule 13a-14(a)/15d-14(a) Certification of Principal Financial ~~Officer~~Officer.
32 32*		Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350.
101.INS		Inline XBRL Instance Document*Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document*Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*Document
101.DEF		Inline XBRL Taxonomy Extension Definition Document*Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document*Document
101.PRE		Inline XBRL Taxonomy Extension ~~Presention~~Presentation Linkbase Document*Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*


*		~~Filed herewith~~Indicates that the exhibit is being furnished with this report and not filed as part of it.


		METHODE ELECTRONICS, INC.

		By:	/s/ Ronald L.G. Tsoumas
			Ronald L.G. Tsoumas
			Chief Financial Officer
			(Principal Financial Officer)

Dated:	December ~~2, 2021~~1, 2022

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company