DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION Document | 3 Months Ended | |
Aug. 02, 2014 | Sep. 02, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'METHODE ELECTRONICS INC | ' |
Entity Central Index Key | '0000065270 | ' |
Current Fiscal Year End Date | '--05-02 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 2-Aug-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 38,155,588 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Aug. 02, 2014 | 3-May-14 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $135.70 | $116.40 |
Accounts receivable, net | 156.7 | 173 |
Inventories: | ' | ' |
Finished products | 16.9 | 14.2 |
Work in process | 12.5 | 12 |
Materials | 44.7 | 45.4 |
Net inventory | 74.1 | 71.6 |
Deferred income taxes | 6.1 | 8.7 |
Prepaid expenses and other current assets | 12.9 | 12 |
TOTAL CURRENT ASSETS | 385.5 | 381.7 |
PROPERTY, PLANT AND EQUIPMENT | 324.2 | 323.6 |
Less allowances for depreciation | 224.7 | 222.4 |
Net property, plant and equipment | 99.5 | 101.2 |
GOODWILL | 12.9 | 13 |
INTANGIBLE ASSETS, net | 12.6 | 13 |
PRE-PRODUCTION COSTS | 11.6 | 10.5 |
Deferred Tax Assets, Net, Noncurrent | 37.2 | 40 |
OTHER ASSETS | 16.4 | 16.1 |
Total other long-term assets | 90.7 | 92.6 |
TOTAL ASSETS | 575.7 | 575.5 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 79.5 | 82 |
Other current liabilities | 39.5 | 37.1 |
TOTAL CURRENT LIABILITIES | 119 | 119.1 |
LONG-TERM DEBT | 38 | 48 |
OTHER LIABILITIES | 4.4 | 3.4 |
DEFERRED COMPENSATION | 6.4 | 12.8 |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock, $0.50 par value, 100,000,000 shares authorized, 38,724,526 and 38,455,853 shares issued as of October 26, 2013 and April 27, 2013, respectively | 19.7 | 19.6 |
Additional paid-in capital | 92.8 | 89.8 |
Accumulated other comprehensive income | 19.4 | 24.7 |
Treasury stock, 1,342,188 shares as of October 26, 2013 and April 27, 2013 | -11.4 | -11.4 |
Retained earnings | 287.1 | 269.2 |
TOTAL METHODE ELECTRONICS, INC. SHAREHOLDERS’ EQUITY | 407.6 | 391.9 |
Noncontrolling interest | 0.3 | 0.3 |
TOTAL EQUITY | 407.9 | 392.2 |
TOTAL LIABILITIES AND EQUITY | $575.70 | $575.50 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Aug. 02, 2014 | 3-May-14 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.50 | $0.50 |
Common stock, number of shares authorized | 100,000,000 | 100,000,000 |
Common stock, number of shares issued | 39,497,776 | 39,262,168 |
Treasury stock, number of shares | 1,342,188 | 1,342,188 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $218.10 | $167.30 |
Cost of products sold | 167.6 | 133.3 |
Gross profit | 50.5 | 34 |
Selling and administrative expenses | 22.2 | 18.9 |
Income from operations | 28.3 | 15.1 |
Interest expense, net | 0 | 0.1 |
Other expense, net | -0.1 | 0.1 |
Income before income taxes | 28.4 | 14.9 |
Income tax expense | 7 | 1.3 |
Net income | 21.4 | 13.6 |
Less: Net income/(loss) attributable to noncontrolling interest | 0 | 0 |
NET INCOME ATTRIBUTABLE TO METHODE ELECTRONICS, INC. | $21.40 | $13.60 |
Amounts per common share attributable to Methode Electronics, Inc.: | ' | ' |
Basic (in dollars per share) | $0.56 | $0.36 |
Diluted (in dollars per share) | $0.55 | $0.36 |
Cash dividends: | ' | ' |
Common stock | $0.09 | $0.07 |
Weighted average number of Common Shares outstanding: | ' | ' |
Basic | 38,464,558 | 37,552,740 |
Diluted | 38,648,204 | 38,251,312 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $21.40 | $13.60 |
Foreign currency translation adjustment | -5.3 | 2.4 |
Comprehensive income | 16.1 | 16 |
Less: Comprehensive income/(loss) attributable to non-controlling interest | 0 | 0 |
Comprehensive income attributable to Methode Electronics, Inc. | $16.10 | $16 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $21.40 | $13.60 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for depreciation | 5.6 | 5.2 |
Amortization of intangibles | 0.4 | 0.5 |
Amortization of stock awards and stock options | 1 | 1.2 |
Changes in operating assets and liabilities | 4.8 | -12 |
Other | 0 | 0.2 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 33.2 | 8.7 |
INVESTING ACTIVITIES | ' | ' |
Purchases of property, plant and equipment | -3.3 | -9.3 |
NET CASH USED IN INVESTING ACTIVITIES | -3.3 | -9.3 |
FINANCING ACTIVITIES | ' | ' |
Proceeds from exercise of stock options | 4.5 | 1 |
Cash dividends | -3.4 | -2.6 |
Proceeds from borrowings | 0 | 14.5 |
Repayment of borrowings | -10 | -5.5 |
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | -8.9 | 7.4 |
Effect of foreign currency exchange rate changes on cash | -1.7 | 0.8 |
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 19.3 | 7.6 |
Cash and cash equivalents at beginning of period | 116.4 | 65.8 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $135.70 | $73.40 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Methode Electronics, Inc. was incorporated in 1946 as an Illinois corporation and reincorporated in Delaware in 1966. As used herein, “we,” “us,” “our,” the “Company” or “Methode” means Methode Electronics, Inc. and its subsidiaries. Our business is managed and our financial results are reported on a segment basis, with those segments being Automotive, Interface (formerly known as Interconnect), Power Products and Other. The condensed consolidated financial statements and related disclosures as of August 2, 2014 and results of operations for the three months months ended August 2, 2014 and July 27, 2013 are unaudited, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The May 3, 2014 condensed consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, these financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These financial statements should be read in conjunction with the financial statements included in our Form 10-K for the year ended May 3, 2014, filed with the SEC on June 26, 2014. Results may vary from quarter to quarter for reasons other than seasonality. |
RECENTLY_ADOPTED_ACCOUNTING_PR
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Aug. 02, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In April 2014, the Financial Accounting Standards Board, ("FASB") issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance is effective for the reporting periods beginning after December 15, 2014, which will be our fourth quarter of fiscal 2015, which begins on February 1, 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements. | |
On May 28, 2014, FASB and the International Accounting Standards Board (IASB) (collectively, the "Boards") jointly issued a comprehensive new revenue recognition standard, Accounting Standards Update 2014-09 (Topic 606) that will supersede nearly all existing revenue recognition guidance under US GAAP and International Financial Reporting Standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. | |
The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. This means we will adopt this standard in the quarter beginning January 31, 2017. The Company is evaluating the impact of the adoption of this standard on the financial statements. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended | ||||||||||||||
Aug. 02, 2014 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||
We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with Accounting Standards Codification No. 350, “Intangibles — Goodwill and Other”. The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. | |||||||||||||||
The following table shows the roll-forward of goodwill in the financial statements for the three months ended August 2, 2014: | |||||||||||||||
As of August 2, 2014 | |||||||||||||||
Power | |||||||||||||||
Interface | Products | Total | |||||||||||||
Balance as of May 3, 2014 | $ | 12 | $ | 1 | $ | 13 | |||||||||
Foreign currency translation | (0.1 | ) | — | (0.1 | ) | ||||||||||
Balance as of August 2, 2014 | $ | 11.9 | $ | 1 | $ | 12.9 | |||||||||
The following tables present details of the Company’s intangible assets: | |||||||||||||||
As of August 2, 2014 | |||||||||||||||
Wtd. Avg. | |||||||||||||||
Remaining | |||||||||||||||
Accumulated | Amortization | ||||||||||||||
Gross | Amortization | Net | Periods (Years) | ||||||||||||
Customer relationships and agreements | $ | 16.6 | $ | 14.8 | $ | 1.8 | 9.6 | ||||||||
Trade names, patents and technology licenses | 25.8 | 15 | 10.8 | 9.6 | |||||||||||
Covenants not to compete | 0.1 | 0.1 | — | 3.2 | |||||||||||
Total | $ | 42.5 | $ | 29.9 | $ | 12.6 | |||||||||
As of May 3, 2014 | |||||||||||||||
Wtd. Avg. | |||||||||||||||
Remaining | |||||||||||||||
Accumulated | Amortization | ||||||||||||||
Gross | Amortization | Net | Periods (Years) | ||||||||||||
Customer relationships and agreements | $ | 16.6 | $ | 14.7 | $ | 1.9 | 9.9 | ||||||||
Trade names, patents and technology licenses | 25.8 | 14.8 | 11 | 9.8 | |||||||||||
Covenants not to compete | 0.1 | — | 0.1 | 3.4 | |||||||||||
Total | $ | 42.5 | $ | 29.5 | $ | 13 | |||||||||
The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: | |||||||||||||||
2015 | $1.50 | ||||||||||||||
2016 | 1.3 | ||||||||||||||
2017 | 1.2 | ||||||||||||||
2018 | 1.1 | ||||||||||||||
2019 | 1 | ||||||||||||||
As of August 2, 2014 and May 3, 2014, the trade names, patents and technology licenses include $1.8 million of trade names that are not subject to amortization. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Aug. 02, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
In the fourth quarter of fiscal 2014, we recorded a deferred tax benefit of $31.7 million related to the release of substantially all of our domestic valuation allowance. The Company evaluated all available positive and negative evidence, including past operating results and projection of future taxable income and determined it is more likely than not that expected future taxable income will be sufficient to utilize substantially all of our U.S. federal and state net deferred tax assets. The Company maintained a valuation allowance of $2.6 million at August 2, 2014 and May 3, 2014 related to certain state and federal net operating loss carryovers and expects to continue to maintain this allowance until we determine that these deferred tax assets are more likely than not realizable. | |
At August 2, 2014, we had available $25.0 million of federal and $93.0 million of state net operating loss carryforwards (having a tax benefit of $8.1 million and $2.7 million, respectively), $11.0 million of foreign tax credit carryforwards, and $0.6 million of research tax credit carryforwards that may be used to reduce regular federal and state income taxes. If unused, the U.S. federal net operating loss carryforwards will expire in the years 2018 through 2032. The state net operating loss carryforwards will expire in the fiscal years 2015 through 2034. The foreign tax credits will expire in the fiscal years 2019 through 2024. The research tax credits will expire in the fiscal years 2032 through 2034. | |
The tax laws of Malta provide for investment tax credits of 30% of certain qualified expenditures. Unused credits of $22.9 million as of August 2, 2014 can be carried forward indefinitely. We have accumulated investment tax credits in excess of amounts more likely than not to be realized based upon projections of taxable income to be generated by our Maltese operations within a reasonable time period. Valuation allowances of $9.3 million as of August 2, 2014 have been provided for this excess. We record investment tax credits using the "flow through" method. | |
The Company recognized an income tax provision of $7.0 million and $1.3 million for the three months ended August 2, 2014 and July 27, 2013, respectively. The Company's effective tax rate was 24.6% and 8.7% for the three months ended August 2, 2014 and July 27, 2013, respectively. The income tax provision for the three months ended August 2, 2014 and July 27, 2013 is lower than the U.S. statutory rate primarily due to foreign investment tax credits, foreign operations with lower statutory rates. | |
We recognize interest and penalties accrued related to the unrecognized tax benefits in the provision for income taxes. We had approximately $0.1 million accrued at August 2, 2014 for the payment of interest and penalties. The total unrecognized tax benefit as of August 2, 2014 was $0.7 million. There have been no changes to the accrued amounts in the current fiscal year. | |
The Company and all of its domestic subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. Our foreign subsidiaries file income tax returns in certain foreign jurisdictions since they have operations outside the U.S. The Company and its subsidiaries are generally no longer subject to U.S. federal, state and local examinations by tax authorities for all years except fiscal 2013, 2012 and 2011. |
COMMON_STOCK_AND_STOCKBASED_CO
COMMON STOCK AND STOCK-BASED COMPENSATION | 3 Months Ended | |||
Aug. 02, 2014 | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||
COMMON STOCK AND STOCK-BASED COMPENSATION | ' | |||
COMMON STOCK AND STOCK-BASED COMPENSATION | ||||
Stock Options Granted Under the 2010 Stock Plan | ||||
In July 2014, the Compensation Committee approved the grant of options to purchase 108,000 shares of our common stock to our executive officers. The stock options have a ten-year term and will vest one-third per year on each anniversary of the date of grant. The exercise price is the closing price on the date granted. | ||||
Stock Options Granted Under the 2007 Stock Plan | ||||
In July 2014, our Compensation Committee awarded options to purchase 50,500 shares of our common stock to some non-executive members of the management team that vest one-third per year on each anniversary of the date of grant. The stock options awarded under the 2007 Stock Plan have a ten-year term. The exercise price is the closing price on the date granted. | ||||
We estimated the fair value the fiscal 2015 shares granted for both the 2010 Stock Plan and the 2007 Stock Plan on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||
Fiscal 2015 | ||||
Awards | ||||
Average expected volatility | 51 | % | ||
Average risk-free interest rate | 1 | % | ||
Dividend yield | 1.66 | % | ||
Expected life of options (in years) | 4.12 | |||
Weighted-average grant-date fair value | $ | 14.99 | ||
Restricted Stock Awards Granted Under the 2007 Stock Plan | ||||
During the first quarter of fiscal 2015, we awarded 6,750 shares to our independent directors, all of which vested immediately upon grant. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 3 Months Ended | ||||||||
Aug. 02, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
NET INCOME PER SHARE | ' | ||||||||
NET INCOME PER SHARE | |||||||||
Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the applicable period. Diluted net income per share is calculated after adjusting the denominator of the basic net income per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. | |||||||||
The following table sets forth the computation of basic and diluted net income per share: | |||||||||
Three Months Ended | |||||||||
August 2, | July 27, | ||||||||
2014 | 2013 | ||||||||
Numerator - net income attributable to Methode Electronics, Inc. | $ | 21.4 | $ | 13.6 | |||||
Denominator: | — | — | |||||||
Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards | 38,464,558 | 37,552,740 | |||||||
Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units | 183,646 | 698,572 | |||||||
Denominator for diluted net income per share | 38,648,204 | 38,251,312 | |||||||
Net income per share: | |||||||||
Basic | $ | 0.56 | $ | 0.36 | |||||
Diluted | $ | 0.55 | $ | 0.36 | |||||
For the three months ended August 2, 2014 and July 27, 2013, options to purchase 158,500 shares and 162,500 shares, respectively, have been excluded in the computation of net income per share because the exercise price was greater than the average market price for that period, and therefore, would have been anti-dilutive. In addition, restricted stock awards for 700,000 shares have been excluded in the computation of diluted net income per share for both the three months ended August 2, 2014 and July 27, 2013 as these awards are contingent on the Company's performance in fiscal 2015. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||||||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||||||
We are a global manufacturer of component and subsystem devices. We design, manufacture and market devices employing electrical, electronic, wireless, sensing and optical technologies. Our components are found in the primary end markets of the automotive, appliance, communications (including information processing and storage, networking equipment, wireless and terrestrial voice/data systems), aerospace, rail and other transportation industries, and the consumer and industrial equipment markets. | |||||||||||||||||||||||||
ASC No. 280, “Segment Reporting”, establishes annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM, as defined by ASC No. 280, is the Company’s President and Chief Executive Officer (“CEO”). | |||||||||||||||||||||||||
We have multiple operating segments that are aggregated in four reportable segments. Those segments are Automotive, Interface (formerly known as Interconnect), Power Products and Other. | |||||||||||||||||||||||||
The Automotive segment supplies electronic and electromechanical devices and related products to automobile Original Equipment Manufacturers, ("OEMs"), either directly or through their tiered suppliers. Our products include control switches for electrical power and signals, connectors for electrical devices, integrated control components, switches and sensors that monitor the operation or status of a component or system, and packaging of electrical components as well as design and manufacturer of magnetic torque sensing products. | |||||||||||||||||||||||||
The Interface segment was previously known as the Interconnect segment. It provides a variety of copper and fiber-optic interconnect and interface solutions for the aerospace, appliance, commercial, computer, construction, consumer, material handling, medical, military, mining, networking, storage, and telecommunications markets. Solutions include conductive polymers, connectors, custom cable assemblies, industrial safety radio remote controls, optical and copper transceivers, personal computer and express card packaging and terminators, solid-state field effect interface panels, and thick film inks. Services include the design and installation of fiber optic and copper infrastructure systems, and manufacturing active and passive optical components. | |||||||||||||||||||||||||
The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, high-current low voltage flexible power cabling systems and powder coated bus bars that are used in various markets and applications, including aerospace, computers, industrial and power conversion, military, telecommunications, and transportation. | |||||||||||||||||||||||||
The Other segment includes medical devices, inverters and battery systems, insulated gate bipolar transistor solutions, and independent laboratories that provide services for qualification testing and certification, and analysis of electronic and optical components. | |||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended May 3, 2014. We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. | |||||||||||||||||||||||||
The following tables present information regarding our segments. The reporting segment results for the three months ended July 27, 2013 have been reclassified to conform with the new reporting segment presentation for the three months ended August 2, 2014. | |||||||||||||||||||||||||
Three Months Ended August 2, 2014 | |||||||||||||||||||||||||
Automotive | Interface | Power | Other | Eliminations/Corporate | Consolidated | ||||||||||||||||||||
Products | |||||||||||||||||||||||||
Net sales | $ | 156.8 | $ | 44.6 | $ | 16.3 | $ | 1.6 | $ | (1.2 | ) | $ | 218.1 | ||||||||||||
Transfers between segments | (0.5 | ) | (0.6 | ) | (0.1 | ) | — | 1.2 | — | ||||||||||||||||
Net sales to unaffiliated customers | $ | 156.3 | $ | 44 | $ | 16.2 | $ | 1.6 | $ | — | $ | 218.1 | |||||||||||||
Income (loss) from operations | $ | 27.3 | $ | 7 | $ | 3 | $ | (1.9 | ) | $ | (7.1 | ) | $ | 28.3 | |||||||||||
Other income, net | (0.1 | ) | |||||||||||||||||||||||
Income before income taxes | $ | 28.4 | |||||||||||||||||||||||
Three Months Ended July 27, 2013 | |||||||||||||||||||||||||
Automotive | Interface | Power | Other | Eliminations/Corporate | Consolidated | ||||||||||||||||||||
Products | |||||||||||||||||||||||||
Net sales | $ | 104.1 | $ | 44.9 | $ | 17.3 | $ | 1.8 | $ | (0.8 | ) | $ | 167.3 | ||||||||||||
Transfers between segments | (0.3 | ) | (0.6 | ) | — | — | 0.9 | — | |||||||||||||||||
Net sales to unaffiliated customers | $ | 103.8 | $ | 44.3 | $ | 17.3 | $ | 1.8 | $ | 0.1 | $ | 167.3 | |||||||||||||
Income/(loss) from operations | $ | 12 | $ | 7.9 | $ | 2.9 | $ | (0.6 | ) | $ | (7.1 | ) | $ | 15.1 | |||||||||||
Interest expense, net | 0.1 | ||||||||||||||||||||||||
Other expense, net | 0.1 | ||||||||||||||||||||||||
Income before income taxes | $ | 14.9 | |||||||||||||||||||||||
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Aug. 02, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
Certain litigation arising in the normal course of business is pending against us. We are from time to time subject to various legal actions and claims incidental to our business, including those arising out of alleged defects, breach of contracts, employment-related matters and environmental matters. We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. Although the outcome of potential legal actions and claims cannot be determined, it is our opinion, based on the information available, that we have adequate reserves for these liabilities. | |
Hetronic Germany-GmbH Matters | |
For several years, Hetronic Germany-GmbH and Hydronic-Steuersysteme-GmbH (the “Fuchs companies”) served as our distributors for Germany, Austria and other central and eastern European countries pursuant to their respective intellectual property licenses and distribution and assembly agreements. We recently became aware that the Fuchs companies and their managing director, Albert Fuchs, had materially violated those agreements. As a result, we have terminated all of our agreements with the Fuchs companies. On June 6, 2014, we filed a proceeding in Germany against the Fuchs companies and Mr. Fuchs seeking a preliminary injunction to prevent them from using the Hetronic name or trademark due to their material breaches of the intellectual property licenses. On June 20, 2014, we filed a separate 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. We are seeking damages from the defendants, as well as various forms of injunctive relief. |
PREPRODUCTION_COSTS_RELATED_TO
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | 3 Months Ended |
Aug. 02, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' |
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | ' |
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS | |
We incur pre-production tooling costs related to certain products produced for our customers under long-term supply agreements. We had $11.6 million and $10.5 million as of August 2, 2014 and May 3, 2014, respectively, of pre-production tooling costs related to customer-owned tools for which reimbursement is contractually guaranteed by the customer or for which the customer has provided a non-cancelable right to use the tooling. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. |
DEBT_AND_CREDIT_AGREEMENT
DEBT AND CREDIT AGREEMENT | 3 Months Ended |
Aug. 02, 2014 | |
Debt Disclosure [Abstract] | ' |
DEBT AND CREDIT AGREEMENT | ' |
DEBT AND CREDIT AGREEMENT | |
We are party to an Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, and certain other financial institutions, which has a maturity of September 21, 2017. The credit facility is in the aggregate principal amount of $100.0 million, with an option to increase the principal amount by an additional $50.0 million, subject to customary conditions and approval of the lender(s) providing new commitment(s). The credit facility provides for variable rates of interest based on the type of borrowing and the Company's debt to EBITDA financial ratio. The Amended and Restated Credit Agreement is guaranteed by certain of our U.S. subsidiaries. At August 2, 2014, the interest rate on the credit facility was 1.5% plus LIBOR. At August 2, 2014, we were in compliance with the covenants of the agreement. During the first three months of fiscal 2015, we had no borrowings and payments of $10.2 million, which includes interest of $0.2 million under this credit facility. As of August 2, 2014, there were outstanding balances against the credit facility of $38.0 million. There was $62.0 million available to borrow under the credit facility as of August 2, 2014, which does not include the option to increase the principal amount. We believe the fair value approximates the carrying amount as of August 2, 2014. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Aug. 02, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Goodwill and Intangible Assets, Policy | ' |
We review our goodwill and other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable, and at least annually in accordance with Accounting Standards Codification No. 350, “Intangibles — Goodwill and Other”. The values assigned to goodwill and intangible assets are normally based on estimates and judgments regarding expectations for the success and life cycle of products and technologies acquired. A severe decline in expectations could result in significant impairment charges, which could have a material adverse effect on our financial condition and results of operations. | |
Earnings Per Share, Policy | ' |
Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding for the applicable period. Diluted net income per share is calculated after adjusting the denominator of the basic net income per share calculation for the effect of all potentially dilutive stock compensation awards outstanding during the period. | |
Segment Reporting, Policy | ' |
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in our Form 10-K for the fiscal year ended May 3, 2014. We allocate resources to segments based on operating income. Transfers between segments are recorded using internal transfer prices set by us. | |
Commitments and Contingencies, Policy | ' |
We consider insurance coverage and third-party indemnification when determining required accruals for pending litigation and claims. |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended | ||||||||||||||
Aug. 02, 2014 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||
The following table shows the roll-forward of goodwill in the financial statements for the three months ended August 2, 2014: | |||||||||||||||
As of August 2, 2014 | |||||||||||||||
Power | |||||||||||||||
Interface | Products | Total | |||||||||||||
Balance as of May 3, 2014 | $ | 12 | $ | 1 | $ | 13 | |||||||||
Foreign currency translation | (0.1 | ) | — | (0.1 | ) | ||||||||||
Balance as of August 2, 2014 | $ | 11.9 | $ | 1 | $ | 12.9 | |||||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | ' | ||||||||||||||
The following tables present details of the Company’s intangible assets: | |||||||||||||||
As of August 2, 2014 | |||||||||||||||
Wtd. Avg. | |||||||||||||||
Remaining | |||||||||||||||
Accumulated | Amortization | ||||||||||||||
Gross | Amortization | Net | Periods (Years) | ||||||||||||
Customer relationships and agreements | $ | 16.6 | $ | 14.8 | $ | 1.8 | 9.6 | ||||||||
Trade names, patents and technology licenses | 25.8 | 15 | 10.8 | 9.6 | |||||||||||
Covenants not to compete | 0.1 | 0.1 | — | 3.2 | |||||||||||
Total | $ | 42.5 | $ | 29.9 | $ | 12.6 | |||||||||
As of May 3, 2014 | |||||||||||||||
Wtd. Avg. | |||||||||||||||
Remaining | |||||||||||||||
Accumulated | Amortization | ||||||||||||||
Gross | Amortization | Net | Periods (Years) | ||||||||||||
Customer relationships and agreements | $ | 16.6 | $ | 14.7 | $ | 1.9 | 9.9 | ||||||||
Trade names, patents and technology licenses | 25.8 | 14.8 | 11 | 9.8 | |||||||||||
Covenants not to compete | 0.1 | — | 0.1 | 3.4 | |||||||||||
Total | $ | 42.5 | $ | 29.5 | $ | 13 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||
The estimated aggregate amortization expense for the current fiscal year and each of the four succeeding fiscal years is as follows: | |||||||||||||||
2015 | $1.50 | ||||||||||||||
2016 | 1.3 | ||||||||||||||
2017 | 1.2 | ||||||||||||||
2018 | 1.1 | ||||||||||||||
2019 | 1 | ||||||||||||||
COMMON_STOCK_AND_STOCKBASED_CO1
COMMON STOCK AND STOCK-BASED COMPENSATION (Tables) (2010 and 2007 Stock Plans) | 3 Months Ended | |||
Aug. 02, 2014 | ||||
2010 and 2007 Stock Plans | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |||
Fair value assumptions for shares granted under stock plans | ' | |||
We estimated the fair value the fiscal 2015 shares granted for both the 2010 Stock Plan and the 2007 Stock Plan on the date of grant using the Black-Scholes option-pricing model with the following assumptions: | ||||
Fiscal 2015 | ||||
Awards | ||||
Average expected volatility | 51 | % | ||
Average risk-free interest rate | 1 | % | ||
Dividend yield | 1.66 | % | ||
Expected life of options (in years) | 4.12 | |||
Weighted-average grant-date fair value | $ | 14.99 | ||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 3 Months Ended | ||||||||
Aug. 02, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
The following table sets forth the computation of basic and diluted net income per share: | |||||||||
Three Months Ended | |||||||||
August 2, | July 27, | ||||||||
2014 | 2013 | ||||||||
Numerator - net income attributable to Methode Electronics, Inc. | $ | 21.4 | $ | 13.6 | |||||
Denominator: | — | — | |||||||
Denominator for basic net income per share-weighted average shares outstanding and vested/unissued restricted stock awards | 38,464,558 | 37,552,740 | |||||||
Dilutive potential common shares-employee and director stock options, restricted stock awards and restricted stock units | 183,646 | 698,572 | |||||||
Denominator for diluted net income per share | 38,648,204 | 38,251,312 | |||||||
Net income per share: | |||||||||
Basic | $ | 0.56 | $ | 0.36 | |||||
Diluted | $ | 0.55 | $ | 0.36 | |||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Aug. 02, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||||||||||
The following tables present information regarding our segments. The reporting segment results for the three months ended July 27, 2013 have been reclassified to conform with the new reporting segment presentation for the three months ended August 2, 2014. | |||||||||||||||||||||||||
Three Months Ended August 2, 2014 | |||||||||||||||||||||||||
Automotive | Interface | Power | Other | Eliminations/Corporate | Consolidated | ||||||||||||||||||||
Products | |||||||||||||||||||||||||
Net sales | $ | 156.8 | $ | 44.6 | $ | 16.3 | $ | 1.6 | $ | (1.2 | ) | $ | 218.1 | ||||||||||||
Transfers between segments | (0.5 | ) | (0.6 | ) | (0.1 | ) | — | 1.2 | — | ||||||||||||||||
Net sales to unaffiliated customers | $ | 156.3 | $ | 44 | $ | 16.2 | $ | 1.6 | $ | — | $ | 218.1 | |||||||||||||
Income (loss) from operations | $ | 27.3 | $ | 7 | $ | 3 | $ | (1.9 | ) | $ | (7.1 | ) | $ | 28.3 | |||||||||||
Other income, net | (0.1 | ) | |||||||||||||||||||||||
Income before income taxes | $ | 28.4 | |||||||||||||||||||||||
Three Months Ended July 27, 2013 | |||||||||||||||||||||||||
Automotive | Interface | Power | Other | Eliminations/Corporate | Consolidated | ||||||||||||||||||||
Products | |||||||||||||||||||||||||
Net sales | $ | 104.1 | $ | 44.9 | $ | 17.3 | $ | 1.8 | $ | (0.8 | ) | $ | 167.3 | ||||||||||||
Transfers between segments | (0.3 | ) | (0.6 | ) | — | — | 0.9 | — | |||||||||||||||||
Net sales to unaffiliated customers | $ | 103.8 | $ | 44.3 | $ | 17.3 | $ | 1.8 | $ | 0.1 | $ | 167.3 | |||||||||||||
Income/(loss) from operations | $ | 12 | $ | 7.9 | $ | 2.9 | $ | (0.6 | ) | $ | (7.1 | ) | $ | 15.1 | |||||||||||
Interest expense, net | 0.1 | ||||||||||||||||||||||||
Other expense, net | 0.1 | ||||||||||||||||||||||||
Income before income taxes | $ | 14.9 | |||||||||||||||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Aug. 02, 2014 |
Goodwill [Roll Forward] | ' |
Beginning balance | $13 |
Foreign currency translation | -0.1 |
Ending balance | 12.9 |
Interconnect | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 12 |
Foreign currency translation | -0.1 |
Ending balance | 11.9 |
Power Products | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 1 |
Foreign currency translation | 0 |
Ending balance | $1 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Aug. 02, 2014 | 3-May-14 |
Intangible Assets [Line Items] | ' | ' |
Gross | $42.50 | $42.50 |
Accumulated Amortization | 29.9 | 29.5 |
Net | 12.6 | 13 |
Indefinite-lived trade names | 1.8 | 1.8 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' |
2014 | 1.5 | ' |
2015 | 1.3 | ' |
2016 | 1.2 | ' |
2017 | 1.1 | ' |
2018 | 1 | ' |
Customer relationships and agreements | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Gross | 16.6 | 16.6 |
Accumulated Amortization | 14.8 | 14.7 |
Net | 1.8 | 1.9 |
Finite-Lived Intangible Assets, Weighted Average Remaining Amortization Period | '9 years 7 months 15 days | '9 years 10 months 18 days |
Trade names, patents and technology licences | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Gross | 25.8 | 25.8 |
Accumulated Amortization | 15 | 14.8 |
Finite-Lived Intangible Assets, Weighted Average Remaining Amortization Period | '9 years 7 months 18 days | '9 years 9 months 18 days |
Net | 10.8 | 11 |
Covenants not to compete | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Gross | 0.1 | 0.1 |
Accumulated Amortization | 0.1 | 0 |
Net | $0 | $0.10 |
Finite-Lived Intangible Assets, Weighted Average Remaining Amortization Period | '3 years 2 months 0 days | '3 years 5 months 0 days |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Aug. 02, 2014 | 3-May-14 | Jul. 27, 2013 |
Valuation Allowance [Line Items] | ' | ' | ' |
Deferred Federal and State income tax expense (benefit) | ' | $31.70 | ' |
Federal tax expense (benefit) | -8.1 | ' | ' |
State tax expense (benefit) | -2.7 | ' | ' |
Research tax credit carryforwards | 0.6 | ' | ' |
Income tax expense | 7 | ' | 1.3 |
Effective income tax rate | 24.60% | ' | 8.70% |
Unrecognized tax benefits, income tax penalties and interest accrued | 0.1 | ' | ' |
Total unrecognized tax benefit | 0.7 | ' | ' |
Change in unrecognized tax benefits | 0 | ' | ' |
Malta | Investment Tax Credit Carryforward | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Investment tax credit on qualified expenditures, percent | 30.00% | ' | ' |
Unused credits | 22.9 | ' | ' |
Valuation allowance | 9.3 | ' | ' |
Federal | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Operating loss carryforwards | 25 | ' | ' |
State | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Operating loss carryforwards | 93 | ' | ' |
Foreign | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Operating loss carryforwards | 11 | ' | ' |
Domestic federal and state | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowances against deferred tax assets | $2.60 | $2.60 | ' |
COMMON_STOCK_AND_STOCKBASED_CO2
COMMON STOCK AND STOCK-BASED COMPENSATION (Details) | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2014 | Aug. 02, 2014 | |
2010 Stock Plan | 2007 Stock Plan | 2007 Stock Plan | |
Stock options | Stock options | Restricted Stock Awards (RSA's) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Annual award vesting percentage | 33.30% | 33.30% | ' |
Awarded (in shares) | ' | ' | 6,750 |
Granted (in shares) | 108,000 | 50,500 | ' |
Award expiration period | '10 years | '10 years | ' |
COMMON_STOCK_AND_STOCKBASED_CO3
COMMON STOCK AND STOCK-BASED COMPENSATION - Stock Options Valuation Assumptions and Methodology (Details) (2010 and 2007 Stock Plans, Stock options, USD $) | 3 Months Ended |
Aug. 02, 2014 | |
2010 and 2007 Stock Plans | Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Average expected volatility | 51.00% |
Average risk-free interest rate | 1.00% |
Dividend yield | 1.66% |
Expected life of options (in years) | '4 years 1 month 14 days |
Weighted-average grant-date fair value | $14.99 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Numerator - net income attributable to Methode Electronics, Inc. | $21.40 | $13.60 |
Denominator for basic net income per share - weighted average shares | 38,464,558 | 37,552,740 |
Dilutive potential common shares | 183,646 | 698,572 |
Denominator for diluted net income per share - adjusted weighted average shares and assumed conversions | 38,648,204 | 38,251,312 |
Net income per share - basic (in dollars per share) | $0.56 | $0.36 |
Net income per share - diluted (in dollars per share) | $0.55 | $0.36 |
Stock options excluded because exercise price was greater than the average market price for the period | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 158,500 | 162,500 |
Stock options excluded because these shares are contingent on the Company's performance in fiscal 2015 | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | 700,000 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Aug. 02, 2014 | Jul. 27, 2013 |
segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 4 | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | ' | $167.30 |
Net sales to unaffiliated customers | 218.1 | 167.3 |
Income (loss) from operations | 28.3 | 15.1 |
Interest expense, net | 0 | 0.1 |
Other expense, net | -0.1 | 0.1 |
Income/(loss) before income taxes | 28.4 | 14.9 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 218.1 | ' |
Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 0 | 0 |
Automotive | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales to unaffiliated customers | 156.3 | 103.8 |
Income (loss) from operations | 27.3 | 12 |
Automotive | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 156.8 | 104.1 |
Automotive | Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 0.5 | 0.3 |
Interconnect | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales to unaffiliated customers | 44 | 44.3 |
Income (loss) from operations | 7 | 7.9 |
Interconnect | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 44.6 | 44.9 |
Interconnect | Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 0.6 | 0.6 |
Power Products | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales to unaffiliated customers | 16.2 | 17.3 |
Income (loss) from operations | 3 | 2.9 |
Power Products | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 16.3 | 17.3 |
Power Products | Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 0.1 | 0 |
Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales to unaffiliated customers | 1.6 | 1.8 |
Income (loss) from operations | -1.9 | -0.6 |
Other | Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 1.6 | 1.8 |
Other | Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 0 | 0 |
Eliminations/Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | -1.2 | -0.8 |
Net sales to unaffiliated customers | 0 | 0.1 |
Income (loss) from operations | -7.1 | -7.1 |
Eliminations/Corporate | Segment Reconciling Items | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | ($1.20) | ($0.90) |
PREPRODUCTION_COSTS_RELATED_TO1
PRE-PRODUCTION COSTS RELATED TO LONG-TERM SUPPLY ARRANGEMENTS (Details) (USD $) | Aug. 02, 2014 | 3-May-14 |
In Millions, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Pre-production costs | $11.60 | $10.50 |
DEBT_AND_CREDIT_AGREEMENT_Deta
DEBT AND CREDIT AGREEMENT (Details) (USD $) | 3 Months Ended |
Aug. 02, 2014 | |
Line of Credit Facility [Line Items] | ' |
Debt payments | $10,200,000 |
Line of credit | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 100,000,000 |
Possible increase of maximum borrowing capacity subject to customary conditions and lender approval | 50,000,000 |
Basis spread on LIBOR variable rate | 1.50% |
Variable interest rate description | 'LIBOR |
Increase, additional borrowings | 0 |
Interest expense | 200,000 |
Amount outstanding | 38,000,000 |
Remaining borrowing capacity | $62,000,000 |